{"url_path":"/sec/mfg/10-k/2026/item-5","section_key":"item-5","section_title":"Item 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-06-26","source_url":"https://www.sec.gov/Archives/edgar/data/1335730/0001193125-26-283791-index.html","accession_number":"0001193125-26-283791","cik":"0001335730","ticker":"MFG","issuer_name":"MIZUHO FINANCIAL GROUP INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1335730/0001193125-26-283791-index.html","primary_entity_key":"0001335730","primary_entity_name":"MIZUHO FINANCIAL GROUP INC"},"word_count":23671,"has_tables":true,"body_markdown":"ITEM 5.\n\nOPERATING AND FINANCIAL REVIEW AND PROSPECTS\n\nThe following discussion and analysis should be read in conjunction with “Item 3.A. Key Information—Selected Financial Data,” “Selected Statistical Data” and our consolidated financial statements, including the notes thereto, included elsewhere in this annual report.\n\nTable of Contents for Item 5.\n\n \n\n \n  \nPage\n \n\n[Overview](#apn119090_1)\n\n  \n \n68\n \n\n[Critical Accounting Estimates](#apn119090_2)\n\n  \n \n76\n \n\n[Operating Results](#apn119090_3)\n\n  \n \n79\n \n\n[Business Segments Analysis](#apn119090_4)\n\n  \n \n85\n \n\n[Geographical Segment Analysis](#apn119090_5)\n\n  \n \n89\n \n\n[Financial Condition](#apn119090_6)\n\n  \n \n91\n \n\n[Liquidity](#apn119090_7)\n\n  \n \n102\n \n\n[Capital Adequacy](#apn119090_8)\n\n  \n \n106\n \n\n[Recent Accounting Pronouncements](#apn119090_9)\n\n  \n \n109\n \n\n[Reconciliation with Japanese GAAP](#apn119090_10)\n\n  \n \n109\n \n\nOverview\n\nThe Mizuho Group\n\nWe provide a broad range of financial services in domestic and overseas markets. Our principal activities and subsidiaries are the following:\n\n \n\n \n•\n \n\nMizuho Bank provides a wide range of financial products and services mainly in relation to deposits, lending and exchange settlement to individuals, small and medium-sized enterprises (“SMEs”), large corporations, financial institutions, public sector entities and foreign corporations, including foreign subsidiaries of Japanese corporations;\n\n \n\n \n•\n \n\nMizuho Trust & Banking provides products and services related to trust, real estate, securitization and structured finance, pension and asset management and stock transfer agency; and\n\n \n\n \n•\n \n\nMizuho Securities provides full-line securities services to individuals, corporations, financial institutions and public sector entities.    \n\nWe also provide products and services such as those related to trust and custody, asset management, private banking, research services, information technology-related services and advisory services for financial institutions through various subsidiaries and affiliates.\n\nFor a further discussion of our business and group organization, see “Item 4.B. Information on the Company—Business Overview.”\n\nPrincipal Sources of Income and Expenses\n\nNet Interest Income\n\nNet interest income arises principally from the lending and deposit-taking and securities investment activities of our banking subsidiaries and is a function of:\n\n \n\n \n•\n \n\nthe amount of interest-earning assets and interest-bearing liabilities;\n\n \n\n68\n\n \n•\n \n\nthe average interest rate spread (the difference between the average yield of interest earned on interest-earning assets and the average rate of interest paid on interest-bearing liabilities); and\n\n \n\n \n•\n \n\nthe general level of interest rates.\n\nPrincipal items constituting interest-earning assets include loans, investments, trading account assets, receivables under resale agreements and receivables under securities borrowing transactions. Principal items constituting interest-bearing liabilities include deposits, trading account liabilities, short-term borrowings (such as payables under repurchase agreements and payables under securities lending transactions) and long-term debt.\n\nProvision (Credit) for Credit Losses\n\nProvision (credit) for credit losses is charged against (or credited to) income mainly to keep the allowance for credit losses on loans at a level that is appropriate to estimate the net amount expected to be collected from the financial asset, inclusive of loans. For a description of the approach and methodology used to establish the allowance for credit losses on loans, see “—Financial Condition—Allowance for Credit Losses on Loans.”\n\nNoninterest Income\n\nNoninterest income consists mainly of fee and commission, investment gains (losses)—net, trading account gains (losses)—net and foreign exchange gains (losses)—net.\n\nFee and commission include the following:\n\n \n\n \n•\n \n\nfee and commission from securities-related business, including brokerage fees and commissions related to the execution of customer transactions and sales commissions for stocks, bonds and investment trusts and asset-based revenue, which mainly include fees received from investment trust management companies in return for administration services, such as record keeping services, for investment trusts;\n\n \n\n \n•\n \n\nfee and commission from deposits, including fees related to deposits such as account transfer charges;\n\n \n\n \n•\n \n\nfee and commission from lending business, including fees related to the arrangement of syndicated loans and other financing transactions such as arrangement fees related to management buy-out transactions;\n\n \n\n \n•\n \n\nfee and commission from remittance business, including service charges for domestic and international funds transfers and collections;\n\n \n\n \n•\n \n\nfee and commission from asset management business, including investment trust management fees and investment advisory fees for investment trusts;\n\n \n\n \n•\n \n\nfee and commission from trust-related business, including trust fees earned primarily through fiduciary asset management and administration services for corporate pension plans and investment funds and other trust-related fees such as brokerage commissions of real estate property, sales commissions for beneficial interests in real estate trust, consulting fees related to real estate property and charges for stock transfer agent services;\n\n \n\n \n•\n \n\nfee and commission from agency business, including administration service fees related to our agency business such as Japan’s principal public lottery program and revenue from standing proxy services related to stocks and others; and\n\n \n\n \n•\n \n\nfees for other customer services, including various revenue such as guarantee fees, sales commissions for life insurance, service charges for electronic banking, financial advisory fees and service charges for software development.    \n\nInvestment gains (losses)—net primarily include net gains and losses on sales of marketable securities, such as equity and bond investments. In addition, impairment losses are recognized when management concludes that declines in the fair value of investments are other-than-temporary.\n\n \n\n69\n\nTrading account gains (losses)—net include gains and losses from transactions undertaken for trading purposes, including both market making for customers and proprietary trading, or transactions through which we seek to capture gains arising from short-term changes in market value. Trading account gains (losses)—net also include gains and losses related to changes in the fair value of derivatives and other financial instruments not eligible for hedge accounting under U.S. GAAP that are utilized to offset mainly interest rate risk related to our various assets and liabilities, as well as gains and losses related to changes in the fair value of foreign currency-denominated debt securities reported as trading securities.\n\nForeign exchange gains (losses)—net mainly include translation gains and losses related to our foreign currency-denominated assets and liabilities and gains and losses related to foreign exchange trading activities, including market making for customers and proprietary trading.\n\nNoninterest Expenses\n\nNoninterest expenses primarily include salaries and employee benefits, general and administrative expenses, occupancy expenses and fee and commission expenses.\n\nSalaries and employee benefits include expenses incurred for salaries, bonuses and compensation to directors and employees. They also include expenses related to pension and other employee retirement benefit plans.\n\nThe principal items included in general and administrative expenses are amortization of software, tax expenses such as consumption tax and property tax that are not income taxes and other expenses, including premiums for deposit insurance.\n\nThe principal items included in occupancy expenses are expenses related to premises and equipment, including depreciation, losses on disposal and lease expenses.\n\nThe principal items included in fee and commission expenses are fee and commission expenses for remittance services, which mainly include commission expenses paid in connection with remittance transactions and the securities-related businesses, which mainly include transactions costs such as brokerage fees paid.\n\nOperating Environment\n\nWe operate principally in Japan, and our performance has generally tracked the macro economy of Japan.\n\nAs to the recent economic environment, although there have been concerns regarding the impact of increased U.S. tariffs on the global economy, the global economy has remained resilient. This resilience has been mainly attributable to corporations absorbing the tariff costs, which limited the extent to which these costs were passed on to consumers, as well as robust AI-related demand. Meanwhile, the recent armed conflicts in the Middle East contributed to increases in crude oil prices and volatility in the financial markets.\n\nIn Japan, the economy has been experiencing a moderate recovery, supported by resilient domestic demand, including private consumption and capital expenditures. The momentum for wage increases has been sustained on the back of high corporate profits. Based on these circumstances, the Bank of Japan (“BOJ”) decided to raise its policy interest rate in December 2025. It is expected that the BOJ will continue to determine its monetary policy by assessing the impact of developments relating to the armed conflicts in the Middle East on economic activity and inflation going forward.\n\nIn the United States, the economy has been continuing to grow steadily, driven by increased capital expenditures associated with expanding AI-related demand, as well as by consumption by high-income earners, which has been supported by higher stock prices. On the other hand, due to the impact of monetary tightening,\n\n \n\n70\n\nthe labor market has slowed down. Although inflation has been moderating, it has remained above the Federal Reserve Board (“FRB”)’s 2% inflation target. In addition, since late February 2026, concerns have increased regarding a reacceleration of inflation and a deterioration in economic conditions associated with the armed conflicts in the Middle East, and uncertainty regarding the broader economic impact remains. Based on these circumstances, the FRB decided at the April 2026 meeting of the Federal Open Market Committee (“FOMC”) to maintain its policy interest rate for a third consecutive meeting. Amid persistently high levels of uncertainty regarding future prospects, it is expected that the FRB will determine its future policies carefully while keeping an eye on inflation and economic conditions.\n\nIn Europe, the economy grew moderately as both domestic and external demand remained resilient. Inflation has decelerated, reflecting a slowdown in wage growth, and has remained near the European Central Bank (“ECB”)’s inflation target of approximately 2%. Based on these circumstances, the ECB maintained its policy rates following a rate cut at the meeting held in June 2025. As interest rates are already considered to be at a neutral level, in view of rising inflationary pressures stemming from the armed conflict in the Middle East, it is expected that the ECB will determine its future policies by carefully assessing the balance of risks to economic activity and prices.