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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mizuho Hldgs | LSE:MZO | London | Ordinary Share | JP3885800007 | SHS COM STK NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.00 | - |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:2100E
Mizuho Holdings Inc
25 November 2002
Mizuho Holdings, Inc.
November 25, 2002
Consolidated Financial Statements for the First Half of Fiscal 2002
Company name: Mizuho Holdings, Inc. ("MHHD")
Stock code number: 8305
URL: http://www.mizuho-fg.co.jp/english
Stock Exchanges: Tokyo Stock Exchange (First Section), Osaka Securities
Exchange (First Section)
Address: 6-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8208,
Japan
Representative: Name: Terunobu Maeda
Title: President & CEO
For inquiry: Name: Osamu Hatakeyama
Title: General Manager, Accounting Department
Phone: 03-5224-2030
Date of Approval by the Board of Directors; November 25, 2002
Trading Accounts: Established
US GAAP: Not applied
1. Financial Highlights for the First Half of Fiscal 2002 (from April 1, 2002
to September 30, 2002
(1) Consolidated Operating Results Amounts less than one million yen are rounded down.
Net Net Income per
Ordinary Income Ordinary Net Income/Loss Income/Loss share of
Profits/Loss per Share of Common Stock
Common Stock Assuming
Dilution
Y million % Y million % Y million % Y Y
First Half of Fiscal 2002 1,809,113 (34.8) 122,232 ---- 39,029 ---- 4,139.97 3,234.08
First Half of Fiscal 2001 2,773,713 (17.2) (391,022)---- (264,637) ---- (28,753.61 ----
Fiscal 2001 5,182,183 (9.9) 1,349,850 ---- (976,044 ---- (108,003.27) ----
Note: 1.Equity in Earnings (Losses) from Investments in Affiliates
First Half of Fiscal 2002 Y(6,875)million, First Half of Fiscal 2001 Y(1,089)million,
Fiscal 2001 Y (6,771)million
2. Average Outstanding Balance of Stocks (consolidated basis)
First Half of Fiscal 2002 9,427,485 shares, First Half of Fiscal 2001 9,203,618 shares,
Fiscal 2001 9,240,697 shares
3. Change of Accounting Method: None
4. Percentages on the above table represent changes of Operating Income, Net Operating Income, Ordinary Profits and
Net Income to the respective amounts of the corresponding period of the previous year.
(2) Consolidated Financial Conditions
Total Total Total Consolidated
Total Assets Shareholders' Shareholders' Shareholders' Risk-based Capital
Equity Equity Equity per Share Ratio
to Total Assets of Common Stock (BIS Capital
Ratio)
Y million Y million % Y %
First Half of Fiscal 2002 143,047,455 3,715,697 2.6 187,411.97 10.42(*)
First Half of Fiscal 2001 163,736,959 5,301,350 3.2 347,158.69 10.53
Fiscal 2001 151,312,427 4,731,420 3.1 295,093,14 10.56
* Tentative figure
Note: Outstanding balance of Shares at End of Term (Consolidated)
First Half of Fiscal 2002 9,426,810 shares, First Half of Fiscal 2001 9,203,621 shares, Fiscal 2001 9,428,955 shares
(3) Conditions of Consolidated Cash Flows
Cash Flows from Cash Flows from Cash Flows from Cash & Cash Equivalents
Operating Activities Investing Activities Financing Activities at End of Period
Y million Y million Y million Y million
First Half of Fiscal 2002 (1,968,482) (2,022,088) (429,490) 5,426,647
First Half of Fiscal 2001 1,151,524 (267,101) (242,025) 2,869,251
Fiscal 2001 6,776,438 1,530,751 (697,401) 9,847,366
(4) Scope of Consolidation and Application of the Equity Method
Number of Consolidated Subsidiaries: 160
Non-consolidated subsidiaries accounted for by the Equity Method: 0
Affiliates accounted for by the Equity Method: 34
(5) Change in Scope of Consolidation and application of the Equity Method
Consolidation Newly Consolidated: 7 Equity method Newly Applied: 6
Excluded: 18 Excluded: 2
2. Consolidated Earnings Performance Projection for the Fiscal Year ending
March 31, 2003 (from April 1, 2002 to March 31, 2003)
Ordinary Income Ordinary Profits Net Income
Y million Y million Y million
Fiscal 2002 3,500,000 (210,000) (220,000)
Note: Net Income per Share of Common Stock (fiscal 2002 projection): Y (25,669.41) (Consolidated Basis)
The above projection is based on information which is available at this moment, and assumptions of uncertain factors
which may have an influence on future operating results. Actual results may differ materially from this projection,
depending on future events.
(Reference)
Calculation formulae for indices
(1) Formula for indices - Financial Data for the First Half of Fiscal 2002
a. Net Income/Loss per Share of Common Stock
Net Income - Cash Dividends Declared (Preferred Stock)
------------------------------------------------------
Average Outstanding Shares of Common Stock (*)
b. Net Income/Loss per Share of Common Stock Assuming Dilution
Net Income - Cash Dividends Declared (Preferred Stock)+Adjustment to Net Income
-----------------------------------------------------------------------------------
Average Outstanding Shares of Common Stock (*) + Number of Shares Assuming Dilution
c. Total Shareholders' Equity to Total Assets
Total Shareholders' Equity
------------------------------------------------------------------------------------------------x100
Total Debt + Stock held by Minority Shareholders + Shareholders' Equity (September 30, 2002)
d. Total Shareholders' Equity per Share of Common Stock
Total Shareholders' Equity - Shares of Preferred Stock X Issue Price
------------------------------------------------------------------------
Shares of Common Stock (*)
(2) Formula for index - Forecast for the Fiscal Year ending March 31, 2003
Net Income per Share of Common Stock (Fiscal 2002 forecast)
Net Income (forecast) - Cash Dividends (Preferred Stock) (forecast)
-------------------------------------------------------------------
Shares of Common Stock (*)
* Excluding Treasury Stock and Shares of Parent Company held by subsidiaries.
1. Organization structure of Mizuho Financial Group (MHFG)
The Mizuho Financial Group provides financial services; such as Banking as main business, Securities business, Trust and
Asset Management services business.
Of the major domestic subsidiaries, the following companies are listed on Japanese domestic stock exchanges.
Company Name Location Main Business Ownership Listed Stock Exchanges
Percentage
Mizuho Asset Trust & Chuo-Ku, Trust and Banking 61.5 Tokyo Stock Exchange (First Section)
Banking Co., Ltd. Tokyo Business (61.5) Osaka Securities Exchange (First Section)
Mizuho Investors Chuo-Ku, Securities Business 66.5 Tokyo Stock Exchange (First Section)
Securities Co., Ltd. Tokyo (66.5) Osaka Securities Exchange (First Section)
Nagoya Stock Exchange(First Section)
1. ( ) : Percentage interest held by subsidiaries
2. "Ownership Percentage" for Mizuho Asset Trust & Banking Co., Ltd. includes 300,000 voting rights, which arise from
First Series Class I Preferred Stock, and 800,000 voting rights, which arise from Third Series Class II Preferred
Stock in accordance with provisional clause of Article 242, paragraph 1 of the Commercial Code of Japan.
2. Management Policies
(1) Management Policies
Through the corporate split and merger process, on April 1, 2002, Mizuho Financial Group consolidated and reorganized
The Dai-Ichi Kangyo Bank, Limited, The Fuji Bank, Limited and The Industrial Bank of Japan, Limited (collectively, the
"3 banks") under Mizuho Holdings, Inc. (MHHD), a holding company for the 3 banks, to form Mizuho Bank, Ltd., whose main
customers are individuals, domestic corporations and local public organizations, and Mizuho Corporate Bank, Ltd., whose
main customers are large corporations, financial institutions and their group companies, public organizations (national
government entities) and overseas customers.
In addition, MHFG's second tier subsidiaries, Mizuho Securities Co., Ltd and Mizuho Trust & Banking Co., Ltd., became
directly owned subsidiaries of MHHD. As a result of this, MHFG launched its new business structure with the four
companies referred to above as the core of the revitalized MHFG.
MHFG will offer the highest-quality financial services to its customers by further enhancing the specialized
capabilities of each group company. It aims to be a comprehensive financial services institution which can meet its
customers' various needs by strengthening the synergy among the group companies. In order to achieve this, MHFG manages
the group companies according to customer segments while they continue to function as legally separate entities. Through
the transactions carried out by these companies, MHFG hopes to achieve management commensurate with its business size
and scope, and will be poised to respond flexibly and promptly to changes in its business environment such as structural
shifts in the economy, in the financial, as well as other markets.
With this structure, MHHD will manage its business through a variety of activities such as planning group strategy and
business portfolio strategy, enhancement to attain synergy among the group companies, strengthening risk management,
compliance and internal audit and other activities to promote the full potential of MHFG on a group-wide basis.
(2) Policy on Profit Distribution
MHHD intends to decide dividend policy considering its operational performance, while bearing in mind the need to
increase retained earnings from the viewpoint of sound financial position.
(3) Issues to be Resolved
MHFG deeply apologizes for inconveniencing its customers as a result of computer system disruptions such as delays in
the processing of automatic debit transactions and trouble with its ATM services that occurred when MHBK and MHCB
launched their new operations on April 1, 2002. After the disruptions occurred, MHHD, MHBK and MHCB formed an emergency
task force to bring their systems and operations back in order. At the same time, MHFG strived to solve the cause of the
disruption using all the resources of the entire group. The personnel of the group companies are doing their best to
regain their customers' trust by taking measures to avoid further disruption in operations and systems, and by improving
their internal control structure.
MHFG will strive to build a new corporate culture and improve motivation of it's managements and employees through the
new Mizuho Group-wide Code of Conduct, the new performance review system including 360 Degree Performance Feedback, and
more appropriate alignment of human resources in accordance with identified needs.
With respect to financial performance and condition, from the perspective of maintaining sound asset quality, MHBK and
MHCB aim to resolve quickly the non-performing loan issue by conducting a strict self-assessment, accruing proper
reserves and write-offs, and building an internal structure to implement corporate rehabilitation, reconstruction and
resolution. MHFG will focus on corporate rehabilitation and reconstruction in particular in order to support the
recovery of corporations from the viewpoint of avoiding any new non-performing loans by establishing Business Advisory
Office in Mizuho Bank, Ltd in July 2002 and Corporate Restructuring Division No.1-5 and International Corporate
Restructuring Division in Mizuho Corporate Bank in October 2002 and assigning personnel with appropriate knowledge and
expertise to these departments.
MHFG also aims to meet the requirement for the limitation of stocks held on a consolidated basis a year earlier than
mandated, by September 2003, by reducing stockholdings in order to build a sound corporate structure not affected by
stock price fluctuations.
Furthermore, MHFG will proceed to strengthen its business base and to seek new opportunities to earn profits mainly by
increasing non-interest income and improving asset efficiency, as well as by reducing expenses through thorough
restructuring.
Specifically, MHFG will establish diversified revenue sources through increasing non-interest income by strengthening
its capabilities in fee-generating businesses such as advisory and arranger services, and CMS, and being active in
providing syndicated loans and project financing, MHFG is also aiming to improve asset efficiency by reducing less
profitable and inefficient assets and increasing securitization of loans. With respect to the securities and investment
banking businesses, and the asset management and trust businesses, MHFG considers these as strategically vital
businesses and is making an effort to improve the quality of financial services and attain synergy among the group
companies by enhancing their relationship within MHFG. MHFG will pursue efficiency in these areas and will develop these
businesses as its core sources of revenue.
