Mizuho Financial Group(MFG) - 2024 Q3 - Quarterly Report

Financial Performance - For the nine months ended December 31, 2023, ordinary income increased to ¥6,160,482 million, up from ¥4,308,147 million for the same period in 2022, representing a growth of approximately 43%[9] - Profit attributable to owners of the parent reached ¥642,320 million, up from ¥543,277 million, reflecting an increase of approximately 18%[9] - Comprehensive income for the nine months ended December 31, 2023, was ¥972,881 million, compared to ¥86,714 million in the previous year, indicating a substantial increase[10] - For the nine months ended December 31, 2023, net business profits (excluding credit costs) increased to ¥837,693 million, up from ¥681,858 million in the same period of 2022, representing a growth of approximately 23%[42] - The company reported a fee and commission income of ¥738,392 million for the nine months ended December 31, 2023, an increase from ¥640,453 million in the same period of 2022, reflecting a growth of approximately 15%[52] Asset and Liability Management - Total assets as of December 31, 2023, amounted to ¥271,148,694 million, an increase from ¥254,258,203 million as of March 31, 2023, indicating a growth of about 6.6%[7] - Total liabilities increased to ¥261,207,078 million from ¥245,049,740 million, representing a rise of approximately 6.6%[8] - As of December 31, 2023, MHFG's total claims amounted to ¥105,473,988 million, an increase from ¥101,528,710 million as of March 31, 2023, reflecting a growth of approximately 3.9%[24] Income and Gains - Interest income rose significantly to ¥4,061,818 million, compared to ¥2,050,840 million in the previous year, marking an increase of about 98%[9] - For the nine months ended December 31, 2023, MHFG reported gains on sales of stocks amounting to ¥122,862 million, up from ¥92,867 million in the same period of 2022, representing a growth of approximately 32.2%[25] - Net gains related to ETFs and others increased to ¥59,769 million for the nine months ended December 31, 2023, compared to ¥41,933 million in the same period of 2022, representing a growth of about 42%[42] Expenses and Dividends - The total amount of cash dividends paid for the nine months ended December 31, 2023, was ¥234,801 million, with a per-share dividend of ¥50.00 declared on November 13, 2023[29][30] - General and administrative expenses (excluding non-recurring losses) decreased to ¥25,188 million for the nine months ended December 31, 2023, from ¥30,610 million in the same period of 2022, a reduction of approximately 18%[42] - Stock-related derivatives expenses increased significantly to ¥27,904 million for the nine months ended December 31, 2023, compared to ¥1,735 million for the same period in 2022[25] Risk Management - The company has recognized expected losses due to foreign currency cash management difficulties influenced by economic sanctions against Russia, reflecting a proactive approach to risk management[21] - The Reserve for Possible Losses on Loans to Restructuring Countries for the nine months ended December 31, 2023, is ¥34,784 million, including ¥33,189 million related to claims against Russia[21] Corporate Governance - The Board Benefit Trust (BBT) Program has been introduced to incentivize directors and executives, aligning their interests with the company's performance[13] - MHFG's in-house company system was partially restructured effective April 1, 2023, with the establishment of the Corporate & Investment Banking Company (CIBC) to enhance service delivery[36] Stock and Treasury Management - The carrying amount of MHFG's treasury stock as of December 31, 2023, was ¥4,509 million for 2,604 thousand shares, down from ¥5,126 million for 3,231 thousand shares as of March 31, 2023[19] - The average outstanding shares of common stock during the nine months ended December 31, 2023, were 2,534,658 thousand, slightly up from 2,534,327 thousand in the same period of 2022[55] Other Financial Metrics - The net unrealized gains on other securities improved to ¥773,273 million from ¥564,495 million, showing an increase of about 37%[8] - Trading assets rose to ¥21,391,511 million from ¥17,404,494 million, reflecting a growth of approximately 23%[7] - Depreciation for the nine months ended December 31, 2023, was ¥124,502 million, an increase from ¥121,153 million in the same period of 2022[26] - Unrealized gains from interest rate futures as of December 31, 2023, were ¥53,606 million, down from ¥105,460 million as of March 31, 2023[47] - The contract value for currency-related transactions as of December 31, 2023, was ¥148,365,576 million, with unrealized losses of ¥235,174 million[49]