\n\nIn Asia, the economy continued to grow at a steady pace. In China, although the correction in the real estate market has been prolonged and exports to the United States have declined due to tariffs, the economy has remained resilient as a result of government measures to stimulate domestic demand and the expansion of exports to third countries.\n\nIn emerging countries, front-loaded exports ahead of the implementation of tariffs and robust conditions in the semiconductor market, driven by growing AI-related demand, supported economic activity. Against this backdrop, central banks in these countries have been reducing policy interest rates amid moderating inflation; however, developments relating to the armed conflict in the Middle East have increased depreciation pressures on their currencies and inflationary pressures, thereby heightening uncertainty regarding the future direction of monetary policy.\n\nAs for the future outlook of the global economy, moderate growth is anticipated to continue, supported by resilient AI-related demand as well as fiscal stimulus measures implemented by governments in various countries. However, the armed conflicts in the Middle East and the associated rise in crude oil prices have resulted in volatility in financial markets and may also adversely affect the global economy.\n\nKey indicators of Japanese economic conditions in recent periods include the following:\n\n \n\n \n•\n \n\nJapan’s real gross domestic product on a year-on-year basis was unchanged in the fiscal year ended March 31, 2024, and increased by 0.5% and 0.8% in the fiscal years ended March 31, 2025, and 2026, respectively. During the fiscal year ended March 31, 2026, the year-on-year growth rates were 1.9%, 0.5%, 0.3%, and 0.4%, for the quarters ended June 30, September 30, December 31 and March 31, respectively. Japan’s core nationwide consumer price index increased by 2.8%, 2.7% and 2.7% in the fiscal years ended March 31, 2024, 2025 and 2026, respectively.\n\n \n\n \n•\n \n\nIn September 2016, the BOJ introduced “quantitative and qualitative monetary easing with yield curve control” by strengthening its two previous policy frameworks, namely “quantitative and qualitative monetary easing (“QQE”)” and “QQE with a negative interest rate.” These policies aimed to drive the observed consumer price index to a level exceeding the price stability target of 2% and to maintain the index above that target in a stable manner. Under this policy framework, the BOJ set a guideline for market operations: regarding short-term interest rates, the BOJ would apply an interest rate of negative 0.1% to certain excess balances in current accounts held by financial institutions at the BOJ; and regarding long-term interest rates, it would purchase Japanese government bonds to control long-term interest rates so that the yield of 10-year Japanese government bonds would remain at around 0%.\n\n \n\n71\n\nIn March 2024, the BOJ expressed the view that its policy frameworks of “quantitative and qualitative monetary easing with yield curve control” and the negative interest rate policy since 2016 have fulfilled their roles because the BOJ assessed that a virtuous cycle between wages and prices had emerged, and judged that the price stability target of 2% had come in sight and would be achieved in a sustainable and stable manner towards the end of the projection period of the January 2024 Outlook Report (Outlook for Economic Activity and Prices). As the guideline for market operations, the BOJ decided to (i) end the negative interest rate policy and encourage the uncollateralized overnight call rate to remain at around 0 to 0.1%, and (ii) eliminate the yield curve control and abolish the yield target level on 10-year Japanese government bonds.\n\nIn July 2024, the BOJ decided (i) to encourage the uncollateralized overnight call rate to remain at around 0.25%, and (ii) on a plan to reduce the amount of its monthly outright purchases of Japanese government bonds by about 400 billion yen each calendar quarter in principle, down to about 3 trillion yen during a period from January to March 2026.\n\nIn January 2025, the BOJ decided to encourage the uncollateralized overnight call rate to remain at around 0.5%. In accordance with the change in the guideline for money market operations, the BOJ decided to change (i) the interest rate applied to the complementary deposit facility (which is the interest rate applied to current account balances held by financial institutions at the BOJ, excluding required reserve balances), to 0.5%, and (ii) the basic loan rate applicable under the complementary lending facility, to 0.75%.\n\nIn June 2025, the BOJ decided (i) to encourage the uncollateralized overnight call rate to remain at around 0.5%, and (ii) on a plan to reduce the amount of its monthly outright purchases of Japanese government bonds by about 400 billion yen each calendar quarter until January-March 2026, and by about 200 billion yen each calendar quarter from April-June 2026, down to about 2 trillion yen during a period from January to March 2027.\n\nIn September 2025, the BOJ decided to (i) encourage the uncollateralized overnight call rate to remain at around 0.5%, and (ii) sell exchange-traded funds (“ETFs”) and Japan real estate investment trusts (“J-REITs”) to the market in accordance with the fundamental principles for their disposal, which include the principle to avoid inducing destabilizing effects on the financial markets. The sales amount of ETFs and J-REITs will account for about 0.05% of the total market trading value.\n\nIn December 2025, the BOJ decided to encourage the uncollateralized overnight call rate to remain at around 0.75%. In accordance with the change in the guideline for money market operations, the BOJ decided to change (i) the interest rate applied to the complementary deposit facility (which is the interest rate applied to current account balances held by financial institutions at the BOJ, excluding required reserve balances) to 0.75%, and (ii) the basic loan rate applicable under the complementary lending facility to 1.0%.\n\n \n\n \n•\n \n\nThe yield on newly issued 10-year Japanese government bonds, which is a key long-term interest rate indicator, was 0.727%, 1.490% and 2.354% as of March 29, 2024, March 31, 2025, and March 31, 2026, respectively. The yield fluctuated between 2.388% and 1.117% during the fiscal year ended March 31, 2026. Thereafter, the yield increased to 2.667% as of May 29, 2026.\n\n \n\n \n•\n \n\nAccording to Teikoku Databank, a Japanese research institution, there were 8,881 corporate bankruptcies in the fiscal year ended March 31, 2024, involving approximately ¥2.4 trillion in total liabilities, 10,070 corporate bankruptcies in the fiscal year ended March 31, 2025, involving approximately ¥2.3 trillion in total liabilities, and 10,425 corporate bankruptcies in the fiscal year ended March 31, 2026, involving approximately ¥1.6 trillion in total liabilities. The number of corporate bankruptcies in the fiscal year ended March 31, 2026 increased for the fourth consecutive year since the fiscal year ended March 31, 2023 and exceeded 10,000 corporate bankruptcies for the second consecutive year, while the associated total liabilities have been declining.\n\n \n\n \n•\n \n\nThe Nikkei Stock Average, which is an average of the price of 225 stocks listed on the Tokyo Stock Exchange, increased by 44.0% to ¥40,369.44 as of March 29, 2024, followed by an 11.8% decrease to\n\n \n\n72\n\n \n\n¥35,617.56 as of March 31, 2025 and a 43.4% increase to ¥51,063.72 as of March 31, 2026, each compared to the last trading day of the previous fiscal year. Thereafter, the Nikkei Stock Average increased to ¥66,329.50 as of May 29, 2026.\n\n \n\n \n•\n \n\nThe yen to U.S. dollar spot exchange rate, according to the BOJ, was ¥151.34 to $1.00 as of March 29, 2024, ¥149.14 to $1.00 as of March 31, 2025 and ¥159.63 to $1.00 as of March 31, 2026. The rate fluctuated between ¥140.29 and ¥159.95 to $1.00 during the fiscal year ended March 31, 2026. Thereafter, the yen remained relatively weak at ¥159.27 to $1.00 as of May 29, 2026.\n\n \n\n \n•\n \n\nAccording to the Ministry of Land, Infrastructure, Transport and Tourism of Japan, housing starts in Japan decreased by 7.0% in the fiscal year ended March 31, 2024, increased by 2.0% in the fiscal year ended March 31, 2025, and decreased by 12.9% in the fiscal year ended March 31, 2026.\n\n \n\n \n•\n \n\nAccording to the Ministry of Land, Infrastructure, Transport and Tourism of Japan, the average published housing land prices in Japan increased by 2.0%, 2.1% and 2.1% in calendar years 2023, 2024 and 2025, respectively.\n\nCapital Improvements \n\nAll yen figures and percentages in this subsection are truncated. \n\nWe have been pursuing the optimal balance between capital adequacy, growth investment and enhancement of shareholder return.\n\nCapital Adequacy\n\nIn the fiscal year ended March 31, 2026, we maintained a sufficient capital base compared to regulatory minimum requirements, mainly as a result of earning ¥1,248.6 billion of profit attributable to owners of parent (under Japanese GAAP).\n\nOur Common Equity Tier 1 capital ratio under Basel III was 13.23% and 13.16% as of March 31, 2025 and 2026, respectively.\n\nWith respect to redemptions of previously issued securities, we redeemed various securities that are eligible regulatory capital instruments under Basel III upon their respective initial optional redemption dates or their respective maturity dates. As for Additional Tier 1 capital, in December 2025 and June 2026, we redeemed ¥163.0 billion and ¥87.0 billion of unsecured perpetual subordinated bonds with an optional redemption clause and a write-down clause issued by Mizuho Financial Group in July 2020 and December 2020, respectively. As for Tier 2 capital, in June 2025, October 2025 and June 2026, we redeemed ¥20.0 billion, $0.75 billion and ¥155.0 billion of unsecured fixed-term subordinated bonds with a write-down clause issued by Mizuho Financial Group in June 2015, October 2015 and June 2016, respectively. In June 2025 and October 2025, also as for Tier 2 capital, we redeemed ¥40.0 billion and ¥74.0 billion of unsecured fixed-term subordinated bonds with an optional redemption clause and a write-down clause issued by Mizuho Financial Group in June 2020 and October 2020, respectively.\n\nMeanwhile, as for the new issuance of Additional Tier 1 capital, in April 2025, we issued ¥111.5 billion and ¥52.5 billion of unsecured perpetual subordinated bonds with an optional redemption clause and a write-down clause through public offerings to wholesale investors in Japan. In July 2025, we issued ¥150.0 billion and ¥70.0 billion of unsecured perpetual subordinated bonds with an optional redemption clause and a write-down clause through public offerings to wholesale investors in Japan, and in March 2026, we also issued ¥150.0 billion and ¥40.0 billion of unsecured perpetual subordinated bonds with an optional redemption clause and a write-down clause through public offerings to wholesale investors in Japan. With respect to the new issuances of Tier 2 capital, in October 2025, we issued ¥66.0 billion of unsecured fixed-term subordinated bonds with a write-down\n\n \n\n73\n\nclause through a public offering to retail investors in Japan. In October 2025, we also issued ¥84.0 billion of unsecured fixed-term subordinated bonds with an optional redemption clause and a write-down clause through a public offering to retail investors in Japan.\n\nEnhancement of Shareholder Return\n\nAnnual cash dividends for the fiscal year ended March 31, 2026 were ¥145.0 per share of common stock (the interim cash dividend was ¥72.5 per share of common stock and the year-end cash dividend was ¥72.5 per share of common stock).