In response to the changing needs of our customers, the group companies of MHFG have been working together to increase
the diversity of available products. For example, Mizuho Bank, Ltd., Mizuho Corporate Bank, Ltd., Mizuho Asset Trust &
Banking Co., Ltd. and Mizuho Investors Securities, Ltd. are expanding joint-branches and Mizuho Bank Ltd. started
distributing investment-type annuity products (variable annuity products). Also, as Japanese companies continue to
expand in other Asian markets, especially China, MHFG continues to take the necessary actions to enhance our financial
services in these regions.
Furthermore, MHFG will strive to realize synergy effect of our merger and enhance its management and renovate its cost
structure by the thorough complete restructuring of various areas, paying attention to maintaining convenience for its
customers. The management and employees of MHFG will continue their sincere effort to regain their customers' trust and
improving our performance through offering prompt and comprehensive high value-added financial services.
3. Consolidated Results of Operations
(1) For this interim period (From April 1, 2002 to September 30, 2002)
a. Scope of Consolidation
As discussed in BASIS FOR PRESENTATION AND PRINCIPLES OF CONSOLIDATION section of this document, the number of
subsidiaries included in the consolidated financial statements for the first half of fiscal 2002 was 160, decreasing by
11 from the end of fiscal 2001. The number of companies accounted for by the equity method was 34, increasing by 4 from
the end of fiscal 2001.
b. Results of Operations
Ordinary Income, Ordinary Profit and Net Income for the first half of fiscal 2002 were Y1,809.1 billion,
Y 122.2 billion and Y39.0 billion, respectively.
Net Interest Income was Y654.6 billion, decreasing by Y91.6 billion from the corresponding interim period of fiscal
2001, as a result of the weak demands for fund in the domestic market etc.
Net Fiduciary Income was Y22.5 billion, increasing by Y0.4 billion from the corresponding interim period of
fiscal 2003. Net Fee and Commissions Income was Y180.7 billion, decreasing by Y36.9 billion from the
corresponding interim period of fiscal 2001, mainly due to the decrease in remittance commission.
Net Trading Income was Y123.6 billion, increasing by Y23.6 billion from the corresponding interim period of fiscal 2001,
mainly by the increase in Net Gains on Derivatives for Trading Transactions, etc. Net Other Operating Income was Y116.7
billion, decreasing by 34.6 billion from the corresponding interim period of fiscal 2001.
As a result, Consolidated Gross Profits was Y1,098.3 billion, decreasing by Y139.1 billion from the corresponding
interim period of fiscal 2001.
General and Administrative Expenses amounted to Y651.5 billion, increasing by Y13.6 billion from the corresponding
interim period of fiscal 2001, mainly due to the increase in depreciation expenses, although personnel expenses
decreased.
Credit Related Costs amounted to Y300.7 billion, decreasing by Y736.8 billion from the corresponding interim period of
fiscal 2001, resulting from deceleration of arising new problem loans and decrease in loan balances to be provided
reserves.
Net Losses Related to Stocks and Other Securities amounted to Y55.3 billion, decreasing by Y120.9 billion from the
corresponding interim period of fiscal 2001, mainly as a result of the devaluation of stocks amounting to Y76.3 billion
due to sags in stock markets.
Consolidated Ordinary Profit amounted to Y122.2 billion, increasing by Y513.2 billion from the corresponding interim
period of fiscal 2001, which are comprised of Consolidated Gross Profit, General and Administrative Expenses, Credit
Related Costs, Net Gains/Losses Related to Stocks and Other Securities, Equity in Losses from Investments in Affiliates
and so on.
Net Extraordinary Loss was Y23.0 billion, mainly due to the amortization of unrecognized net obligation at date of
initial application of the new accounting standard for employee retirement benefits.
Income before Income Taxes and Minority Interests was Y99.1 billion by reflecting Net Extraordinary Gains/Loss to
Consolidated Ordinary Profit.
Net Profit was Y39.0 billion by reflecting "income Tax Expenses-Current", "income Tax Expenses-Deferred" and "minority
Interests in Net Income" to "income before Income Taxes and Minority Interests."
Total Assets amounted to Y143,047.4 billion, decreasing by Y8,264.9 billion from the corresponding interim period of
fiscal 2001, as a result of accelerated disposition of problem loans, liquidation of loans, and reduction of less
performing assets.
Total Shareholders' Equity amounted to Y3,715.6 billion.
c. Consolidated Capital Adequacy Ratio
The Consolidated Capital Adequacy Ratio (Uniform International Standards) was still in high level of 10.42% (a
preliminary basis), decreasing by 0.34% from the end of the fiscal 2001.
d. Cash Flows
Cash Flows from Operating Activities, Investing Activities and Financing Activities were Y(1,968.4) billion, Y(2,022.0)
billion, and Y(429.4) billion, respectively.
As a result, Cash and Cash Equivalents at end of the interim period was Y5,426.6 billion.
e. Segment Information
Mizuho Financial Group's segments of operations by geographic area are Japan, Americas, Europe and Asia / Oceania.
Ordinary Income from International Operations of Y428.6 billion was comprised in Consolidated Ordinary Income of
Y1,809.1 billion.
Mizuho Financial Group is engaged in activities other than banking, however, such segment information is not presented,
as the percentages for those activities are insignificant.
(2) Forecast for the Fiscal 2002 (From April 1, 2002 to March 31, 2003)
As for the operating forecast for the year ending March 31, 2003, we anticipate Ordinary Income of Y 3,500.0 billion,
Ordinary Loss of Y 210.0 billion and Net Loss of Y220.0 billion on a consolidated basis.
We apologize to shareholders because we have planned not to distribute any dividend on ordinary stocks for March 31,
2003 in order to further strengthen the bank's financial robustness. Dividends on the various preferred stocks are
expected to be as designated.
Basis for Presentation and Principles of Consolidation
1. Scope of Consolidation
1) Number of consolidated subsidiaries: 160
Names of principal companies:
Mizuho Bank, Limited
Mizuho Corporate Bank, Limited
Mizuho Securities Co., Ltd.
Mizuho Trust & Banking Co., Ltd.
Dai-ichi Kangyo Bank, Fuji Bank and Industrial Bank of Japan, which are subsidiaries of MHHD, were combined and
reorganized as Mizuho Bank and Mizuho Corporate Bank by means of split and merger. Simultaneously, Dai-ichi Kangyo Bank
changed its name to Mizuho Bank and Fuji Bank lo Mizuho Corporate Bank.
In this interim period, Mizuho Preferred Capital (Cayman) 5 Limited and six other companies were newly incorporated and
consolidated, and Dai-ichi Kangyo Card Co., Ltd. and seventeen other companies were excluded from the scope of
consolidation as a result of merger with other subsidiary and other reasons.
2) Non-consolidated subsidiaries
Names of principal subsidiaries:
ONKD, Inc.
FIMCO SPC(Cayman) Limited
Non-consolidated subsidiaries were excluded from the scope of consolidation because they do not have such a material
effect as to hinder the rational assessment of the financial position and business performance of the corporate group in
terms of total assets, ordinary income, net income (the amounts corresponding to MHHD's equity position), and retained
earnings (the amounts corresponding to MHHD's equity position), when excluded from the scope of consolidation.
2. Application of the Equity Method
1) Number of affiliates accounted for by the equity method: 34
Names of principal companies:
The Chiba Kogyo Bank, Ltd.
Shinko Securities Co., Ltd.
IBJ Leasing Co., Ltd. and five other companies were newly accounted for by the equity method due to the increase of
MHHD's interests in these companies.
Investments in IBJ Nomura Financial Products Holdings plc and one other company are not accounted for by the equity
method as they are considered immaterial in terms of their Net Income / Loss (the amounts corresponding to MHHD's equity
position) and Retained Earnings (the amounts corresponding to MHHD's equity position).
2) Non-consolidated subsidiaries and affiliates not accounted for by the equity method:
Names of principal companies:
ONKD, Inc.
FIMCO SPC (Cayman) Limited
The equity method was not applied to the above non-consolidated subsidiaries and affiliates because their net income
(the amounts corresponding to MHHD's equity position) and retained earnings (the amounts corresponding to the Bank's
equity position) do not have a material effect on MHHD's interim consolidated financial statements when excluded from
the scope of companies accounted for by the equity method.
3. Interim Balance Sheet Dates of Consolidated Subsidiaries
1) Interim balance sheet dates of consolidated subsidiaries are as follows:
April 30 1 company
June 30 90 companies
July 31 1 company
August 31 1 company
September 30 52 companies
The day before the last 14 companies
business day of December
December 31 1 company
2) Consolidated subsidiaries with interim period ends on April 30 or December 31 and nine subsidiaries with interim
period ends at the day before the last business day of December closed their books and prepared financial statements as
of and for the period ended June 30, 2002, for consolidation purposes, Other subsidiaries with interim period ends at
the day before the last business day of December, that were all incorporated in July 2002, closed their books and
prepared financial statements as of the period ended September 30. 2002, for consolidation purposes. Other consolidated
subsidiaries and affiliates are consolidated based on respective period ends. Necessary adjustments have been made to
interim financial statements for significant transactions recorded during the period between these subsidiaries' interim
period ends and the interim period end for the consolidated financial statements.
Consolidated Balance Sheet
September 30, 2002
Mizuho Holdings, Inc.
(in millions of yen)
Assets Liabilities
Cash and Due from Banks 6,326,761 Deposits 68,396,196
Call Loans and Bills Purchased 1,821,161 Negotiable Certificates of Deposit 9,533,567
Receivables Under Resale Agreements 5,110,620 Debentures 13,783,539
Guarantee Deposit Paid under
Securities Borrowing Transactions 4,637,828 Call Money and Bills Sold 10,380,132
Other Debt Purchased 1,729,902 Payables Under Repurchase Agreements 8,494,440
Trading Assets 9,098,107 Guarantee Deposit Received under
Securities Lending Transactions 4,099,757
Money Held in Trust 48,096 Commercial Paper 378,125
Securities 25,520,325 Trading Liabilities 6,598,423
Loans and Bills Discounted 76,118,242 Borrowed Money 2,434,959
Foreign Exchange Assets 681,242 Foreign Exchange Liabilities 245,629
Other Assets 4,866,637 Bonds and Notes 2,776,592
Premises and Equipment 1,715,324 Bonds with Stock Option 3,599
Deferred Debenture Charges 2,021 Due to Trust Account 1,460,322
Deferred Tax Assets 2,186,442 Other Liabilities 4,242,000
Consolidation Differences 56,024 Reserve for Bonus Payment 23,370
Customers' Liabilities for
Acceptances and Guarantees 4,948,881 Reserve for Employee Retirement Benefit 24,250
Reserve for Possible Losses on Loans (1,815,665) Reserve for Possible Losses on Loans Sold 47,838
Reserve for Possible Losses on Securities (4,499) Reserve for Contingencies 138,700
Reserve under Special Laws 768
Deferred Tax Liabilities 8,089
Deferred Tax Liabilities for
Revaluation Reserve for Land 262,305
Acceptances and Guarantees 4,948,881
Total Liabilities 138,281,492
Minority Interests
Minority Interests 1,050,265
Shareholders' Equity
Common Stock and Preferred Stock 2,572,000
Capital Surplus 353,765
Retained Earnings 983,536
Revaluation Reserve for Land, net of Taxes 422,905
Net Unrealized Losses on Securities
Available for Sale, net of Taxes (513,863)
Foreign Currency Translation Adjustments (101,626)
Treasury Common Stock (1,019)
Total Shareholders' Equity 3,715,697
Total Assets 143,047,455 Total Liabilities, Minority Interests
and Shareholders' Equity 143,047,455
Notes to Consolidated Balance Sheet
1. Amounts less than one million yen are rounded down.
2. Trading Transactions
Trading transactions intended to take advantage of short-term fluctuations and arbitrage opportunities in interest
rates, currency exchange rates, market prices of securities and related indices are recognized on a trade date basis and
recorded in Trading Assets or Trading Liabilities on the interim consolidated balance sheet. Trading Assets and Trading
Liabilities are valued as follows. Securities and Monetary Claims are stated at fair value at the interim consolidated
balance sheet date. Derivative financial products, such as swaps, forward contracts and option transactions are stated
at their theoretical values, assuming that such transactions were settled at the interim consolidated balance sheet
date.
