Financial Performance - Mizuho Financial Group reported a profit attributable to owners of the parent of ¥415.7 billion for the six months ended September 30, 2023[28]. - Net income attributable to MHFG shareholders increased by ¥686 billion, from a loss of ¥379 billion in the six months ended September 30, 2022 to a profit of ¥307 billion in the six months ended September 30, 2023[42]. - Noninterest income was ¥992 billion in the six months ended September 30, 2023, compared to a loss of ¥214 billion in the corresponding period in the previous fiscal year, reflecting a significant recovery[51]. - Total comprehensive income attributable to MHFG shareholders increased from a loss of ¥120,153 million in 2022 to a gain of ¥523,321 million in 2023[177]. - Basic net income per common share shifted from a loss of ¥149.38 in 2022 to a profit of ¥121.06 in 2023[175]. Capital and Liquidity - The Common Equity Tier 1 capital ratio under Basel III as of September 30, 2023 was 11.52%[28]. - Mizuho Financial Group maintained a sufficient capital base compared to regulatory minimum requirements[28]. - The Liquidity Coverage Ratio (LCR) for Mizuho Financial Group (Consolidated) was 132.7% as of September 30, 2023, with total high-quality liquid assets of ¥80,465 billion and net cash outflows of ¥60,670 billion[127]. - The Net Stable Funding Ratio (NSFR) for Mizuho Financial Group (Consolidated) was 117.6% as of September 30, 2023, with available stable funding of ¥114,845 billion and required stable funding of ¥97,604 billion[128]. - The total equity increased from ¥9,725.1 billion to ¥10,224.8 billion[171]. Loans and Credit Quality - Total loans before allowance for credit losses on loans increased by ¥3,623 billion from March 31, 2023 to ¥97,799 billion as of September 30, 2023[91]. - Nonaccrual loans decreased by ¥59 billion, or 4.4%, from March 31, 2023 to ¥1,273 billion as of September 30, 2023[95]. - Provision for credit losses was a credit of ¥2 billion in the six months ended September 30, 2023, compared to a provision of ¥38 billion in the same period of the previous year[50]. - The coverage ratio for nonaccrual loans increased by 4.71 percentage points as of September 30, 2023, compared to March 31, 2023, due to an increase in total allowance for credit losses on loans and a decrease in total nonaccrual loans[102]. - The provision for credit losses improved from ¥37,646 million in 2022 to a credit of ¥2,484 million in 2023, indicating a positive shift in credit quality[175]. Economic Environment - The economic outlook remains uncertain due to high inflation and monetary tightening in major economies[13]. - There were 4,208 corporate bankruptcies in Japan in the six months ended September 30, 2023, involving approximately ¥1.6 trillion in total liabilities[29]. - The yen to U.S. dollar exchange rate weakened from ¥133.13 to ¥148.77 between March 31, 2023 and September 29, 2023[29]. Investments and Acquisitions - The acquisition of Greenhill & Co., Inc. was completed on December 1, 2023, for an enterprise value of approximately $550 million, aimed at accelerating investment banking growth strategy[34]. - Mizuho Securities holds 49.0% of the common stock in Rakuten Securities following a share transfer agreement completed on December 15, 2023, strengthening the strategic alliance[35]. Regulatory Compliance - The company is subject to regulatory capital requirements with a minimum capital adequacy ratio of 8%, including a Common Equity Tier 1 capital requirement of 4.5%[136]. - The finalized Basel III reforms require G-SIBs to meet a leverage ratio buffer set at 50% of the applicable risk-weighted capital buffer[143]. - The implementation of the finalized Basel III reforms was deferred to January 1, 2023, with further extensions for Japan to March 31, 2024[144]. - Mizuho Financial Group calculates its capital ratio in accordance with current regulations, without notifying for earlier implementation of Basel III[144].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August 2023 Commission File Number 001-33098 Mizuho Financial Group, Inc. (Translation of registrant's name into English) 5-5, Otemachi 1-chome Chiyoda-ku, Tokyo 100-8176 Japan (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under co ...