\n\nOn November 14, 2025, our Board of Directors resolved to repurchase shares of our common stock and cancel all of the repurchased shares. The resolution authorized the repurchase of up to the lesser of (i) an aggregate of 60,000,000 shares of our common stock and (ii) an aggregate of shares of our common stock for an aggregate purchase price of ¥200 billion between November 17, 2025 and February 28, 2026. On February 2, 2026, our Board of Directors resolved to increase the aggregate number and purchase price for the purchased shares under its share repurchase program and extend the repurchase period. The resolution authorized the repurchase of up to the lesser of (i) an aggregate of 65,000,000 shares of our common stock and (ii) an aggregate of shares of our common stock for an aggregate purchase price of ¥300 billion between November 17, 2025 and March 31, 2026. On March 11, 2026, we completed the repurchase pursuant to the resolution, acquiring 47,016,600 shares of our common stock for ¥299,999,885,700 in aggregate on a trade basis. We cancelled all of the repurchased shares on April 22, 2026.\n\nOn May 15, 2026, our Board of Directors resolved to repurchase shares of our common stock and cancel all of the repurchased shares. The resolution authorized the repurchase of up to the lesser of (i) an aggregate of 25,000,000 shares of our common stock and (ii) an aggregate of shares of our common stock for an aggregate purchase price of ¥100 billion between May 18, 2026 and August 31, 2026. The cancellation of the repurchased shares is scheduled on September 24, 2026. Pursuant to the resolution, we have repurchased an aggregate of 2,085,100 shares for ¥14.8 billion as of May 31, 2026 on a trade basis.\n\nBased on our capital management policy of pursuing the optimum balance between capital adequacy, growth investment and enhancement of shareholder return, we maintain our shareholder return policy of keeping progressive increase of dividends per share, while executing flexible and intermittent share buybacks. In addition, we will aim to increase dividends per share by approximately ¥5.0 each fiscal year, based on and assuming the steady growth of our stable earnings base. We will decide share buybacks, based on our business results, capital adequacy, our stock price and the opportunities for growth investment, using the total payout ratio of 50% or more as a guide.\n\nBusiness Trends \n\nSee “Item 4.B. Information on the Company—Business Overview,” “Item 5. Operating and Financial Review and Prospects—Operating Results” and “Item 5. Operating and Financial Review and Prospects—Financial Condition.” \n\nOthers \n\nAcquisition of shares in Upsider Holdings\n\nOn July 28, 2025, Mizuho Bank entered into a share transfer agreement to acquire Upsider and completed the acquisition of 76.9% of Upsider’s shares for approximately ¥46 billion on September 19, 2025. By combining Upsider’s AI technology and credit expertise with Mizuho Bank’s extensive experience and information, we plan to further strengthen our initiatives with Upsider in developing new credit models based on AI-human synergy, thereby building new ecosystems and creating high-value-added services that go beyond the boundaries of conventional finance.\n\n \n\n74\n\nAcquisition of a leading independent financial advisory firm in the renewable energy and energy transition sector\n\nOn July 25, 2025, we and Mizuho Securities announced that Mizuho International plc, a consolidated subsidiary of Mizuho Securities, agreed to acquire Augusta & Co Limited, a leading European financial advisory firm serving the renewable energy and energy transition sector, and the transaction was completed on October 31, 2025. Through this strategic transaction, we will further strengthen our M&A advisory platform and energy transition credentials in the region and beyond, offering specialized renewable and transition advisory services to our clients.\n\nCompletion of Transfer of Our Global Custody Business\n\nOn October 2, 2025, we announced with State Street Corporation the completion of our transaction to transfer our global custody and related businesses outside of Japan to State Street Corporation.\n\nAcquisition of shares in Avendus Capital\n\nOn December 17, 2025, Mizuho Securities entered into an agreement with the majority shareholder of Avendus Capital Private Limited (“Avendus”), an Indian financial services firm, to acquire more than 60% of shares of Avendus for up to 47 billion Indian rupees. This transaction is expected to complete by July 2026, subject to regulatory approvals. Following the share acquisition, Avendus will become a consolidated subsidiary of Mizuho Securities. This investment will further strengthen our business foundation in India’s rapidly developing and maturing capital markets.\n\nCompletion of merger between Mizuho Bank and Mizuho Research & Technologies\n\nOn January 5, 2026, Mizuho Bank and Mizuho Research & Technologies, Ltd., a wholly-owned subsidiary of Mizuho Bank, concluded an agreement for the two companies to merge, and the transactions were completed on April 1, 2026. The merger was a merger by absorption, with Mizuho Bank as the surviving company and Mizuho Research & Technologies as the dissolving company. There was no distribution or allocation of shares, cash or other consideration in connection with the merger.\n\nTransfer of Mizuho Leasing Common Stock and Subscription for Mizuho Leasing Special Class Stock\n\nOn May 14, 2026, we decided to transfer 24,574,200 shares of common stock of Mizuho Leasing Company, Limited to Nippon Steel Kowa Real Estate Co., Ltd. and to acquire 32,000,000 shares of special-class stock to be issued in a third-party allotment capital increase to be conducted by Mizuho Leasing. Both the share transfer and third-party allotment capital increase are scheduled to be implemented, subject to certain conditions, effective July 1, 2026.\n\nStrategic Capital and Business Alliance with Rakuten Bank\n\nOn May 20, 2026, Mizuho Bank and Rakuten Bank, Ltd. (“Rakuten Bank”), a consolidated subsidiary of Rakuten Group, Inc., resolved to enter into a strategic capital and business alliance for the purpose of establishing a new credit creation model through collaboration between a megabank and a digital bank (the “Alliance”), and entered into a Capital and Business Alliance Agreement. In conjunction with the Alliance, Mizuho Bank will receive 10.52%, or 23,559,673 shares, of Rakuten Bank’s common shares as consideration for transferring its shares of Rakuten Card Co., Ltd. to Rakuten Bank, subject to certain conditions, on October 1, 2026.\n\nDisposing of Our Cross-shareholdings\n\nReflecting the potential impact on our financial position associated with the risk of stock price fluctuations, as a basic policy, unless we consider the holdings to be meaningful, we will not hold the shares of other\n\n \n\n75\n\ncompanies as cross-shareholdings. Even if we consider the holdings to be meaningful, we will also endeavor to reduce them through dialogue with the issuing companies. As part of our plan for the three fiscal years ending March 31, 2028, we continue to reduce cross-shareholdings. During the fiscal year ended March 31, 2026, we sold ¥114.6 billion of cross-shareholdings under Japanese GAAP on an acquisition cost basis.\n\nCritical Accounting Estimates\n\nNote 1 to our consolidated financial statements included elsewhere in this annual report contains a summary of our significant accounting policies. These accounting policies are essential to understanding our financial condition and results of operations. Certain of these accounting policies require management to make critical accounting estimates that involve complex and subjective judgments and the use of assumptions, some of which may be for matters that are inherently uncertain and susceptible to change. Such critical accounting estimates are based on information available to us as of the date of the financial statements and could change from period to period. Critical accounting estimates could also involve estimates for which management could have reasonably used another estimate for the relevant accounting period. The use of different estimates could have a material impact on our financial condition and results of operations. The following is a discussion of significant accounting policies for which critical accounting estimates are used.\n\nAllowance for Credit Losses\n\nASC 326, “Financial Instruments - Credit Losses” (“ASC 326”) established a single allowance framework for all financial assets measured at amortized cost and certain off-balance-sheet instrument exposures. This framework requires management’s estimate to reflect credit losses over the instrument’s remaining expected lives and consider expected future changes in macroeconomic conditions.\n\nWe maintain an appropriate allowance for credit losses to represent management’s estimate of the expected credit losses in our financial assets measured at amortized cost and certain off-balance sheet instruments. Our management evaluates the appropriateness of the allowance for credit losses semi-annually. The allowance considers expected credit losses over the remaining expected lives of the applicable instruments. The expected life of each instrument is determined by considering expected prepayments, contractual terms and cancellation features.\n\nWhen determining expected credit losses, a single forward-looking macroeconomic scenario is considered over a reasonable and supportable forecast period. This forward-looking macroeconomic scenario is in line with the scenario used for our business plan. If the scenario does not reflect a sudden change in economic conditions adequately, adjustments may be made to the scenario. After the forecast period, we revert to long-term historical loss experience with a certain graduated transition period, to estimate losses over the remaining lives of financial assets measured at amortized cost and certain off-balance-sheet instruments. The macroeconomic scenario is updated at least semi-annually and is reviewed accordingly to reflect current economic conditions and our expectation of future conditions on a timely basis. For the fiscal year ended March 31, 2026, we used the most recent macroeconomic scenario available during our credit loss estimation process.\n\nThe following table shows the major factors of the macroeconomic scenario: the growth rate of gross domestic product of Japan and the United States, and the unemployment rate of Japan.\n\n \n\n \n  \n \n \n  \n \n \n  \n(%)\n \n\n \n  \n2026\n \n  \n2027\n \n  \n2028\n \n\nReal Gross Domestic Product of Japan\n\n  \n \n1.0\n \n  \n \n1.4\n \n  \n \n0.7\n \n\nNominal Gross Domestic Product of Japan\n\n  \n \n3.3\n \n  \n \n3.1\n \n  \n \n3.3\n \n\nReal Gross Domestic Product of United States\n\n  \n \n2.3\n \n  \n \n2.0\n \n  \n \n2.0\n \n\n \n  \n2026\n \n  \n2027\n \n  \n2028\n \n\nUnemployment rate of Japan\n\n  \n \n2.5\n \n  \n \n2.5\n \n  \n \n2.5\n \n\n \n\n76\n\nIn terms of the internal risk ratings, for the corporate portfolio segment, the credit quality review process and the credit rating process serve as the basis for determining the allowance for credit losses on loans. Through such processes, loans are categorized into groups to reflect the probability of default, whereby our management assesses the ability of borrowers to service their debt, taking into consideration current financial information, ability to generate cash, historical payment experience, analysis of relevant industry segments and current trends. For the retail portfolio segment, the different categories of past due status of loans are primarily utilized in the credit quality review and the credit rating processes as the basis for determining the allowance for credit losses on loans.\n\nOur methodology for determining the appropriate allowance for credit losses on loans also considers the imprecision inherent in the methodologies used. As a result, the amounts determined under the methodologies described above could be adjusted by management to consider the potential impact of other qualitative factors which include, but are not limited to, imprecision in macroeconomic scenario assumptions and emerging risks such as the conflict in the Middle East and their ripple effects on specific portfolio segments. Considering internal and external factors affecting the credit quality of the portfolio, we incorporated the estimated impacts of the conflict in the Middle East on domestic obligors, weakening obligor credit profiles driven by declining earnings, including ripple effects on the automotive supply chain, changes in interest rates, and other sources of economic uncertainty into the macroeconomic scenario. The macroeconomic scenario was revised to reflect updated key assumptions, including the forecasted business outlook for specific portfolio segments and the current forecast for the growth rate of gross domestic product and interest rates.