3. Securities
Investments in stocks of non-consolidated subsidiaries and affiliates, which are not accounted for by the equity method,
are valued on a cost basis using the moving average method. Regarding Securities Available for Sale, Japanese stocks
with a market price are valued on a mark-to-market basis using the average market price over the month preceding the
interim consolidated balance sheet date, others with a market price are valued on a mark-to-market basis at the interim
consolidated balance sheet date (cost of securities sold is calculated primarily by the moving average method) and
securities without a market price are stated at cost as determined by the moving average method or amortized cost. The
total unrealized gains (losses) on Securities Available for Sale are booked directly to Shareholders' Equity, after tax
adjustments.
4. Securities which are held as trust assets in individually managed Money Held in Trust accounts, in which the
principal objective is investment, are valued on the same basis as per paragraph 2. and 3.
5. Derivative transactions (other than transactions for trading purposes as per paragraph 2.) are valued on a mark-to-
market basis.
6. Depreciation method of Premises and Equipment is as follows:
Buildings : Depreciation of buildings is computed mainly by the straight-line method over the estimated useful lives
(3 to 50 years).
Equipment : Depreciation of equipment is computed mainly by the declining-balance method over the estimated useful lives
(2 to 20 years).
7. Development costs for software internally-used are capitalized and amortized using the straight-line method over the
estimated useful life determined by MHHD and its consolidated subsidiaries (primarily 5 years).
8. Deferred Debenture Charges are amortized as follows:
(1) Discounts of debentures are amortized over the term of the debenture.
(2) Debenture issuance costs are amortized over the term of the debentures up to a maximum of 3 years, which is the
longest period permitted under the Commercial Code of Japan.
9. Foreign Currency Items
Assets and Liabilities denominated in foreign currencies and accounts of overseas branches of domestic subsidiaries are
translated into Japanese yen primarily at the exchange rates in effect at the interim consolidated balance sheet date,
with the exception of the stocks of non-consolidated subsidiaries and affiliates, to which are applied the yen exchange
rates prevailing at the time of acquisition.
In prior years, MHHD and subsidiaries had adopted "Tentative Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Foreign Currency Transactions for Banks" (JICPA Industry Audit Committee Report No.20).
Effective this fiscal year, MHHD and subsidiaries adopted "Accounting and Auditing Treatment Relating to Accounting
Standards for Foreign Currency Transactions for Banks" (JICPA Industry Audit Committee Report No.25). As permitted in
the transitional treatment of the JICPA Industry Audit Committee Report No.25, fund swap transactions, currency swap
transactions, and internal contracts are treated in accordance with prior report (JICPA Industry Audit Committee Report
No-20). Revaluation gains and losses of foreign exchange contracts are presented on a net basis on the balance sheet.
In accordance with the transitional treatment of the JICPA Industry Audit Committee Report No.25, fund swap transactions
are accounted for as follows:
Amount corresponding to principal amounts of lending and borrowing transactions are translated into yen using the
exchange rates in effect at the end of the interim period and the net of translated amount is recorded on the balance
sheet. Difference between spot and forward exchange rates, which represents difference between interest rates of two
currencies, are charged to income over the period from the settlement date of spot exchange contract to that of forward
exchange contract. Related accrued income or expense is recorded on the balance sheet.
A fund-related swap transaction is a swap transaction involving the borrowing of funds in one currency and the lending
of funds in another currency. An amount equivalent to the principal of the funds borrowed and funds lent is exchanged at
the spot rate into another currency. A forward exchange contract is concluded to buy or sell foreign currency equivalent
to the principal and related interest receivable/payable relating to the said principal accrued and the said date during
the swap period.
Currency swap transactions in which the transactions are (1) originated for the purpose of lending and borrowing in
different currencies, (2) amounts payable/receivable at the maturity date are equal to amounts receivable/payable at the
contract date and (3) the swap rates applied to principal and interest are rational, were accounted for in accordance
with the transitional treatment of the JICPA Industry Audit Committee Report No.25 as follows (These currency swap
transactions include transactions that renew one currency's equivalent amount of principal on every payment day of
interest, using the current exchange rate of the day.):
Amount corresponding to principal amounts of lending and borrowing transactions are translated into yen using the
exchange rates in effect at the end of the interim period and the net of translated amount is recorded on the balance
sheet. Exchange of coupons is charged to income over the life of the contract on an accrual basis and related accrued
income or expense is recorded on the balance sheet.
Assets/liabilities denominated in foreign currencies of other consolidated subsidiaries are translated into yen
primarily using the exchange rates in effect at the end of the interim period of these subsidiaries.
10. Reserves for Possible Losses on Loans
Reserves for Possible Losses on Loans of the major domestic consolidated subsidiaries are provided as follows in
accordance with internally-developed standards for write-offs and providing reserves for possible losses on loans.
The reserve for loans to obligors which are classified as substantially bankrupt ("substantially bankrupt obligors") or
which are legally bankrupt, as evidenced by a declaration of bankruptcy, special liquidation, or other similar
circumstances ("bankrupt obligors"), is provided based on the amount remaining after deduction of the amount expected to
be collected from the disposal of collateral and the amount recoverable from guarantees. Also a reserve is provided for
loans to obligors, which are not currently bankrupt but are likely to become bankrupt. In this case, the reserve is
provided based on the amount the obligor is capable of repaying of the loan amount remaining after deducting the
expected amount recoverable from disposal of collateral and amounts under guarantees. In the case of all other loans to
such borrowers, a reserve is provided on the basis of the loan failure rates calculated using the amount of actual loan
failures etc. during a fixed period in the past.
The Reserve for Loans to Restructuring Countries is provided based on the prospective loss after consideration of the
relevant country's political and economic situation, etc.
All loans are assessed by the business promotion division, office or branch where the credit originated based on the
internal rules for self-assessment of assets, A credit review and auditing section, which is independent of the
originating sections, reviews the results of the self-assessment of assets for all loans based on the internal rules.
The above Reserves for Possible Losses on Loans are provided based on the results of the review.
For loans to bankrupt obligors and substantially bankrupt obligors etc. which are collateralized or guaranteed by a
third party etc., the amounts deemed uncollectible (calculated by deducting the anticipated proceeds from the sale of
collateral pledged against the claims and amounts that are expected to be recovered from guarantors of the claims) are
charged off against the respective loan balances. The total charged-off amounts are Y 2,719,184 million. Reserves for
Possible Losses on Loans provided by other consolidated subsidiaries are maintained as follows:
* For general claims, reserves are maintained at the amount deemed necessary based on historical credit loss
experiences, etc.
* For doubtful claims, reserves are maintained at the amount deemed uncollectible based on respective assessment of
collectability.
11. Reserve for Possible Losses on Securities
This reserve is provided to cover any future potential losses on investment securities in other companies. It is booked
as the amount deemed necessary taking into consideration the financial situation and other relevant factors of the
investment securities' issuers.
12. Reserve for Bonus Payments
This reserve is provided for future bonus payments to employees. It is hooked as the amount deemed necessary for
employees' bonuses at the end of the interim consolidated fiscal term.
13. Reserve for Employee Retirement Benefits, and Prepaid Pension Cost
This reserve and prepaid pension cost are provided for future pension payments to employees. It is recorded as the
amounts deemed to have arisen at the end of the interim consolidated fiscal term, based on the projected benefit
obligation and the pension asset amounts at the end of the consolidated fiscal year.
Unrecognized actuarial gains (losses) are recognized as income or expenses from the following consolidated fiscal
year and amortized over a fixed number of years within the average remaining service period of the current
employees using the straight-line method.
With respect to the unrecognized net obligation of the domestic consolidated subsidiaries, the amount is to be
amortized primarily over 5 years. For the interim consolidated fiscal term, half of the amount to be amortized
primarily during the year is charged to current expenses.
14. Reserve for Possible Losses on Loans Sold
This reserve is provided to cover contingent losses on loans sold to the Cooperative Credit Purchasing Company Limited
(CCPC), taking into account the value of the collateral pledged. This reserve is provided in accordance with Article
287-2 of the Commercial Code of Japan.
15. Reserve for Contingencies
This reserve is provided to cover possible losses arising from matters not covered by specific reserves which are likely
to occur and regarding which losses are reasonably determinable. This reserve is provided in accordance with Article
287-2 of the Commercial Code of Japan.
16. MHHD and its domestic consolidated subsidiaries treat finance leases which do not involve the transfer of ownership
to the lessee as operating leases.
17. In accordance with the transitional treatment of "Accounting and Auditing Treatment Relating to Adoption of
Accounting Standards for Financial Instruments for Banks" (JICPA Industry Audit Committee Report No.24), domestic
consolidated banking subsidiaries and certain of domestic consolidated trust banking subsidiaries apply the macro-hedge
method as a hedge accounting for the overall interest rate risk involved in various financial assets and liabilities,
such as loans and deposits, etc. using derivatives. This is the risk management method stipulated in "Temporary
Treatment for Accounting and Auditing Application of Accounting Standards for Financial Instruments in Banking Industry"
(JICFA Industry Audit Committee Report No. 15) as the "Risk Adjusted Approach", and uses the deferral method of hedge
accounting. Hedge effectiveness is assessed by checking (1) whether the total risk amount of derivative instruments,
used as the risk adjusting measure, is within the established risk limit as set out in the risk management policy and
(2) whether interest risks from hedged items have been eliminated.
In applying hedge accounting to hedging instruments for foreign currency denominated securities, the securities being
hedged are identified and the foreign currency payables of hedging instruments are compared with the balances of the
securities being hedged to confirm there is no over hedge. The qualified hedges are designated as a portfolio hedge and
accounted for under either of the deferral hedge method or the fair value hedge method. The deferral method, the mark-
to-market method or the special accrual method (for interest rate swaps) is alternatives that are used for hedge
accounting applicable to certain assets and liabilities.
The hedge accounting similar to the above-mentioned is adopted by other subsidiaries.
18. Consumption Taxes and Local Taxes
With respect to MHHD and its domestic consolidated subsidiaries, Consumption taxes and local taxes are excluded from the
transaction amounts.
19. Reserve under Special Laws is recorded as follows:
Reserve for Contingent Liabilities from Broking of Financial Futures Transactions: Y 53 million.
This reserve is maintained pursuant to Article 82 of the Financial Futures Transaction Law.
Reserve for Contingent Liabilities from Broking of Securities Transactions: Y 715 million.
This reserve is maintained pursuant to Article 51 of the Securities & Exchange Law.
