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Mizuho Financial posts YOY decline in full-year profit

Japan's Mizuho Financial Group Inc. reported a 4.4% year-over-year decline in profit for the fiscal year ended March 31.

The company's consolidated profit attributable to owners of the parent slipped to ¥576.55 billion from ¥603.54 billion in the prior-year period. EPS for the full year fell to ¥22.72 from ¥23.78.

The S&P Capital IQ consensus GAAP EPS estimate for the full year was ¥21.97.

Ordinary profits climbed to ¥782.45 billion from ¥737.51 billion, while ordinary income increased to ¥3.561 trillion from ¥3.293 trillion. Ordinary expenses rose to ¥2.779 trillion from ¥2.555 trillion.

Net interest income came in at ¥807.37 billion, down from ¥867.82 billion in the year-ago period. Net fee and commission income increased to ¥614.35 billion from ¥603.54 billion, while net trading income dropped to ¥275.79 billion from ¥325.33 billion a year earlier.

Gains on reversal of reserves for possible losses on loans and others jumped to ¥173.33 billion from ¥32.66 billion.

As of March 31, the group's total capital ratio was 18.24%, up from 16.28% in the same period last year. Its common equity Tier 1 and Tier 1 ratios came in at 12.49% and 15.44%, respectively, compared with 11.34% and 13.30% the end of March 2017.

Mizuho Bank Ltd., the group's banking unit, contributed a fiscal full-year net income of ¥448.89 billion, up from ¥342.57 billion in the prior-year period.

Domestic net interest income slipped to ¥472.60 billion from ¥517.26 billion, while international net interest income climbed to ¥205.05 billion from ¥202.50 billion.

Domestic gross profits fell to ¥770.50 billion from ¥848.42 billion, while international gross profits declined to ¥408.34 billion from ¥471.96 billion. Ordinary profits amounted to ¥559.14 billion, up from ¥459.80 billion in the year-ago period.

As of March 31, the bank's net interest margin stood at 0.22%, up from 0.17% a year earlier.

The bank's consolidated total capital ratio at the end of March clocked in at 18.52%, up from 16.20% in the prior-year period. Its common equity Tier 1 ratio climbed to 12.34% from 11.16% a year earlier, while its Tier 1 capital ratio increased to 15.61% from 13.34% over the same period.

In addition, Mizuho Financial will redeem ¥274.5 billion of noncumulative perpetual preferred securities June 30. The securities were issued by Mizuho Capital Investment (JPY) 2 Ltd. in January 2008, according to a separate May 15 release.

The payment of the redemption amount is scheduled for July 2.

As of May 14, US$1 was equivalent to ¥109.61.