\n\nThe allowance for credit losses involves significant judgments on a number of matters, including expectations of future economic conditions, assignment of obligor ratings, valuation of collateral, the timing and amount of future cash flows, and the development of qualitative adjustments as discussed above. Furthermore, information available at the time of the determination is limited, and it is not possible to eliminate uncertainty. Significant changes in any of the factors underlying our determination of the allowances could materially affect our financial condition and results of operations. For example, in response to the unexpected deterioration of future macroeconomic conditions and the consequent decline in internal risk rating, we may need to increase the allowances with additional charges to earnings. Additionally, changes in economic variables such as gross domestic product, the unemployment rate and real estate prices may not move in a correlated manner as variables may move in opposite directions or differ across portfolios or geography, so the improvement in one factor or input may offset deterioration in others.\n\nWe replaced the major factors of the macroeconomic scenario as follows to demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts.\n\n \n\n \n•\n \n\nAn increase of approximately ¥23 billion in allowance for credit losses for domestic corporate segment if the nominal gross domestic product of Japan was decreased by 100 bps for each year within the reasonable and supportable forecast period compared to the nominal gross domestic product of Japan used in the current macroeconomic scenario.\n\n \n\n \n•\n \n\nAn increase of approximately ¥14 billion in allowance for credit losses for foreign corporate segment if the real gross domestic product of the United States was decreased by 100 bps for each year within the reasonable and supportable forecast period compared to the real gross domestic product of the United States used in the current macroeconomic scenario.\n\n \n\n \n•\n \n\nAn increase of approximately ¥7 billion in allowance for credit losses for domestic retail segment if the unemployment rate of Japan was increased by 100 bps for each year within the reasonable and supportable forecast period compared to the unemployment rate of Japan used in the current macroeconomic scenario. \n\nSee note 1 to our consolidated financial statements included elsewhere in this annual report for further information on our policies and methodologies used to determine the allowance for credit losses.\n\n \n\n77\n\nValuation of Financial Instruments\n\nASC 820, “Fair Value Measurement” (“ASC 820”) specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. The standard describes the following three levels of inputs that may be used to measure fair value:\n\n \n\nLevel 1\n\n  \nQuoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market.\n\nLevel 2\n\n  \nObservable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments. If no quoted market prices are available, the fair values of debt securities and over-the-counter derivative contracts in this category are determined using pricing models with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.\n\nLevel 3\n\n  \nUnobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques.\n\nFor assets and liabilities classified in Level 1 and 2 of the hierarchy, where inputs are principally based on observable market data, there are less judgments or estimates in determining fair value, while the determination of fair value of Level 3 assets and liabilities involves more significant management judgments and estimates. For further information, including valuation methodologies and the use of management estimates and judgments in connection therewith, see note 26 to the consolidated financial statements included elsewhere in this annual report.\n\nPension and Other Employee Benefit Plans\n\nMizuho Financial Group, its principal banking subsidiaries and certain other subsidiaries sponsor severance indemnities and pension plans, which provide defined benefits to retired employees. Periodic expense and accrued liabilities are computed based on a number of actuarial assumptions, including mortality, withdrawals, discount rates, expected long-term rates of return on plan assets and rates of increase in future compensation levels.\n\nActual results that differ from the assumptions are accumulated and amortized over future periods and therefore generally affect future pension expenses. While our management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may adversely affect pension expenses in the future.\n\nIn estimating the discount rates, we look to interest rates on a portfolio of high-quality fixed-income government and corporate bonds. The durations of such bonds closely match those of the benefit obligations. Assumed discount rates are reevaluated at each measurement date.\n\nThe expected rate of return for each asset category is based primarily on various aspects of the long-term prospects for the economy that include historical performance and the market environment.\n\nFor further information on our pension and other employee benefits, see note 20 to the consolidated financial statements included elsewhere in this annual report.\n\n \n\n78\n\nOperating Results\n\nThe following discussion relates to our operating results for the fiscal years ended March 31, 2025 and 2026. For the discussion on our operating results for the fiscal year ended March 31, 2024, including certain comparative discussion on our operating results for the fiscal years ended March 31, 2024 and 2025, please refer to “Item 5. Operating and Financial Review and Prospects—Operating Results” in our annual report on Form 20-F for the fiscal year ended March 31, 2025, filed with the SEC on June 25, 2025.\n\nThe following table shows certain information as to our income, expenses and net income for the fiscal years ended March 31, 2025 and 2026:\n\n \n\n \n  \nFiscal years ended\nMarch 31,\n \n\n \n  \n2025\n \n  \n2026\n \n\n \n  \n(in billions of yen)\n \n\nInterest and dividend income\n\n  \n¥\n6,167\n \n  \n¥\n5,976\n \n\nInterest expense\n\n  \n \n4,907\n \n  \n \n4,290\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet interest income\n\n  \n \n1,260\n \n  \n \n1,687\n \n\nProvision (credit) for credit losses\n\n  \n \n97\n \n  \n \n188\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet interest income after provision (credit) for credit losses\n\n  \n \n1,163\n \n  \n \n1,498\n \n\nNoninterest income\n\n  \n \n2,003\n \n  \n \n2,818\n \n\nNoninterest expenses\n\n  \n \n2,407\n \n  \n \n2,631\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome before income tax expense\n\n  \n \n759\n \n  \n \n1,686\n \n\nIncome tax expense\n\n  \n \n200\n \n  \n \n360\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet income\n\n  \n \n560\n \n  \n \n1,326\n \n\nLess: Net income (loss) attributable to noncontrolling interests\n\n  \n \n(34\n) \n  \n \n168\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet income attributable to MHFG shareholders\n\n  \n¥\n593\n \n  \n¥\n1,158\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe following is a discussion of major components of our net income attributable to MHFG shareholders for the fiscal years ended March 31, 2025 and 2026.\n\n \n\n79\n\nNet Interest Income\n\nThe following table shows the average balances of interest-earning assets and interest-bearing liabilities, interest amounts and the average interest rates on such assets and liabilities for the fiscal years ended March 31, 2025 and 2026:\n\n \n\n \n  \nFiscal years ended March 31,\n \n\n \n  \n2025\n \n \n2026\n \n\n \n  \nAverage\nbalance\n \n  \nInterest\namount\n \n  \nInterest\nrate\n \n \nAverage\nbalance\n \n  \nInterest\namount\n \n \nInterest\nrate\n \n\n \n  \n \n \n  \n \n \n  \n \n \n \n \n \n  \n \n \n \n \n \n\n \n  \n(in billions of yen, except percentages)\n \n\nDomestic:\n\n  \n\n  \n\n  \n\n \n\n  \n\n \n\nInterest-bearing deposits in other banks\n\n  \n¥\n56,125\n \n  \n¥\n136\n \n  \n \n0.24\n% \n \n¥\n51,152\n \n  \n¥\n278\n \n \n \n0.54\n% \n\nCall loans and funds sold\n\n  \n \n197\n \n  \n \n1\n \n  \n \n0.46\n \n \n \n150\n \n  \n \n1\n \n \n \n0.69\n \n\nReceivables under resale agreements and securities borrowing transactions\n\n  \n \n11,437\n \n  \n \n86\n \n  \n \n0.75\n \n \n \n14,530\n \n  \n \n116\n \n \n \n0.80\n \n\nTrading account assets\n\n  \n \n6,638\n \n  \n \n98\n \n  \n \n1.48\n \n \n \n7,615\n \n  \n \n107\n \n \n \n1.40\n \n\nInvestments\n\n  \n \n18,481\n \n  \n \n125\n \n  \n \n0.68\n \n \n \n18,307\n \n  \n \n200\n \n \n \n1.09\n \n\nLoans\n\n  \n \n60,835\n \n  \n \n748\n \n  \n \n1.23\n \n \n \n61,053\n \n  \n \n921\n \n \n \n1.51\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nTotal interest-earning assets\n\n  \n \n153,713\n \n  \n \n1,195\n \n  \n \n0.78\n \n \n \n152,806\n \n  \n \n1,623\n \n \n \n1.06\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nDeposits\n\n  \n \n97,231\n \n  \n \n177\n \n  \n \n0.18\n \n \n \n99,660\n \n  \n \n358\n \n \n \n0.36\n \n\nCall money and funds purchased\n\n  \n \n2,393\n \n  \n \n7\n \n  \n \n0.30\n \n \n \n2,759\n \n  \n \n17\n \n \n \n0.61\n \n\nPayables under repurchase agreements and securities lending transactions\n\n  \n \n16,769\n \n  \n \n550\n \n  \n \n3.28\n \n \n \n22,463\n \n  \n \n658\n \n \n \n2.93\n \n\nOther short-term borrowings(1)\n\n  \n \n2,993\n \n  \n \n18\n \n  \n \n0.59\n \n \n \n2,333\n \n  \n \n25\n \n \n \n1.09\n \n\nTrading account liabilities\n\n  \n \n4,062\n \n  \n \n61\n \n  \n \n1.50\n \n \n \n2,953\n \n  \n \n50\n \n \n \n1.70\n \n\nLong-term debt\n\n  \n \n14,488\n \n  \n \n315\n \n  \n \n2.17\n \n \n \n15,385\n \n  \n \n379\n \n \n \n2.47\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nTotal interest-bearing liabilities\n\n  \n \n137,935\n \n  \n \n1,127\n \n  \n \n0.82\n \n \n \n145,551\n \n  \n \n1,489\n \n \n \n1.02\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nNet\n\n  \n \n15,778\n \n  \n \n68\n \n  \n \n0.00\n \n \n \n7,255\n \n  \n \n134\n \n \n \n0.04\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nForeign:\n\n  \n\n  \n\n  \n\n \n\n  \n\n \n\nInterest-bearing deposits in other banks\n\n  \n \n16,279\n \n  \n \n832\n \n  \n \n5.11\n \n \n \n14,543\n \n  \n \n584\n \n \n \n4.01\n \n\nCall loans and funds sold\n\n  \n \n747\n \n  \n \n20\n \n  \n \n2.71\n \n \n \n724\n \n  \n \n16\n \n \n \n2.28\n \n\nReceivables under resale agreements and securities borrowing transactions\n\n  \n \n14,726\n \n  \n \n782\n \n  \n \n5.31\n \n \n \n17,293\n \n  \n \n702\n \n \n \n4.06\n \n\nTrading account assets\n\n  \n \n17,061\n \n  \n \n724\n \n  \n \n4.24\n \n \n \n17,008\n \n  \n \n659\n \n \n \n3.88\n \n\nInvestments\n\n  \n \n9,343\n \n  \n \n358\n \n  \n \n3.84\n \n \n \n10,581\n \n  \n \n369\n \n \n \n3.49\n \n\nLoans\n\n  \n \n38,452\n \n  \n \n2,256\n \n  \n \n5.87\n \n \n \n42,435\n \n  \n \n2,020\n \n \n \n4.76\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nTotal interest-earning assets\n\n  \n \n96,608\n \n  \n \n4,972\n \n  \n \n5.15\n \n \n \n102,585\n \n  \n \n4,353\n \n \n \n4.24\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nDeposits\n\n  \n \n45,379\n \n  \n \n2,041\n \n  \n \n4.50\n \n \n \n49,697\n \n  \n \n1,723\n \n \n \n3.47\n \n\nCall money and funds purchased\n\n  \n \n238\n \n  \n \n9\n \n  \n \n3.98\n \n \n \n286\n \n  \n \n8\n \n \n \n2.76\n \n\nPayables under repurchase agreements and securities lending transactions\n\n  \n \n24,918\n \n  \n \n1,359\n \n  \n \n5.45\n \n \n \n18,399\n \n  \n \n738\n \n \n \n4.01\n \n\nOther short-term borrowings(1)\n\n  \n \n1,673\n \n  \n \n131\n \n  \n \n7.85\n \n \n \n2,461\n \n  \n \n112\n \n \n \n4.53\n \n\nTrading account liabilities\n\n  \n \n1,939\n \n  \n \n164\n \n  \n \n8.47\n \n \n \n2,029\n \n  \n \n122\n \n \n \n6.00\n \n\nLong-term debt\n\n  \n \n1,720\n \n  \n \n75\n \n  \n \n4.36\n \n \n \n2,286\n \n  \n \n96\n \n \n \n4.20\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nTotal interest-bearing liabilities\n\n  \n \n75,866\n \n  \n \n3,780\n \n  \n \n4.98\n \n \n \n75,158\n \n  \n \n2,801\n \n \n \n3.73\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nNet\n\n  \n \n20,742\n \n  \n \n1,192\n \n  \n \n0.17\n \n \n \n27,427\n \n  \n \n1,553\n \n \n \n0.51\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nTotal:\n\n  \n\n  \n\n  \n\n \n\n  \n\n \n\nTotal interest-earning assets\n\n  \n \n250,322\n \n  \n \n6,167\n \n  \n \n2.46\n \n \n \n255,391\n \n  \n \n5,976\n(2) \n \n \n2.34\n \n\nTotal interest-bearing liabilities\n\n  \n \n213,801\n \n  \n \n4,907\n \n  \n \n2.30\n \n \n \n220,709\n \n  \n \n4,290\n(3) \n \n \n1.94\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\nNet\n\n  \n¥\n36,520\n \n  \n¥\n1,260\n \n  \n \n0.16\n \n \n¥\n34,682\n \n  \n¥\n1,687\n \n \n \n0.40\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n80\n\n \n\nNotes:\n\n(1)\n\nOther short-term borrowings consist of due to trust accounts, commercial paper and any other short-term borrowings.