Edgar Filing: MIZUHO FINANCIAL GROUP INC

Form 6-K

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 November 2016

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 cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82- .

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF MIZUHO FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-213187) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Date: November 28, 2016

Mizuho Financial Group, Inc.

By:		/s/ Koichi Iida
Name:		Koichi Iida
Title:		Managing Executive Officer / Group CFO

UNAUDITED INTERIM CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS AS

OF AND FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016

On November 28, 2016, we published our unaudited interim consolidated financial statements as of and for the six months ended September 30, 2016 prepared in accordance with Japanese GAAP as part of our interim securities report (shihanki hokokusho) for the same period filed by us with the relevant Japanese authorities. We have included in this report on Form 6-K an English translation of the unaudited interim consolidated financial statements and the notes thereto included in such interim securities report. Japanese GAAP differs in certain respects from U.S. GAAP. For a description of certain differences between U.S. GAAP and Japanese GAAP, see “Item 5. Operating and Financial Review and Prospects - Reconciliation with Japanese GAAP” in our most recent annual report on Form 20-F filed with the U.S. Securities Exchange Commission.

Financial Information

1.	Mizuho Financial Group, Inc. (“MHFG”) is a specified business company under Article 17-15, Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Information, etc. and prepares the interim consolidated financial statements in the second quarter.

The interim consolidated financial statements of MHFG are prepared in accordance with the “Ordinance on the Terminology, Forms, and Preparation Methods of Interim Consolidated Financial Statements” (Ordinance of the Ministry of Finance No. 24 of 1999). The classification of assets and liabilities and that of income and expenses are in accordance with the “Ordinance for Enforcement of the Banking Act” (Ordinance of the Ministry of Finance No. 10 of 1982).

3.	Ernst & Young ShinNihon LLC conducted a semiannual audit on the interim consolidated financial statements of MHFG for the six months ended September 30, 2016, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

- 1 -

I. Interim Consolidated Financial Statements

(1) Interim Consolidated Balance Sheet


	*(Millions of yen)*
	As of March 31, 2016			As of September 30, 2016
Assets
Cash and Due from Banks	*8	36,315,471		*8	42,715,384
Call Loans and Bills Purchased		893,545			899,865
Receivables under Resale Agreements		7,805,798			9,258,984
Guarantee Deposits Paid under Securities Borrowing Transactions		3,407,390			3,195,977
Other Debt Purchased		2,979,797			2,527,270
Trading Assets	*8	13,004,522		*8	12,511,953
Money Held in Trust		175,638			227,975
Securities	1, 8, *15	39,505,971		1, 8, *15	32,705,104
Loans and Bills Discounted	3, 4, 5, 6, 7, 8, *9	73,708,884		3, 4, 5, 6, 7, 8, *9	73,030,669
Foreign Exchange Assets	*7	1,447,743		*7	1,452,483
Derivatives other than for Trading Assets		3,157,752			2,957,197
Other Assets	*8	4,144,131		*8	4,272,085
Tangible Fixed Assets	10, 11	1,085,791		10, 11	1,071,524
Intangible Fixed Assets		804,567			869,070
Net Defined Benefit Asset		646,428			673,562
Deferred Tax Assets		36,517			77,011
Customers’ Liabilities for Acceptances and Guarantees		4,798,158			4,675,296
Reserves for Possible Losses on Loans		(459,531	)		(441,438	)

Total Assets		193,458,580			192,679,978

- 2 -


	*(Millions of yen)*
	As of March 31, 2016			As of September 30, 2016
Liabilities
Deposits	*8	105,629,071		*8	110,171,994
Negotiable Certificates of Deposit		11,827,533			9,568,325
Call Money and Bills Sold		2,521,008			1,791,651
Payables under Repurchase Agreements	*8	16,833,346		*8	17,739,258
Guarantee Deposits Received under Securities Lending Transactions	*8	2,608,971		*8	1,314,573
Commercial Paper		1,010,139			827,552
Trading Liabilities		10,276,133			9,878,751
Borrowed Money	8, 12	7,503,543		8, 12	7,243,394
Foreign Exchange Liabilities		492,473			582,971
Short-term Bonds		648,381			408,033
Bonds and Notes	*13	6,120,928		*13	7,131,121
Due to Trust Accounts		5,067,490			4,053,768
Derivatives other than for Trading Liabilities		2,571,597			2,001,471
Other Liabilities		5,532,596			5,755,737
Reserve for Bonus Payments		62,171			47,174
Reserve for Variable Compensation		2,836			1,488
Net Defined Benefit Liability		51,514			52,668
Reserve for Director and Corporate Auditor Retirement Benefits		1,685			1,376
Reserve for Possible Losses on Sales of Loans		267			3
Reserve for Contingencies		5,271			4,889
Reserve for Reimbursement of Deposits		16,154			15,828
Reserve for Reimbursement of Debentures		39,245			35,273
Reserves under Special Laws		2,024			2,219
Deferred Tax Liabilities		414,799			337,644
Deferred Tax Liabilities for Revaluation Reserve for Land	*10	67,991		*10	67,247
Acceptances and Guarantees		4,798,158			4,675,296

Total Liabilities		184,105,335			183,709,717

Net Assets
Common Stock and Preferred Stock		2,255,790			2,256,275
Capital Surplus		1,110,164			1,111,299
Retained Earnings		3,197,616			3,464,082
Treasury Stock		(3,609	)		(5,098	)

Total Shareholders’ Equity		6,559,962			6,826,558

Net Unrealized Gains (Losses) on Other Securities		1,296,039			1,134,348
Deferred Gains or Losses on Hedges		165,264			167,078
Revaluation Reserve for Land	*10	148,483		*10	146,794
Foreign Currency Translation Adjustments		(53,689	)		(85,900	)
Remeasurements of Defined Benefit Plans		51,752			65,055

Total Accumulated Other Comprehensive Income		1,607,851			1,427,376

Stock Acquisition Rights		2,762			1,754
Non-controlling Interests		1,182,668			714,572

Total Net Assets		9,353,244			8,970,260

Total Liabilities and Net Assets		193,458,580			192,679,978

- 3 -

(2) Interim Consolidated Statement of Income and

Interim Consolidated Statement of Comprehensive Income

Interim Consolidated Statement of Income


	*(Millions of yen)*
	For the six months ended September 30, 2015		For the six months ended September 30, 2016
Ordinary Income		1,637,697		1,563,262
Interest Income		720,592		678,188
Interest on Loans and Bills Discounted		463,500		442,430
Interest and Dividends on Securities		158,508		129,547
Fiduciary Income		26,399		24,729
Fee and Commission Income		369,856		359,011
Trading Income		145,813		213,872
Other Operating Income		186,370		165,262
Other Ordinary Income	*1	188,664	*1	122,198
Ordinary Expenses		1,063,107		1,142,318
Interest Expenses		197,081		241,807
Interest on Deposits		77,722		92,531
Fee and Commission Expenses		76,897		76,101
Trading Expenses		1,686		1,467
Other Operating Expenses		41,511		32,009
General and Administrative Expenses		673,456		704,164
Other Ordinary Expenses	*2	72,475	*2	86,766

Ordinary Profits		574,590		420,944

Extraordinary Gains	*3	19,573	*3	1,426
Extraordinary Losses	*4	2,233	*4	3,245

Income before Income Taxes		591,930		419,125

Income Taxes:
Current		134,814		101,907
Deferred		38,853		(63,140	)

Total Income Taxes		173,667		38,766

Profit		418,262		380,358

Profit Attributable to Non-controlling Interests		34,064		22,175

Profit Attributable to Owners of Parent		384,198		358,183

- 4 -

Interim Consolidated Statement of Comprehensive Income


	*(Millions of yen)*
	For the six months ended September 30, 2015			For the six months ended September 30, 2016
Profit		418,262			380,358
Other Comprehensive Income		(321,442	)		(180,505	)
Net Unrealized Gains (Losses) on Other Securities		(349,353	)		(161,503	)
Deferred Gains or Losses on Hedges		32,591			1,814
Revaluation Reserve for Land		10			(5	)
Foreign Currency Translation Adjustments		(3,313	)		(21,853	)
Remeasurements of Defined Benefit Plans		(1,109	)		13,420
Share of Other Comprehensive Income of Associates Accounted for Using Equity Method		(267	)		(12,377	)

Comprehensive Income		96,820			199,853

(Breakdown)
Comprehensive Income Attributable to Owners of Parent		63,060			179,392
Comprehensive Income Attributable to Non-controlling Interests		33,759			20,461

- 5 -

(3) Interim Consolidated Statement of Changes in Net Assets

For the six months ended September 30, 2015


	*(Millions of yen)*
	Shareholders’ Equity
	Common Stock and Preferred Stock		Capital Surplus		Retained Earnings			Treasury Stock			Total Shareholders’ Equity
Balance as of the beginning of the period		2,255,404		1,110,006		2,769,371			(3,616	)		6,131,166
Cumulative Effects of Changes in Accounting Policies				935		(48,999	)					(48,063	)
Balance as of the beginning of the period reflecting Changes in Accounting Policies		2,255,404		1,110,942		2,720,371			(3,616	)		6,083,102
Changes during the period
Issuance of New Shares		386		386								772
Cash Dividends						(100,584	)					(100,584	)
Profit Attributable to Owners of Parent						384,198						384,198
Repurchase of Treasury Stock									(683	)		(683	)
Disposition of Treasury Stock				82					268			350
Transfer from Revaluation Reserve for Land						983						983
Net Changes in Items other than Shareholders’ equity

Total Changes during the period		386		468		284,597			(415	)		285,036

Balance as of the end of the period		2,255,790		1,111,410		3,004,969			(4,031	)		6,368,139


	Accumulated Other Comprehensive Income																Stock Acquisition Rights			Non- controlling Interests			Total Net Assets
	Net Unrealized Gains (Losses) on Other Securities			Deferred Gains or Losses on Hedges		Revaluation Reserve for Land			Foreign Currency Translation Adjustments			Remeasurements of Defined Benefit Plans		Total Accumulated Other Comprehensive Income			Stock Acquisition Rights			Non- controlling Interests			Total Net Assets
Balance as of the beginning of the period		1,737,348			26,635		146,419			(40,454	)		160,005		2,029,955			3,820			1,635,595			9,800,538
Cumulative Effects of Changes in Accounting Policies																								(48,063	)
Balance as of the beginning of the period reflecting Changes in Accounting Policies		1,737,348			26,635		146,419			(40,454	)		160,005		2,029,955			3,820			1,635,595			9,752,474
Changes during the period
Issuance of New Shares																								772
Cash Dividends																								(100,584	)
Profit Attributable to Owners of Parent																								384,198
Repurchase of Treasury Stock																								(683	)
Disposition of Treasury Stock																								350
Transfer from Revaluation Reserve for Land																								983
Net Changes in Items other than Shareholders’ equity		(350,726	)		32,469		(972	)		(3,297	)		404		(322,121	)		(1,057	)		(449,501	)		(772,680	)

Total Changes during the period		(350,726	)		32,469		(972	)		(3,297	)		404		(322,121	)		(1,057	)		(449,501	)		(487,643	)

Balance as of the end of the period		1,386,622			59,105		145,446			(43,751	)		160,410		1,707,834			2,762			1,186,094			9,264,830

- 6 -

For the six months ended September 30, 2016


	*(Millions of yen)*
	Shareholders’ Equity
	Common Stock and Preferred Stock		Capital Surplus			Retained Earnings			Treasury Stock			Total Shareholders’ Equity
Balance as of the beginning of the period		2,255,790		1,110,164			3,197,616			(3,609	)		6,559,962
Cumulative Effects of Changes in Accounting Policies							1,426						1,426
Balance as of the beginning of the period reflecting Changes in Accounting Policies		2,255,790		1,110,164			3,199,042			(3,609	)		6,561,388
Changes during the period
Issuance of New Shares		484		484									969
Cash Dividends							(94,827	)					(94,827	)
Profit Attributable to Owners of Parent							358,183						358,183
Repurchase of Treasury Stock										(1,869	)		(1,869	)
Disposition of Treasury Stock				(55	)					380			324
Cancellation of Treasury Stock				(1	)					1			—
Transfer from Revaluation Reserve for Land							1,683						1,683
Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders				706									706
Net Changes in Items other than Shareholders’ equity

Total Changes during the period		484		1,134			265,039			(1,488	)		265,170

Balance as of the end of the period		2,256,275		1,111,299			3,464,082			(5,098	)		6,826,558

