Message from the Group CEO

In fiscal 2024, geopolitical tensions and political shifts across various countries continued to cause instability in the economic environment. On the other hand, Japan’s economy finally escaped its many years of deflation, and the end of the Bank of Japan's negative interest rate policy opened the way for Japan to begin returning to an era defined by positive interest rates. All of these have led us to a significant turning point.

Amidst such developments, our financial results for the first half of fiscal 2024 demonstrated steady performance in customer divisions in and outside Japan, and with additional contributions from revenue growth in markets divisions, which successfully captured market changes, we were able to post JPY 566.1 billion in Profit Attributable to Owners of Parent for a progress rate of 75% towards our fiscal 2024 target. Having completed the first half of the three-year medium-term business plan we commenced in fiscal 2023, we are looking towards the possibility of achieving the plan’s financial targets, originally a three-year endeavor, one year ahead of schedule. By advancing growth in priority areas, shifting from low-profit to high-profit areas, and maintaining disciplined cost management, we have not only been attaining steady profit growth but also laying the groundwork for sustainable growth in the future. In light of our solid progress, we have upwardly revised our fiscal 2024 Profit Attributable to Owners of Parent outlook to JPY 820.0 billion (up JPY 70.0 billion from the initial fiscal year outlook). In tandem with the upward revision, we have raised our interim cash dividend per share for fiscal 2024 by JPY 7.50, to JPY 65.00, in accordance with our shareholder return policy of taking a dividend payout ratio of 40% into consideration as a guide. We estimate the fiscal year-end cash dividend will be JPY 65.00, an increase of JPY 7.50 from the previously announced estimate, making the annual cash dividend JPY 130, an increase of JPY 15 from the previously announced estimate and of JPY 25 from fiscal 2023. We are also undertaking our first share buyback in 16 years (up to a maximum of JPY 100.0 billion), the last one having been in July 2008.

Trend in earnings (JPY billion)

* Consolidated Gross Profits (including Net Gains (Losses) related to ETFs and Others) - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments.

Under our Purpose of "Proactively innovate together with our clients for a prosperous and sustainable future", we have been creating value for our clients, society, and the economy and further bolstering our unique competitive edge.

In Japan, we are transitioning our retail presence to small, cutting-edge branches that allow for casual consultations; improving the user interface and user experience of our Mizuho Direct app and other digital services; putting in place next-generation AI-powered contact centers; and otherwise pursuing greater convenience for customers across our in-person, remote, and digital channels. In November 2024, we announced a strategic capital and business alliance with Rakuten Card Co., Ltd. that will be part of creating a new business model in the payments space. For asset and wealth management, we have been elevating our approach to customers' needs, most prominently with the rollout of the new Nippon Individual Savings Accounts, and have strengthened our alliance with Rakuten Securities, Inc. We have also been expanding and reinforcing our investment product lineup through initiatives such as our strategic partnership with US-based asset manager Golub Capital LLC.

To enhance the competitiveness of Japanese companies, we have been offering support for our clients’ business challenges and corporate actions, responding to the reforms in the Tokyo Stock Exchange and the heightened awareness towards growth. Alongside this, we have been providing risk capital to startups and assisting business owners with their succession needs. As for sustainability and innovation, we have been increasing our transition equity investments and value co-creation investments in new technology and business that will resolve societal issues. Outside Japan, we are also moving forward cross-border M&A deals, leveraging the greater global coordination that came out of our acquisition of M&A advisory firm Greenhill in December 2023.

We will continue to transform ourselves and innovate together with our clients and society. By doing so, we will put our Purpose into action and help society and the communities where we do business benefit from the enormous changes happening in the world.

January 2025

Masahiro Kihara
Member of the Board of Directors
President & Group CEO
Mizuho Financial Group