20. Loans to Directors and Corporate Auditors of MHHD amounted to Y 15 million.
21. Accumulated depreciation of Premises and Equipment amounted to Y 752,521 million.
22. The book value of Premises and Equipment adjusted for gains on sales of replaced assets amounted to Y 141,918
million.
23. Loans and Bills Discounted are recorded as follows:
Balance of Loans to Bankrupt Borrowers: Y 558,004 million.
Balance of Non-accrual Delinquent Loans: Y 2,332,405 million.
Of the above loan amounts, Y 567 million comprises loans to be disposed of through sales to the Resolution and
Collection Corporation ("RCC") which leads to the final step of disposal under the management-consignment
system.
Loans to Bankrupt Borrowers are loans, excluding loans written-off, on which delinquencies in payment of principal
and/or interest have continued for a significant period of time or for some other reasons there is no prospect of
collecting principal and/or interest ("Non-Accrual Loans"), as per Article 96 Paragraph 1 No. 3, subsections 1 to 5 or
No. 4 of the Implementation Ordinances for the Corporate Tax Law (Government Ordinance No. 97, 1965).
Non-accrual Delinquent Loans represent non-accrual loans other than (1) Loans to Bankrupt Borrowers and (2)
loans for which interest payments have been deferred in order to assist or facilitate the restructuring of the
borrowers.
24. Balance of Loans Past Due for 3 Months or More: Y 85,758 million.
Loans Past Due for 3 Months or More are those loans for which payments of principal and/or interest have not been
received for a period of three months or more beginning with the next day following the last due date for such payments,
and are not included in Loans to Bankrupt Borrowers, or Non-accrual Delinquent Loans.
25. Balance of Restructured Loans: Y 2,448,692 million.
Loans and Bills Discounted also include the above balance of Restructured Loans. Restructured Loans represent loans on
which contracts were amended in favor of borrowers (e.g. reduction of, or exemption from, stated interest, deferral of
interest payments, extension of maturity dates, renunciation of claims) in order to assist or facilitate the
restructuring of the borrowers. Loans to Bankrupt Borrowers, Non-accrual Delinquent Loans and Loans Past Due for 3
Months or More are not included.
26. Total balance of Loans to Bankrupt Borrowers, Non-accrual Delinquent Loans, Loans Past Due for 3 Months or More and
Restructured Loans: Y 5,424,860 million.
Of the above loan amounts, Y 567 million comprises loans to be disposed of through sales to the Resolution and
Collection Corporation ("RCC") which leads to the final step of disposal under the management-consignment system.
The amounts given in the paragraphs 23. through 26. are gross amounts before deduction of amounts for the Reserve for
Possible Losses on Loans.
27. In accordance with the JICPA Industry Audit Committee Report No.24, Bills Discounted is accounted for as financing
transactions although subsidiary banks have rights to sell or pledge certain commercial bills and foreign exchange bills
discounted. The principal amount of these bills is amounting to Y 1,192,840 million at this fiscal term end.
28. Breakdown of assets pledged as collateral
The following assets have been pledged as collateral:
Trading Assets: Y 1,750,805 million
Securities: Y 11,468,035 million
Loans and Bills Discounted: Y 5,467,159 million
Premises and Equipment Y 247 million
The following liabilities are collateralized by the above assets:
Deposits: Y 629,955 million
Call Money and Bills Sold: Y 5,913,100 million
Payables under Repurchase Agreements: Y 4,642,246 million
Guarantee Deposits Received under Securities Lending Y 2,186,697 million
Transactions:
Borrowed Money: Y 607,072 million
Other Liabilities Y 45 million
In addition to the above, Borrowed Money amounting to Y 3,645 million is secured by stocks which are deposited by
customers as a collateral for loan transactions in relation to sales of securities on margin. Deposits with Banks
amounting to Y 44,359 million, Trading Assets amounting to Y 11,403 million, Securities amounting to Y 2,928,602
million, Loans and Bills Discounted amounting to Y 195,192 million and Other Assets amounting to Y 26 million are
pledged as collateral in connection with exchange settlement, or as a substitute for margin payments for future
transactions. None of the assets has been pledged as collateral in connection with borrowings by non-consolidated
subsidiaries or affiliates.
Premises and Equipment Include Security Deposits of Y 151,951 million and Other Assets include Margin Payments for
Future Transactions of Y 59,285 million.
Bills re-discounted are treated as financial transactions on the basis of "Accounting and Auditing Treatment of
Accounting Standards for Financial Instruments in Banking Industry" (Industry Audit Committee Report No. 24). The total
face value of commercial bills and foreign bills of exchange bought as a result of re-discounting: Y 18,259 million.
29. The net realized and unrealized gains (losses) from hedging instruments are included in Other Assets as Deferred
Hedge Losses. The gross amounts of deferred hedge losses and gains before netting were as follows:
Total deferred hedge losses: Y 1,892,282 million
Total deferred hedge gains: Y 1,725,199 million
30. In accordance with the Law Concerning Land Revaluation (Proclamation No. 34 dated March 31, 1998), land used for
business activities has been revalued. The amount of tax payable on the amount of the revaluation differences has been
shown in the item Deferred Tax Liabilities for Revaluation Reserve for Land indicated under Liabilities. In addition,
the amount of revaluation differences less this tax liability has been shown in the item Revaluation Reserve for Land,
net of Taxes indicated under Shareholders'' Equity.
Revaluation Date: March 31, 1998
Revaluation method as stated in Article 3-3 of the above law:
Land used for business activities was revalued by calculating the value on the basis of the valuation by road rating
stipulated in Article 2-4 of the Enforcement Ordinance relating to the Land Revaluation Law (Government Ordinance
No. 119 promulgated on March 31, 1998) with reasonable adjustments to compensate for sites with long depth, etc. and
also on the basis of the appraisal valuation stipulated in Article 2-5.
Certain of overseas consolidated subsidiaries revalue land used for their business activities in the same way.
31. Borrowed Money includes subordinated borrowings of Y 1,376,258 million,
32. Bonds and Notes includes subordinated bonds of Y2,659,843 million.
33. The principal amounts indemnified for jointly operated designated money trusts and loan trusts, which are entrusted
to domestic consolidated trust banking subsidiaries, are Y 934,446 million and Y1,323,606 million, respectively.
34. Net asset per share: Y187,411.97
35. Figures for the market price and unrealized gains (losses) on securities are as follows. In addition to Securities,
Trading Securities, Securities Held for Hedged Trading Transactions, NCDS and Commercial Paper in Trading Assets, NCDS
in Cash and Due from Banks, and Commercial Paper etc. in Other Debt Purchased are also included. The same applies up to
and including paragraph 38.
Trading Securities
Balance of trading securities at the interim consolidated balance sheet date: Y 5,331,148 million
Unrealized gains (losses) recorded on the interim consolidated statement of income: Y 3,479 million
Securities Available for Sale which have a market price: (Millions of yen)
Acquisition Cost Amount on Interim Unrealized Gains (Losses)
Consolidated BS Gains (Losses)
Japanese Stocks 5,886,345 5,220,307 (666,038) 216,902 882,940
Japanese Bonds Total 12,886,624 12,912,574 25,949 36,573 10,623
Japanese Government Bonds 12,450,395 12,466,067 15,671 24,946 9,274
Japanese Municipal Bonds 186,709 195,617 8,907 8,934 27
Japanese Corporate Bonds 249,518 250,889 1,370 2,692 1,322
Other 5,343,065 5,456,927 113,861 145,169 31,307
Total 24,116,035 23,589,809 (526,226) 398,645 924,871
The following amounts are included in Net Unrealized Gains (Losses) on Securities Available for Sale, net of Taxes:
Net Unrealized Losses: Y (526,226) million
Amount corresponding to Deferred Tax Assets: Y21,981 million
Amount corresponding to Deferred Tax Liabilities (-): Y 5,700 million
Amount corresponding to Minority Interests (-): Y 4,599 million
Amount corresponding to Net Unrealized Losses on
Securities Available for Sale owned by affiliates,
which corresponds to the holding shares of their investor companies: Y 724 million
Amount included in Net Unrealized Gains (Losses) on Other
Securities, net of Taxes: Y(513,819) million
36. Securities Available for Sale sold during this interim consolidated fiscal term are as follows:
Amount Sold Gains on Sales Losses on Sales
Y 22,600,718 million Y 150,901 million Y 29,967 million
37. Major components of securities without a market price and their book value are as follows:
(Millions of yen)
Amount on
Details Interim
Consolidated BS
Securities Available for Sale:
Unlisted Stocks (other than OTC stocks) 538,493
Private Bonds 1,000,052
38. The redemption schedule by term for Securities Available for Sale with maturities is as follows:
(Millions of yen)
1 year or More than 1 year More than 5 years More than
less to 5 years to 10 years 10 years
Japanese Bonds Total 3,789,631 5,831,104 4,254,968 36,922
Japanese Government Bonds 3,678,299 4,843,358 3,944,409 -
Japanese Municipal Bonds 17,751 122,705 181,369 13,124
Japanese Corporate Bonds 93,580 865,041 129,189 23,798
Other 750,352 2,428,724 1,291,254 1,152,205
Total 4,539,983 8,259,829 5,546,222 1,189,128
39. Details of Money Held in Trust, by the purpose of holding, are as follows:
Investment purposes:
Book Value Y 45,905 million
Revaluation loss recognized in profits or losses for this interim period Y(490) million
Other Money Held in Trust:
Cost Y2,109 million
Book Value Y2,191 million
Net unrealized gain Y 81 million
Gross gain Y 81 million
The above amounts are included in "Net unrealized losses on Other securities, net of taxes."
40. Securities lending transactions which allow borrowers to resale, amounting to Y 1,424,261 million, are included in
trading securities under "Trading Assets." Securities lending transactions which do not allow borrowers to resale,
amounting to Y 1,476 million, are included in Japanese Government Bonds, Japanese Local Government Bonds, etc under
"securities."
Subsidiaries have rights to re-sell or re-pledge securities held under securities borrowing agreements and cash-
collateralized securities borrowing agreements and securities purchased with resale agreements. These securities re-
pledged as collateral, re-sold, and held without being re-pledged or re-sold are amounted to Y 1,100,906 million,
Y 83,133 million, and Y 4,269,395 million, respectively.
In prior years, these securities had been presented on the balance sheet as separate components of Other Assets
(Securities in Custody) or Other Liabilities (Trading Bonds Borrowed, Trading Securities Borrowed or Securities
Borrowed). Effective current interim period, these securities are not presented on the balance sheet and disclosed in
the footnotes to the financial statements in accordance with "implementation Guidelines to Accounting Standards for
Financial Instruments (JICPA Accounting Standard Committee Report No. 14)." This change decreased "Other Assets" and
"Other Liabilities'" by Y 5,453,435 million, respectively.
41. Overdraft facilities and commitment line agreements relating to loans are agreements which oblige consolidated
subsidiaries to lend funds up to a certain limit agreed in advance. The loan is made upon the request of an obligor to
draw down funds under such a loan agreement, as long as there is no breach of the various terms and conditions
stipulated in the relevant loan agreement. The unused commitment balance relating to these loan agreements at the
interim consolidated balance sheet date amounted to Y 41.891,518 million. Of this amount, Y 37,245,355 million relates
to loans where the term of the agreement is one year or less, or unconditional cancellation of the agreement is
allowed at any time.