Financial Performance - For the fiscal year 2023, Mizuho Financial Group reported net interest income of ¥1,208,727 million, an increase from ¥1,069,809 million in 2022, representing a growth of approximately 13.0%[36] - The net income attributable to MHFG shareholders for fiscal year 2023 was a loss of ¥14,009 million, compared to a profit of ¥(104,722) million in 2022, indicating a significant decline in profitability[36] - Noninterest income for fiscal year 2023 was ¥888,103 million, a decrease from ¥669,790 million in 2022, indicating a growth of approximately 32.7%[36] - The return on equity for fiscal year 2023 was (0.16)%, down from (1.30)% in 2022, reflecting a decline in the company's profitability relative to its equity[37] - Cash dividends per share increased to ¥85.00 in 2023 from ¥80.00 in 2022, marking a rise of 6.25%[36] Assets and Liabilities - Total assets increased to ¥248,780,722 million in 2023, up from ¥231,550,704 million in 2022, reflecting a growth of approximately 7.4%[37] - Total liabilities rose to ¥239,055,588 million in 2023, up from ¥222,108,473 million in 2022, representing an increase of approximately 7.6%[37] - The provision for credit losses decreased to ¥93,753 million in 2023 from ¥214,408 million in 2022, showing a reduction of about 56.3%[36] Regulatory and Compliance Risks - The company is subject to capital adequacy regulations based on Basel III rules, with revised regulations effective from March 2024[74] - If capital adequacy ratios fall below specified levels, the Financial Services Agency may require corrective actions, including plans to limit capital outflow or reduce total assets[74] - A downgrade in credit ratings could result in additional collateral requirements, estimated at approximately ¥8.5 billion for a one-notch downgrade and ¥25.1 billion for a two-notch downgrade[73] - Compliance with anti-money laundering and counter-terrorism financing measures is critical, with potential regulatory actions for inadequacies[90] - Regulatory compliance measures are in place, but violations or misconduct could lead to penalties and reputational harm[98] Market and Competitive Environment - The company faces intense competition in the financial services market, which could adversely affect its business and financial condition[56] - The company faces strong competition from major banking groups and financial institutions in Japan and globally, necessitating continuous innovation and service expansion[228] Strategic Initiatives and Investments - The company announced a medium-term business plan in May 2023, targeting the fiscal years ending March 31, 2026, but success is uncertain[99] - Mizuho established a venture capital firm, Mizuho Innovation Frontier Co., Ltd. ("MHIF"), in April 2023 to promote business and technological advances across its companies[132] - In the fiscal year ended March 31, 2023, Mizuho invested in Rakuten Securities, Inc. and Kredivo Holdings Ltd., aiming to enhance asset management consulting services and digital finance offerings[137] - The new medium-term business plan (FY2024-FY2026) aims to connect initiatives across Mizuho and create solutions for client and societal challenges[146] Risk Management and Operational Challenges - Climate change risks, including transition and physical risks, may adversely affect the company's financial stability and operations[50] - The company may incur significant credit-related costs in the future due to problem loans, particularly in the real estate and manufacturing sectors[59] - Natural disasters, terrorism, and outbreaks of infectious diseases could disrupt business operations and adversely impact financial results[58] - The company's risk management policies may not fully address unidentified or unanticipated risks, potentially leading to adverse financial outcomes[108] Human Capital and Corporate Culture - The company emphasizes the importance of attracting and retaining skilled employees to maintain competitiveness and operational efficiency[103] - Mizuho is promoting a supportive working environment and inclusive organization to enhance employee engagement and development[169] - The company is focused on enhancing its corporate culture and human capital through strategic