02 15-14 mizuho results-q3-1

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02 15-14 mizuho results-q3-1

  1. 1. Summary of Financial Results for the Third Quarter of Fiscal 2013 <Under Japanese GAAP> January 31, 2014
  2. 2. Contents  Summary of Income Statement P.2  Loan Balance and Domestic Loan and Deposit Rate Margin P.3  Non-interest Income P.4  Financial Soundness P.5  Revision of Dividend Estimates for Fiscal 2013 P.6  (Reference) Difference between Consolidated and BK+TB P.7 The new Mizuho Bank was established on July 1, 2013 through the merger between former Mizuho Bank and former Mizuho Corporate Bank, with the latter being the surviving entity Definition • BK+TB: Simple aggregate figures for Mizuho Bank (BK) and Mizuho Trust & Banking (TB) on a non-consolidated basis • SC: Figures for Mizuho Securities (SC) on a consolidated basis • Figures of Mizuho Bank for 3Q FY2013 include those of former Mizuho Bank before the merger for 1Q FY2013. Figures for earlier periods are simple aggregate figures of former Mizuho Bank and former Mizuho Corporate Bank 1
  3. 3. Summary of Income Statement 3Q FY2013 (Apr.1 - Dec.31, 2013) Consolidated Consolidated Net Business Profits Change from 3Q FY2012 (JPY Bn) Consolidated Gross Profits 1,546.0 -83.7 594.2 -121.2 Credit-related Costs 74.6 106.7 Net Gains (Losses) related to Stocks 61.1 168.6 Ordinary Profits 780.5 190.1 Consolidated Net Income 563.1  Consolidated Net Business Profits amounted to JPY 594.2Bn, representing steady 75% progress against the earnings plan for FY2013  Both Customer Groups’ income of BK+TB and SC’s Net Operating Revenues increased significantly year-on-year 171.3 Consolidated Net Business Profits *1 • *1: Consolidated Gross Profits – G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments • BK+TB+SC BK+TB 3Q FY2013 (Apr.1 - Dec.31, 2013) Change from 3Q FY2012 (JPY Bn) Gross Profits Customer Groups Trading & Others G&A Expenses (excluding Non-Recurring Losses) Net Business Profits Credit-related Costs Net Gains (Losses) related to Stocks • SC 1,157.7 -124.9 945.4 73.8 212.3 -198.7 3Q FY2013 (Apr.1 - Dec.31, 2013) -16.5 516.8 112.8 SG&A Expenses -211.2 -25.5 Ordinary Income 37.6 22.3 47.2 40.2 -141.5 77.0 47.7 Net Income -640.8 247.5 Net Operating Revenues 42.8 165.7 Ordinary Profits 633.8 167.2 Net Income 484.3 Consolidated Net Income Change from 3Q FY2012 *2 (JPY Bn) *2: Figures for 3Q FY2012 are simple aggregate figures of Mizuho Investors Securities (before the merger with SC conducted on January 4, 2013) and SC 133.4 Gross Profits of BK+TB decreased by JPY 124.9Bn year-on-year  Income from Customer Groups increased by JPY 73.8Bn, mainly due to increases in income from domestic business, particularly Non-interest Income, as well as in income from overseas business, particularly in Asia  Income from Trading & Others decreased by JPY 198.7Bn Net Operating Revenues of SC increased by JPY 47.7Bn year-on-year, mainly due to increases in equity brokerage commissions and commissions and fees related to investment trusts G&A Expenses of BK+TB increased by JPY 16.5Bn. If impact of foreign exchange rates is excluded, G&A Expenses increased by JPY 5.5Bn mainly due to our continued cost reduction efforts  Consolidated Net Income increased by JPY 171.3Bn year-on-year to JPY 563.1Bn  93% progress against the earnings plan of JPY 600.0Bn for FY2013 • • • Consolidated Credit-related Costs were a reversal of JPY 74.6Bn Consolidated Net Gains (Losses) related to Stocks improved by JPY 168.6Bn year-on-year to net gains of JPY 61.1Bn, mainly due to a decrease in impairment losses for stocks Consolidated Net Income of SC increased by JPY 40.2Bn year-on-year to JPY 47.2Bn The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.8 of this presentation 2