In many cases the term of the agreement runs its course without the loan ever being drawn down. Therefore the unused
loan commitment will not necessarily affect future cash flows of the subsidiaries. Conditions are included in certain
loan agreements which allow the subsidiaries either to decline the request for a loan draw down or to reduce the agreed
limit amount where there is due cause to do so, such as when there is a change in the financial conditions, or when it
is necessary to do so in order to protect the subsidiaries credit. The subsidiaries take various measures to protect
their credit. Such measures include having the obligor pledge collateral in the form of real estate, securities, etc. on
signing the loan agreement, or in accordance with the subsidiaries' established internal procedures confirming the
obligor's financial condition etc. at regular intervals after signing, and where necessary amending the agreement
conditions accordingly.
42. Other Assets include provisional tax payments of Y 222,682 million made by a certain domestic banking subsidiary.
These tax payments were made upon receipt of a Correction Notice from the Tokyo Regional Taxation Bureau ("TRTB") on
August 23, 1996 in connection with the write-off of credits due from Japan Housing Loan, Inc. amounting to Y 376,055
million recorded in the consolidated fiscal year ended March 1996.
The subsidiary disputed the rationale for the proposed correction and filed an application seeking to void the proposed
correction to the National Tax Tribunal for administrative review, but this was dismissed. On October 30, 1997 the
subsidiary filed a lawsuit with the Tokyo District Court seeking to void the TRTB's administrative action against the
subsidiary and won the case entirely on March 2, 2001. However this was appealed to the Tokyo High Court on March 16,
2001 and the subsidiary lost the case on March 14, 2002. On March 27, 2002 the subsidiary filed an appeal to the Supreme
Court.
The subsidiary believes that its claim is appropriate. Nevertheless, the subsidiary provided a Reserve for Contingencies
amounting to Y 134,852 million from the standpoint of sound financial practice. (Please refer to paragraph 15.)
43. As the result of a judgment in the English law courts on November 19, 2002 (local time), liquidation procedures were
initiated in relation to one of a certain consolidated banking subsidiary's clients, TXU Europe Ltd. The subsidiary's
outstanding loan balance to TXU Europe is Y 9,247 million. It is not possible at present to determine the resulting
loss.
44. Effective current interim period, MHHD and subsidiaries accounts for securities borrowing and lending transactions
with cash collateral in accordance with the Accounting Standards for Financial Instruments (The Business Accounting
Deliberation Council, January 1998) as follows:
In prior years, cash collateral balances received or paid under securities borrowing and lending transactions had been
recorded as Cash Collateral Paid Under Securities Borrowing Transactions in Other Assets and Cash Collateral received
Under Securities Lending Transactions in Other Liabilities, Effective current interim period, in accordance with the
JICPA Accounting Standard Committee Report No. 4, these transactions are presented as lending and borrowing transactions
secured by securities, and related cash collateral balances are presented as Guarantee Deposit Paid under Securities
Borrowing Transactions or Guarantee Deposits Received under Securities Lending Transactions, respectively. This change
decreased Other Assets and Other Liabilities by Y 4,637,828 million and Y 4,099,757 million, respectively and increased
Guarantee Deposit Paid under Securities Borrowing Transactions or Guarantee Deposits Received under Securities Lending
Transactions by Y 4,637,828 million and Y 4,099,757 million, respectively.
45. In accordance with the revision of standard reporting formats in line with "cabinet Office Ordinance to Amend the
Former Cabinet Office Ordinance of the Bank Law (Cabinet Office, October 15, 2002)", the presentation of the balance
sheet has been changed effective current interim period end as follows:
(1) Convertible Bonds presented on the balance sheet at the prior interim period end is included in "Bond with Stock
Purchase Options" at current interim period end,
(2) Revaluation Reserve presented on the balance sheet at prior interim period end is included in Revaluation Reserve
for Land at current interim period end,
(3) Net Unrealized Losses on Other Securities presented on the balance sheet at prior interim period end is included in
Net Unrealized Losses on Other Securities at current interim period end,
(4) Common Stock and Preferred Stock, Capital Surplus and Retained Earnings presented on the balance sheet at prior
interim period end is included in Common Stock and Preferred Stock, Capital Surplus and Retained Earnings at current
interim period end, respectively.
Consolidated Statement of Operations
April 1,2002-September 30,2002
Mizuho Holdings, Inc
(In millions of yen)
Ordinary Income 1,809,113
Interest Income 1,085,681
Interest on Loans and Bills Discounted 765,529
Interest and Dividends on Securities 177,495
Fiduciary Income 22,569
Fee and Commissions Income 213,275
Trading Income 123,658
Other Operating Income 183,209
Other Income 180,717
Ordinary Expenses 1,686,880
Interest Expenses 431,061
Interest on Deposits 106,972
Interest on Debentures 66,400
Amortization of Deferred Debenture Charges 1,955
Fee and Commissions Expenses 32,530
Other Operating Expenses 66,498
General and Administrative Expenses 651,558
Other Expenses 505,231
Ordinary Profit 122,232
Extraordinary Gains 3,779
Extraordinary Losses 26,844
Income before Income Taxes and Minority Interests 99,167
Income Tax Expenses:
Current 15,674
Deferred 12,836
Minority Interests in Net Income 31,626
Net Income 39,029
Notes to Consolidated Statement of Income
1. Amounts less than one million yen are rounded down.
2. Net income per share of Capital Stock: Y 4,139.96
3. Net income per share of Capital Stock assuming dilution: Y 3,234.08
4. Income or expenses on trading transactions are recognized on a trade date basis and recorded in Trading Income or
Trading Expenses on the interim consolidated statement of income. Trading Income and Trading Expenses represent the
interest received/paid during the interim consolidated fiscal term plus (1) the gains or losses resulting from any
change in the value of securities and monetary claims between the beginning of the interim consolidated fiscal term and
the end of the interim consolidated fiscal term and (2) the gains or losses resulting from any change in the value of
derivative financial instruments between the beginning of the interim consolidated fiscal term and the end of the
interim consolidated fiscal term, assuming that they were settled at term end.
5. Other Income includes Gains on Sales of Stocks and Other Securities of Y 35,429 million. Accrued Refund Related to
Foreign Corporation Tax of Y 34,338 million, and Gains on Establishment of Retirement Benefit Trusts of Y 45,769
million.
6. Other Expenses include Write-offs of Claims of Y 228,596 million, and Losses on Devaluation of Stocks and Other
Securities of Y 76,331 million.
7. Extraordinary Losses include amortization of unrecognized net obligation at date of initial application of the new
accounting standard for employee retirement benefits of Y 16,487 million.
Consolidated Statement of Capital Surplus
and Retained Earnings
April 1, 2002-September 30, 2002
Mizuho Holdings, Inc
(in millions of yen)
Capital Surplus
Balance at April 1, 2002 353,765
Balance at September 30, 2002 353,765
Retained Earnings
Balance at April 1, 2002 997,265
Increase 41,256
Net Income 39,029
Transfer from Revaluation Reserve for Land, net of Taxes 2,227
Decrease 54,986
Dividends 54,985
Bonuses to Directors and Corporate Auditors 0
Balance at September 30, 2002 983,536
Notes 1. Amounts less than one million yen are rounded down.
2. The balance of Capital Surplus at April 1, 2002 includes decrease of
Y1,849,982 million arising from the split and merger process of The
Dai-Ichi Kangyo Bank, Ltd., The Fuji Bank, Ltd. and The Industrial
Bank of Japan, Ltd. which took place on that date.
3. The balance of Retained Earnings at April 1, 2002 includes increase of
Y896,131 million arising from the split and merger process of The
Dai-Ichi Kangyo Bank, Ltd., The Fuji Bank, Ltd. and The Industrial Bank
of Japan, Ltd. which took place on that date.
Consolidated Statement of Cash Flows
April 1,2002-September30,2002
Mizuho Holdings, Inc.
(In millions of yen)
I. Cash Flows from Operating Activities
Income before Income Taxes and Minority Interests 99,167
Depreciation 52,912
Amortization of Consolidation Differences 7,765
Equity in Losses from Investments in Affiliates 6,875
Decrease in Reserve for Possible Losses on Loans (133,898)
Decrease in Reserve for Possible Losses on Securities (2,261)
Decrease in Reserve for Possible Losses on Loans Sold (1,808)
Increase in Reserve for Contingencies 4,496
Increase in Reserve for Bonus Payments 1,568
Decrease in Reserve for Employee Retirement Benefits (11,709)
Interest Income - accrual basis (1,085,681)
Interest Expense - accrual basis 431,061
Gains on Securities (22,730)
Losses from Money Held in Trust 1,062
Foreign Exchange Losses - Net 135,468
Losses on Dispositions of Premises and Equipment 9,704
Gains on Establishment of Retirement Benefit Trust (45,769)
Net Increase in Trading Assets (1,328,334)
Net Increase in Trading Liabilities 1,861,049
Net Decrease in Loans and Bills Discounted 8,250,101
Net Decrease in Deposits (5,757,558)
Net Decrease in Negotiable Certificates of Deposit (Liabilities) (1,943,489)
Net Decrease in Debentures (1,527,350)
Net Increase in Borrowed Money (excluding Subordinated Borrowed Money) 249,633
Net Decrease in Due from Banks (excluding Deposits with Central Banks) 940,153
Net Increase in Call Loans (5,604,645)
Net Decrease in Cash Placed as Collateral on Securities Borrowed 3,313,727
Net Increase in Guarantee Deposits Paid under Securities Borrowing Transactions (4,637,828)
Net Increase in Call Money 4,821,877
Net Decrease in Commercial Paper (330,432)
Net Decrease in Cash Received as Collateral for Securities Lent (4,050,050)
Net Increase in Guarantee Deposits Received under Securities Lending Transactions 4,099,757
Net Decrease in Foreign Exchange (Assets) 505,438
Net Decrease in Foreign Exchange (Liabilities) (462,452)
Net Decrease in Issuance, Redemption of Bonds and Notes (58,776)
Net Decrease in Due to Trust Account (316,082)
Interest and Dividends Income - cash basis 1,127,696
Interest Expense - cash basis (516,472)
Others 45,404
Sub - Total (1,872,409)
Income Taxes Paid (96,073)
Net Cash Used in Operating Activities (1,968,482)
II. Cash Flows from Investing Activities
Payments for Purchase of Securities (31,062,410)
Proceeds from Sale of Securities 22,316,262
Proceeds from Redemption of Securities 6,747,494
Payments for Increase in Money Held in Trust (733)
Proceeds from Decrease in Money Held in Trust 18,796
Payments for Purchase of Premises and Equipment (51,281)
Proceeds from Sale of Premises and Equipment 9,783
Net Cash Used in Investing Activities (2,022,088)
III. Cash Flows from Financing Activities
Proceeds from Issuance of Subordinated Borrowed Money 159,000
Repayments of Subordinated Borrowed Money (522,000)
Proceeds from Issuance of Subordinated Bonds, Notes and Bonds with Stock Option 73,000
Repayments from Redemption of Subordinated Bonds. Notes and Bonds with Stock Option (181,322)
Proceeds from Investment of Minority Interests 118,500
Dividends Paid (54,985)
Dividends Paid for Minority Interests (21,594)
Payments for Purchase of Treasury Stock (88)
Net Cash Used in Financing Activities (429,490)
IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents (657)
V. Net Decrease in Cash and Cash Equivalents (4,420,719)
VI. Cash and Cash Equivalents at Beginning of Interim Period 9,847,366
VII. Cash and Cash Equivalents at End of Interim Period 5,426,647
NOTES TO CONSOLIDATED STATEMENTS OF CASH FLOWS
1 Amounts less than one million yen arc rounded down.
2 For the purpose of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and deposits
with central banks included in "cash and Due from Banks" on the Consolidated Balance
3 Cash and Cash Equivalents at the end of the interim period were reconciled to Cash and Due from Banks on the
Consolidated Balance Sheet as follows:
(in millions of yen)
Cash and Due from Banks 6,326,761
Due from banks except for deposits with the central banks (900,113)
Cash and Cash Equivalents 5,426,647
Comparison of Consolidated Balance Sheets (Selected Items)
Mizuho Holdings, Inc.
