1. Revision of Consolidated Earnings Estimates for the First Half of Fiscal 2004
Mizuho Financial Group, Inc. (MHFG) hereby revises its consolidated earnings estimates for the first half of Fiscal 2004. The revision is primarily due to the significant improvement in estimated Credit Related Costs relative to original estimates and the recording of Net Gains Related to Stocks and Other Securities.
Consolidated Earnings Estimates for the First Half of Fiscal 2004
(Billions of JPY, %)
| Ordinary Income | Ordinary Profits | Net Income | ||
| Previous Estimates (May 2004) |
1,400.0 | 320.0 | 140.0 | |
| Revised Estimates | 1,470.0 | 300.0 | 230.0 | |
| Change | 70.0 | (20.0) | 90.0 | |
| Rate of Change | 5.0% | (6.3%) | 64.3% | |
2. Other
MHFG's previously announced earnings estimates for the full year of Fiscal 2004 will be revised if necessary, at the announcement of its financial results for the first half of Fiscal 2004 scheduled in late November 2004.
(Reference)
Summary of Non-Consolidated Earnings Estimates of MHFG's Banking Subsidiaries (First Half of Fiscal 2004)
(Billions of JPY)
| First Half of Fiscal 2004 (Preliminary) | ||||
| Aggregated figures of the three banks*1 | Mizuho Bank | Mizuho Corporate Bank | Mizuho Trusut & Banking | |
| Net Business Profits | 368.0 | 165.0 | 174.0 | 29.0 |
| Net Gains (Losses) Related to Stocks & Other Securities | 62.0 | 7.0 | 51.0 | 4.0 |
| Credit Related Costs*2 | 33.0 | (17.0) | 59.0 | (9.0) |
| Ordinary Profits | 199.0 | 74.0 | 106.0 | 19.0 |
| Net Income | 190.0 | 25.0 | 155.0 | 10.0 |
| Consolidated Net Income | 230.0 | |||
Summary of Non-Performing Loans (Disclosed Claims under the Financial Reconstruction Law)
(Billions of JPY)
| First Half of Fiscal 2004 (Preliminary) | ||||
| Aggregated figures of the three banks*1 | Mizuho Bank | Mizuho Corporate Bank | Mizuho Trusut & Banking | |
| Balance of Non-Performing Loans | 2,225.0 | 1,122.0 | 951.0 | 152.0 |
- Figures of each banking subsidiary include those of its financial subsidiaries for corporate revitalization on a non-consolidated basis.
- Figures for Credit Related Costs are shown in negative when newly incurred and positive when reversed.
- Net Business Profits are expected to be approximately JPY 368.0 billion, as a result of a decline in Profits related to markets. Profits from customer groups are equal to or greater than those of the same period of the previous fiscal year.
- Net Gains Related to Stocks and Other Securities are expected to be approximately JPY 62.0 billion, through sales of stocks.
- Credit Related Costs are to be reversed by approximately JPY 33.0 billion, mainly due to a steady progress in revitalization & business recovery of corporate customers.
- As a result, Consolidated Net Income for the first half is expected to be approximately JPY 230.0 billion, which is higher than previously estimated, and Consolidated BIS capital ratio is expected to be a sufficient level of upper 11% range, even after MHFG repurchased and cancelled preferred shares of approximately JPY 232.7 billion public funds.
- Consolidated Ordinary Profits are expected to be lower than previously estimated. This is because Reversal of Reserves for Possible Losses on Loans is posted as Extraordinary Income, which is an accounting adjustment. By excluding this factor, Consolidated Ordinary Profits are expected to exceed the previous estimate.
- Balance of Non-Performing Loans (NPLs) is expected to decrease to approximately JPY 2,225.0 billion as of September 30, 2004, and the NPL ratio is expected to be around 3.1%, which is lower than half that of September 30, 2002. Mizuho, therefore, expects to have achieved the goal six months earlier to reduce NPL ratio by half.