  4. 4. Loan Balance and Domestic Loan and Deposit Rate Margin Average Loan Balance*1 Domestic Loan and Deposit Rate Margin*4  3Q FY2013 average domestic loan balance, excluding loans to the Japanese Government, remained flat from 1H FY2013  3Q FY2013 average overseas loan balance increased by USD 4.6Bn from 1H FY2013, particularly in Asia Domestic*2 [Average Balance]  Domestic Loan and Deposit Rate Margin for 3Q FY2013 remained flat from 2Q FY2013 (JPY Tn) (%) 60 (BK) 1.80 55 Return on Loans and Bills Discounted ・・・ a 1.61 50 45 58.6 55.6 54.6 54.3 53.7 54.5 53.7 53.7 54.9 1.60 54.9 Loan and Deposit Rate Margin ・・・ a - b 1.55 Cost of Deposits and Debentures ・・・ b 1.49 1.45 40 1.39 0 35 56.3 Overseas*3 54.8 54.9 55.0 53.3 54.4 53.7 55.1 55.0 [Average Balance] 1.37 1.40 1H FY 09 2H FY 09 1H FY 10 2H FY 10 1H FY 11 2H FY 11 1H FY 12 2H FY 12 1H FY 13 3Q FY 13 (JPY Tn) (Reference) [Period-end Balance] 1.33 1.30 1.41 55.8 1.39 (USD Bn) 150 1.36 1.22 1.36 1.32 1.20 1.30 1.26 120 60 1.24 3Q 1.24% 90 89.9 81.5 86.4 92.5 105.5 121.3 127.3 133.2 141.3 4Q 1.24% 145.8 1.00 0.40 0.19 30 0 1H FY 09 2H FY 09 1H FY 10 2H FY 10 1H FY 11 2H FY 11 1H FY 12 2H FY 12 1H FY 13 3Q FY 13 (Reference) [Period-end Balance] 83.6 Total*2 66.7 77.2 87.4 113.5 119.9 131.6 137.3 143.4 [Average Balance] 63.0 61.0 61.1 60.8 63.8 62.5 66.5 67.1 1.18 2Q 1.18% 0.12 0.80 0.20 0.08 0.07 0.06 0.06 0.06 0.05 0.04 1H FY11 2H FY11 1H FY12 2H FY12 1H FY13 3Q FY13 143.5 (JPY Tn) 1.19 1Q 1.20% 0.15 (USD Bn) 97.1 1.24 0.60 0.00 70.3 1H FY09 *1: Excluding loans to Mizuho Financial Group, Inc. *2: BK+TB, banking account *3: Managerial accounting of BK, including figures of Mizuho Bank (China), Ltd. and former BK for 1Q FY2013 2H FY09 1H FY10 2H FY10 *4: Domestic operations of BK (including figures of former BK for 1Q FY2013), excluding loans to Mizuho Financial Group, Inc., Deposit Insurance Corporation of Japan and the Japanese Government 3
  5. 5. Non-interest Income Non-interest Income from Customer Groups (BK+TB) (managerial accounting*1)  (JPY Bn) 400 Non-interest Income from Customer Groups for 3Q FY2013 increased significantly year-on-year 379.4 +51.0 <Breakdown of year-on-year changes> 350 (rounded figures) 328.4 Domestic Business: +JPY 25.0Bn o/w Investment Trusts & Individual Annuities : +JPY 13.0Bn o/w Settlement & Foreign Exchange : +JPY 2.0Bn o/w Solution Business-related : 300 +JPY 1.0Bn o/w Trust & Asset Management*2: o/w Others: 250 Overseas Business: +JPY 3.0Bn +JPY 26.0Bn *1: New managerial accounting rules have been applied since the beginning of FY2013. Figures for 3Q FY2012 (Apr.1 - Dec.31, 2012) on this slide were re-calculated based on the new rules (the impact for 3Q FY2012 (Apr.1 - Dec.31, 2012) was approx. -JPY 19.0Bn) *2: Trust and Asset management business of TB 200 0 3Q FY12 (Apr.1 - Dec.31, 2012) +JPY 6.0Bn 3Q FY13 (Apr.1 - Dec.31, 2013) 4