\n\n(2)\n\nOther interest income, which is not separately presented due to immateriality, is included in total interest and dividend income.\n\n(3)\n\nOther interest expense, which is not separately presented due to immateriality, is included in total interest expense.\n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nInterest and dividend income decreased by ¥191 billion, or 3.1%, from the previous fiscal year, to ¥5,976 billion in the fiscal year ended March 31, 2026. Domestic interest and dividend income accounted for ¥1,623 billion of the total amount, an increase of ¥428 billion from the previous fiscal year. Foreign interest and dividend income accounted for ¥4,353 billion, a decrease of ¥618 billion from the previous fiscal year.\n\nThe BOJ decided to encourage the uncollateralized overnight call rate to remain at around 0.5 percent in September 2025. In addition, the BOJ decided to encourage the uncollateralized overnight call rate to remain at around 0.75 percent in December 2025. On the other hand, the yield on newly issued 10-year Japanese government bonds, which is a key long-term interest rate indicator, was 1.490% and 2.354% as of March 31, 2025 and March 31, 2026, respectively. The yield on overseas branches experienced an increase. Under such circumstances, the average yield on domestic loans increased by 0.28 percentage points from the previous fiscal year to 1.51% in the fiscal year ended March 31, 2026, and the average rate on domestic deposits increased by 0.18 percentage points from the previous fiscal year to 0.36% in the fiscal year ended March 31, 2026. The average yield on foreign loans decreased by 1.11 percentage points from the previous fiscal year to 4.76% in the fiscal year ended March 31, 2026, and the average rate on foreign deposits decreased by 1.03 percentage points from the previous fiscal year to 3.47% in the fiscal year ended March 31, 2026.\n\nThe increase in domestic interest and dividend income was due mainly to increases in interest income from loans and interest-bearing deposits in other banks. The increase in interest income from loans and interest-bearing deposits in other banks was due mainly to an increase in the average yield. Changes in the average yields on domestic interest-earning assets contributed to an increase in interest and dividend income of ¥435 billion, and changes in the average balance of domestic interest-earning assets contributed to a decrease of ¥7 billion, resulting in the ¥428 billion increase in domestic interest and dividend income.\n\nThe decrease in foreign interest and dividend income was due mainly to a decrease in interest income from loans and interest-bearing deposits in other banks. The decrease in interest income from loans and interest-bearing deposits in other banks was due mainly to a decrease in the average yield. Changes in the average yield on foreign interest-earning assets contributed to a decrease in interest and dividend income of ¥926 billion, and changes in the average balance of foreign interest-earning assets contributed to an increase of ¥308 billion, resulting in the ¥618 billion overall decrease in foreign interest and dividend income.\n\nInterest expense decreased by ¥617 billion, or 12.6%, from the previous fiscal year, to ¥4,290 billion in the fiscal year ended March 31, 2026. Domestic interest expense accounted for ¥1,489 billion of the total amount, an increase of ¥362 billion from the previous fiscal year. Foreign interest expense accounted for ¥2,801 billion of the total amount, a decrease of ¥979 billion from the previous fiscal year.\n\nThe increase in domestic interest expense was due mainly to an increase in interest expense from deposits, which was primarily a result of an increase in average interest rates. The changes in the average interest rates on domestic interest-bearing liabilities contributed to an increase in interest expense of ¥300 billion, and the changes in the average balance of domestic interest-bearing liabilities contributed to an increase in interest expense of ¥62 billion, resulting in the ¥362 billion overall increase in domestic interest expense.\n\n \n\n81\n\nThe decrease in foreign interest expense was due mainly to a decrease in interest expense from payables under repurchase agreements and securities lending transactions and deposits, which was primarily a result of a decrease in average interest rates. The changes in the average interest rates on foreign interest-bearing liabilities contributed to a decrease in interest expense of ¥944 billion, and the changes in the average balance of foreign interest-bearing liabilities contributed to a decrease in interest expense of ¥35 billion, resulting in the ¥979 billion overall decrease in foreign interest expense.\n\nAs a result of the foregoing, net interest income increased by ¥427 billion, or 33.9%, from the previous fiscal year, to ¥1,687 billion. The average interest rate spread rose by 0.24 percentage points from the previous fiscal year to 0.40% in the fiscal year ended March 31, 2026. The rise of the average interest rate spread was due mainly to a decline in the average interest rate on interest-bearing liabilities, which more than offset the effect of a decline in the average yield on interest-earning assets.\n\nProvision (Credit) for Credit Losses\n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nProvision for credit losses increased by ¥92 billion, or 94.4%, from the previous fiscal year, to ¥188 billion in the fiscal year ended March 31, 2026. The increase was due mainly to increases in provision for credit losses on loans to domestic corporate borrowers and foreign borrowers.\n\nNoninterest Income\n\nThe following table shows a breakdown of noninterest income for the fiscal years ended March 31, 2025 and 2026:\n\n \n\n \n  \nFiscal years ended March 31,\n \n\n \n  \n2025\n \n \n2026\n \n\n \n  \n \n \n \n \n \n\n \n  \n(in billions of yen)\n \n\nFee and commission\n\n  \n¥\n     1,207\n \n \n¥\n     1,376\n \n\nFee and commission from securities-related business\n\n  \n \n263\n \n \n \n307\n \n\nFee and commission from deposits\n\n  \n \n16\n \n \n \n15\n \n\nFee and commission from lending business\n\n  \n \n252\n \n \n \n299\n \n\nFee and commission from remittance business\n\n  \n \n102\n \n \n \n105\n \n\nFee and commission from asset management business\n\n  \n \n127\n \n \n \n136\n \n\nFee and commission from trust related business\n\n  \n \n145\n \n \n \n169\n \n\nFee and commission from agency business\n\n  \n \n41\n \n \n \n41\n \n\nFee and commission from guarantee related business\n\n  \n \n47\n \n \n \n51\n \n\nFees for other customer services\n\n  \n \n214\n \n \n \n252\n \n\nForeign exchange gains (losses)—net\n\n  \n \n(186\n) \n \n \n(41\n) \n\nTrading account gains (losses)—net\n\n  \n \n803\n \n \n \n103\n \n\nInvestment gains (losses)—net\n\n  \n \n(186\n) \n \n \n961\n \n\nDebt securities\n\n  \n \n(5\n) \n \n \n(74\n) \n\nEquity securities\n\n  \n \n(182\n) \n \n \n1,036\n \n\nEquity in earnings (losses) of equity method investees—net\n\n  \n \n28\n \n \n \n75\n \n\nGains on disposal of premises and equipment\n\n  \n \n72\n \n \n \n17\n \n\nOther noninterest income\n\n  \n \n265\n \n \n \n326\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal noninterest income\n\n  \n¥\n2,003\n \n \n¥\n2,818\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nNoninterest income increased by ¥815 billion, or 40.7%, from the previous fiscal year to ¥2,818 billion in the fiscal year ended March 31, 2026. The increase was due mainly to investment gains—net of ¥961 billion\n\n \n\n82\n\ncompared to investment losses—net of ¥186 billion in the previous fiscal year, offset in part by a decrease in trading account gains—net of ¥701 billion.\n\nFee and commission\n\nFee and commission increased by ¥169 billion, or 14.0%, from the previous fiscal year to ¥1,376 billion in the fiscal year ended March 31, 2026. The increase was due mainly to increases in fee and commission from lending business of ¥47 billion and fee and commission from securities-related business of ¥44 billion. The increase in fee and commission from lending business was due mainly to an increase in syndicate loan arrangement fees of a domestic bank subsidiary. The increase in fee and commission from securities-related business was due mainly to an increase in fee and commission from securities-related business at our securities subsidiaries.\n\nForeign exchange gains (losses)—net\n\nForeign exchange losses—net decreased by ¥145 billion, or 78.2%, from the previous fiscal year to ¥41 billion in the fiscal year ended March 31, 2026. The decrease was due mainly to fluctuations in foreign exchange rates in the fiscal year ended March 31, 2026.\n\nTrading account gains (losses)—net\n\nTrading account gains—net decreased by ¥701 billion, or 87.2%, from the previous fiscal year to ¥103 billion in the fiscal year ended March 31, 2026. The decrease in trading account gains—net was due mainly to a decrease in gains related to changes in the market value of receive-fixed, pay-variable interest-rate swaps, reflecting a rise in long-term interest rates, and a decrease in gains related to changes in the fair value of our portfolio of foreign currency-denominated securities for which the fair value option was elected. For further information on the fair value option, see note 26 to our consolidated financial statements included elsewhere in this annual report.\n\nInvestment gains (losses)—net\n\nInvestment gains (losses)—net was a gain of ¥961 billion in the fiscal year ended March 31, 2026 compared to a loss of ¥186 billion in the previous fiscal year, among which investment gains (losses)—net related to equity securities was a gain of ¥1,036 billion in the fiscal year ended March 31, 2026 compared to a loss of ¥182 billion in the previous fiscal year. The change from investment losses—net to investment gains—net related to equity securities was due mainly to an increase in gains related to changes in the fair value of Japanese equity securities in the fiscal year ended March 31, 2026, which mostly reflected the relative strength in market conditions. For further information, see note 3 to our consolidated financial statements included elsewhere in this annual report.\n\nNoninterest Expenses\n\nThe following table shows a breakdown of noninterest expenses for the fiscal years ended March 31, 2025 and 2026:\n\n \n\n \n  \nFiscal years ended March 31,\n \n\n \n  \n2025\n \n  \n2026\n \n\n \n  \n \n \n  \n \n \n\n \n  \n(in billions of yen)\n \n\nSalaries and employee benefits\n\n  \n¥\n883\n \n  \n¥\n954\n \n\nGeneral and administrative expenses\n\n  \n \n827\n \n  \n \n963\n \n\nOccupancy expenses\n\n  \n \n186\n \n  \n \n196\n \n\nFee and commission expenses\n\n  \n \n254\n \n  \n \n273\n \n\nProvision (credit) for credit losses on off-balance-sheet instruments\n\n  \n \n27\n \n  \n \n(1\n) \n\nOther noninterest expenses\n\n  \n \n230\n \n  \n \n245\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal noninterest expenses\n\n  \n¥\n    2,407\n \n  \n¥\n    2,631\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n83\n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nNoninterest expenses increased by ¥224 billion, or 9.3%, from the previous fiscal year to ¥2,631 billion in the fiscal year ended March 31, 2026. The increase was due mainly to an increase in salaries and employee benefits of ¥71 billion, or 8.0%, and an increase in general and administrative expenses of ¥136 billion, or 16.5%.