- 7 -


	Accumulated Other Comprehensive Income																Stock Acquisition Rights			Non- controlling Interests			Total Net Assets
	Net Unrealized Gains (Losses) on Other Securities			Deferred Gains or Losses on Hedges		Revaluation Reserve for Land			Foreign Currency Translation Adjustments			Remeasurements of Defined Benefit Plans		Total Accumulated Other Comprehensive Income			Stock Acquisition Rights			Non- controlling Interests			Total Net Assets
Balance as of the beginning of the period		1,296,039			165,264		148,483			(53,689	)		51,752		1,607,851			2,762			1,182,668			9,353,244
Cumulative Effects of Changes in Accounting Policies																								1,426
Balance as of the beginning of the period reflecting Changes in Accounting Policies		1,296,039			165,264		148,483			(53,689	)		51,752		1,607,851			2,762			1,182,668			9,354,670
Changes during the period
Issuance of New Shares																								969
Cash Dividends																								(94,827	)
Profit Attributable to Owners of Parent																								358,183
Repurchase of Treasury Stock																								(1,869	)
Disposition of Treasury Stock																								324
Cancellation of Treasury Stock																								—
Transfer from Revaluation Reserve for Land																								1,683
Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders																								706
Net Changes in Items other than Shareholders’ equity		(161,691	)		1,814		(1,689	)		(32,211	)		13,302		(180,475	)		(1,008	)		(468,096	)		(649,579	)

Total Changes during the period		(161,691	)		1,814		(1,689	)		(32,211	)		13,302		(180,475	)		(1,008	)		(468,096	)		(384,409	)

Balance as of the end of the period		1,134,348			167,078		146,794			(85,900	)		65,055		1,427,376			1,754			714,572			8,970,260

- 8 -

(4) Interim Consolidated Statement of Cash Flows


	*(Millions of yen)*
	For the six months ended September 30, 2015			For the six months ended September 30, 2016
Cash Flow from Operating Activities
Income before Income Taxes		591,930			419,125
Depreciation		79,352			79,135
Losses on Impairment of Fixed Assets		390			1,474
Amortization of Goodwill		364			713
Equity in Loss (Gain) from Investments in Affiliates		(16,529	)		(11,327	)
Increase (Decrease) in Reserves for Possible Losses on Loans		(60,659	)		1,903
Increase (Decrease) in Reserve for Possible Losses on Investments		(2	)		—
Increase (Decrease) in Reserve for Possible Losses on Sales of Loans		207			(263	)
Increase (Decrease) in Reserve for Contingencies		(228	)		(463	)
Increase (Decrease) in Reserve for Bonus Payments		(15,974	)		(11,575	)
Increase (Decrease) in Reserve for Variable Compensation		—			(1,347	)
Decrease (Increase) in Net Defined Benefit Asset		(32,114	)		(8,289	)
Increase (Decrease) in Net Defined Benefit Liability		2,130			1,868
Increase (Decrease) in Reserve for Director and Corporate Auditor Retirement Benefits		40			(308	)
Increase (Decrease) in Reserve for Reimbursement of Deposits		833			(325	)
Increase (Decrease) in Reserve for Reimbursement of Debentures		(5,972	)		(3,971	)
Interest Income - accrual basis		(720,592	)		(678,188	)
Interest Expenses - accrual basis		197,081			241,807
Losses (Gains) on Securities		(187,912	)		(171,007	)
Losses (Gains) on Money Held in Trust		(89	)		(99	)
Foreign Exchange Losses (Gains) - net		(24,695	)		753,515
Losses (Gains) on Disposition of Fixed Assets		(5,149	)		149
Decrease (Increase) in Trading Assets		(763,919	)		70,442
Increase (Decrease) in Trading Liabilities		201,078			(14,437	)
Decrease (Increase) in Derivatives other than for Trading Assets		576,930			82,284
Increase (Decrease) in Derivatives other than for Trading Liabilities		(819,395	)		(456,069	)
Decrease (Increase) in Loans and Bills Discounted		(1,202,333	)		(1,841,494	)
Increase (Decrease) in Deposits		2,924,036			6,618,771
Increase (Decrease) in Negotiable Certificates of Deposit		(207,062	)		(1,530,518	)
Increase (Decrease) in Borrowed Money (excluding Subordinated Borrowed Money)		335,347			(213,945	)
Decrease (Increase) in Due from Banks (excluding Due from Central Banks)		(39,839	)		(289,039	)
Decrease (Increase) in Call Loans, etc.		283,540			(2,021,502	)
Decrease (Increase) in Guarantee Deposits Paid under Securities Borrowing Transactions		158,928			211,413
Increase (Decrease) in Call Money, etc.		715,253			1,862,232
Increase (Decrease) in Commercial Paper		91,277			(78,875	)
Increase (Decrease) in Guarantee Deposits Received under Securities Lending Transactions		(129,975	)		(1,294,398	)
Decrease (Increase) in Foreign Exchange Assets		(49,208	)		(121,055	)
Increase (Decrease) in Foreign Exchange Liabilities		87,258			91,160
Increase (Decrease) in Short-term Bonds (Liabilities)		(40,408	)		(240,348	)
Increase (Decrease) in Bonds and Notes		(84,193	)		481,825
Increase (Decrease) in Due to Trust Accounts		173,921			(1,013,722	)
Interest and Dividend Income - cash basis		761,229			698,368
Interest Expenses - cash basis		(195,709	)		(245,866	)
Other - net		1,151,799			1,191,287

Subtotal		3,730,964			2,559,035

Cash Refunded (Paid) in Income Taxes		(178,197	)		(127,391	)

Net Cash Provided by (Used in) Operating Activities		3,552,766			2,431,643

- 9 -


	*(Millions of yen)*
	For the six months ended September 30, 2015				For the six months ended September 30, 2016
Cash Flow from Investing Activities
Payments for Purchase of Securities			(22,984,289	)			(24,230,237	)
Proceeds from Sale of Securities			19,029,866				24,406,300
Proceeds from Redemption of Securities			7,047,764				4,238,938
Payments for Increase in Money Held in Trust			(1,820	)			(51,470	)
Proceeds from Decrease in Money Held in Trust			13,609				92
Payments for Purchase of Tangible Fixed Assets			(27,991	)			(22,537	)
Payments for Purchase of Intangible Fixed Assets			(153,480	)			(169,275	)
Proceeds from Sale of Tangible Fixed Assets			10,515				3,883

Net Cash Provided by (Used in) Investing Activities			2,934,175				4,175,694

Cash Flow from Financing Activities
Proceeds from Subordinated Borrowed Money			—				25,000
Repayments of Subordinated Borrowed Money			(124,000	)			(60,000	)
Proceeds from Issuance of Subordinated Bonds			350,000				615,000
Payments for Redemption of Subordinated Bonds			(47,600	)			(14,000	)
Proceeds from Issuance of Common Stock			4				6
Proceeds from Investments by Non-controlling Shareholders			282				361
Repayments to Non-controlling Shareholders			(452,500	)			(460,672	)
Cash Dividends Paid			(100,658	)			(94,782	)
Cash Dividends Paid to Non-controlling Shareholders			(30,831	)			(20,400	)
Payments for Purchase of Stocks of Subsidiaries (not affecting the scope of consolidation)			—				(216	)
Payments for Repurchase of Treasury Stock			(8	)			(1,430	)
Proceeds from Sale of Treasury Stock			2				0

Net Cash Provided by (Used in) Financing Activities			(405,309	)			(11,134	)

Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents			5,511				(63,536	)

Net Increase (Decrease) in Cash and Cash Equivalents			6,087,143				6,532,667

Cash and Cash Equivalents at the beginning of the period			27,840,775				35,089,122

Cash and Cash Equivalents at the end of the period		*1	33,927,919			*1	41,621,790

- 10 -

Notes to Interim Consolidated Financial Statements

Fundamental and Important Matters for the Preparation of Interim Consolidated Financial Statements

1.	Scope of Consolidation

(1)	Number of consolidated subsidiaries: 142

Names of principal companies:

Mizuho Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

Mizuho Securities Co., Ltd.

Change in scope of consolidation

During the six months ended September 30, 2016, Mizuho Americas LLC and four other companies were newly included in the scope of consolidation as a result of establishment.

During the six months ended September 30, 2016, BLUE HEAVEN FUNDING CORPORATION and five other companies were excluded from the scope of consolidation as a result of merger and other factors.

(2)	Number of non-consolidated subsidiaries: 0

2.	Application of the Equity Method

(1)	Number of non-consolidated subsidiaries under the equity method: 0

(2)	Number of affiliates under the equity method: 22

Names of principal companies:

Orient Corporation

The Chiba Kogyo Bank, Ltd.

Joint Stock Commercial Bank for Foreign Trade of Vietnam

Change in scope of equity method

During the six months ended September 30, 2016, Energy & Environment Investment, Inc. and four other companies were excluded from the scope of equity method as a result of the sale of shares.

(3)	Number of non-consolidated subsidiaries not under the equity method: 0

(4)	Affiliates not under the equity method:

Pec International Leasing Co., Ltd.

Affiliates not under the equity method are excluded from the scope of the equity method since such exclusion has no material effect on MHFG’s interim consolidated financial statements in terms of Net Income (Loss) (amount corresponding to MHFG’s equity position), Retained Earnings (amount corresponding to MHFG’s equity position), Accumulated Other Comprehensive Income (amount corresponding to MHFG’s equity position) and others.

3.	Interim Balance Sheet Dates of Consolidated Subsidiaries

(1)	Interim balance sheet dates of consolidated subsidiaries are as follows:


January 31		1 company
June 29		12 companies
June 30		53 companies
September 30		76 companies

- 11 -

(2)

Consolidated subsidiaries with interim balance sheet dates of June 29 were consolidated based on their tentative interim financial statements as of and for the period ended June 30. The consolidated subsidiary with the interim balance sheet date of January 31 was consolidated based on its tentative interim financial statement as of and for the period ended the interim consolidated balance sheet date. Other consolidated subsidiaries were consolidated based on their interim financial statements as of and for the period ended their respective interim balance sheet dates.

The necessary adjustments have been made to the interim financial statements for any significant transactions that took place between their respective interim balance sheet dates and the date of the interim consolidated financial statements.

4.	Standards of Accounting Method

(1)	Credited Loans pursuant to Trading Securities and Trading Income & Expenses

Credited loans held for the purpose of trading are, in line with trading securities, recognized on a trade date basis and recorded in Other Debt Purchased on the interim consolidated balance sheet. Other Debt Purchased related to the relevant credited loans is stated at fair value at the interim consolidated balance sheet date. Interest received and the gains or losses on the sale of the relevant credited loans during the six months ended September 30, 2016, including the gains or losses resulting from any change in the value between the beginning and the end of the six months ended September 30, 2016, are recognized in Other Operating Income and Other Operating Expenses on the interim consolidated statements of income.

(2)	Trading Assets & Liabilities and Trading Income & Expenses

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. Income or expenses generated on the relevant trading transactions are recorded in Trading Income or Trading Expenses on the interim consolidated statement of income.

Securities and other monetary claims held for trading purposes are stated at fair value at the interim consolidated balance sheet date. Derivative financial products, such as swaps, futures and option transactions, are stated at fair value, assuming that such transactions are terminated and settled at the interim consolidated balance sheet date.

Trading Income and Trading Expenses include the interest received and the interest paid during the six months ended September 30, 2016, the gains or losses resulting from any change in the value of securities and other monetary claims between the beginning and the end of the six months ended September 30, 2016, and the gains or losses resulting from any change in the value of financial derivatives between the beginning and the end of the six months ended September 30, 2016, assuming they were settled at the end of the six months ended September 30, 2016.

(3)	Securities

(a)

Bonds held to maturity are stated at amortized cost (straight-line method) and determined by the moving average method. Investments in affiliates not under the equity method are stated at acquisition cost and determined by the moving average method. As to Other Securities, in principle, fair value of Japanese stocks is determined based on the average quoted market price over the month preceding the interim consolidated balance sheet date. Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the interim consolidated balance sheet date (cost of securities sold is calculated primarily by the moving average method). Other Securities, the fair values of which are extremely difficult to determine, are stated at acquisition cost and determined by the moving average method.

The net unrealized gains (losses) on Other Securities are included directly in Net Assets, net of applicable income taxes after excluding gains and losses as a result of the fair-value hedge method.