resource allocation and employee development initiatives[153] Sustainability and Climate Initiatives - Mizuho is committed to sustainability initiatives to improve corporate value and contribute to the achievement of Sustainable Development Goals (SDGs)[154] - Mizuho aims to achieve net zero by 2050 and has revised its "Net Zero Transition Plan" to promote integrated climate change responses[166] - The company has identified transition and physical risks related to climate change, including credit risks from stricter carbon regulations and operational risks from extreme weather[172] Digital Transformation and Customer Engagement - Mizuho aims to double asset-based income and enhance customer touchpoints through digitalization and collaboration with other companies[150] - The company is focusing on improving the quality and convenience of both digital and in-person customer channels[163] - The company plans to strengthen its digital services by investing in Kredivo Holdings Ltd., an Indonesian digital finance company[189] Business Development and Growth Strategies - The Corporate & Investment Banking (CIB) business model will be deepened in the Americas and expanded in Asia to achieve regional growth[153] - The Global Corporate & Investment Banking Company supports Japanese corporate customers in expanding overseas operations, particularly in Asia, through specialized services and advisory[206] - The company is focusing on a Global 300 Strategy to enhance business with approximately 300 blue-chip non-Japanese companies, aiming to provide financing solutions in Asia[207]

Shareholder Meeting Outcomes - Mizuho Financial Group held its 21st Ordinary General Meeting of Shareholders on June 23, 2023[10]. - Proposal 1 for the appointment of fourteen directors was adopted with approval rates ranging from 86% to 98%[12]. - The number of voting rights for Proposal 1 ranged from 15,380,987 to 17,519,737 for various directors, indicating strong shareholder support[12]. - The voting results reflect a significant shareholder engagement in governance matters[12]. - The meeting's outcomes indicate a stable leadership structure with the reappointment of existing directors[12]. Proposal Outcomes - Proposal 2, concerning a transition plan to align lending and investment portfolios with the Paris Agreement's 1.5 degree goal, was rejected with only 19% approval[12]. - A total of 3,501,778 votes were in favor of Proposal 2, while 14,019,285 votes were against it[12]. - The requirement for adoption of Proposal 1 was a majority of the voting rights held by shareholders present, while Proposal 2 required two-thirds approval[15]. Strategic Focus - Mizuho Financial Group continues to focus on aligning its strategies with sustainability goals, as evidenced by the shareholder proposal[11]. - The company confirmed that a portion of voting rights was not counted due to prior decisions made before the meeting[13].

Financial Performance - For the nine months ended December 31, 2022, Mizuho Financial Group reported ordinary income of ¥4,308,147 million, a significant increase of 83.5% compared to ¥2,345,453 million for the same period in 2021[10] - Interest income for the same period rose to ¥2,050,840 million, up 120% from ¥932,956 million year-over-year[10] - The company's profit attributable to owners of the parent for the nine months ended December 31, 2022, was ¥543,277 million, representing an increase of 13.6% from ¥478,656 million in the previous year[10] - Trading income surged to ¥1,056,220 million for the nine months ended December 31, 2022, compared to ¥275,516 million for the same period in 2021, marking a growth of 283.5%[10] - Comprehensive income attributable to owners of the parent fell to ¥81,264 million for the nine months ended December 31, 2022, compared to ¥240,222 million for the same period in 2021[11] - The net business profits for the nine months ended December 31, 2021 were ¥684,531 million, with gross profits of ¥1,699,228 million[38] - For the nine months ended December 31, 2022, net business profits (excluding credit costs of trust accounts) were ¥681,858 million, a slight decrease from ¥684,531 million in the same period of 2021[43] - The income before income taxes recorded in the Quarterly