\n\nSalaries and employee benefits\n\nSalaries and employee benefits increased by ¥71 billion, or 8.0%, from the previous fiscal year to ¥954 billion in the fiscal year ended March 31, 2026. The increase was due mainly to an increase in personnel expenses at a domestic bank subsidiary, a domestic securities subsidiary and certain U.S. subsidiaries.\n\nGeneral and administrative expenses\n\nGeneral and administrative expenses increased by ¥136 billion, or 16.5%, from the previous fiscal year to ¥963 billion in the fiscal year ended March 31, 2026. The increase was due mainly to increases in property expenses and depreciation and amortization expenses of software at a domestic bank subsidiary.\n\nIncome Tax Expense\n\nThe following table shows the components of income tax expense (benefit) for the fiscal years ended March 31, 2025 and 2026: \n\n \n\n \n  \nFiscal years ended March 31,\n \n\n \n  \n2025\n \n \n2026\n \n\n \n  \n \n \n \n \n \n\n \n  \n(in billions of yen)\n \n\nCurrent:\n\n  \n\n \n\nDomestic(note).\n\n  \n¥\n93\n \n \n¥\n254\n \n\nForeign\n\n  \n \n211\n \n \n \n171\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal current tax expense\n\n  \n \n304\n \n \n \n425\n \n\nDeferred:\n\n  \n\n \n\nDomestic(note)\n\n  \n \n(101\n) \n \n \n(74\n) \n\nForeign\n\n  \n \n(3\n) \n \n \n9\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal deferred tax expense (benefit)\n\n  \n \n(104\n) \n \n \n(65\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal income tax expense\n\n  \n¥\n      200\n \n \n¥\n      360\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNote: For the fiscal year ended March 31, 2026, domestic taxes are disaggregated into National and Local components. For current domestic taxes, National and Local amounted to ¥221 billion and ¥33 billion, respectively. For deferred domestic taxes, National and Local amounted to ¥70 billion and ¥4 billion, respectively.\n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nIncome tax expense increased by ¥160 billion from the previous fiscal year to ¥360 billion in the fiscal year ended March 31, 2026. Current tax expense in the fiscal year ended March 31, 2026 increased by ¥121 billion from the previous fiscal year to ¥425 billion. Deferred tax expense (benefit) was a benefit of ¥65 billion in the fiscal year ended March 31, 2026 compared to a benefit of ¥104 billion in the previous fiscal year. The increase in current tax expense was due mainly to an increase in the taxable income of our principal banking subsidiaries and securities subsidiaries. The change in deferred tax expense (benefit) was due primarily to changes in temporary differences attributable to marketable securities of our principal banking subsidiaries.\n\n \n\n84\n\nWe consider the sales of available-for-sale securities and equity securities to be a qualifying tax-planning strategy that is a possible source of future taxable income to the extent necessary in the future mainly with respect to our principal banking subsidiaries in Japan. The reliance on this tax-planning strategy of our subsidiaries in Japan was immaterial.\n\nThe following table shows the components of deferred tax assets (liabilities) as of March 31, 2025 and 2026:\n\n \n\n \n  \nAs of March 31,\n \n\n \n  \n2025\n \n \n2026\n \n\n \n  \n \n \n \n \n \n\n \n  \n(in billions of yen)\n \n\nDeferred tax assets:\n\n  \n\n \n\nAllowance for credit losses\n\n  \n¥\n288\n \n \n¥\n365\n \n\nDerivative financial instrument\n\n  \n \n224\n \n \n \n409\n \n\nLease liabilities\n\n  \n \n158\n \n \n \n166\n \n\nTrading securities\n\n  \n \n116\n \n \n \n93\n \n\nForeign tax credit and payments\n\n  \n \n112\n \n \n \n87\n \n\nPremises and equipment\n\n  \n \n46\n \n \n \n53\n \n\nAvailable-for-sale securities\n\n  \n \n1\n \n \n \n38\n \n\nNet operating loss carryforwards\n\n  \n \n151\n \n \n \n135\n \n\nOther\n\n  \n \n338\n \n \n \n325\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nGross deferred tax assets\n\n  \n \n   1,436\n \n \n \n   1,670\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nValuation allowance\n\n  \n \n(216\n) \n \n \n(186\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDeferred tax assets, net of valuation allowance\n\n  \n \n1,220\n \n \n \n1,484\n \n\nDeferred tax liabilities:\n\n  \n\n \n\nInvestments\n\n  \n \n370\n \n \n \n606\n \n\nPrepaid pension cost and accrued pension liabilities\n\n  \n \n203\n \n \n \n213\n \n\nRight-of-use assets\n\n  \n \n149\n \n \n \n153\n \n\nOther\n\n  \n \n189\n \n \n \n185\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nGross deferred tax liabilities\n\n  \n \n911\n \n \n \n1,157\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet deferred tax assets\n\n  \n¥\n309\n \n \n¥\n328\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet Income (Loss) Attributable to Noncontrolling Interests\n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nNet income (loss) attributable to noncontrolling interests was income of ¥168 billion in the fiscal year ended March 31, 2026 compared to a loss of ¥34 billion in the previous fiscal year.\n\nNet Income Attributable to MHFG Shareholders\n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nAs a result of the foregoing, net income attributable to MHFG shareholders increased by ¥565 billion, or 95.2%, from the previous fiscal year to ¥1,158 billion in the fiscal year ended March 31, 2026.\n\nBusiness Segments Analysis\n\nThe following discussion relates to our business segment analysis for the fiscal years ended March 31, 2025 and 2026. For the discussion on our business segment analysis for the fiscal year ended March 31, 2024, including certain comparative discussion on our operating results for the fiscal years ended March 31, 2024 and 2025, please refer to “Item 5. Operating and Financial Review and Prospects—Business Segment Analysis” in our annual report on Form 20-F for the fiscal year ended March 31, 2025, filed with the SEC on June 25, 2025.\n\n \n\n85\n\nWe manage our group under an in-house company system based on our diverse customer segments. The aim of this system is to leverage our strengths and competitive advantage, which is the seamless integration of our banking, trust banking and securities functions under a holding company structure, to speedily provide high-quality financial services that closely match customer needs.\n\nSpecifically, the company system is classified into the following five in-house companies, each based on a customer segment: the Retail & Business Banking Company (“RBC”); the Corporate & Investment Banking Company (“CIBC”); the Global Corporate & Investment Banking Company (“GCIBC”); the Global Markets Company (“GMC”); and the Asset Management Company (“AMC”). These customer segments are regarded as our operating segments and constitute reportable segments, and they reflect the manner in which our financial information is evaluated by our group’s Executive Management Committee, whose members act collectively as our group’s chief operating decision maker (“CODM”).\n\nOur business segment information is prepared based on the internal management reporting systems used by the CODM to assess the performance of our business segments under Japanese GAAP. The CODM’s review of the reported measures of reportable segments includes evaluation of segment profitability and assessment of actual results compared to the budget. These measures are regularly provided to the CODM and are a component of a multifaceted decision-making process regarding segment performance as well as resource and capital allocation. Since figures reported to the CODM are prepared under Japanese GAAP, they are not consistent with the consolidated financial statements prepared in accordance with U.S. GAAP. This difference is addressed in note 30 to our consolidated financial statements included elsewhere in this annual report, where a reconciliation to U.S. GAAP of the total amount of all business segments is provided.\n\nFor a brief description of each of our business segments, see note 30 to our consolidated financial statements included elsewhere in this annual report.\n\nResults of Operations by Business Segment\n\nConsolidated Results of Operations\n\nConsolidated gross profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥549.9 billion, compared to the fiscal year ended March 31, 2025, to ¥3,515.6 billion. Consolidated general and administrative expenses for the fiscal year ended March 31, 2026 increased by ¥237.1 billion, compared to the fiscal year ended March 31, 2025, to ¥2,091.7 billion. Consolidated equity in earnings of equity method investees—net for the fiscal year ended March 31, 2026 increased by ¥5.4 billion, compared to the fiscal year ended March 31, 2025, to ¥52.2 billion. Consolidated net business profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥316.8 billion, compared to the fiscal year ended March 31, 2025, to ¥1,461.1 billion.\n\n \n\n \n  \nMizuho Financial Group (Consolidated)\n \n\nFiscal year ended March 31, 2025(1) :\n  \nRBC\n \n  \nCIBC\n \n  \nGCIBC\n \n  \nGMC\n \n  \nAMC\n \n \nOthers(6)\n \n  \nTotal\n \n\n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n \n \n \n  \n \n \n\n \n  \n(in billions of yen)\n \n\nGross profits + Net gains (losses) related to ETFs and others(2)\n\n  \n¥\n832.1\n \n  \n¥\n636.7\n \n  \n¥\n809.3\n \n  \n¥\n508.6\n \n  \n¥\n59.8\n \n \n¥\n118.9\n \n  \n¥\n2,965.6\n \n\nGeneral and administrative expenses(3)\n\n  \n \n702.3\n \n  \n \n239.6\n \n  \n \n463.3\n \n  \n \n351.7\n \n  \n \n38.5\n \n \n \n58.9\n \n  \n \n1,854.5\n \n\nEquity in earnings (losses) of equity method investees—net\n\n  \n \n10.4\n \n  \n \n9.6\n \n  \n \n25.4\n \n  \n \n— \n \n  \n \n(3.3\n) \n \n \n4.4\n \n  \n \n46.7\n \n\nAmortization of goodwill and others\n\n  \n \n— \n \n  \n \n0.8\n \n  \n \n6.0\n \n  \n \n— \n \n  \n \n6.1\n \n \n \n0.6\n \n  \n \n13.6\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet business profits (losses)(4) + Net gains (losses) related to ETFs and others\n\n  \n¥\n140.3\n \n  \n¥\n405.9\n \n  \n¥\n365.3\n \n  \n¥\n156.8\n \n  \n¥\n11.8\n \n \n¥\n63.8\n \n  \n¥\n1,144.2\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFixed assets(5)\n\n  \n¥\n603.7\n \n  \n¥\n171.7\n \n  \n¥\n224.4\n \n  \n¥\n101.1\n \n  \n¥\n— \n \n \n¥\n830.3\n \n  \n¥\n1,931.4\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n86\n\n \n  \nMizuho Financial Group (Consolidated)\n \n\nFiscal year ended March 31, 2026(1) :\n  \nRBC\n \n  \nCIBC\n \n  \nGCIBC\n \n  \nGMC\n \n  \nAMC\n \n \nOthers(6)\n \n  \nTotal\n \n\n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n \n \n \n  \n \n \n\n \n  \n(in billions of yen)\n \n\nGross profits + Net gains (losses) related to ETFs and others(2)\n\n  \n¥\n984.6\n \n  \n¥\n739.2\n \n  \n¥\n856.9\n \n  \n¥\n664.8\n \n  \n¥\n73.5\n \n \n¥\n196.4\n \n  \n¥\n3,515.6\n \n\nGeneral and administrative expenses(3)\n\n  \n \n756.6\n \n  \n \n250.5\n \n  \n \n510.6\n \n  \n \n404.9\n \n  \n \n46.2\n \n \n \n122.5\n \n  \n \n2,091.7\n \n\nEquity in earnings (losses) of equity method investees—net\n\n  \n \n11.7\n \n  \n \n11.9\n \n  \n \n26.8\n \n  \n \n— \n \n  \n \n(1.8\n) \n \n \n3.7\n \n  \n \n52.2\n \n\nAmortization of goodwill and others\n\n  \n \n2.1\n \n  \n \n0.8\n \n  \n \n5.3\n \n  \n \n— \n \n  \n \n5.7\n \n \n \n1.0\n \n  \n \n15.0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet business profits (losses)(4) + Net gains (losses) related to ETFs and others\n\n  \n¥\n237.5\n \n  \n¥\n499.7\n \n  \n¥\n367.7\n \n  \n¥\n259.9\n \n  \n¥\n19.6\n \n \n¥\n76.4\n \n  \n¥\n1,461.