(b)

Securities which are held as trust assets in Money Held in Trust accounts are valued in the same way as given in (a) above.

(4)	Derivative Transactions

Derivative transactions (other than transactions for trading purposes) are valued at fair value.

- 12 -

(5)	Depreciation of Fixed Assets

Tangible Fixed Assets (Except for Lease Assets)

Depreciation of buildings is computed mainly by the straight-line method, and that of others is computed mainly by the declining-balance method. The amount based on estimated annual depreciation expenses is allocated to each period.

The range of useful lives is as follows:


Buildings		3 years to 50 years
Others		2 years to 20 years

Intangible Fixed Assets (Except for Lease Assets)

Amortization of Intangible Fixed Assets is computed by the straight-line method. Development costs for internally-used software are capitalized and amortized over their estimated useful lives of mainly from five to ten years as determined by MHFG and consolidated subsidiaries.

Lease Assets

Depreciation of lease assets booked in Tangible Fixed Assets and Intangible Fixed Assets which are concerned with finance lease transactions that do not transfer ownership is mainly computed by the same method as the one applied to fixed assets owned by us.

(6)	Deferred Assets

Bond issuance costs are expensed as incurred.

(7)	Reserves for Possible Losses on Loans

Reserves for Possible Losses on Loans of major domestic consolidated subsidiaries are maintained in accordance with internally established standards for write-offs and reserve provisions.

For claims extended to obligors that are legally bankrupt under the Bankruptcy Law, Special Liquidation under the Company Law or other similar laws (“Bankrupt Obligors”), and to obligors that are effectively in similar conditions (“Substantially Bankrupt Obligors”), reserves are maintained at the amounts of claims net of direct write-offs described below and the expected amounts recoverable from the disposition of collateral and the amounts recoverable under guarantees. For claims extended to obligors that are not yet legally or formally bankrupt but are likely to be bankrupt (“Intensive Control Obligors”), reserves are maintained at the amounts deemed necessary based on overall solvency analyses of the amounts of claims net of expected amounts recoverable from the disposition of collateral and the amounts recoverable under guarantees.

For claims extended to Intensive Control Obligors and Obligors with Restructured Loans and others, if the exposure to an obligor exceeds a certain specific amount, reserves are provided as follows: (i) if future cash flows of the principal and interest can be reasonably estimated, the discounted cash flow method is applied, under which the reserve is determined as the difference between the book value of the loan and its present value of future cash flows discounted using the contractual interest rate before the loan was classified as a Restructured Loan, and (ii) if future cash flows of the principal and interest cannot be reasonably estimated, reserves are provided for the losses estimated for each individual loan.

For claims extended to other obligors, reserves are maintained at rates derived from historical credit loss experience and other factors. Reserve for Possible Losses on Loans to Restructuring Countries is maintained in order to cover possible losses based on analyses of the political and economic climates of the countries.

All claims are assessed by each claim origination department in accordance with the internally established “Self-assessment Standard,” and the results of the assessments are verified and examined by the independent examination departments.

In the case of claims to Bankrupt Obligors and Substantially Bankrupt Obligors, which are collateralized or guaranteed by a third party, 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 written off against the respective claims balances. The total directly written-off amount was ¥115,422 million (¥157,807 million at the end of the fiscal year ended March 31, 2016).

Other consolidated subsidiaries provide the amount necessary to cover the loan losses based upon past experience and other factors for general claims and the assessment for each individual loan for other claims.

- 13 -

(8)	Reserve for Possible Losses on Investments

Reserve for Possible Losses on Investments is maintained to provide against possible losses on investments in securities, after taking into consideration the financial condition and other factors concerning the investee company.

(9)	Reserve for Bonus Payments

Reserve for Bonus Payments, which is provided for future bonus payments to employees, is maintained at the amount accrued at the end of the six months ended September 30, 2016, based on the estimated future payments.

(10)	Reserve for Variable Compensation

To prepare for the payments of performance payments and stock compensation to be paid as variable compensation within compensation for directors, executive officers and specialist officers of Mizuho Financial Group, Inc., Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd., the amount accrued at the end of the six months ended September 30, 2016 among the estimated payment based on the standard amount regarding variable compensation of the fiscal year ending March 31, 2017 is provided.

(11)	Reserve for Director and Corporate Auditor Retirement Benefits

Reserve for Director and Corporate Auditor Retirement Benefits, which is provided for future retirement benefit payments to directors, corporate auditors, and executive officers, is recognized at the amount accrued by the end of the six months ended September 30, 2016, based on the internally established standards.

(12)	Reserve for Possible Losses on Sales of Loans

Reserve for Possible Losses on Sales of Loans is provided for possible future losses on sales of loans at the amount deemed necessary based on a reasonable estimate of possible future losses.

(13)	Reserve for Contingencies

Reserve for Contingencies is maintained to provide against possible losses from contingencies which are not covered by other specific reserves. The balance is an estimate of possible future losses considered to require a reserve.

(14)	Reserve for Reimbursement of Deposits

Reserve for Reimbursement of Deposits is provided against the losses for the deposits derecognized from liabilities at the estimated amount of future claims for withdrawal by depositors.

(15)	Reserve for Reimbursement of Debentures

Reserve for Reimbursement of Debentures is provided for the debentures derecognized from liabilities at the estimated amount for future claims.

(16)	Reserve under Special Laws

Reserve under Special Laws is Reserve for Contingent Liabilities from Financial Instruments and Exchange. This is the reserve pursuant to Article 46-5 of the Financial Instruments and Exchange Law and Article 175 of the Cabinet Office Ordinance regarding Financial Instruments Business, etc. to indemnify the losses incurred from accidents in the purchase and sale of securities, other transactions or derivative transactions.

(17)	Accounting Method for Retirement Benefits

In calculating retirement benefit obligations, a benefit formula basis is used as a method of attributing expected retirement benefits to the period up to the end of the six months ended September 30, 2016. Unrecognized actuarial differences are recognized as income or expenses from the following fiscal year under the straight-line method over a certain term within the average remaining service period of the employees (mainly 10 years) of the respective fiscal years.

Certain consolidated subsidiaries apply the simplified method that assumes the amount required for voluntary resignation at the end of the six months ended September 30, 2016 to be retirement benefit obligations in computing net defined benefit liability and retirement benefit expenses.

- 14 -

(18)	Assets and Liabilities denominated in foreign currencies

Assets and liabilities denominated in foreign currencies and accounts of overseas branches of domestic consolidated banking subsidiaries and a domestic consolidated trust banking subsidiary are translated into Japanese yen primarily at the exchange rates in effect at the interim consolidated balance sheet date, with the exception of the investments in affiliates not under the equity method, which are translated at historical exchange rates.

Assets and liabilities denominated in foreign currencies of the consolidated subsidiaries, except for the transactions mentioned above, are translated into Japanese yen primarily at the exchange rates in effect at the respective interim balance sheet dates.

(19)	Hedge Accounting

(a)

Interest Rate Risk

The deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps are applied as hedge accounting methods.

The portfolio hedge transaction for a large volume of small-value monetary claims and liabilities of domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries is accounted for in accordance with the method stipulated in the “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24, February 13, 2002).

The effectiveness of hedging activities for the portfolio hedge transaction for a large volume of small-value monetary claims and liabilities is assessed as follows:

as for hedging activities to offset market fluctuation risks, the effectiveness is assessed by bracketing both the hedged instruments, such as deposits and loans, and the hedging instruments, such as interest-rate swaps, in the same maturity bucket.

ii)

as for hedging activities to fix the cash flows, the effectiveness is assessed based on the correlation between a base interest rate index of the hedged instrument and that of the hedging instrument.

The effectiveness of the individual hedge is assessed based on the comparison of the fluctuation in the market or of cash flows of the hedged instruments with that of the hedging instruments.

(b)

Foreign Exchange Risk

Domestic consolidated banking subsidiaries and some of domestic consolidated trust banking subsidiaries apply the deferred method of hedge accounting to hedge foreign exchange risks associated with various financial assets and liabilities denominated in foreign currencies as stipulated in the “Accounting and Auditing Treatment relating to Adoption of Accounting Standards for Foreign Currency Transactions for Banks” (JICPA Industry Audit Committee Report No. 25, July 29, 2002). The effectiveness of the hedge is assessed by confirming that the amount of the foreign currency position of the hedged monetary claims and liabilities is equal to or larger than that of currency-swap transactions, exchange swap transactions, and similar transactions designated as the hedging instruments of the foreign exchange risk.

In addition to the above methods, these subsidiaries apply the deferred method or the fair-value hedge method to portfolio hedges of the foreign exchange risks associated with investments in subsidiaries and affiliates in foreign currency and Other Securities in foreign currency (except for bonds) identified as hedged items in advance, as long as the amount of foreign currency payables of spot and forward foreign exchange contracts exceeds the amount of acquisition cost of the hedged foreign securities in foreign currency.

(c)

Inter-company Transactions

Inter-company interest rate swaps, currency swaps and similar derivatives among consolidated companies or between trading accounts and other accounts, which are designated as hedges, are not eliminated and related gains and losses are recognized in the statement of income or deferred under hedge accounting, because these inter-company derivatives are executed according to the criteria for appropriate outside third-party cover operations which are treated as hedge transactions objectively in accordance with JICPA Industry Audit Committee Reports No. 24 and 25.

As for certain assets and liabilities of MHFG and its consolidated subsidiaries, the deferred method, the fair-value hedge method or the exceptional accrual method for interest rate swaps are applied.

- 15 -

(20)	Scope of Cash and Cash Equivalents on Interim Consolidated Statements of Cash Flows

In the interim consolidated statements of cash flows, Cash and Cash Equivalents consist of cash and due from central banks included in “Cash and Due from Banks” on the interim consolidated balance sheet.

(21)	Consumption Taxes and other

With respect to MHFG and its domestic consolidated subsidiaries, Japanese consumption taxes and local consumption taxes are excluded from transaction amounts.

- 16 -

Changes in Accounting Policies

Application of “Revised Implementation Guidance on Recoverability of Deferred Tax Assets”

MHFG has applied “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March 28, 2016) (hereinafter, the “Recoverability Implementation Guidance”) from this interim period ended September 30, 2016 and partially revised the accounting method of recoverability of deferred tax assets.

The Recoverability Implementation Guidance has been applied in accordance with the transitional treatment set forth in Article 49(4) of the Recoverability Implementation Guidance. The differences between (i) the amounts of Deferred Tax Assets and Deferred Tax Liabilities when provisions applicable from ① to ③ of Article 49(3) of the Recoverability Implementation Guidance were applied as of April 1, 2016, and (ii) the amounts of Deferred Tax Assets and Deferred Tax Liabilities at the end of the fiscal year ended March 31, 2016, were added to Retained Earnings as of April 1, 2016.

As a result, Deferred Tax Assets (before offset) and Retained Earnings each increased by ¥1,426 million as of April 1, 2016.

As a result of reflection of the effects on the Net Assets as of April 1, 2016, Retained Earnings increased by ¥1,426 million as of April 1, 2016 in the interim consolidated statement of changes in net assets.

Additional Information

The Board Benefit Trust (“BBT”) Program

Since MHFG operates its business giving due regard to creating value for diverse stakeholders and realizing improved corporate value through the continuous and stable growth of MHFG group pursuant to MHFG’s basic management policy defined under the Mizuho Financial Group’s Corporate Identity, MHFG has introduced a performance-based stock compensation program using a trust (the “Program”) that functions as an incentive for each Director, Executive Officer, and Specialist Officer to exert maximum effort in performing his or her duties, and also as consideration for such exertion of effort.

(1)	Outline of the Program

The Program has adopted the Board Benefit Trust (“BBT”) framework. MHFG’s shares on the stock market will be acquired through a trust established based on the underlying funds contributed by MHFG, and MHFG’s shares will be distributed to Directors, Executive Officers, and Specialist Officers of MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., and Mizuho Securities Co., Ltd. (the “Company Group”) in accordance with the Rules on Distribution of Shares to be prescribed in advance. The number of MHFG’s shares to be distributed will be determined pursuant to a performance evaluation based on the annual business plan.

A structure has been introduced for the distribution of MHFG’s shares under the Program, whereby the distribution will be deferred over three years, and the deferred portion will be subject to reduction or forfeiture depending on certain factors, including the performance of the Company Group or the relevant Directors, Executive Officers, and Specialist Officers.

Voting rights related to MHFG’s shares belonging to the trust assets under the trust shall not be exercised.