  6. 6. Financial Soundness Disclosed Claims under the FRL*1 and NPL*2 Ratio Unrealized Gains (Losses) on Other Securities*4  Balance of Disclosed Claims under the FRL as of December 2013 remained almost flat from September 2013  NPL ratio as of December 2013 decreased to 1.29%  Consolidated Unrealized Gains (Losses) on Other Securities as of December 2013 increased as a result of a rise in stock prices (JPY Bn) (BK+TB)*3 Figures shown above bars represent net total Japanese Stocks Japanese Bonds 1,016.8 1,000 Disclosed Claims under the FRL NPL Ratio (right axis) (JPY Tn) (Consolidated) Others 1,141.2 Sep. 2013 Dec. 2013 878.1 500 0.6 2.5% 91.2 Mar. 2011 1.5 Mar. 2012 0 1.29 1.20 -500 1.16 1.02 JGB Balance*5 1.01 1.0 Mar. 2013 2.0%  JGB balance and average remaining period remained almost flat from September 2013 1.72% 1.63% 0.5 (JPY Tn) 1.71% 1.5% 40 30 1.35% 20 1.29% 0.0 10 Mar. 2012 Mar. 2013 Sep. 2013 29.0 7.7 1.5 32.4 6.5 1.5 24.2 19.6 30.6 9.0 1.5 25.8 7.5 1.3 25.7 8.6 1.3 20.0 16.8 15.7 Mar. 2013 Sep. 2013 Dec. 2013 2.5 years 2.2 years 2.3 years 0 1.0% Mar. 2011 (BK+TB) (acquisition cost basis) Treasury Discount Bills Floating-rate Notes 6 Medium & Long-term Bonds * Mar. 2011 Mar. 2012 Average Remaining Period *7 Dec. 2013 1.7 years *1: The Financial Reconstruction Law *2: Non-Performing Loan *3: banking account + trust account 2.2 years *4: The base amount to be recorded directly to Net Assets after tax and other necessary adjustments *5: Other securities which have readily determinable fair values *6: Including bonds with remaining period of one year or less *7: Excluding Floating-rate Notes 5
  7. 7. Revision of Dividend Estimates for Fiscal 2013  Reflecting the financial results to date and other factors, an upward revision has been made for the annual (fiscal year-end) dividend estimates per common stock (+ JPY 0.5 from previous estimates) Consolidated Net Income 3Q FY2013 (Apr.1 - Dec.31, 2013) (JPY Bn) YoY Consolidated Net Income 563.1 Progress +171.3 FY2013 Plan 93% vs. Current Plan 600.0 No change Cash Dividend per Common Stock (estimates for FY2013) Interim (actual) Fiscal Year-end (estimate) Annual (estimate) Previous Estimates JPY 3.03.0 JPY JPY 3.03.0 JPY JPY 6.06.0 JPY Revised Estimates JPY 3.03.0 JPY JPY 3.53.5 JPY JPY 6.56.5 JPY +JPY 0.5 +JPY 0.5 +JPY 0.5 +JPY 0.5 Net Change - The above information includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-looking Statements” on P.8 of this presentation 6
  8. 8. (Reference) Difference between Consolidated and BK+TB Difference in Net Income (3Q FY2013)*1 (JPY Bn) Consolidated Difference 600 563.1 +78.8 BK+TB 484.3 500 +47.2 +12.2 BK major overseas subsidiaries Mizuho Credit Guarantee  Difference in Net Income between Consolidated and BK+TB*2 was JPY 78.8Bn, with a year-on-year increase of JPY 40.8Bn, excluding a special item*3  Increased Net Income of SC and other factors contributed to an increase in Difference in Net Income between Consolidated and BK+TB +5.2 SC (consolidated) 400 +14.2 Other subsidiaries, consolidation adjustments, etc. 300 *1: For the nine-month period from Apr.1 - Dec. 31, 2013 *2: Consolidated - (BK+TB) *3: 3Q FY2012: Approx. +JPY 2.9Bn impact of adjustment for losses on impairment of stock 200 100 0 BK+TB Consolidated 7
  9. 9. Forward-looking Statements This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance. In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions. We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Business Plan, realize the synergy effects of "One MIZUHO," and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations. Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) and our report on Form 6-K furnished to the SEC on January 27, 2014, both of which are available in the Financial Information section of our web page at www.mizuho-fg.co.jp/english/ and also at the SEC’s web site at www.sec.gov. We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange. 8

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