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFixed assets(5)\n\n  \n¥\n648.9\n \n  \n¥\n173.8\n \n  \n¥\n235.3\n \n  \n¥\n102.4\n \n  \n¥\n— \n \n \n¥\n859.1\n \n  \n¥\n2,019.6\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nNotes:\n\n(1)\n\nIncome and expenses of foreign branches of Mizuho Bank and foreign subsidiaries with functional currencies other than Japanese Yen have been translated for purposes of segment reporting using the budgeted foreign currency rates. Prior period comparative amounts for such foreign currency income and expenses have been translated using current period budgeted foreign currency rates.\n\n(2)\n\n“Gross profits + Net gains (losses) related to ETFs and others” is reported instead of sales reported by general corporations. Gross profits is defined as the sum of net interest income, fiduciary income, net fee and commission income, net trading income and net other operating income. Net gains (losses) related to ETFs and others consist of net gains (losses) on ETFs held by Mizuho Bank and Mizuho Trust & Banking on their non-consolidated basis and net gains (losses) on operating investment securities of Mizuho Securities on its consolidated basis. For the fiscal years ended March 31, 2025 and 2026, net gains (losses) related to ETFs and others amounted to ¥45.2 billion and ¥38.3 billion, respectively, of which ¥37.0 billion and ¥30.8 billion are included in GMC, respectively.\n\n(3)\n\n“General and administrative expenses” excludes non-allocated gains (losses), net, which primarily includes personnel expenses, depreciation expenses, and occupancy expenses. When the CODM assesses segment performance and decides how to allocate resources, these expenses are regularly provided to the CODM in an aggregated form as “General and administrative expenses” and may be used, for example, to evaluate the expense ratio against segment profits and to compare them with the budgeted expense information.\n\n(4)\n\nNet business profits (losses) is used in Japan as a measure of the profitability of core banking operations, and is defined as gross profits (as defined above) less general and administrative expenses (excluding non-allocated gains (losses), net) plus equity in earnings (losses) of equity method investees—net less amortization of goodwill and others. Measurement of net business profits (losses) is required for regulatory reporting to the Financial Services Agency of Japan. \n\n(5)\n\n“Fixed assets” is presented based on Japanese GAAP and corresponds to the total amount of the following U.S. GAAP accounts: Premises and equipment—net; Goodwill; Intangible assets; and right-of-use assets related to operating leases included in Other assets. The above table does not include other asset amounts because “Fixed assets” is the only balance sheet measure that the CODM uses when evaluating and making decisions pertaining to the operating segments. “Others” in “Fixed assets” includes assets of headquarters that have not been allocated to each segment, “Fixed assets” pertaining to consolidated subsidiaries that are not subject to allocation, consolidating adjustments and others. Certain “Fixed assets” expenses have been allocated to each segment using reasonable allocation criteria. \n\n(6)\n\n“Others” includes the following items:\n\n \n•\n \n\nprofits and expenses pertaining to consolidated subsidiaries that are not subject to allocation;\n\n \n•\n \n\nconsolidating adjustments, including elimination of internal transaction between each segment;\n\n \n•\n \n\nequity in earnings (losses) of equity method investees—net that are not subject to allocation; and\n\n \n•\n \n\nprofits and losses pertaining to derivative transactions that reflect the counterparty risk of the individual parties and other factors in determining fair market value.\n\n \n\n87\n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nRBC\n\nGross profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥152.4 billion, or 18.3%, compared to the fiscal year ended March 31, 2025, to ¥984.6 billion. The increase was attributable mainly to an improvement in deposit income due to the rise in JPY interest rates and an increase in profits related to solution business.\n\nGeneral and administrative expenses for the fiscal year ended March 31, 2026 increased by ¥54.3 billion, or 7.7%, compared to the fiscal year ended March 31, 2025, to ¥756.6 billion.\n\nAs a result, net business profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥97.1 billion, or 69.2%, compared to the fiscal year ended March 31, 2025, to ¥237.5 billion.\n\nCIBC\n\nGross profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥102.5 billion, or 16.1%, compared to the fiscal year ended March 31, 2025, to ¥739.2 billion. The increase was attributable mainly to an improvement in deposit income due to the rise in JPY interest rates and increases in profits related to solution business and securities business income.\n\nGeneral and administrative expenses for the fiscal year ended March 31, 2026 increased by ¥10.9 billion, or 4.5%, compared to the fiscal year ended March 31, 2025, to ¥250.5 billion.\n\nAs a result, net business profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥93.8 billion, or 23.1%, compared to the fiscal year ended March 31, 2025, to ¥499.7 billion.\n\nGCIBC\n\nGross profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥47.6 billion, or 5.8%, compared to the fiscal year ended March 31, 2025, to ¥856.9 billion. The increase was attributable mainly to increases in capital market-related income and credit-related fees.\n\nGeneral and administrative expenses for the fiscal year ended March 31, 2026 increased by ¥47.3 billion, or 10.2%, compared to the fiscal year ended March 31, 2025, to ¥510.6 billion.\n\nAs a result, net business profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥2.3 billion, or 0.6%, compared to the fiscal year ended March 31, 2025, to ¥367.7 billion.\n\nGMC\n\nGross profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥156.2 billion, or 30.7%, compared to the fiscal year ended March 31, 2025, to ¥664.8 billion. The increase was attributable mainly to an increase in profits from the sales and trading business in the Americas and an improvement in banking income.\n\nGeneral and administrative expenses for the fiscal year ended March 31, 2026 increased by ¥53.1 billion, or 15.1%, compared to the fiscal year ended March 31, 2025, to ¥404.9 billion.\n\nAs a result, net business profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥103.0 billion, or 65.7%, compared to the fiscal year ended March 31, 2025, to ¥259.9 billion.\n\n \n\n88\n\nAMC\n\nGross profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥13.7 billion, or 22.9%, compared to the fiscal year ended March 31, 2025, to ¥73.5 billion. The increase was attributable mainly to revenue related to assets under management of our subsidiaries.\n\nGeneral and administrative expenses for the fiscal year ended March 31, 2026 increased by ¥7.7 billion, or 20.1%, compared to the fiscal year ended March 31, 2025, to ¥46.2 billion.\n\nAs a result, net business profits + net gains related to ETFs and others for the fiscal year ended March 31, 2026 increased by ¥7.7 billion, or 65.5%, compared to the fiscal year ended March 31, 2025, to ¥19.6 billion.\n\nGeographical Segment Analysis\n\nThe following discussion relates to our geographical segment analysis for the fiscal years ended March 31, 2025 and 2026. For the discussion on our geographical segment analysis for the fiscal year ended March 31, 2024, including certain comparative discussion on our operating results for the fiscal years ended March 31, 2024 and 2025, please refer to “Item 5. Operating and Financial Review and Prospects—Geographical Segment Analysis” in our annual report on Form 20-F for the fiscal year ended March 31, 2025, filed with the SEC on June 25, 2025.\n\nThe following table presents consolidated income statement and total assets information by major geographic area. Foreign activities are defined as business transactions that involve customers residing outside of Japan. However, as our operations are highly integrated globally, we have made estimates and assumptions for the allocation of assets, liabilities, income and expenses among the geographic areas.\n\n \n\n \n  \n \n \n \nAmericas\n \n \n \n \n \nAsia/Oceania\nexcluding\nJapan,\nand others\n \n  \n \n \n\n \n  \nJapan\n \n \nUnited\nStates\n \n  \nOthers\n \n \nEurope\n \n  \nTotal\n \n\n \n  \n \n \n \n \n \n  \n \n \n \n \n \n \n \n \n  \n \n \n\n \n  \n(in billions of yen)\n \n\nFiscal year ended March 31, 2025:\n\n  \n\n \n\n  \n\n \n\n \n\n  \n\nTotal revenue(1)\n\n  \n¥\n2,151\n \n \n¥\n3,725\n \n  \n¥\n247\n \n \n¥\n841\n \n \n¥\n1,207\n \n  \n¥\n8,170\n \n\nTotal expenses(2)\n\n  \n \n2,681\n \n \n \n2,702\n \n  \n \n297\n \n \n \n902\n \n \n \n828\n \n  \n \n7,411\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome (loss) before income tax expense (benefit)\n\n  \n \n(530\n) \n \n \n1,023\n \n  \n \n(50\n) \n \n \n(62\n) \n \n \n378\n \n  \n \n759\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet income (loss)\n\n  \n¥\n(521\n) \n \n¥\n926\n \n  \n¥\n(59\n) \n \n¥\n(91\n) \n \n¥\n305\n \n  \n¥\n560\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal assets at end of fiscal year\n\n  \n¥\n171,684\n \n \n¥\n58,654\n \n  \n¥\n3,990\n \n \n¥\n19,835\n \n \n¥\n22,578\n \n  \n¥\n276,741\n \n\nFiscal year ended March 31, 2026:\n\n  \n\n \n\n  \n\n \n\n \n\n  \n\nTotal revenue(1)\n\n  \n¥\n3,468\n \n \n¥\n3,299\n \n  \n¥\n226\n \n \n¥\n796\n \n \n¥\n1,005\n \n  \n¥\n8,794\n \n\nTotal expenses(2)\n\n  \n \n3,226\n \n \n \n2,110\n \n  \n \n212\n \n \n \n794\n \n \n \n767\n \n  \n \n7,109\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome before income tax expense\n\n  \n \n242\n \n \n \n1,189\n \n  \n \n14\n \n \n \n2\n \n \n \n238\n \n  \n \n1,686\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNet income (loss)\n\n  \n¥\n62\n \n \n¥\n1,112\n \n  \n¥\n6\n \n \n¥\n(26\n) \n \n¥\n172\n \n  \n¥\n1,326\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal assets at end of fiscal year\n\n  \n¥\n175,802\n \n \n¥\n64,060\n \n  \n¥\n5,036\n \n \n¥\n23,341\n \n \n¥\n26,658\n \n  \n¥\n294,896\n \n\n \n\nNotes: \n\n(1)\n\nTotal revenue includes interest and dividend income and noninterest income. \n\n(2)\n\nTotal expenses include interest expense, provision (credit) for credit losses and noninterest expenses. \n\n \n\n89\n\nFiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025\n\nIn the fiscal year ended March 31, 2026, we recorded a net loss in Europe. Among the geographical regions in which we recorded net income, 4.6% of our net income was derived from Japan, 82.3% from the United States, 0.4% from the Americas excluding the United States, and 12.7% from Asia/Oceania excluding Japan, and others. At March 31, 2026, 59.6% of total assets were allocated to Japan, 21.7% to the United States, 1.7% to the Americas excluding the United States, 7.9% to Europe and 9.0% to Asia/Oceania excluding Japan, and others.\n\nIn Japan, total revenue increased by ¥1,317 billion from the previous fiscal year due primarily to a change from investment losses related to equity securities to investment gains related to equity securities. The change from investment losses related to equity securities to investment gains related to equity securities was due mainly to an increase in gains related to changes in the fair value of Japanese equity securities in the fiscal year ended March 31, 2026, which mostly reflected the relative strength in market conditions. Total expenses increased by ¥545 billion from the previous fiscal year due mainly to increases in expenses on deposits and payables under repurchase agreements and securities lending transactions. In addition, we recorded an income tax expense of ¥180 billion in Japan in the fiscal year ended March 31, 2026 compared to an income tax benefit of ¥8 billion in the previous fiscal year. As a result, we recorded net income of ¥62 billion in Japan in the fiscal year ended March 31, 2026 compared to net loss of ¥521 billion in the previous fiscal year. Total assets in Japan increased by ¥4,118 billion due primarily to increases in trading account assets and investments, offset in part by a decrease in interest-bearing deposits in other banks.