Consolidated Statement of Income for the nine months ended December 31, 2022, was ¥689,961 million, up from ¥555,106 million in the same period of 2021[43] Assets and Liabilities - The total assets of Mizuho Financial Group increased to ¥251,791,239 million as of December 31, 2022, compared to ¥237,066,142 million as of March 31, 2022, reflecting a growth of 6.2%[8] - Total liabilities increased to ¥242,762,605 million as of December 31, 2022, up from ¥227,865,110 million as of March 31, 2022, indicating a rise of 6.5%[9] - The company reported a total shareholders' equity of ¥8,468,742 million as of December 31, 2022, an increase from ¥8,130,185 million as of March 31, 2022[9] - The balance sheet amount of Japanese government bonds as of December 31, 2022, was ¥14,722,551 million, down from ¥25,158,730 million as of March 31, 2022[48] Securities and Investments - The net unrealized gains (losses) on other securities decreased significantly to ¥230,046 million as of December 31, 2022, down from ¥719,822 million as of March 31, 2022[9] - The net gains related to ETFs and others for the nine months ended December 31, 2022, amounted to ¥41,933 million, compared to a loss of ¥33,577 million in the previous year[43] - The total net business profits for the nine months ended December 31, 2022, included net gains related to stocks amounting to ¥41,933 million, a significant recovery from the previous year's losses[43] Dividends and Shareholder Returns - Cash dividends paid for the nine months ended December 31, 2022 totaled ¥209,431 million, with dividends per share of ¥40.00 and ¥42.50 for the respective resolutions[32] - The total amount of interim cash dividends declared was ¥107,889 million, with an interim cash dividend per share of ¥42.50[63] Risk Management and Provisions - The expected losses recognized as Reserve for Possible Losses on Loans to Restructuring Countries for the nine months ended December 30, 2022 amounted to ¥41,894 million, including ¥40,360 million related to claims against Russia[22] - For the nine months ended December 31, 2022, the provision for Reserves for Possible Losses on Loans was ¥51,290 million, a decrease from ¥147,958 million for the same period in 2021[28] - Total claims against bankrupt and substantially bankrupt obligors decreased from ¥50,846 million as of March 31, 2022 to ¥45,035 million as of December 31, 2022[26] - The total amount of claims with collection risk decreased from ¥722,222 million as of March 31, 2022 to ¥655,316 million as of December 31, 2022[26] Revenue Streams - Deposits and Lending business revenue grew from ¥189,551 million to ¥213,062 million, an increase of 12.4%[59] - Other Ordinary Income surged from ¥1,651,841 million to ¥3,624,144 million, a significant increase of 119.5%[59] - Securities-related business revenue declined from ¥155,963 million to ¥124,406 million, a decrease of 20.3%[59] - Trust-related business revenue decreased from ¥61,358 million to ¥50,599 million, a decline of 17.5%[59] Stock and Share Information - As of December 31, 2022, MHFG's carrying amount of Treasury Stock was ¥5,127 million for 3,232 thousand shares, an increase from ¥4,949 million for 3,079 thousand shares as of March 31, 2022[19] - Average Outstanding Shares of Common Stock slightly decreased from 2,534,973 thousand shares to 2,534,327 thousand shares[61] - The number of shares for Diluted Net Income per Share decreased from 67 thousand shares to 19 thousand shares[61] - Net Income per Share of Common Stock rose from ¥188.82 to ¥214.36, reflecting an increase of 13.5% year-over-year[61] - Profit Attributable to Owners of Parent increased from ¥478,656 million to ¥543,277 million, marking a growth of 13.5%[61] Expenses - General and administrative expenses (non-recurring losses) increased to ¥30,610 million for the nine months ended December 31, 2022, compared to ¥27,901 million in the previous year[43] - The amount of losses on sales of stocks for the nine months ended December 31, 2022 was ¥42,094 million, down from ¥123,590 million in the same period of 2021[28] - The amortization of goodwill for the nine months ended December 31, 2022 was ¥2,903 million, an increase from ¥2,810 million for the same period in 2021[31]