(in millions of yen)
Balance Sheets Sept. 30, Sept. 30, Comparison March 31, Comparison
2002(A) 2001(B) (A-B) 2002(C) (A-C)
ASSETS
Cash and Due from Banks 6,326,761 5,848,953 477,807 11,720,134 (5,393,373)
Call Loans and Bills Purchased 1,821,161 1,463,670 357,491 942,285 878,876
Receivables Under Resale Agreements 5,110,620 3,609,184 1,501,436 1,768,766 3,341,854
Guarantee Deposit Paid under Securities
Borrowing Transactions 4,637,828 - 4,637,828 - 4,637,828
Other Debt Purchased 1,729,902 669,465 1,060,437 604,395 1,125,506
Trading Assets 9,098,107 11,019,131 (1,921,024) 7,951,419 1,146,687
Money Held in Trust 48,096 251,165 (203,068) 69,762 (21,666)
Securities 25,520,325 25,801,785 (281,460) 24,108,931 1,411,394
Loans and Bills Discounted 76,118,242 90,587,678 (14,469,436) 84,593,656 (8,475,414)
Foreign Exchanges Assets 681,242 1,181,338 (500,096) 1,186,977 (505,735)
Other Assets 4,865,256 15,219,025 (10,353,768) 11,067,767 (6,202,510)
Premises and Equipment 1,715,324 1,735,351 (20,027) 1,753,497 (38,173)
Deferred Debenture Charges 3,401 5,544 (2,143) 4,843 (1,441)
Deferred Tax Assets 2,186,442 2,253,622 (67,179) 2,509,110 (322,668)
Consolidation Differences 56,024 107,996 (51,971) 64,296 (8,271)
Customer's Liabilities for Acceptances
and Guarantees 4,948,881 5,896,764 (947,882) 4,923,244 25,637
Reserve for Possible Losses on Loans (1,815,665) (1,909,131) 93,466 (1,949,819) 134,154
Reserve for Possible Losses on Securities (4,499) (4,587) 87 (6,841) 2,342
Total Assets 143,047,455 163,736,959 (20,689,504) 151,312,427 (8,264,972)
LIABILITIES
Deposits 68,396,196 70,016,895 (1,620,698) 74,129,456 (5,733,260)
Negotiable Certificates of Deposit 9,533,567 15,181,513 (5,647,946) 11,476,779 (1,943,212)
Debentures 13,783,539 16,715,716 (2,932,176) 15,310,890 (1,527,350)
Call Money and Bills Sold 10,380,132 7,867,022 2,513,110 9,453,692 926,440
Payables Under Repurchase Agreements 8,494,440 6,513,491 1,980,948 4,855,073 3,639,366
Guarantee Deposit Received under
Securities Lending Transactions 4,099,757 - 4,099,757 - 4,099,757
Commercial Paper 378,125 1,306,389 (928,264) 711,382 (333,256)
Trading Liabilities 6,598,423 6,373,495 224,928 4,883,842 1,714,580
Borrowed Money 2,434,959 3,787,083 (1,352,124) 2,553,382 (118,423)
Foreign Exchanges Liabilities 245,629 631,221 (385,592) 708,231 (462,602)
Bonds and Notes 2,776,592 4,097,149 (1,320,556) 2,966,847 (190,254)
Bonds with Stock Option 3,599 - 3,599 - 3,599
Convertible Bonds - 7,436 (7,436) 8,432 (8,432)
Due to Trust Account 1,460,322 1,530,204 (69,882) 1,776,404 (316,082)
Other Liabilities 4,242,000 16,957,429 (12,715,429) 11,278,184 (7,036,184)
Reserve for Bonus Payment 23,370 23,554 (184) 21,801 1,568
Reserve for Employee Retirement Benefits 24,250 80,184 (55,933) 36,619 (12,368)
Reserve for Possible Losses on Loans Sold 47,838 121,972 (74,133) 49,647 (1,808)
Reserve for Possible Losses on Support of
Specific Borrowers - 195,512 (195,512) - -
Reserve for Contingencies 138,700 8,180 130,520 134,203 4,496
Reserve under Special Laws 768 884 (116) 950 (182)
Deferred Tax Liabilities 8,089 15,531 (7,441) 15,741 (7,651)
Deferred Tax Liabilities for Revaluation
Reserve for Land 262,305 342,213 (79,908) 335,108 (72,803)
Acceptances and Guarantees 4,948,881 5,896,764 (947,882) 4,923,244 25,637
Total Liabilities 138,281,492 157,669,847 (19,388,354) 145,629,916 (7,348,423)
MINORITY INTERESTS
Minority Interests 1,050,265 765,762 284,503 951,091 (99,174)
SHAREHOLDERS' EQUITY
Total Shareholders' Equity 3,715,697 5,301,350 (1,585,653) 4,731,420 (1,015,722)
Total Liabilities, Minority Interests
and Shareholders' Equity 143,047,455 163,736,959 (20,689,504) 151,312,427 (8,264,972)
(Notes) Amounts less than one million yen are rounded down.
Comparison of Consolidated Statements of Operations (Selected Items)
Mizuho Holdings, Inc.
(in millions of yen)
Six months Six months
ended ended Comparison Year ended
Statements of Operations September 30, September 30, (A-B) March 31, 2002
2002 (A) 2001 (B)
Ordinary Income 1,809,113 2,773,713 (964,600) 5,182,183
Interest Income: 1,085,681 1,616,091 (530,410) 3,020,489
Interest on Loans and Discounts 765,529 1,096,127 (330,597) 2,059,125
Interest and Dividends on Securities 177,495 277,346 (99,851) 516,308
Fiduciary Income 22,569 22,123 446 54,443
Fee and Commissions Income 213,275 264,567 (51,292) 544,238
Trading Income 123,658 100,004 23,653 178,884
Other Operating Income 183,209 358,268 (175,059) 651,035
Other Income 180,717 412,656 (231,938) 733,092
Ordinary Expenses 1,686,880 3,164,735 (1,477,854) 6,532,033
Interest Expenses: 431,061 869,835 (438,774) 1,492,876
Interest on Deposits 106,972 283,865 (176,893) 470,458
Interest on Debentures 66,400 85,915 (19,515) 160,011
Amortization of Deferred Debenture Charges 1,955 6,598 (4,642) 10,388
Fee and Commissions Expenses 32,530 46,845 (14,314) 43,156
Other Operating Expenses 66,498 206,942 (140,443) 451,041
General and Administrative Expenses 651,558 637,874 13,683 1,368,206
Other Expenses 505,231 1,403,238 (898,006) 3,176,752
Ordinary Profit (Loss) 122,232 (391,022) 513,254 (1,349,850)
Extraordinary Gains 3,779 17,391 (13,611) 133,407
Extraordinary Losses 26,844 28,981 (2,136) 208,728
Income (Loss) before Income Taxes and Minority Interests 99,167 (402,612) 501,779 (1,425,170)
Income Tax Expenses:
Current 15,674 18,892 (3,217) 110,498
Deferred 12,836 (136,169) 149,005 (545,923)
Minority Interests in Net Income (Loss) 31,626 (20,698) 52,324 (13,701)
Net Income (Loss) 39,029 (264,637) 303,666 (976,044)
(Notes) Amounts less than one million yen are rounded down.
Comparison of Consolidated Statements of Capital Surplus
and Retained Earnings (Selected Items)
Mizuho Holdings, Inc.
(in millions of yen)
Six months ended Six months ended
September 30, September 30, Comparison Year ended
2002(A) 2001(B) (A-B) March 31,2002
Retained Earnings
Balance at beginning of Interim Period (the year) - 1,107,231 (1.107,231) 1,107,231
Increase - 2,426 (2,426) 13,560
Decrease - 43,408 (43,408) 43,614
Net Income (Loss) - 264,637 (264,637) 976,044
Balance at end of Interim Period (the year) - 801,612 (801,612) 101,133
Capital Surplus
Balance at beginning of Interim Period 353,765 - 353,765 -
Balance at end of Interim Period 353,765 - 353,765 -
Retained Earnings
Balance at beginning of Interim Period (the year) 997,265 - 997,265 -
Increase 41,256 - 41,256 -
Decrease 54,986 - 54,986 -
Balance at end of Interim Period (the year) 983,536 - 983,536 -
(Notes) Amounts less than one million yen are rounded down.
Comparison of Consolidated Statements of Cash Flows
Mizuho Holdings, Inc.