(2)	MHFG’s Shares Outstanding in the Trust

MHFG’s shares outstanding in the trust are recognized as Treasury Stock under Net Assets at the carrying amount (excluding the amount of incidental expenses) in the trust. The carrying amount of such Treasury Stock as of September 30, 2016 was ¥1,428 million for 9,000 thousand shares.

- 17 -

Notes to Interim Consolidated Balance Sheet

*1.	The total amount of shares and investments in affiliates


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Shares		318,803		315,535
Investments		607		557

2.	MHFG does not have unsecured loaned securities which the borrowers have the right to sell or repledge.

In certain transactions, MHFG has the right to sell or repledge the following unsecured borrowed securities, securities purchased under resale agreements and securities borrowed with cash collateral.


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Securities repledged		11,479,189		12,096,781
Securities neither repledged nor re-loaned at the end of the period/the fiscal year		798,317		998,996

*3.	Loans to Bankrupt Obligors and Non-Accrual Delinquent Loans, which are included in Loans and Bills Discounted, are as follows:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Loans to Bankrupt Obligors		24,315		30,309
Non-Accrual Delinquent Loans		396,720		377,554

Loans to Bankrupt Obligors 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 reason there is no prospect of collecting principal and/or interest (“Non-Accrual Loans”), as per Article 96, Paragraph 1, Item 3, Subsections 1 to 5 or Item 4 of the Corporate Tax Law Enforcement Ordinance (Government Ordinance No. 97, 1965).

Non-Accrual Delinquent Loans represent Non-Accrual Loans other than (i) Loans to Bankrupt Obligors and (ii) loans on which interest payments have been deferred in order to assist or facilitate the restructuring of the obligors.

*4.	Balance of Loans Past Due for Three Months or More, which is included in Loans and Bills Discounted, is as follows:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Loans Past Due for Three Months or More		907		781

Loans Past Due for Three Months or More are loans on which payments of principal and/or interest have not been made for a period of three months or more since the next day following the first due date without such payments, and which are not included in Loans to Bankrupt Obligors, or Non-Accrual Delinquent Loans.

- 18 -

*5.	Balance of Restructured Loans, which is included in Loans and Bills Discounted, is as follows:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Restructured Loans		463,108		436,229

Restructured Loans represent loans whose contracts were amended in favor of obligors (e.g. reduction of, or exemption from, stated interest, deferral of interest payments, extension of maturity dates and renunciation of claims) in order to assist or facilitate the restructuring of the obligors. Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans and Loans Past Due for Three Months or More are not included.

*6.	Total balance of Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans, Loans Past Due for Three Months or More, and Restructured Loans is as follows:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Total		885,052		844,874

The amounts given in *3 through *6 above are gross amounts before deduction of amounts for the Reserves for Possible Losses on Loans.

*7.

In accordance with “Accounting and Auditing Treatment Relating to Adoption of Accounting Standards for Financial Instruments for Banks” (JICPA Industry Audit Committee Report No. 24, February 13, 2002), bills discounted are accounted for as financing transactions. The banking subsidiaries have rights to sell or pledge these commercial bills, foreign exchange bills purchased and others. The face values of these bills are as follows:


*(Millions of yen)*
As of March 31, 2016		As of September 30, 2016
	1,304,681		1,040,352

*8.	Breakdown of assets pledged as collateral is as follows:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
The following assets are pledged as collateral:
Trading Assets		2,674,897		1,292,388
Securities		10,631,675		8,202,942
Loans and Bills Discounted		5,475,195		7,486,347
Other Assets		1,015		1,105

Total		18,782,784		16,982,783

The following liabilities are collateralized by the above assets:
Deposits		813,050		868,183
Payables under Repurchase Agreements		6,090,727		5,845,612
Guarantee Deposits Received under Securities Lending Transactions		2,553,436		1,213,523
Borrowed Money		6,115,880		5,837,153

- 19 -

In addition to the above, the following items are pledged as collateral in connection with the settlement accounts of foreign and domestic exchange transactions or derivatives transactions and others or as a substitute for margins for futures transactions and others:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Cash and Due from Banks		45,101		44,231
Trading Assets		98,922		110,880
Securities		4,323,535		4,029,788
Loans and Bills Discounted		307,997		236,556

Other Assets includes margins for futures transactions, guarantee deposits, and collateral pledged for financial instruments and others as follows:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Margins for Futures Transactions		192,188		159,343
Guarantee Deposits		119,149		118,301
Collateral Pledged for Financial Instruments and Others		930,999		1,096,119

*9.

Overdraft protection on current accounts and contracts of the commitment line for loans are contracts by which banking subsidiaries are bound to extend loans up to the prearranged amount, at the request of customers, unless the customer is in breach of contract conditions. The unutilized balance of these contracts amounts is as follows:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Unutilized balance		88,290,896		86,709,503
Amount relating to contracts of which the original contractual maturity is one year or less, or which are unconditionally cancelable at any time		68,209,392		68,464,023

Since many of these contracts expire without being exercised, the unutilized balance itself does not necessarily affect future cash flows. A provision is included in many of these contracts that entitles the banking subsidiaries to refuse the execution of loans, or reduce the maximum amount under contracts when there is a change in the financial situation, necessity to preserve a claim or other similar reasons. The banking subsidiaries require collateral such as real estate and securities when deemed necessary at the time the contract is entered into. In addition, they periodically monitor customers’ business conditions in accordance with internally established standards and take necessary measures to manage credit risks such as amendments to contracts.

*10.

In accordance with the Land Revaluation Law (Proclamation No. 34 dated March 31, 1998), land used for business operations of domestic consolidated banking subsidiaries was revalued. The applicable income taxes on the entire excess of revaluation are included in Deferred Tax Liabilities for Revaluation Reserve for Land under Liabilities, and the remainder, net of applicable income taxes, is stated as Revaluation Reserve for Land included in Net Assets.

Revaluation date: March 31, 1998

Revaluation method as stated in Article 3, Paragraph 3 of the above law: Land used for business operations was revalued by calculating the value on the basis of the valuation by road rating stipulated in Article 2, Paragraph 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 and other factors, and also on the basis of the appraisal valuation stipulated in Paragraph 5.

- 20 -

*11.	Accumulated Depreciation of Tangible Fixed Assets


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Accumulated Depreciation		857,628		845,409

*12.	Borrowed Money includes subordinated borrowed money with a covenant that performance of the obligation is subordinated to that of other obligations.


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Subordinated Borrowed Money		307,000		272,000

*13.	Bonds and Notes includes subordinated bonds.


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Subordinated Bonds		1,713,478		2,271,207

14.	The principal amounts of money trusts with contracts indemnifying the principal amounts, which are entrusted to domestic consolidated trust banking subsidiaries, are as follows:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Money trusts		1,765,076		1,083,927

*15.	Liabilities for guarantees on corporate bonds included in “Securities,” which are issued by private placement (Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)


*(Millions of yen)*
As of March 31, 2016		As of September 30, 2016
	1,039,783		1,081,871

- 21 -

Notes to Interim Consolidated Statement of Income

*1.	Other Ordinary Income includes the following:


	*(Millions of yen)*
	For the six months ended September 30, 2015		For the six months ended September 30, 2016
Gains on Sales of Stocks		133,199		76,772
Recovery on Written-off Loans		10,322		18,560

*2.	Other Ordinary Expenses includes the following:


	*(Millions of yen)*
	For the six months ended September 30, 2015		For the six months ended September 30, 2016
System Migration-related Expenses		17,343		19,367
Losses on Write-offs of Loans		14,220		10,480

*3.	Extraordinary Gains is as follows:


	*(Millions of yen)*
	For the six months ended September 30, 2015		For the six months ended September 30, 2016
Gains on Disposition of Fixed Assets		6,751		1,426
Indemnity Receipt from the Erroneous Stock Order in the Securities Subsidiary		12,822		—

*4.	Extraordinary Losses includes the following:


	*(Millions of yen)*
	For the six months ended September 30, 2015		For the six months ended September 30, 2016
Losses on Disposition of Fixed Assets		1,602		1,576
Losses on Impairment of Fixed Assets		390		1,474

- 22 -

Notes to Interim Consolidated Statement of Changes in Net Assets

For the six months ended September 30, 2015

1.	Types and number of issued shares and of treasury stock are as follows:


	*(Thousands of shares)*
	As of April 1, 2015		Increase during the period		Decrease during the period		As of September 30, 2015		Remarks
Issued Shares
Common Stock		24,621,897		249,031		—		24,870,929		(Note 1	)
Eleventh Series Class XI Preferred Stock		914,752		—		—		914,752

Total		25,536,649		249,031		—		25,785,681

Treasury Stock
Common Stock		11,649		2,839		2,092		12,395		(Note 2	)
Eleventh Series Class XI Preferred Stock		701,631		69,047		—		770,678		(Note 3	)

Total		713,280		71,886		2,092		783,074


(Notes)		1. Increases are due to request for acquisition (conversion) of preferred stock (244,071 thousand shares) and exercise of stock acquisition rights (stock options) (4,960 thousand shares).
		2. Increases are due to repurchase of shares constituting less than one unit and other factors. Decreases are due to exercise of stock acquisition rights (stock options) (1,808 thousand shares) and repurchases of shares constituting less than one unit and other factors (284 thousand shares).
		3. Increases are due to request for acquisition (conversion) of preferred stock.

2.	Stock acquisition rights and treasury stock acquisition rights are as follows:


Category	Breakdown of stock acquisition rights	Class of shares to be issued or transferred upon exercise of stock acquisition rights		Number of shares to be issued or transferred upon exercise of stock acquisition rights (Shares)												Balance as of September 30, 2015 *(Millions of yen)*			Remarks


				As of April 1, 2015			Increase during the period			Decrease during the period			As of September 30, 2015
MHFG	Stock acquisition rights (Treasury stock acquisition rights)		—		— (—	)		— (—	)		— (—	)		— (—	)		— (—	)
	Stock acquisition rights as stock option		—														2,762
Consolidated subsidiaries (Treasury stock acquisition rights)			—														— (—	)

Total			—														2,762 (—	)

- 23 -

3.	Cash dividends distributed by MHFG are as follows:

(1)	Cash dividends paid during the six months ended September 30, 2015

Resolution

Type

Cash Dividends
(Millions of yen)

Cash
Dividends
per Share
(Yen)

Record Date

Effective Date

May 15,

2015

Common Stock

98,452

March 31,
2015

June 4, 2015

The Board of
Directors

Eleventh Series Class XI

Preferred Stock

2,131

March 31,
2015

June 4, 2015

(2) Cash dividends with record dates falling in the six months ended September 30, 2015 and effective dates coming after the end of the period

Resolution

Type

Cash Dividends
(Millions of yen)

Resource
of
Dividends

Cash
Dividends
per Share
(Yen)

Record
Date

Effective
Date

November 13,

2015

Common Stock

93,240

Retained
Earnings

3.75

September 30,
2015

December 4,
2015

The Board of
Directors

Eleventh Series Class XI
Preferred Stock

1,440

Retained
Earnings

September 30,
2015

December 4,
2015

- 24 -

For the six months ended September 30, 2016

1.	Types and number of issued shares and of treasury stock are as follows:


	*(Thousands of shares)*
	As of April 1, 2016		Increase during the period		Decrease during the period		As of September 30, 2016		Remarks
Issued Shares
Common Stock		25,030,525		355,782		—		25,386,307		(Note 1	)
Eleventh Series Class XI Preferred Stock		914,752		—		914,752		—		(Note 2	)

Total		25,945,277		355,782		914,752		25,386,307

Treasury Stock
Common Stock		10,929		12,166		1,199		21,895		(Note 3	)
Eleventh Series Class XI Preferred Stock		815,828		98,923		914,752		—		(Note 4	)

Total		826,757		111,089		915,951		21,895


(Notes)		1. Increases are due to request for acquisition (conversion) of preferred stock (349,677 thousand shares) and exercise of stock acquisition rights (stock options) (6,105 thousand shares).
		2. Decreases are due to cancellation of treasury stock (preferred stock).
		3. Increases are due to acquisition of MHFG shares by BBT trust account (9,000 thousand shares), and repurchase of shares constituting less than one unit and other factors (3,166 thousand shares). Decreases are due to exercise of stock acquisition rights (stock options) (266 thousand shares) and repurchase of shares constituting less than one unit and other factors (933 thousand shares). The number of shares as of September 30, 2016 includes the number of shares held by BBT trust account (9,000 thousand shares).
		4. Increases are due to acquisition (conversion) of treasury stock (preferred stock) (75,091 thousand shares) and request for acquisition (conversion) of preferred stock (23,832 thousand shares). Decreases are due to cancellation of treasury stock (preferred stock).