Financial Performance - Mizuho Financial Group reported a profit attributable to owners of the parent of ¥333.9 billion for the six months ended September 30, 2022[28]. - Net income attributable to MHFG shareholders was a loss of ¥379 billion for the six months ended September 30, 2022, compared to a profit of ¥313 billion in the same period last year, reflecting a decrease of ¥692 billion[63]. - Total comprehensive income attributable to MHFG shareholders fell from ¥350,328 million in 2021 to a loss of ¥120,153 million in 2022[167]. - Net cash provided by operating activities improved from a negative ¥1,230,661 million in 2021 to a positive ¥32,516 million in 2022[174]. Capital and Ratios - The Common Equity Tier 1 capital ratio under Basel III as of September 30, 2022 was 11.35%[29]. - The Total Capital Ratio was 15.72%, a decrease of 1.81% from March 31, 2022[153]. - Mizuho Bank's CET1 Capital Ratio decreased to 10.68% as of September 30, 2022, a decline of 1.00%[154]. - The leverage ratio improved to 4.56% as of September 30, 2022, up from 4.21%[153]. Income and Expenses - Interest and dividend income increased by ¥557 billion, or 81.4%, from ¥684 billion in the six months ended September 30, 2021 to ¥1,241 billion in the same period of 2022, primarily due to rising global interest rates[44]. - Interest expense rose by ¥466 billion, or 291.3%, from ¥160 billion to ¥626 billion, mainly driven by increases in interest expense on deposits and repurchase agreements due to rising global interest rates[45]. - Total noninterest income shifted from a gain of ¥762,395 million in 2021 to a loss of ¥213,781 million in 2022, indicating a significant decline[165]. - Total noninterest expenses rose by ¥69 billion, or 8.1%, to ¥926 billion for the six months ended September 30, 2022, largely due to increases in salaries and employee benefits and general and administrative expenses[56]. Dividends - Interim cash dividends for the fiscal year ending March 31, 2023 were ¥42.5 per share, an increase of ¥2.5 compared to the previous fiscal year[32]. - The company declared dividends per common share increased from ¥40.00 in 2021 to ¥42.50 in 2022[165]. Loans and Credit Quality - Total loans before allowance for credit losses increased by ¥8,043 billion to ¥98,334 billion as of September 30, 2022[90]. - Nonaccrual loans decreased by ¥87 billion, or 7.5%, to ¥1,081 billion as of September 30, 2022[93]. - The percentage of nonaccrual loans within gross total loans decreased from 1.3% to 1.1% from March 31, 2022, to September 30, 2022[94]. - The allowance for credit losses on loans is adjusted through provisions in each reporting period, with management assessing uncollectible loans based on detailed reviews[187]. Market Conditions - The yield on newly issued 10-year Japanese government bonds increased from 0.221% as of March 31, 2022 to 0.244% as of September 30, 2022[31]. - The Nikkei Stock Average decreased by 6.8% to ¥25,937.21 as of September 30, 2022 compared to March 31, 2022, but increased to ¥27,968.99 as of November 30, 2022[31]. - The yen to U.S. dollar spot exchange rate weakened from ¥121.64 to ¥144.32 between March 31, 2022 and September 30, 2022, before strengthening to ¥138.53 by November 30, 2022[31]. Investment Performance - Investment losses—net amounted to ¥105 billion for the six months ended September 30, 2022, a significant decline from a gain of ¥135 billion in the same period of the previous fiscal year, primarily due to deteriorating market conditions affecting Japanese equity securities[53]. - Trading account losses were ¥851 billion in the six months ended September 30, 2022, compared to gains of ¥83 billion in the same period of the previous year, attributed to changes in fair value of foreign currency-denominated securities[52]. Regulatory Compliance - The minimum capital adequacy ratio is set at 8%, with a Common Equity Tier 1 capital requirement of 4.5% and a Tier 1 capital requirement of 6.0%[130]. - The implementation of the finalized Basel III reforms was deferred to January 1, 2023, due to the impact of COVID-19[135]. - The Financial Services Agency has allowed for further delays in the implementation of the Basel III finalization framework for certain banks until March 31, 2025[138].