(in millions of yen)
Six months Six months
ended ended Comparison Year ended
September 30, September 30, (A-B) March 31, 2002
2002 (A) 2001 (B)
I. Cash Flows from Operating Activities;
Income (Loss) before Income Taxes and Minority
Interests Y99,167 Y(402,612) Y501,779 Y(1,425,170)
Depreciation 52,912 42,715 10,197 94,749
Amortization of Consolidation Differences 7,765 14,297 (6,532) 21,162
Equity in Losses (Gains) from Investments in Affiliates 6,875 1,089 5,785 6,771
Increase (Decrease) in Reserve for Possible Losses
on Loans (133,898) 276,525 (410,424) 361,543
Increase (Decrease) in Reserve for Possible Losses on
Securities (2,261) 354 (2,615) 2,771
Decrease in Reserve for Possible Losses on Loans Sold (1,808) (77,120) 75,312 (149,445)
Increase (Decrease) in Reserve for Contingencies 4,496 (15,852) 20,348 110,171
Increase (Decrease) in Reserve for Possible Losses on
Support of Specific Borrowers - 35,883 (35,883) (159,628)
Increase in Reserve for Bonus Payments 1,568 23,554 (21,985) 21,790
Increase in Reserve for Employee Retirement Benefits (11,709) 9,978 (21,688) (35,370)
Interest Income - accrual basis (1,085,681) (1,616,091) 530,410 (3,020,489)
Interest Expenses - accrual basis 431,061 869,835 (438,774) 1,492,876
Gains on Securities (22,730) (162,533) 139,803 (201,863)
Losses from Money Held in Trust 1,062 20,829 (19,767) 17,502
Foreign Exchange Losses - Net 135,468 84,400 51,068 (413,530)
Losses on Dispositions of Premises and Equipment 9,704 7,820 1,884 33,119
Losses (Gains) on Establishment of Retirement Benefit
Trust (45,769) (74,592) 28,822 (89,036)
Net Decrease (Increase) in Trading Assets (1,328,334) (207) (1,328,127) 3,150,206
Net Increase (Decrease) in Trading Liabilities 1,861,049 1,522,415 338,634 (46,227)
Net Decrease in Loans and Bills Discounted 8,250,101 2,025,650 6,224,451 6,394,050
Net Increase in Deposits (5,757,558) 2,746,849 (8,504,408) 6,286,547
Net Increase (Decrease) in Negotiable Certificates of
Deposit (Liabilities) (1,943,489) 2,322,992 (4,266,482) (1,405,177)
Net Decrease in Debentures (1,527,350) (1,130,040) (397,309) (2,537,366)
Net Increase (Decrease) in Borrowed Money (excluding
Subordinated Borrowed Money) 249,633 73,299 176,334 411,237
Net Decrease (Increase) in Due from Banks (excluding
Deposits with Central Banks) 940,153 (131,245) 1,071,399 1,055,250
Net Decrease (Increase) in Call Loans (5,604,645) (2,597,556) (3,007,089) 1,319,767
Net Decrease (Increase) in Cash Placed as
Collateral on Securities Borrowed 3,313,727 (281,736) 3,595,463 (528,551)
Net Decrease (Increase) in Guarantee Deposits
Paid under Securities Borrowing Transactions (4,637,828) - (4,637,828) -
Net Increase (Decrease) in Call Money 4,821,877 1,080,810 3,741,067 (390,433)
Net Decrease (Increase) in Commercial Paper (330,432) (1,100,938) 770,506 (1,142,331)
Net Increase (Decrease) in Cash Received as Collateral
for Securities Lent (4,050,050) 511,690 (4,561,740) (555,210)
Net Increase (Decrease) in Deposits Received under
Securities Lending Transactions 4,099,757 - 4,099,757 -
Net Decrease (Increase) in Foreign Exchanges (Assets) 505,438 (347,219) 852,657 (315,128)
Net Increase (Decrease) in Foreign Exchanges
(Liabilities) (462,452) 360,304 (822,757) 424,834
Net Increase (Decrease) in Issuance, Redemption of
Bonds and Notes (58,776) (80,799) 22,023 (102,909)
Net Increase (Decrease) in Due to Trust Account (316,082) (290,184) (25,897) (50,007)
Interest and Dividends Income - cash basis 1,127,696 1,668,846 (541,149) 3,095,889
Interest Expense - cash basis (516,472) (954,086) 437,614 (1,603,992)
Others 45,404 (3,248,304) 3,293,708 (3,220,239)
Subtotal (1,872,409) 1,189,021 (3,061,430) 6,908,130
Income Taxes Paid (96,073) (37,497) (58,576) (131,692)
Net Cash Used in Operating Activities (1,968,482) 1,151,524 (3,120,007) 6,776,438
II. Cash Flows from Investment Activities:
Payments for Purchase of Securities (31,062,410) (34,377,074) 3,314,664 (58,967,968)
Proceeds from Sale of Securities 22,316,262 24,930,313 (2,614,050) 40,450,103
Proceeds from Redemption of Securities 6,747,494 9,102,528 (2,355,034) 19,571,083
Payments for Increase in Money Held in Trust (733) (48,844) 48,111 (109,999)
Proceeds from Decrease in Money Held in Trust 18,796 171,652 (152,855) 429,371
Payments for Purchase of Premises and Equipment (51,281) (77,655) 26,373 (193,154)
Proceeds from Sale of Premises and Equipment 9,783 33,999 (24,216) 35,109
Payments for Purchase of Stocks of Subsidiaries
(affecting (the scope of consolidation) - (935) 935 (1,064)
Payments for Purchase of Stocks of Subsidiaries
(affecting the scope of consolidation) - - - 318,553
Payments for Sales of Stocks of Subsidiaries
(not affecting the scope of consolidation) - (1,085) 1,085 (1,282)
Net Cash Used in Investment Activities (2,022,088) (267,101) (1,754,986) 1,530,751
III. Cash Flows from Financing Activities:
Proceeds from Issuance of Subordinated Borrowed Money 159,000 116,000 43,000 116,000
Repayments of Subordinated Borrowed Money (522,000) (402,700) (119,299) (644,800)
Proceeds from Issuance of Subordinated Bonds,
Notes and Bonds with Stock Option 73,000 263,800 (190,800) 274,033
Repayments of Subordinated Bonds, Notes and Bonds
with Stock Option (181,322) (159,558) (21,763) (719,117)
Proceeds from Investment of Minority Interests 118,500 21,856 96,643 379,874
Repayments of Minority Interests - (15,568) 15,568 (16,487)
Dividends Paid (54,985) (43,364) (11,620) (43,393)
Dividends Paid for Minority Interests (21,594) (22,480) 885 (43,421)
Payments for Purchase of Treasury Stock (88) (243) 154 (323)
Proceeds from Sales of Treasury Stock - 233 (233) 233
Net Cash Used in Financing Activities (429,490) (242,025) (187,465) (697,401)
IV. Effect of Exchange Rate Changes on Cash
and Cash Equivalents (657) 7,001 (7,659) 17,731
V. Net Increase in Cash and Cash Equivalents (4,420,719) 649,399 (5,070,118) 7,627,520
VI. Cash and Cash Equivalents at Beginning of
Interim Period (the year) 9,847,366 2,219,805 7,627,560 2,219,805
VII. Net Increase in Cash and Cash Equivalents
Resulting from Inclusion of Subsidiaries for Consolidation - 46 (46) 46
VIII. Net Decrease in Cash and Cash Equivalents Resulting
from Exclusion of Subsidiaries from Consolidation - - - (5)
IX. Cash and Cash Equivalent at End of Interim Period
(the year) Y 5,426,647 Y 2,869,251 Y 2,557,395 Y 9,847,366
(Notes) Amounts less than one million yen are rounded down
Mizuho Holdings,Inc.
Segment Information
1. Segment Information by Type of Business
The Mizuho Financial Group is engaged in securities, trust, leasing and other activities. Such segment information,
however, has not been presented, as the percentages of those activities are insignificant.
2. Segment Information by Geographic Area
For the Interim period of Fiscal 2001 (from April 1, 2001 to September 30, 2001)
(in millions of yen)
Japan Americas Europe Asia/Oceania, Total Elimination Consolidated
excluding Results
Japan
Ordinary Income
(1) Ordinary Income to outside 2,048,264 434,578 163,926 126,944 2,773,713 - 2,773,713
customers
(2) Inter-segment Ordinary Income 64,706 89,911 21,451 24,208 200,278 (200,278) -
Total 2,112,970 524,490 185,378 151,152 2,973,991 (200,278) 2,773,713
Ordinary Expenses 2,480,017 503,767 176,618 163,919 3,324,323 (159,587) 3,164,735
Ordinary Profit (Loss) (367,047) 20,722 8,759 (12,767) (350,331) (40,690) (391,022)
For the Interim period of Fiscal 2002 (from April 1, 2002 to September 30, 2002)
(in millions of yen)
Japan Americas Europe Asia/Oceania, Total Elimination Consolidated
excluding Results
Japan
Ordinary Income
(1) Ordinary Income to outside 1,380,459 198,375 188,193 42,084 1,809,113 - 1,809,113
customers
(2) Inter-segment Ordinary Income 36,543 17,216 9,265 30,595 93,621 (93,621) -
Total 1,417,003 215,591 197,458 72,680 1,902,734 (93,621) 1,809,113
Ordinary Expenses 1,363,058 175,555 178,927 55,309 1,772,850 (85,969) 1,686,880
Ordinary Profit 53,944 40,036 18,531 17,371 129,884 (7,651) 122,232
For the Fiscal 2001 (from April 1, 2001 to March 31, 2002)
(in millions of yen)
Japan Americas Europe Asia/Oceania, Total Elimination Consolidated
excluding Results
Japan
Ordinary Income
(1) Ordinary Income to outside 3,570,407 1,021,454 354,392 235,929 5,182,183 - 5,182,183
customers
(2) Inter-segment Ordinary Income 150,725 164,690 43,540 59,817 418,773 (418,773) -
Total 3,721,132 1,186,144 397,932 295,747 5,600,956 (418,773) 5,182,183
Ordinary Expenses 5,156,794 1,012,734 381,442 313,293 6,864,264 (332,230) 6,532,033
Ordinary Profit (Loss) (1,435,661) 173,409 16,490 (17,545) (1,263,307) (86,542) (1,349,850)
Notes: 1. Geographic analyses of the Mizuho Financial Group's operations are presented based on geographic contiguity,
similarities in economic activities, and relation of business operations. Ordinary Income and Ordinary
Profit/Loss are presented in lieu of Sales and Operating Profit/Loss as is the case for non-financial
companies.
2. Americas includes the United States of America and Canada, etc., Europe includes the United Kingdom, etc. and
Asia/Oceania includes Hong Kong and the Republic of Singapore, etc.
3. Ordinary Income from Overseas Entities
(in millions of yen)
Period Ordinary Income Consolidated Ordinary Income Ordinary Income from
from Overseas Entities Overseas Entities /
Consolidated Ordinary
Income
For the Interim period of Fiscal 2001
(from April 1, 2001 to September 30, 2001) 725,449 2,773,713 26.15 %
For the Interim period of Fiscal 2002
(from April 1, 2002 to September 30, 2002) 428,653 1,809,113 23.69 %
For the Fiscal 2001
(from April 1, 2001 to March 31, 2002) 1,611,776 5,182,183 31.10 %
Notes:
1. Ordinary Income from Overseas Entities is presented in lieu of Sales as is the case for non-financial companies.
2. Ordinary Income from Overseas Entities represents Ordinary Income recorded by overseas branches of domestic
subsidiaries and overseas subsidiaries excluding inter-segment Ordinary Income. Geographical analyses of Ordinary Income
from Overseas Entities are not presented as no such information is available.
Manufacturing, order-book and retail situation
There is no information on manufacturing, order-book and retail situation.
Contract Amount, Fair Value and Valuation Gain/Loss of Derivatives Transaction
(Derivatives) - Current fiscal year
(1) Interest Rate Related Transactions
(in millions of Yen)
Type of Transactions S e p t e m b e r 3 0 , 2 0 0 1 S e p t e m b e r 3 0 , 2 0 0 2
Contract Amount Fair Value Revaluation Gain Contract Amount Fair Value Revaluation Gain
(Loss) (Loss)
Listed
Futures 51,126,992 13,947 13,947 45,235,529 66,696 66,696
Options 23,864,285 29,879 1,471 27,992,447 22,720 6,077
Over the Counter
FRAs 53,639,206 7,220 7,220 56,506,701 655 655
Swaps 523,481,249 34,490 34,490 529,459,149 394,318 394,318
Options 22,757,424 66,350 15,120 19,233,937 6,208 5,873
Total 72,250 473,622
Notes
1 The above transactions are valued by the mark-to-market method and revaluation gains/losses are recorded in the
Consolidated Statement of Operations.
Derivatives transactions being designated as hedging items are excluded from the above table.
2 Fair values of listed instruments are measured at the closing prices on the Tokyo International Financial Futures
Exchange and others. Fair values of over-the-counter transactions are calculated by the discounted value of future cash
flows or option pricing models.
(2) Currency-Related Transactions
(in millions of Yen)
Type of Transactions S e p t e m b e r 3 0 , 2 0 0 1 S e p t e m b e r 3 0 , 2 0 0 2
Contract Amount Fair Value Revaluation Gain Contract Amount Fair Value Revaluation Gain
(Loss) (Loss)
Over the Counter
Currency Swaps 21,106,913 12,204 (17,238) 18,113,191 (246,390) (284,824)
Others - - - 137,116 126,894 420
Total (17,238) (284,403)
Notes
1 The above transactions are valued by the mark-to-market method and revaluation gains/losses are recorded in the
Consolidated Statement of Operations.
Derivatives transactions being designated as hedging items and the following transactions described in Note 3 are
excluded from above table.