2.	Stock acquisition rights and treasury stock acquisition rights are as follows:


Category	Breakdown of stock acquisition rights	Class of shares to be issued or transferred upon exercise of stock acquisition rights		Number of shares to be issued or transferred upon exercise of stock acquisition rights (Shares)												Balance as of September 30, 2016 *(Millions of yen)*			Remarks


				As of April 1, 2016			Increase during the period			Decrease during the period			As of September 30, 2016
MHFG	Stock acquisition rights (Treasury stock acquisition rights)		—		— (—	)		— (—	)		— (—	)		— (—	)		— (—	)
	Stock acquisition rights as stock option		—														1,754
Consolidated subsidiaries (Treasury stock acquisition rights)			—														— (—	)

Total			—														1,754 (—	)

- 25 -

3.	Cash dividends distributed by MHFG are as follows:

(1)	Cash dividends paid during the six months ended September 30, 2016

Resolution

Type

Cash Dividends
(Millions of yen)

Cash
Dividends
per Share
(Yen)

Record Date

Effective Date

May 13,

2016

Common Stock

93,838

3.75

March 31,

2016

June 3,

2016

The Board of
Directors

Eleventh Series Class XI
Preferred Stock

989

March 31,

2016

June 3,

2016

(2) Cash dividends with record dates falling in the six months ended September 30, 2016 and effective dates coming after the end of the period

Resolution

Type

Cash Dividends

(Millions of yen)

Resource of
Dividends

Cash
Dividends
per Share
(Yen)

Record

Date

Effective

Date

November 14,

2016

The Board of

Directors

Common Stock

95,173

Retained
Earnings

3.75

September 30,

2016

December 6,

2016

(Note)

Cash dividends based on the resolution of the Board of Directors on November 14, 2016 include ¥33 million of cash dividends on MHFG shares held by BBT trust account.

Notes to Interim Consolidated Statement of Cash Flows

*1.	Cash and Cash Equivalents at the end of the period on the Interim Consolidated Statement of Cash Flows reconciles to Cash and Due from Banks on the Interim Consolidated Balance Sheet as follows:


	*(Millions of yen)*
	For the six months ended September 30, 2015			For the six months ended September 30, 2016
Cash and Due from Banks		35,194,504			42,715,384
Due from Banks excluding central banks		(1,266,585	)		(1,093,594	)

Cash and Cash Equivalents		33,927,919			41,621,790

- 26 -

Lease Transactions

1.	Finance Leases (Lessees)

Finance lease transactions that do not transfer ownership:

Lease Assets:

(a)

Tangible fixed assets: mainly equipment

(b)

Intangible fixed assets: software

The method for computing the amount of depreciation is described in “4. Standards of Accounting Method (5) Depreciation of Fixed Assets.”

2.	Operating Leases

The future lease payments subsequent to the end of the fiscal year for non-cancelable operating lease transactions are summarized as follows:

(1)

Lessees:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Due in One Year or Less		53,116		50,783
Due after One Year		223,770		202,883

Total		276,887		253,667

(2)

Lessors:


	*(Millions of yen)*
	As of March 31, 2016		As of September 30, 2016
Due in One Year or Less		692		473
Due after One Year		3,684		2,366

Total		4,376		2,839

- 27 -

Financial Instruments

Matters relating to fair value of financial instruments and others

The following are the interim consolidated balance sheet amounts (the consolidated balance sheet amounts), fair values and differences between them. Unlisted stocks and others, the fair values of which are extremely difficult to determine, are excluded from the table below (see (Note 2)).

As of March 31, 2016


	*(Millions of yen)*
	Consolidated Balance Sheet Amount			Fair Value		Difference
(1) Cash and Due from Banks (*1)		36,314,173			36,314,173		—
(2) Call Loans and Bills Purchased (*1)		892,781			892,781		—
(3) Receivables under Resale Agreements		7,805,798			7,805,798		—
(4) Guarantee Deposits Paid under Securities Borrowing Transactions		3,407,390			3,407,390		—
(5) Other Debt Purchased (*1)		2,979,413			2,979,419		6
(6) Trading Assets
Trading Securities		5,467,948			5,467,948		—
(7) Money Held in Trust (*1)		175,135			175,135		—
(8) Securities
Bonds Held to Maturity		4,817,574			4,873,209		55,634
Other Securities		34,083,510			34,083,510		—
(9) Loans and Bills Discounted		73,708,884
Reserves for Possible Losses on Loans (*1)		(411,319	)

		73,297,564			74,465,870		1,168,305

Total Assets		169,241,291			170,465,237		1,223,946

(1) Deposits		105,629,071			105,635,132		6,061
(2) Negotiable Certificates of Deposit		11,827,533			11,827,239		(293	)
(3) Call Money and Bills Sold		2,521,008			2,521,008		—
(4) Payables under Repurchase Agreements		16,833,346			16,833,346		—
(5) Guarantee Deposits Received under Securities Lending Transactions		2,608,971			2,608,971		—
(6) Trading Liabilities
Securities Sold, Not yet Purchased		2,630,040			2,630,040		—
(7) Borrowed Money		7,503,543			7,510,534		6,990
(8) Bonds and Notes		6,120,928			6,222,223		101,295
(9) Due to Trust Accounts		5,067,490			5,067,490		—

Total Liabilities		160,741,933			160,855,987		114,053

Derivative Transactions (*2)
Derivative Transactions not Qualifying for Hedge Accounting		19,666
Derivative Transactions Qualifying for Hedge Accounting		481,660
Reserves for Derivative Transactions (*1)		(8,086	)

Total Derivative Transactions		493,240			493,240		—

(*1)

General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded. Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off against the consolidated balance sheet amount due to immateriality.

(*2)	Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading Liabilities, and others are presented as a lump sum.

Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

- 28 -

As of September 30, 2016


	*(Millions of yen)*
	Interim Consolidated Balance Sheet Amount			Fair Value		Difference
(1) Cash and Due from Banks (*1)		42,713,577			42,713,577		—
(2) Call Loans and Bills Purchased (*1)		899,099			899,099		—
(3) Receivables under Resale Agreements		9,258,984			9,258,984		—
(4) Guarantee Deposits Paid under Securities Borrowing Transactions		3,195,977			3,195,977		—
(5) Other Debt Purchased (*1)		2,527,040			2,527,046		5
(6) Trading Assets
Trading Securities		5,215,172			5,215,172		—
(7) Money Held in Trust (*1)		227,473			227,473		—
(8) Securities
Bonds Held to Maturity		4,258,676			4,317,918		59,242
Other Securities		27,864,070			27,864,070		—
(9) Loans and Bills Discounted		73,030,669
Reserves for Possible Losses on Loans (*1)		(395,250	)

		72,635,419			73,745,613		1,110,194

Total Assets		168,795,492			169,964,934		1,169,442

(1) Deposits		110,171,994			110,182,857		10,863
(2) Negotiable Certificates of Deposit		9,568,325			9,567,877		(448	)
(3) Call Money and Bills Sold		1,791,651			1,791,651		—
(4) Payables under Repurchase Agreements		17,739,258			17,739,258		—
(5) Guarantee Deposits Received under Securities Lending Transactions		1,314,573			1,314,573		—
(6) Trading Liabilities
Securities Sold, Not yet Purchased		2,676,523			2,676,523		—
(7) Borrowed Money		7,243,394			7,232,531		(10,862	)
(8) Bonds and Notes		7,131,121			7,266,821		135,700
(9) Due to Trust Accounts		4,053,768			4,053,768		—

Total Liabilities		161,690,611			161,825,864		135,252

Derivative Transactions (*2)
Derivative Transactions not Qualifying for Hedge Accounting		134,725
Derivative Transactions Qualifying for Hedge Accounting		786,359
Reserves for Derivative Transactions (*1)		(13,514	)

Total Derivative Transactions		907,570			907,570		—

(*1)

General and specific reserves for possible losses on loans relevant to Loans and Bills Discounted and reserves for derivative transactions are excluded. Reserves for Cash and Due from Banks, Call Loans and Bills Purchased, Other Debt Purchased, Money Held in Trust and others are directly written off against the interim consolidated balance sheet amount due to immateriality.

(*2)	Derivative Transactions recorded in Trading Assets, Trading Liabilities, Derivatives other than for Trading Assets, Derivatives other than for Trading Liabilities, and others are presented as a lump sum.

Net claims and debts that arose from derivative transactions are presented on a net basis, and the item that is net debts in total is presented in brackets.

- 29 -

(Note 1)

Calculation method of fair value of financial instruments

Assets

(1)

Cash and Due from Banks

For Due from Banks which have no maturity, since fair values of these items approximate book values, we deem the book values to be fair values. For Due from Banks which have maturity, since contractual terms of these items are mainly short (i.e., within six months) and fair values of these items approximate book values, we deem the book values to be fair values.

(2)

Call Loans and Bills Purchased, (3) Receivables under Resale Agreements and (4) Guarantee Deposits Paid under Securities Borrowing Transactions

Since contractual terms of these items are mainly short (i.e., within six months) and fair values of these items approximate book values, we deem the book values to be fair values.

(5)

Other Debt Purchased

Fair values of Other Debt Purchased are based on the values deemed as market prices obtained by the reasonable estimate such as those obtained from brokers and financial information vendors.

(6)

Trading Assets

Fair values of securities held for trading, such as bonds held for trading, are based on the market prices and others.

(7)

Money Held in Trust

As to securities managed as trust assets in a directed money trust for separate investment with the management of securities as its primary purpose, fair values of these items are calculated using the method stated in (8). For other Money Held in Trust, since fair values of these items approximate book values, we deem the book values to be fair values. The notes to Money Held in Trust based on holding purpose are stated in “Money Held in Trust.”

(8)

Securities

Fair values of stocks are based on the prices on securities exchanges, and those of bonds and others are based on the market prices, valuations obtained from brokers and information vendors and others. Fair values of investment trusts are based on the disclosed net asset value and others. Fair values of private placement bonds are calculated by discounting the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to the internal ratings and terms.

Fair values of securitized products are based on valuations obtained from brokers and others, and reasonably calculated prices based on the reasonable estimates of our management. In deriving reasonably calculated prices based on the reasonable estimates of our management mentioned above, we used the discounted cash flow method. The price decision variables include default rates, recovery rates, pre-payment rates, and discount rates.

Fair values of Floating-rate Japanese Government Bonds, according to our determination that current market prices may not reflect the fair value, are based on the reasonably calculated prices as book value as of September 30, 2016 (as of March 31, 2016). In deriving the reasonably calculated prices, we used the discount cash flow method as well as other methods. The price decision variables include the yield of 10-year Japanese Government Bonds and the volatilities of interest rate swap options for 10-year Japanese Government Bonds as underlying assets.

The notes to Securities based on holding purpose are stated in “Securities.”

(9)

Loans and Bills Discounted

Fair values of Loans and Bills Discounted are calculated by the total amount of principal and interest and others at interest rates based on the discount rate reflecting expected loss and various risk factors by categories according to the types, internal ratings and terms of the Loans and Bills Discounted. In addition, as to claims against bankrupt obligors, substantially bankrupt obligors and intensive control obligors, since the estimated amount of bad debts is calculated based on the present value of the expected future cash flows or the estimated amounts that we would be able to collect from collateral and guarantees, fair values approximate the amount of Debentures and others minus the amount of Reserves for Possible Losses on Loans in the interim consolidated balance sheet (the consolidated balance sheet) as of the interim consolidated balance sheet date (the consolidated balance sheet date) and we thus deem such amount to be fair values.

Of the Loans and Bills Discounted, for those without a fixed maturity due to loan characteristics such as limiting loans to within the value of pledged assets, we deem book values to be fair values since fair values are expected to approximate book values based on the estimated loan periods, interest rates and other conditions.

- 30 -

Liabilities

(1)

Deposits (2) Negotiable Certificates of Deposit

For demand deposits, we deem the payment amounts required on the interim consolidated balance sheet date (the consolidated balance sheet date) (i.e., book values) to be fair values. In addition, fair values of fixed deposits and negotiable certificates of deposits are calculated by classifying them based on their terms and by discounting the future cash flows. The discount rates used in such calculations are the interest rates. Since fair values of those whose deposit terms are short (i.e., within six months) approximate book values, we mainly deem the book values to be fair values.