Financial Performance - Mizuho Financial Group reported ordinary income of ¥1,235,090 million for the three months ended June 30, 2022, a significant increase from ¥737,009 million in the same period last year, representing a growth of approximately 67.6%[10]. - Interest income rose to ¥444,862 million, up from ¥293,342 million year-over-year, marking an increase of about 51.7%[10]. - The company's profit attributable to owners of the parent decreased to ¥159,294 million for the three months ended June 30, 2022, down from ¥250,541 million in the previous year, a decline of about 36.4%[10]. - The company reported comprehensive income of ¥(66,832) million for the three months ended June 30, 2022, a decline from ¥204,730 million in the previous year, indicating a significant drop in overall financial performance[11]. - For the three months ended June 30, 2022, the total gross profits amounted to ¥593,166 million, with a net business profit of ¥237,392 million, reflecting an increase from ¥206,817 million in the same period of 2021[39][42]. - The net income attributable to owners of the parent for the three months ended June 30, 2022, was ¥159,294 million, resulting in a net income per share of ¥62.85, down from ¥98.81 in the same period of 2021[58]. Assets and Liabilities - The total assets of Mizuho Financial Group increased to ¥250,620,959 million as of June 30, 2022, compared to ¥237,066,142 million as of March 31, 2022, reflecting a growth of approximately 5.7%[8]. - Total liabilities increased to ¥241,641,478 million as of June 30, 2022, compared to ¥227,865,110 million as of March 31, 2022, indicating a rise of approximately 6.0%[9]. - The total shareholders' equity increased slightly to ¥8,190,605 million as of June 30, 2022, from ¥8,130,185 million as of March 31, 2022, representing a growth of about 0.7%[9]. Trading and Investment - Mizuho Financial Group's trading income surged to ¥355,522 million, up from ¥103,004 million year-over-year, reflecting a substantial increase of approximately 245.0%[10]. - The company reported net gains related to ETFs and others of ¥19,223 million for the three months ended June 30, 2022, compared to ¥11,540 million in the same period of 2021[42][56]. - As of June 30, 2022, the total unrealized gains from interest rate futures were ¥84,274 million, while unrealized losses from over-the-counter interest rate swaps were ¥108,287 million[47]. - The company’s total contract value for currency-related transactions as of June 30, 2022, was ¥368,606 million, with unrealized losses of ¥103,344 million[49]. Expenses and Dividends - General and administrative expenses for the three months ended June 30, 2022, were ¥358,558 million, compared to ¥348,741 million in the same period of 2021[39][42]. - Cash dividends paid for the three months ended June 30, 2022, were ¥101,542 million, with a dividend per share of ¥40.00, compared to ¥95,201 million and ¥37.50 per share for the same period in 2021[31]. - The year-end cash dividends for the 20th term were resolved at a total amount of ¥101,542 million[4]. - The year-end cash dividend per share for common stock is set at ¥40[4]. - The effective date for the dividend payments is June 6, 2022[4]. Loan and Credit Management - The expected losses recognized as Reserves for Possible Losses on Loans to Restructuring Countries for the three months ended June 30, 2022, amounted to ¥57,474 million, including ¥55,845 million related to claims against Russia[22]. - For the three months ended June 30, 2022, MHFG reported losses on write-offs of loans totaling ¥50,984 million, a significant increase from ¥5,402 million for the same period in 2021[28]. - The total claims against bankrupt and substantially bankrupt obligors increased from ¥50,846 million as of March 31, 2022, to ¥93,420 million as of June 30, 2022[26]. - Normal claims rose from ¥96,224,900 million to ¥102,655,877 million between March 31, 2022, and June 30, 2022[26]. Accounting and Policy Changes - The company implemented a new accounting policy for fair value measurement starting from the first quarter ended June 30, 2022, which may impact the valuation of certain investment trusts[12]. - MHFG has implemented the Japanese Group Relief System for tax accounting, with no material impact from the changes in accounting policies[23]. - The company has adopted a system for stock compensation that allows for a decrease or forfeiture based on individual and company performance[16]. Corporate Actions - The company engaged in a debt waiver and debt equity swap with Marelli Holdings Co., Ltd., which involved the exchange of claims for preferred stocks as part of a business reconstruction plan accepted by the court[60][61]. - The company is reviewing borrower ratings and allowances in light of the business reconstruction plan and additional investment from KKR[3].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXC ...