2 Fair values of transactions are calculated by the discounted value of future cash flows
3 Currency Swap Transactions which adopt accrual accounting in accordance with "Tentative Accounting and Auditing
Treatment relating to Adoption of 'Accounting for Foreign Currency Transaction' for Banks" (JICPA Industry Audit
Committee Report No. 20) or "Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in Banking
Industry "(JICPA Industry Audit Committee Report No. 25), are excluded from the above table.
Currency Swap transactions which are accounted by the accrual method are as follows:
(in millions of Yen)
Type of Transactions S e p t e m b e r 3 0 , 2 0 0 1 S e p t e m b e r 3 0 , 2 0 0 2
Contract Amount Fair Value Revaluation Gain Contract Amount Fair Value Revaluation Gain
(Loss) (Loss)
Currency Swaps 1,013,760 (236) (12,475) 573,456 608 (8,108)
Similarly, the following currency related derivatives transactions (Forwards, options, etc.) are excluded from the
* Transactions which are valued by the mark-to-market method and revaluation gains/losses are recorded in the
Consolidated Statement of Operations
* 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
Currency related derivatives stated at fair value are as follows:
(in millions of Yen)
Type of Transactions September 30, 2001 September 30, 2002
Contract Amount Contract Amount
Listed
Futures 1,365 -
Over the Counter
Forwards 47,938,873 33,488,760
Options 7,762,618 10,382,849
(Derivatives) - Current fiscal year
(3) Stock-Related Transactions
(in millions of Yen)
Type of Transactions S e p t e m b e r 3 0 , 2 0 0 1 S e p t e m b e r 3 0 , 2 0 0 2
Contract Amount Fair Value Revaluation Gain Contract Amount Fair Value Revaluation Gain
(Loss) (Loss)
Listed
Index Futures 57,884 (124) (124) 16,670 (15) (15)
Index Options 29,959 356 (8) 20,018 205 5
Over the Counter
Options 69,588 (1,149) (1,524) 44,304 2,312 (472)
Total (1,657) (483)
Notes
1 The above transactions are valued by the mark-to-market method and revaluation gains/losses are recorded in the
Consolidated Statement of Operations.
Derivatives transactions being designated as hedging items are excluded from the above table.
2 Fair values of listed instruments are measured at the closing prices on the Tokyo Stock Exchange and others. Fair
values of over-the-counter transactions are calculated by the discounted value of future cash flows or option pricing
models.
(4) Bond-Related Transactions
Type of Transactions S e p t e m b e r 3 0 , 2 0 0 1 S e p t e m b e r 3 0 , 2 0 0 2
Contract Amount Fair Value Revaluation Gain Contract Amount Fair Value Revaluation Gain
(Loss) (Loss)
Listed
Index Futures 1,881,667 (2,877) (2,877) 1,786,152 8,458 8,458
Futures Options 3,361,832 1,816 135 329,629 1,557 220
Over the Counter
Options 292,716 1,404 1,142 120,209 415 0
Total (1,600) 8,678
Notes
1 The above transactions are valued by the mark-to-market method and revaluation gains/losses are recorded in the
Consolidated Statement of Operations.
Derivatives transactions being designated as hedging items are excluded from the above table.
2 Fair values of listed instruments are measured at the closing prices on the Tokyo Stock Exchange and others. Fair
values of over-the-counter transactions are calculated by the discounted value of future cash flows or option pricing
models.
(Derivatives) - Current fiscal year
(5) Commodity-Related Transactions
(in millions of Yen)
September 30, 2001 September 30, 2002
Revaluation Revaluation
Type of Transactions Contact Fair Gain Contact Fair Gain
Amount Value (Loss) Amount Value (Loss)
Over the Counter
Options 80,836 9,343 291 87,347 6,824 1,130
Total 291 1,130
Note 1 The above transactions are valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
Operations.
2 Fair values of above transactions are calculated depending on the
factors of the contracts such as prices, terms and others.
3 Underlying commodities are Oil, Copper, Aluminium and others.
(6) Credit Derivatives Transactions
(in millions of Yen)
September 30, 2001 September 30, 2002
Revaluation Revaluation
Type of Transactions Contact Fair Gain Contact Fair Gain
Amount Value (Loss) Amount Value (Loss)
Over the Counter
Credit Derivatives 252,127 174 174 439,886 95,177 95,177
Total 174 95,177
Note 1 The above transactions are valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
Operations.
2 Fair values of above transactions are calculated depending on the
factors of the contracts such as prices, terms and others.
(7) Weather Derivatives Transactions
(in millions of Yen)
September 30, 2001 September 30, 2002
Revaluation Revaluation
Type of Transactions Contact Fair Gain Contact Fair Gain
Amount Value (Loss) Amount Value (Loss)
Over the Counter
Weather Derivatives
(Options) 2,650 43 61 622 19 7
Total 61 7
Note 1 The above transactions are valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
Operations.
2 Fair values of above transactions are calculated depending on the
factors of the contracts such as prices, terms and others.
3 Transactions are related to atmospheric temperature, precipitation and
others.
(Derivatives) - Previous fiscal year
(1) Interest Rate Related Transactions
(in millions of Yen)
March 31, 2002
Type of Transactions Contract Amount
Maturity over Revaluation
One Year Fair Value Gain (Loss)
Listed
Futures Sold 7,021,558 2,385,852 3,762 3,762
Bought 3,746,983 2,313,561 1,522 1,522
Options Sold 2,069,407 171,114 7,415 (2,803)
Bought 1,929,895 229,219 5,784 1,633
Over the Counter
FRAs Sold 30,280,783 7,624,841 31,856 31,856
Bought 29,398,902 7,682,984 (29,168) (29,168)
Fix receive/Fix Pay 259,228,559 161,909,892 7,685,119 7,685,119
Swaps Fix receive/Fix Pay 256,258,811 156,719,785 (7,261,247) (7,261,247)
Fix receive/Fix Pay 15,335,921 10,765,936 (884) (884)
Fix receive/Fix Pay 3,070,125 2,764,976 1,274 1,274
Options Sold 11,340,608 7,866,548 (43,415) (67,579)
Bought 10,252,957 7,524,157 84,616 72,765
Total 436,250
Notes 1 The above transactions are valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated statement of
Operations.
Derivatives transactions being designated as hedging items are excluded
from the above table.
2 Fair values of listed instruments are measured at the closing prices on
the Tokyo International Financial Futures Exchange and others. Fair
values of over-the-counter transactions are calculated by the
discounted value of future cash flows or option pricing models.
(2) Currency-Related Transactions
(in millions of Yen)
March 31, 2002
Type of Transactions Contract Amount
Maturity over Revaluation
One Year Fair Value Gain (Loss)
Over the Counter
Currency Swaps 21,213,205 13,650,730 162,296 49,786
Others Sold 13,956 13,956 (42) (42)
Bought 4,331 659 522 522
Total 50,266
Notes 1 The above transactions are valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
Operations. Derivatives transactions being designated as hedging items
and the following transactions described in Note 4 are excluded from
above table.
2 Fair values of transactions are calculated by the discounted value of
future cash flows
3 "Others" denotes swaption transactions.
4 Currency Swap Transactions which adopt accrual accounting in accordance
will "Tentative Accounting and Auditing Treatment relating to Adoption
of 'Accounting for Foreign Currency Transaction' for Banks" (JICPA
Industry Audit Committee Report No. 20), are excluded from the above
table. Currency Swap transactions which are accounted by the accrual
method are as follows:
(in millions of Yen)
Type of Transactions March 31, 2002
Contact Amount Fair Value Unrealized Gain/(Loss)
Currency Swaps 825,902 14,901 (9,790)
Similarly, the following currency related derivative transactions (Forwards,
options, etc.) are excluded from the above table.
* Transactions which are valued by the mark-to-market method and revaluation
gains/losses are recorded in the Consolidated Statement of Operations
* 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
Currency related derivatives stated at fair value are as follows:
(in millions of Yen)
Type of Transactions March 31, 2002
Contract Amount
Over the Counter
Forwards Sold 14,927,469
Bought 19,822,319
Options Sold 4,987,169
Bought 4,830,134
(Derivatives) - Previous fiscal year
(3) Stock-Related Transactions
(in millions of Yen)
March 31, 2002
Type of Transactions Contract Amount
Maturity over Revaluation
One Year Fair Value Gain (Loss)
Listed
Index Futures Sold 40,892 - 651 651
Bought 44 - (0) (0)
Index Options Sold 19,534 - 46 98
Bought 10,225 - 195 72
Over the Counter
Options Sold 12,505 1,924 375 (54)
Bought 18,031 5,311 1,394 576
Total 1,343
Notes 1 The above transactions are valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
Derivatives transactions being designated as hedging items are excluded
from the above table.
2 Fair values of listed instruments are measured at the closing prices on
the Tokyo Stock Exchange and others. Fair values of over-the-counter
transactions are calculated by the discounted value of future cash
flows or option pricing models.
(4) Bond-Related Transactions
(in millions of Yen)
March 31, 2002
Type of Transactions Contract Amount
Maturity over Revaluation
One Year Fair Value Gain (Loss)
Listed
Index Futures Sold 513,612 - 1,993 1,993
Bought 363,057 7,851 (763) (763)
Futures Options Sold 989,844 52,760 967 (855)
Bought 931,012 105,520 1,435 1,012
Over the Counter
Options Sold 246,429 502 25 (98)
Bought 246,715 - 100 22
Total 1,312
Notes 1 The above transactions are valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
Derivatives transactions being designated as hedging items are excluded
from the above table.
2 Fair values of listed instruments are measured at the closing prices on
the Tokyo Stock Exchange and others. Fair values of over-the-counter
transactions are calculated by the discounted value of future cash
flows or option pricing models.
(Derivatives) - Previous fiscal year
(5) Commodity-Related Transactions
(in millions of Yen)
March 31, 2002
Type of Transactions Contract Amount
Maturity over Revaluation
One Year Fair Value Gain (Loss)
Listed
Fixtures Sold - - - -
Bought - - - -
Over the Counter
Forwards Sold - - - -
Bought - - - -
Swaps - - - -
Options Sold 39,159 22,088 3,754 (930)
Bought 39,159 22,088 3,764 1,259
Total 329
Note 1 The above transactions arc valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
Derivatives transactions being designated as hedging items are excluded
from the above table.
2 Fair values of above transactions are calculated depending on the
factors of the contracts such as prices, terms and others.
3 Underlying commodities are Oil and Copper.
(6) Credit Derivatives Transactions
(in millions of Yen)
March 31, 2002
Type of Transactions Contract Amount
Maturity over Revaluation
One Year Fair Value Gain (Loss)
Over the Counter
Credit Derivatives Sold 68,987 43,999 (577) (577)
Bought 429,140 412,493 25,230 25,230
Total 24,652
Note 1 The above transactions arc valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
Derivatives transactions being designated as hedging items are excluded
from the above table.
2 Fair values of above transactions are calculated depending on the
factors of the contracts such as prices, terms and others.
3 "Sold" indicates assumption of credit risk, "Bought" indicates transfer
of credit risk.
(7)Weather Derivatives Transactions
(in millions of Yen)
March 31, 2002
Type of Transactions Contract Amount
Maturity over Revaluation
One Year Fair Value Gain (Loss)
Over the Counter
Weather Derivatives Sold 230 - 0 (0)
(Options) Bought 230 - 0 0
Total -
Note 1 The above transactions are valued by the mark-to-market method and
revaluation gains/losses are recorded in the Consolidated Statement of
2 Fair values of above transactions are calculated depending on the
factors of the contracts such as prices, terms and others.
3 Transactions are related to atmospheric temperature.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR IIFLALRLEFIF
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