(3)

Call Money and Bills Sold, (4) Payables under Repurchase Agreements and (5) Guarantee Deposits Received under Securities Lending Transactions

Since contractual terms of these financial instruments are mainly short (i.e., within six months) and fair values approximate book values, we deem the book values to be fair values.

(6)

Trading Liabilities

Fair values of Securities Sold, Not yet Purchased in Trading Liabilities are based on the market prices and others.

(7)

Borrowed Money

Fair values of Borrowed Money are calculated mainly by discounting the total amount of the principal and interest of such Borrowed Money classified by certain period at the interest rates considered to be applicable to similar loans.

(8)

Bonds and Notes

Fair values of Bonds and Notes issued by MHFG and its consolidated subsidiaries are based on the market prices for Bonds and Notes which have market prices, and calculated by discounting the total amount of principal and interest by the interest rates considered to be applicable to similar Bonds and Notes for those which do not have market prices.

(9)

Due to Trust Accounts

Due to Trust Accounts of consolidated trust banking subsidiaries is used for transactions in which consolidated trust banking subsidiaries manage fund entrusted to them in bank accounts of consolidated trust banking subsidiaries. As the purpose is considered to approximate demand deposit, we deem the book values to be fair values.

Derivative Transactions

Derivative Transactions are stated in “Derivatives Information.”

(Note 2)

Interim consolidated balance sheet (consolidated balance sheet) amounts of financial instruments whose fair values are deemed to be extremely difficult to determine are indicated below, and are not included in “Assets (5) Other Debt Purchased,” “Assets (7) Money Held in Trust,” and “Assets (8) Other Securities” in fair value information of financial instruments.


*(Millions of yen)*
Category	As of March 31, 2016		As of September 30, 2016
(i) Unlisted Stocks (*1)		216,329		189,965
(ii) Investments in Partnerships and others (*2)		69,076		76,264
(iii) Other		571		535

Total (*3)		285,977		266,765

(*1)

We do not treat Unlisted Stocks as being subject to disclosure of fair values as there are no market prices and they are deemed extremely difficult to determine fair values.

(*2)

Of the Investments in Partnerships and others, we do not treat those whose assets consist of unlisted stocks and other financial instruments that are deemed extremely difficult to determine fair values as being subject to disclosure of fair values.

(*3)

During the fiscal year ended March 31, 2016, the amount of impairment (devaluation) was ¥1,696 million on a consolidated basis.

During the six months ended September 30, 2016, the amount of impairment (devaluation) was ¥1,270 million on a consolidated basis.

- 31 -

Securities

In addition to “Securities” on the interim consolidated balance sheet (the consolidated balance sheet), Negotiable Certificates of Deposit in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included.

1.	Bonds Held to Maturity

As of March 31, 2016


*(Millions of yen)*
	Type	Consolidated Balance Sheet Amount		Fair Value		Difference
Bonds Whose Fair Values Exceed the Consolidated Balance Sheet Amount	Japanese Government Bonds		3,760,032		3,816,652		56,619
	Foreign Bonds		642,788		647,182		4,393

	Sub-total		4,402,821		4,463,834		61,012

Bonds Whose Fair Values Do Not Exceed the Consolidated Balance Sheet Amount	Japanese Government Bonds		—		—		—
	Foreign Bonds		414,753		409,375		(5,378	)

	Sub-total		414,753		409,375		(5,378	)

Total			4,817,574		4,873,209		55,634

As of September 30, 2016


*(Millions of yen)*
	Type	Interim Consolidated Balance Sheet Amount		Fair Value		Difference
Bonds Whose Fair Values Exceed the Interim Consolidated Balance Sheet Amount	Japanese Government Bonds		3,459,999		3,514,851		54,851
	Foreign Bonds		542,436		547,856		5,420

	Sub-total		4,002,435		4,062,707		60,271

Bonds Whose Fair Values Do Not Exceed the Interim Consolidated Balance Sheet Amount	Japanese Government Bonds		—		—		—
	Foreign Bonds		256,240		255,211		(1,029	)

	Sub-total		256,240		255,211		(1,029	)

Total			4,258,676		4,317,918		59,242

- 32 -

2.	Other Securities

As of March 31, 2016


*(Millions of yen)*
	Type	Consolidated Balance Sheet Amount		Acquisition Cost		Difference
Other Securities Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost	Stocks		3,119,477		1,437,513		1,681,963
	Bonds		18,155,225		18,007,215		148,010
	Japanese Government Bonds		15,649,388		15,553,141		96,247
	Japanese Local Government Bonds		237,247		231,149		6,097
	Short-term Bonds		—		—		—
	Japanese Corporate Bonds		2,268,589		2,222,924		45,665
	Other		7,489,460		7,259,780		229,679
	Foreign Bonds		6,775,953		6,708,016		67,936
	Other Debt Purchased		143,593		139,690		3,903
	Other		569,913		412,074		157,839

	Sub-total		28,764,163		26,704,510		2,059,653

Other Securities Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost	Stocks		338,149		409,668		(71,518	)
	Bonds		719,259		730,762		(11,502	)
	Japanese Government Bonds		116,484		116,890		(406	)
	Japanese Local Government Bonds		3,433		3,436		(3	)
	Short-term Bonds		99		99		—
	Japanese Corporate Bonds		599,241		610,334		(11,093	)
	Other		4,854,122		4,948,886		(94,764	)
	Foreign Bonds		2,943,644		2,970,512		(26,867	)
	Other Debt Purchased		205,326		205,917		(591	)
	Other		1,705,151		1,772,456		(67,305	)

	Sub-total		5,911,531		6,089,317		(177,785	)

Total			34,675,695		32,793,827		1,881,867

(Note)

Unrealized Gains (Losses) includes ¥26,715 million which was recognized in the statement of income by applying the fair-value hedge method.

- 33 -

As of September 30, 2016


*(Millions of yen)*
	Type	Interim Consolidated Balance Sheet Amount		Acquisition Cost		Difference
Other Securities Whose Interim Consolidated Balance Sheet Amount Exceeds Acquisition Cost	Stocks		2,904,416		1,391,989		1,512,427
	Bonds		10,359,951		10,255,793		104,157
	Japanese Government Bonds		7,917,280		7,860,349		56,931
	Japanese Local Government Bonds		273,128		266,679		6,449
	Short-term Bonds		—		—		—
	Japanese Corporate Bonds		2,169,542		2,128,764		40,777
	Other		6,719,343		6,499,216		220,127
	Foreign Bonds		6,014,514		5,949,564		64,950
	Other Debt Purchased		106,739		103,814		2,924
	Other		598,089		445,837		152,252

	Sub-total		19,983,712		18,146,999		1,836,712

Other Securities Whose Interim Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost	Stocks		322,668		407,000		(84,331	)
	Bonds		3,135,439		3,151,263		(15,824	)
	Japanese Government Bonds		2,457,536		2,460,476		(2,939	)
	Japanese Local Government Bonds		8,182		8,210		(28	)
	Short-term Bonds		99		99		—
	Japanese Corporate Bonds		669,620		682,476		(12,855	)
	Other		4,961,948		5,051,514		(89,565	)
	Foreign Bonds		2,938,260		2,955,907		(17,647	)
	Other Debt Purchased		181,510		181,981		(471	)
	Other		1,842,178		1,913,626		(71,447	)

	Sub-total		8,420,056		8,609,778		(189,721	)

Total			28,403,769		26,756,777		1,646,991

(Note)

Unrealized Gains (Losses) includes ¥15,052 million which was recognized in the statement of income by applying the fair-value hedge method.

- 34 -

3.	Impairment (“Devaluation”) of Securities

Certain Securities other than Trading Securities (excluding Securities for which it is deemed to be extremely difficult to determine the fair value) are devalued to the fair value, and the difference between the acquisition cost and the fair value is treated as the loss for the six months ended September 30, 2016 (the fiscal year ended March 31, 2016) (impairment (devaluation)), if the fair value (primarily the closing market price as of September 30, 2016 (March 31, 2016)) has significantly deteriorated compared with the acquisition cost (including amortized cost), and unless it is deemed that there is a possibility of a recovery in the fair value.

The amount of impairment (devaluation) for the fiscal year ended March 31, 2016 was ¥9,161 million.

The amount of impairment (devaluation) for the six months ended September 30, 2016 was ¥4,475 million.

The criteria for determining whether a security’s fair value has “significantly deteriorated” are outlined as follows:

•

Securities whose fair value is 50% or less of the acquisition cost

•

Securities whose fair value exceeds 50% but is 70% or less of the acquisition cost and the quoted market price maintains a certain level or lower

- 35 -

Money Held in Trust

1.	Money Held in Trust Held to Maturity

There was no Money Held in Trust held to maturity.

2.	Other in Money Held in Trust (other than for investment purposes and held to maturity purposes)

As of March 31, 2016


	*(Millions of yen)*
	Consolidated Balance Sheet Amount		Acquisition Cost		Difference		Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost		Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost
Other in Money Held in Trust		2,578		2,578		—		—		—

(Note)

“Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Exceeds Acquisition Cost” and “Other in Money Held in Trust Whose Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost” are components of “Difference.”

As of September 30, 2016


	*(Millions of yen)*
	Interim Consolidated Balance Sheet Amount		Acquisition Cost		Difference		Other in Money Held in Trust Whose Interim Consolidated Balance Sheet Amount Exceeds Acquisition Cost		Other in Money Held in Trust Whose Interim Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost
Other in Money Held in Trust		3,053		3,053		—		—		—

(Note)

“Other in Money Held in Trust Whose Interim Consolidated Balance Sheet Amount Exceeds Acquisition Cost” and “Other in Money Held in Trust Whose Interim Consolidated Balance Sheet Amount Does Not Exceed Acquisition Cost” are components of “Difference.”

- 36 -

Unrealized Gains (Losses) on Other Securities

Details of Unrealized Gains (Losses) on Other Securities on the interim consolidated balance sheet (consolidated balance sheet) are as follows:

As of March 31, 2016


	*(Millions of yen)*
	Amount
Difference between Acquisition Cost and Fair Value		1,855,281
Other Securities		1,855,281
(–) Deferred Tax Liabilities		508,389
Difference between Acquisition Cost and Fair Value, net of Taxes (Before adjusting for amount corresponding to Non-controlling Interests)		1,346,892
(–) Amount Corresponding to Non-controlling Interests		56,046
(+) Amount Corresponding to Net Unrealized Gains (Losses) on Other Securities Owned by Affiliated Companies, which is attributable to MHFG		5,193

Net Unrealized Gains (Losses) on Other Securities		1,296,039


(Notes)	1.	The difference between acquisition cost and fair value excludes ¥26,715 million (gains) which was recognized in the statement of income for the fiscal year ended March 31, 2016 by applying the fair-value hedge method.
	2.	“Other Securities” includes translation differences regarding securities which do not have readily determinable fair value.

As of September 30, 2016


	*(Millions of yen)*
	Amount
Difference between Acquisition Cost and Fair Value		1,631,865
Other Securities		1,631,865
(–) Deferred Tax Liabilities		446,973
Difference between Acquisition Cost and Fair Value, net of Taxes (Before adjusting for amount corresponding to Non-controlling Interests)		1,184,891
(–) Amount Corresponding to Non-controlling Interests		54,764
(+) Amount Corresponding to Net Unrealized Gains (Losses) on Other Securities Owned by Affiliated Companies, which is attributable to MHFG		4,221

Net Unrealized Gains (Losses) on Other Securities		1,134,348


(Notes)	1.	The difference between acquisition cost and fair value excludes ¥15,052 million (gains) which was recognized in the statement of income for six months ended September 30, 2016 by applying the fair-value hedge method.
	2.	“Other Securities” includes translation differences regarding securities which do not have readily determinable fair value.

- 37 -

Derivatives Information

Derivative Transactions not Qualifying for Hedge Accounting

With regard to derivative transactions not qualifying for hedge accounting, contract value or contractual principal equivalents, fair values and unrealized gains (losses), and fair value calculation method by type of transaction as of the interim consolidated balance sheet date (consolidated balance sheet date) are as follows. Contract value amounts do not indicate the market risk related to derivative transactions.