Investor Presentation for FY2021 May 18, 2022 Mizuho Financial Group Table of Contents Management policy for FY2022 P. 9 – Financial Management P. 11 – Business Strategies P. 20 – Personnel and organization P. 29 Financial Results for FY2021 P. 3 2 Financial Results for FY2021 Summary of FY21 financial results • Consolidated Net Business Profits + Net Gains (Losses) related to ETFs and others Solid performance in Customer Groups contributed to +6.6% YoY increase. Achieved 104% against the upwardly revised p ...

Financial Data and Key Metrics Changes - Consolidated net business profit increased by JPY 52.4 billion year-on-year to JPY 8,521 billion, with record high revenues of JPY 127.9 billion achieved across all customer groups [7] - Net income attributable to shareholders rose by JPY 59.4 billion to JPY 430 billion, with a year-end dividend of JPY 0.40 per share, an increase from the previous year [7][24] Business Line Data and Key Metrics Changes - The company implemented a business improvement plan to address system failures, focusing on capturing signs of problems early and verifying system functions [9] - The equity investment trust balance increased to JPY 6.6 trillion, with the holding period extended from 3.9 years to 4.9 years [29] - The company aims to increase the equity investment trust balance to JPY 10 trillion and securities fund balance to JPY 1 trillion [29] Market Data and Key Metrics Changes - The company plans to maintain a conservative approach towards foreign bonds, with expectations of secure income from asset management [16] - The CET1 ratio is targeted to be around 9% in the first half of the fiscal year, with provisions set aside impacting the current ratio [66] Company Strategy and Development Direction - The company is focusing on fiscal structural reform, prioritizing quality of earnings and improvement of ROE, aiming for an ROE exceeding 8% [12][18] - Digital transformation (DX) initiatives are being emphasized to create new value and improve employee job satisfaction [14][36] - The company is pursuing capital-light businesses and expanding its presence in emerging markets in Asia [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainties in the external environment, including the ongoing Shanghai lockdown, which complicates future forecasts [25] - The company is committed to stable operations while being sensitive to risks and investing in management resources, talent, and IT [46][48] Other Important Information - The company has made significant progress in reducing cross-shareholdings, with a target to reduce JPY 450 billion over five years [22][109] - Sustainability efforts are being prioritized, with the company being a leader in sustainable finance among Japanese banks [37] Q&A Session Summary Question: Outlook and challenges for the current medium-term plan - Management noted that employees are eager for new initiatives and that culture and digital transformation are key focus areas moving forward [54][56] Question: Dividend and growth investment balance - The company aims for JPY 540 billion in net income and will consider share buybacks depending on the CET1 ratio and business conditions [62][66] Question: Core business and digital initiatives - Management emphasized the need to continuously verify strengths and weaknesses in core businesses and the importance of digital partnerships for growth [70][73] Question: Impact of system failures - Management indicated that while fiscal 2022 will see impacts from system failures, they are still assessing potential effects for fiscal 2023 [75] Question: Foreign bonds valuation losses - The company has significantly reduced its position in foreign bonds and believes current valuation losses are manageable [80] Question: Profit variance among mega banks - Management expressed confidence in exceeding JPY 500 billion in profits and highlighted the need for continuous evaluation of strengths in various markets [87][88] Question: Sustainability finance opportunities - The company recognizes the demand for sustainable finance and plans to leverage consultation services to capitalize on these opportunities [90]