(1)	Interest Rate-Related Transactions

As of March 31, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Futures
	Sold		15,846,181		5,404,223		(101,255	)		(101,255	)
	Bought		15,329,146		5,440,259		93,252			93,252
	Options
	Sold		266,618		35,363		(684	)		221
	Bought		659,242		140,726		636			(413	)
Over-the-Counter	FRAs
	Sold		16,516,064		2,486,927		(7,427	)		(7,427	)
	Bought		8,747,790		—		321			321
	Swaps
	Receive Fixed / Pay Float		450,204,501		348,348,352		10,989,099			10,989,099
	Receive Float / Pay Fixed		445,186,117		338,980,895		(10,832,435	)		(10,832,435	)
	Receive Float / Pay Float		77,852,071		57,764,275		40,572			40,572
	Receive Fixed / Pay Fixed		769,835		740,715		22,623			22,623
	Options
	Sold		9,510,832		6,160,305		(157,337	)		(157,337	)
	Bought		6,157,532		4,019,060		62,094			62,094
Inter-Company or Internal Transactions	Swaps
	Receive Fixed / Pay Float		4,188,380		4,012,121		77,460			77,460
	Receive Float / Pay Fixed		11,761,887		10,348,763		(209,539	)		(209,539	)

Total			—		—		(22,617	)		(22,760	)


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
	2.	Fair values of listed contracts are based on the closing prices of the Tokyo Financial Exchange and others.
		Fair values of over-the-counter contracts and inter-company or internal transactions are based on the discounted value of future cash flows, option pricing models and others.

- 38 -

As of September 30, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Futures
	Sold		14,363,359		4,955,742		(78,011	)		(78,011	)
	Bought		13,856,810		4,955,239		72,396			72,396
	Options
	Sold		850,904		—		(730	)		174
	Bought		1,306,210		50,418		691			(58	)
Over-the-Counter	FRAs
	Sold		22,365,786		811,262		(12,705	)		(12,705	)
	Bought		17,018,004		35,533		6,178			6,178
	Swaps
	Receive Fixed / Pay Float		406,596,701		311,829,874		13,170,048			13,170,048
	Receive Float / Pay Fixed		397,851,585		303,821,250		(12,782,678	)		(12,782,678	)
	Receive Float / Pay Float		78,188,397		59,774,298		38,880			38,880
	Receive Fixed / Pay Fixed		760,790		665,608		25,064			25,064
	Options
	Sold		8,396,402		5,244,340		(182,424	)		(182,424	)
	Bought		5,767,951		3,375,223		69,860			69,860
Inter-Company or Internal Transactions	Swaps
	Receive Fixed / Pay Float		3,199,742		3,088,782		53,652			53,652
	Receive Float / Pay Fixed		10,034,008		9,196,449		(188,816	)		(188,816	)

Total			—		—		191,407			191,562


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the interim consolidated statement of income.
	2.	Fair values of listed contracts are based on the closing prices of the Tokyo Financial Exchange and others.
		Fair values of over-the-counter contracts and inter-company or internal transactions are based on the discounted value of future cash flows, option pricing models and others.

- 39 -

(2)	Currency-Related Transactions

As of March 31, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Futures
	Sold		20,867		120		(61	)		(61	)
	Bought		73,227		36,677		41			41
Over-the-Counter	Swaps		42,725,365		27,770,539		81,081			67,031
	Forwards
	Sold		61,814,420		3,398,506		516,292			516,292
	Bought		26,644,388		1,077,489		(360,548	)		(360,548	)
	Options
	Sold		3,159,248		1,138,887		(148,426	)		(47,789	)
	Bought		2,857,596		938,677		100,894			(2,122	)
Inter-Company or Internal Transactions	Swaps		4,031,159		3,332,541		(183,406	)		(17,723	)
	Forwards
	Bought		149,337		—		869			869

Total			—		—		6,736			155,987


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
	2.	Fair values of listed contracts are based on the closing prices of the Tokyo Financial Exchange and others.
		Fair values of over-the-counter contracts and inter-company or internal transactions are based on the discounted value of future cash flows, option pricing models and others.

As of September 30, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Futures
	Sold		19,736		309		(0	)		(0	)
	Bought		83,389		38,939		0			0
Over-the-Counter	Swaps		42,273,588		28,234,682		189,786			140,719
	Forwards
	Sold		57,774,572		3,201,837		742,846			742,846
	Bought		25,469,472		1,034,440		(556,996	)		(556,996	)
	Options
	Sold		2,680,831		1,074,307		(96,773	)		(5,503	)
	Bought		2,374,047		911,380		107,675			15,249
Inter-Company or Internal Transactions	Swaps		3,896,195		2,617,597		(455,543	)		(8,090	)
	Forwards
	Bought		133,038		—		(2,695	)		(2,695	)

Total			—		—		(71,699	)		325,529


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the interim consolidated statement of income.
	2.	Fair values of listed contracts are based on the closing prices of the Tokyo Financial Exchange and others.
		Fair values of over-the-counter contracts and inter-company or internal transactions are based on the discounted value of future cash flows, option pricing models and others.

- 40 -

(3)	Stock-Related Transactions

As of March 31, 2016


(Millions of yen)
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Index Futures
	Sold		339,684		19,677		(133	)		(133	)
	Bought		34,398		—		(206	)		(206	)
	Index Futures Options
	Sold		796,933		238,770		(56,915	)		(6,219	)
	Bought		743,949		153,025		44,429			6,289
Over-the-Counter	Equity Linked Swaps		157,043		128,828		28,065			28,065
	Options
	Sold		605,923		547,166		(76,011	)		(65,717	)
	Bought		245,280		208,203		71,052			59,419
	Other
	Sold		2,061		—		(87	)		(87	)
	Bought		329,081		312,695		13,337			13,337

Total			—		—		23,530			34,745


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
	2.	Fair values of listed contracts are based on the closing prices of the Osaka Exchange and others.
		Fair values of over-the-counter contracts are based on the discounted value of future cash flows, option pricing models and others.

As of September 30, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Index Futures
	Sold		283,973		15,868		288			288
	Bought		361,468		1,616		(1,838	)		(1,838	)
	Index Futures Options
	Sold		1,021,933		294,210		(62,392	)		(5,665	)
	Bought		827,464		180,140		41,037			3,913
Over-the-Counter	Equity Linked Swaps		219,798		184,501		28,556			28,556
	Options
	Sold		786,552		636,267		(81,115	)		(67,949	)
	Bought		337,466		233,921		69,107			55,967
	Other
	Sold		—		—		—			—
	Bought		442,222		430,134		18,028			18,028

Total			—		—		11,671			31,301


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the interim consolidated statement of income.
	2.	Fair values of listed contracts are based on the closing prices of the Osaka Exchange and others.
		Fair values of over-the-counter contracts are based on the discounted value of future cash flows, option pricing models and others.

- 41 -

(4)	Bond-Related Transactions

As of March 31, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Futures
	Sold		559,493		—		(2,364	)		(2,364	)
	Bought		661,309		—		3,295			3,295
	Futures Options
	Sold		87,526		—		(100	)		9
	Bought		235,566		—		327			(130	)
Over-the-Counter	Options
	Sold		451,639		338,264		(23,808	)		(23,391	)
	Bought		451,639		338,264		23,737			23,314

Total			—		—		1,086			732


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.
	2.	Fair values of listed contracts are based on the closing prices of the Osaka Exchange and others.
		Fair values of over-the-counter contracts are based on the option pricing models and others.

As of September 30, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Futures
	Sold		890,659		—		(1,811	)		(1,811	)
	Bought		767,253		—		2,269			2,269
	Futures Options
	Sold		829,527		—		(530	)		(38	)
	Bought		206,396		—		294			(15	)
Over-the-Counter	Options
	Sold		597,390		407,378		(30,352	)		(29,147	)
	Bought		861,517		406,481		31,550			29,843

Total			—		—		1,420			1,100


(Notes)	1.	The above transactions are marked to market, and changes in unrealized gains (losses) are included in the interim consolidated statement of income.
	2.	Fair values of listed contracts are based on the closing prices of the Osaka Exchange and others.
		Fair values of over-the-counter contracts are based on the option pricing models and others.

- 42 -

(5)	Commodity-Related Transactions

As of March 31, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Futures
	Sold		2,301		714		(37	)		(37	)
	Bought		3,890		1,544		18			18
Over-the-Counter	Swaps		230		—		0			0
	Options
	Sold		162,916		96,045		30,467			30,467
	Bought		157,433		83,472		(26,324	)		(26,324	)

Total			—		—		4,124			4,124

(Notes)

1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

2. Fair values of listed contracts are based on the closing prices of the New York Mercantile Exchange and others.

Fair values of over-the-counter contracts are based on the commodity prices, terms of contracts and other components of the contracts.

3. Commodities include oil, copper, aluminum and others.

As of September 30, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Listed	Futures
	Sold		1,951		568		(294	)		(294	)
	Bought		3,094		1,196		374			374
Over-the-Counter	Swaps		5,490		—		1			1
	Options
	Sold		151,844		73,666		13,944			13,944
	Bought		154,567		64,612		(10,816	)		(10,816	)

Total			—		—		3,208			3,208

(Notes)

1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the interim consolidated statement of income.

2. Fair values of listed contracts are based on the closing prices of the New York Mercantile Exchange and others.

Fair values of over-the-counter contracts are based on the commodity prices, terms of contracts and other components of the contracts.

3. Commodities include oil, copper, aluminum and others.

- 43 -

(6)	Credit Derivative Transactions

As of March 31, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Over-the-Counter	Credit Derivatives
	Sold		2,366,223		1,828,065		15,125			15,125
	Bought		2,591,862		2,006,634		(8,319	)		(8,319	)

Total			—		—		6,805			6,805

(Notes)

1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the consolidated statement of income.

2. Fair values of over-the-counter contracts are based on the discounted value of future cash flows, prices of the underlying products, terms of contracts and other components of the contracts.

3. “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

As of September 30, 2016


*(Millions of yen)*
Classification	Type	Contract Value				Fair Value			Unrealized Gains (Losses)
Classification	Type	Total		Over One Year		Fair Value			Unrealized Gains (Losses)
Over-the-Counter	Credit Derivatives
	Sold		2,091,812		1,599,898		26,178			26,178
	Bought		2,225,312		1,623,494		(27,462	)		(27,462	)

Total			—		—		(1,283	)		(1,283	)

(Notes)

1. The above transactions are marked to market, and changes in unrealized gains (losses) are included in the interim consolidated statement of income.

2. Fair values of over-the-counter contracts are based on the discounted value of future cash flows, prices of the underlying products, terms of contracts and other components of the contracts.

3. “Sold” and “Bought” indicate assumption and cession of credit risk, respectively.

- 44 -

Business Segment Information, etc.

Business Segment Information

1.	Summary of reportable segment

MHFG has introduced an in-house company system based on the group’s diverse customer segments as of April, 2016. The aim of this system is to leverage MHFG’s strengths and competitive advantage, which is the seamless integration of MHFG’s banking, trust and securities functions under a holding company structure, to speedily provide high-quality financial services that closely match customer needs.

Specifically, the company system is classified into the following five in-house companies, each based on a customer segment: the Retail & Business Banking Company, the Corporate & Institutional Company, the Global Corporate Company, the Global Markets Company, and the Asset Management Company.

The services that each in-house company is in charge of are as follows:

Retail & Business Banking Company:

Services for individual customers, small and medium-sized enterprises and middle market firms in Japan

Corporate & Institutional Company:

Services for large corporations, financial institutions and public corporations in Japan

Global Corporate Company:

Services for Japanese overseas affiliated corporate customers and non-Japanese corporate customers, etc.

Global Markets Company:

Investment services with respect to interest rates, equities and credits, etc., and other services

Asset Management Company:

Development of products and provision of services that match the asset management needs of its wide range of customers from individuals to institutional investors

The reportable segment information, set forth below, is derived from the internal management reporting systems used by management to measure the performance of the Group’s operating segments. Management measures the performance of each of the operating segments in accordance with internal managerial accounting rules and practices.

- 45 -

2.	Calculating method of Gross profits (excluding the amounts of credit costs of trust accounts), Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) and the amount of Assets by reportable segment

The following information of reportable segment is based on internal management reporting.

Gross profits (excluding the amounts of credit costs of trust accounts) is the total amount of Interest Income, Fiduciary Income, Fee and Commission Income, Trading Income and Other Operating Income.

Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) is the amount of which General and administrative expenses (excluding non-recurring expenses) and Others (Equity in income from investments in affiliates and certain other consolidation adjustments) are deducted from Gross profits (excluding the amounts of credit costs of trust accounts).

Asset information by segment is not prepared on the grounds that management does not use asset information of each segment for the purpose of asset allocation or performance evaluation.

Gross profits (excluding the amounts of credit costs of trust accounts) relating to transactions between segments is based on the current market price.

3.	Gross profits (excluding the amounts of credit costs of trust accounts) and Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) by reportable segment

For the six months ended September 30, 2015


	*(Millions of yen)*
	MHFG (Consolidated)
	Retail & Business Banking Company		Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others (Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts)		332,100		209,500		204,800		332,300		26,600		26,557		1,131,857
General and administrative expenses (excluding Non-Recurring Losses)		331,100		91,300		111,600		88,500		15,000		34,768		672,268
Others		—		—		—		—		—		(12,863	)	(12,863	)
Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)		1,000		118,200		93,200		243,800		11,600		(21,074	)	446,725


(Notes)	1.	Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general corporations.
	2.	“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.
	3.	Following the introduction of an in-house company system based on customer segments in April, 2016, reclassification was made on the above table to reflect the relevant change.

- 46 -

For the six months ended September 30, 2016


	*(Millions of yen)*
	MHFG (Consolidated)
	Retail & Business Banking Company			Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others (Note 2)
Gross profits: (excluding the amounts of credit costs of trust accounts)		310,800			223,200		192,700		334,300		24,500		4,177		1,089,677
General and administrative expenses (excluding Non-Recurring Losses)		338,800			92,900		115,500		94,600		15,000		23,673		680,473
Others		—			—		—		—		—		(5,958	)	(5,958	)
Net business profits or losses (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)		(28,000	)		130,300		77,200		239,700		9,500		(25,454	)	403,245


(Notes)	1.	Gross profits (excluding the amounts of credit costs of trust accounts) is reported instead of sales reported by general corporations.
	2.	“Others” includes items which should be eliminated as internal transactions between each segment on a consolidated basis.

- 47 -

4.	The difference between the total amounts of reportable segments and the recorded amounts in the Interim Consolidated Statement of Income, and the contents of the difference (Matters relating to adjustment to difference)

The above amount of Gross profits (excluding the amounts of credit costs of trust accounts) and that of Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) derived from internal management reporting by reportable segment are different from the amounts recorded in the Interim Consolidated Statement of Income.

The contents of the difference for the period are as follows:

(1)

The total of Gross profits (excluding the amounts of credit costs of trust accounts) of Segment Information and Ordinary Profits


	*(Millions of yen)*
	For the six months ended September 30, 2015			For the six months ended September 30, 2016
Gross Profits (excluding the amounts of credit costs of trust accounts)		1,131,857			1,089,677
Other Ordinary Income		188,664			122,198
General and Administrative Expenses		(673,456	)		(704,164	)
Other Ordinary Expenses		(72,475	)		(86,766	)

Ordinary Profits		574,590			420,944

(2)

The total of Net business profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans) of Segment Information and Income before Income Taxes Recorded in Interim Consolidated Statement of Income


	*(Millions of yen)*
	For the six months ended September 30, 2015			For the six months ended September 30, 2016
Net Business Profits (excluding the amounts of credit costs of trust accounts, before reversal of (provision for) general reserve for losses on loans)		446,725			403,245
Credit Costs for Trust Accounts		—			—
General and Administrative Expenses (non-recurring losses)		(1,187	)		(23,691	)
Expenses related to Portfolio Problems (including reversal of (provision for) general reserve for losses on loans)		(14,050	)		(10,313	)
Gains on Reversal of Reserves for Possible Losses on Loans, and others		17,998			23,843
Net Gains (Losses) related to Stocks		114,850			60,862
Net Extraordinary Gains (Losses)		17,340			(1,819	)
Others		10,252			(33,001	)

Income before Income Taxes recorded in Interim Consolidated Statement of Income		591,930			419,125

- 48 -

Related Information

For the six months ended September 30, 2015

1.	Information about Geographic Areas

(1)	Ordinary Income


*(Millions of yen)*
Japan	Americas		Europe		Asia/Oceania excluding Japan		Total
1,223,897		164,249		77,539		172,011		1,637,697


(Notes)	1.	Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and relation of business operations. The above table shows Ordinary Income instead of sales of non-financial companies.
	2.	Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas branches, Americas includes Ordinary Income of consolidated subsidiaries and branches in Canada, the United States of America and others, Europe includes Ordinary Income of consolidated subsidiaries and branches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated subsidiaries and branches in Hong Kong, the Republic of Singapore and others.

(2)	Tangible Fixed Assets

Information on tangible fixed assets by geographical areas as of September 30, 2015 is not disclosed since tangible fixed assets in Japan accounted for more than 90% of tangible fixed assets.

2.	Information about Major Customers

Information about major customers is not disclosed since there are no outside customers that accounted for more than 10% of Ordinary Income of the Company.

For the six months ended September 30, 2016

1.	Information about Geographic Areas

(1)	Ordinary Income


*(Millions of yen)*
Japan	Americas		Europe		Asia/Oceania excluding Japan		Total
1,110,038		194,178		83,454		175,591		1,563,262


(Notes)	1.	Geographic analyses are presented based on geographic contiguity, similarities in economic activities, and relation of business operations. The above table shows Ordinary Income instead of sales of non-financial companies.
	2.	Japan includes Ordinary Income of MHFG and domestic consolidated subsidiaries excluding overseas branches, Americas includes Ordinary Income of consolidated subsidiaries and branches in Canada, the United States of America and others, Europe includes Ordinary Income of consolidated subsidiaries and branches in the United Kingdom and others and Asia/Oceania includes Ordinary Income of consolidated subsidiaries and branches in Hong Kong, the Republic of Singapore and others.

(2)	Tangible Fixed Assets

Information on tangible fixed assets by geographical areas as of September 30, 2016 is not disclosed since tangible fixed assets in Japan accounted for more than 90% of tangible fixed assets.

2.	Information about Major Customers

Information about major customers is not disclosed since there are no outside customers that accounted for more than 10% of Ordinary Income of the Company.

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Information about Impairment Loss on Tangible Fixed Assets by Reportable Segment

For the six months ended September 30, 2015


	*(Millions of yen)*
	MHFG (Consolidated)
	Retail & Business Banking Company		Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others
Impairment Loss		—		—		—		—		—		390	390

For the six months ended September 30, 2016


	*(Millions of yen)*
	MHFG (Consolidated)
	Retail & Business Banking Company		Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others
Impairment Loss		—		—		—		—		—		1,474	1,474

Information about Amortization and Unamortized Balance of Goodwill by Reportable Segment

For the six months ended September 30, 2015


	*(Millions of yen)*
	MHFG (Consolidated)
	Retail & Business Banking Company		Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others
Amortization of Goodwill		—		—		—		—		—		364	364
Unamortized Balance of Goodwill		—		—		—		—		—		9,145	9,145

For the six months ended September 30, 2016


	*(Millions of yen)*
	MHFG (Consolidated)
	Retail & Business Banking Company		Corporate & Institutional Company		Global Corporate Company		Global Markets Company		Asset Management Company		Others
Amortization of Goodwill		—		—		—		—		—		713	713
Unamortized Balance of Goodwill		—		—		—		—		—		22,696	22,696

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Information about Gain on Negative Goodwill Incurred by Reportable Segment

For the six months ended September 30, 2015

There is no applicable information.

For the six months ended September 30, 2016

There is no applicable information.

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Per Share Information

1.	Net Assets per Share of Common Stock and its basis used for calculation


		As of March 31, 2016		As of September 30, 2016
Net Assets per Share of Common Stock	Yen		322.46		325.41
(The basis used for calculating Net Assets per Share of Common Stock)
Total Net Assets	Millions of yen		9,353,244		8,970,260
Deductions from Total Net Assets	Millions of yen		1,285,343		716,326
Paid-in Amount of Preferred Stock	Millions of yen		98,923		—
Cash Dividends on Preferred Stock	Millions of yen		989		—
Stock Acquisition Rights	Millions of yen		2,762		1,754
Non-Controlling Interests	Millions of yen		1,182,668		714,572
Net Assets related to Common Stock at the end of the period/the fiscal year	Millions of yen		8,067,900		8,253,934
Outstanding Shares of Common Stock, based on which Total Net Assets per Share of Common Stock was calculated, at the end of the period/the fiscal year	Thousands of shares		25,019,596		25,364,412

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2.	Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock are based on the following information:


		For the six months ended September 30, 2015		For the six months ended September 30, 2016
(1) Net Income per Share of Common Stock	Yen		15.48		14.21
(The basis used for calculating Net Income per Share of Common Stock)
Profit Attributable to Owners of Parent	Millions of yen		384,198		358,183
Amount not attributable to Common Stock	Millions of yen		1,440		—
Cash Dividends on Preferred Stock	Millions of yen		1,440		—
Profit Attributable to Owners of Parent related to Common Stock	Millions of yen		382,757		358,183
Average Outstanding Shares of Common Stock (during the period)	Thousands of shares		24,718,566		25,204,800

(2) Diluted Net Income per Share of Common Stock	Yen		15.13		14.11
(The basis used for calculating Diluted Net Income per Share of Common Stock)
Adjustment to Profit Attributable to Owners of Parent	Millions of yen		1,440		—
Cash Dividends on Preferred Stock	Millions of yen		1,440		—
Increased Number of Shares of Common Stock	Thousands of shares		667,706		177,530
Preferred Stock	Thousands of shares		649,240		165,533
Stock Acquisition Rights	Thousands of shares		18,466		11,997
Description of dilutive securities which were not included in the calculation of Diluted Net Income per Share of Common Stock as they have no dilutive effects			—		—

(Note)

In the calculation of Net Assets per share, MHFG shares outstanding in BBT trust account that were recognized as Treasury Stock in Shareholders’ Equity are included in Treasury Stock shares deducted from the total number of issued shares at the end of the period. The number of such Treasury Stock shares deducted at the end of the period is 9,000 thousand.

In the calculation of Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock, such Treasury Stock shares are included in Treasury Stock shares deducted in the calculation of the Average Outstanding Shares of Common Stock during the period. The average number of such Treasury Stock shares deducted during the period is 3,016 thousand.

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Subsequent Events

Signing of integration agreement among asset management companies

DIAM Co., Ltd. (“DIAM”), Mizuho Trust & Banking Co., Ltd. (“MHTB”), Mizuho Asset Management Co., Ltd. (“MHAM”) and Shinko Asset Management Co., Ltd. (“Shinko Asset Management”) (collectively, the “Integrating Companies”) entered into an integration agreement, after obtaining approval by resolutions adopted by their respective boards of directors on July 13, 2016. The integration became effective on October 1, 2016.

1.	Effective date of the integration

October 1, 2016

2.	Method of the integration

The integration was implemented through the following steps: (i) a merger between MHAM as surviving company and Shinko Asset Management as absorbed company; (ii) a company split between MHTB and MHAM (after the merger in (i) above) as successor company whereby rights and obligations attributed to Asset Management Division of MHTB was transferred to MHAM; and (iii) a merger between DIAM as surviving company and MHAM as absorbed company.

3.	Company name

Asset Management One Co., Ltd. (“New Company”)

4.	Shareholding ratio based on economic interests and voting rights to the New Company


Shareholding ratio based on economic interests		70%

Shareholding ratio based on voting rights		51%

5.	Main purpose of the integration

Based on the strong commitment of MHFG and Dai-ichi Life Holdings, Inc. (“Dai-ichi Life”) to strengthen and develop their respective asset management businesses, the New Company will aim to achieve significant development as a global asset management company, providing its customers with solutions of the highest standards by combining the asset management-related knowledge and experience accumulated and developed by each Integrating Company over many years, and taking full advantage of collaboration with both the MHFG Group and the Dai-ichi Life group. In order to establish a highly independent and transparent management framework, the New Company’s independent outside directors (Audit & Supervisory Committee members) will include professionals with a high level of expertise in the areas of asset management, legal affairs and accounting. In addition, the New Company will fulfill its fiduciary duties as a professional asset management firm and provide services and products that truly benefit its customers. Through these efforts, the New Company aims to become the most trusted and valued asset management company—meeting the needs of pension funds and corporate customers in terms of diversification and sophistication of their investments, as well as encouraging a shift “from saving to investment” in Japan through providing individual customers with high-quality products and services.

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II. Others

There is no applicable information.

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