\n\nIn the United States, total revenue decreased by ¥425 billion from the previous fiscal year due primarily to decreases in interest income from interest-bearing deposits in other banks and trading account gains—net. The decrease in interest income from interest-bearing deposits in other banks was due mainly to decreases in the average balance and the average yield of interest-bearing deposits in other banks. The decrease in trading account gains—net was due mainly to a decrease in gains on derivative instruments based on foreign exchange contracts held for trading purposes in foreign subsidiaries. Total expenses decreased by ¥592 billion due mainly to a decrease in expenses on payables under repurchase agreements and securities lending transactions. As a result, net income in the United States increased by ¥186 billion. Total assets in the United States increased by ¥5,406 billion due primarily to an increase in receivables under resale agreements.\n\nIn the Americas excluding the United States, total revenue decreased by ¥21 billion from the previous fiscal year due primarily to a change from trading account gains—net to trading account losses—net, offset in part by an increase in other noninterest income and a change from foreign exchange losses—net to foreign exchange gains—net. Total expenses decreased by ¥85 billion due mainly to a decrease in expenses on deposits. As a result, we recorded net income of ¥6 billion in the Americas excluding the United States in the fiscal year ended March 31, 2026 compared to net loss of ¥59 billion in the previous fiscal year. Total assets in the Americas excluding the United States increased by ¥1,046 billion due primarily to increases in investments and trading account assets.\n\nIn Europe, total revenue decreased by ¥45 billion from the previous fiscal year due primarily to a decrease in interest income from loans, including fees. Total expenses decreased by ¥109 billion due mainly to a decrease in expenses on deposits. As a result, net loss in Europe decreased by ¥65 billion. Total assets in Europe increased by ¥3,506 billion due primarily to increases in trading account assets and loans.\n\nIn Asia/Oceania excluding Japan, and others, total revenue decreased by ¥201 billion from the previous fiscal year due primarily to decreases in interest income from loans, including fees and trading account assets. Total expenses decreased by ¥61 billion due mainly to a decrease in expenses on trading account liabilities. As a result, net income in Asia/Oceania excluding Japan, and others decreased by ¥133 billion. Total assets in Asia/Oceania excluding Japan, and others increased by ¥4,080 billion due primarily to increases in loans and trading account assets.\n\n \n\n90\n\nFinancial Condition\n\nAssets\n\nOur assets as of March 31, 2025 and 2026 were as follows:\n\n \n\n \n  \nAs of March 31,\n \n \nIncrease\n(decrease)\n \n\n \n  \n2025\n \n \n2026\n \n\n \n  \n(in billions of yen)\n \n\nCash and due from banks\n\n  \n¥\n2,292\n \n \n¥\n2,699\n \n \n¥\n407\n \n\nInterest-bearing deposits in other banks\n\n  \n \n71,144\n \n \n \n59,907\n \n \n \n(11,236\n) \n\nCall loans and funds sold\n\n  \n \n776\n \n \n \n1,047\n \n \n \n271\n \n\nReceivables under resale agreements\n\n  \n \n28,109\n \n \n \n30,572\n \n \n \n2,463\n \n\nReceivables under securities borrowing transactions\n\n  \n \n2,078\n \n \n \n1,761\n \n \n \n(318\n) \n\nTrading account assets\n\n  \n \n37,598\n \n \n \n48,696\n \n \n \n11,098\n \n\nInvestments\n\n  \n \n24,764\n \n \n \n33,486\n \n \n \n8,722\n \n\nLoans\n\n  \n \n99,257\n \n \n \n105,836\n \n \n \n6,579\n \n\nAllowance for credit losses on loans\n\n  \n \n(816\n) \n \n \n(757\n) \n \n \n59\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLoans, net of allowance\n\n  \n \n98,441\n \n \n \n105,079\n \n \n \n6,638\n \n\nPremises and equipment—net\n\n  \n \n1,814\n \n \n \n1,823\n \n \n \n9\n \n\nDue from customers on acceptances\n\n  \n \n274\n \n \n \n391\n \n \n \n117\n \n\nAccrued income\n\n  \n \n673\n \n \n \n719\n \n \n \n46\n \n\nGoodwill\n\n  \n \n164\n \n \n \n213\n \n \n \n50\n \n\nIntangible assets\n\n  \n \n35\n \n \n \n42\n \n \n \n7\n \n\nDeferred tax assets\n\n  \n \n345\n \n \n \n379\n \n \n \n33\n \n\nOther assets\n\n  \n \n8,234\n \n \n \n8,082\n \n \n \n(152\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal assets\n\n  \n¥\n276,741\n \n \n¥\n294,896\n \n \n¥\n18,155\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal assets increased by ¥18,155 billion from March 31, 2025 to ¥294,896 billion as of March 31, 2026. The increase was due mainly to increases of ¥11,098 billion in trading account assets, ¥8,722 billion in investments, ¥6,638 billion in loans, net of allowance and ¥2,463 billion in receivables under resale agreements, offset in part by a decrease of ¥11,236 billion in interest-bearing deposits in other banks.\n\n \n\n91\n\nLoans\n\nLoans outstanding\n\nThe following table shows our loans outstanding as of March 31, 2025 and 2026:\n\n \n\n \n  \nAs of March 31,\n \n \nIncrease\n(decrease)\n \n\n \n  \n2025\n \n \n2026\n \n\n \n  \n(in billions of yen, except percentages)\n \n\nDomestic:\n\n  \n\n  \n\n \n\n  \n\n \n\n \n\nCorporate:\n\n  \n\n  \n\n \n\n  \n\n \n\n \n\nLarge companies\n\n  \n¥\n45,879\n \n  \n \n46.2\n% \n \n¥\n50,573\n \n  \n \n47.8\n% \n \n¥\n4,694\n \n \n \n1.6\n% \n\nSmall and medium-sized companies\n\n  \n \n2,746\n \n  \n \n2.8\n \n \n \n2,727\n \n  \n \n2.6\n \n \n \n(19\n) \n \n \n(0.2\n) \n\nRetail:\n\n  \n\n  \n\n \n\n  \n\n \n\n \n\nHousing loan\n\n  \n \n6,822\n \n  \n \n6.9\n \n \n \n6,630\n \n  \n \n6.3\n \n \n \n(191\n) \n \n \n(0.6\n) \n\nOthers\n\n  \n \n1,275\n \n  \n \n1.3\n \n \n \n1,195\n \n  \n \n1.1\n \n \n \n(80\n) \n \n \n(0.2\n) \n\nSovereign\n\n  \n \n3,693\n \n  \n \n3.7\n \n \n \n552\n \n  \n \n0.5\n \n \n \n(3,141\n) \n \n \n(3.2\n) \n\nBanks and other financial institutions\n\n  \n \n867\n \n  \n \n0.9\n \n \n \n1,065\n \n  \n \n1.0\n \n \n \n198\n \n \n \n0.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal domestic\n\n  \n \n61,282\n \n  \n \n61.7\n \n \n \n62,742\n \n  \n \n59.3\n \n \n \n1,460\n \n \n \n(2.4\n) \n\nForeign:\n\n  \n\n  \n\n \n\n  \n\n \n\n \n\nCorporate(1)\n\n  \n \n33,934\n \n  \n \n34.2\n \n \n \n38,547\n \n  \n \n36.4\n \n \n \n4,613\n \n \n \n2.2\n \n\nRetail\n\n  \n \n10\n \n  \n \n0.0\n \n \n \n13\n \n  \n \n0.0\n \n \n \n3\n \n \n \n0.0\n \n\nSovereign\n\n  \n \n781\n \n  \n \n0.8\n \n \n \n945\n \n  \n \n0.9\n \n \n \n164\n \n \n \n0.1\n \n\nBanks and other financial institutions\n\n  \n \n3,251\n \n  \n \n3.3\n \n \n \n3,590\n \n  \n \n3.4\n \n \n \n339\n \n \n \n0.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal foreign\n\n  \n \n37,975\n \n  \n \n38.3\n \n \n \n43,094\n \n  \n \n40.7\n \n \n \n5,119\n \n \n \n2.4\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal loans before allowance for credit losses on loans\n\n  \n¥\n99,257\n \n  \n \n100.0\n% \n \n¥\n105,836\n \n  \n \n100.0\n% \n \n¥\n6,579\n \n \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\nNote: \n\n(1)\n\nCorporate of foreign included ¥166 billion and ¥169 billion of lease receivables that were receivables arising from direct financing leasing as of March 31, 2025 and 2026, respectively. \n\nLoans are generally carried at the principal amount adjusted for unearned income and deferred net nonrefundable loan fees and costs. The total amounts of unearned income and deferred net nonrefundable loan fees and costs were ¥284 billion and ¥312 billion as of March 31, 2025 and 2026, respectively.\n\nTotal loans before allowance for credit losses on loans increased by ¥6,579 billion from March 31, 2025 to ¥105,836 billion as of March 31, 2026. Loans to domestic borrowers increased by ¥1,460 billion from March 31, 2025 to ¥62,742 billion as of March 31, 2026 due mainly to an increase in loans to large companies, offset in part by a decrease in sovereign borrowers.\n\nLoans to foreign borrowers increased by ¥5,119 billion from March 31, 2025 to ¥43,094 billion as of March 31, 2026 due mainly to an increase in loans to corporate borrowers.\n\nWithin our loan portfolio, the proportion of loans to domestic borrowers against total loans decreased from 61.7% to 59.3%, while that of loans to foreign borrowers against total loans increased from 38.3% to 40.7%. Loans to foreign borrowers were regionally diversified.\n\nNonaccrual Loans\n\nGeneral\n\nIn accordance with our group’s credit risk management policies, we use an internal rating system that consists of credit ratings for the corporate portfolio segment and pool allocations for the retail portfolio segment\n\n \n\n92\n\nas the basis of our risk management infrastructure. Credit ratings consist of obligor ratings which represent the level of credit risk of the obligor, and transaction ratings which represent the ultimate possibility of losses expected on individual loans by taking into consideration various factors such as collateral or guarantees involved. In principle, obligor ratings are applied to all obligors except those to which pool allocations are applied, and are subject to regular review at least once a year as well as special review which is required whenever the obligor’s credit standing changes. Pool allocations are applied to small loans that are less than a specified amount by pooling customers and loans with similar risk characteristics, and the risk is assessed mainly based on past due status and managed according to such pools. We generally review the appropriateness and effectiveness of the approach to obligor ratings and pool allocations once a year in accordance with predetermined policies and procedures.\n\nWe do not record expected credit losses for accrued interest receivables because uncollectible accrued interest is reversed through interest income in a timely manner in line with our nonaccrual and past due policies for loans. The amount of accrued interest receivables was ¥239 billion and ¥245 billion at March 31, 2025 and 2026, respectively, and included in accrued income.\n\nThe table below presents our definition of obligor ratings used by Mizuho Bank and Mizuho Trust & Banking:\n\n \n\nObligor category(1)(2)\n\n  \n\nObligor rating\n\n  \n\nDefinition\n\nNormal\n\n  \nA\n  \nObligors whose certainty of debt fulfillment is very high, hence their level of credit risk is very low.\n\n  \nB\n  \nObligors whose certainty of debt fulfillment poses no problems for the foreseeable future, and their level of credit risk is low.\n\n  \nC\n  \nObligors whose certainty of debt fulfillment and their level of credit risk pose no problems for the foreseeable future.\n\n  \nD\n  \nObligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future economic environmental changes is low.\n\nWatch\n\n  \nE1\n  \nObligors that require observation going forward because of either minor concerns regarding their financial position, or their somewhat weak or unstable business conditions.\n\n  \nE2\n  \nObligors that require special observation going forward because of problems with their borrowings such as reduced or suspended interest payments, problems with debt fulfillment such as failure to make principal or interest payments, or problems with their financial position as a result of their weak or unstable business conditions.\n\nIntensive control\n\n  \nF\n  \nObligors that are not yet bankrupt but are in financial difficulties and are deemed likely to become bankrupt in the future because of insufficient progress in implementing their management improvement plans or other measures (including obligors that are receiving ongoing support from financial institutions).\n\nSubstantially bankrupt\n  \nG\n  \nObligors that have not yet become legally or formally bankrupt but are substantially insolvent because they are in serious financial difficulties and are deemed to be incapable of being restructured.\n\nBankrupt\n\n  \nH\n  \nObligors that have become legally or formally bankrupt.\n\n \n\nNotes: \n\n(1)\n\nSpecial attention obligors are watch obligors with modified debt or 90 days or more delinquent debt. Loans to such obligors are considered nonaccrual.\n\n(2)\n\nWe classify loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as nonaccrual loans. \n\n \n\n93\n\nWe consider loans to be nonaccrual when it is probable that we will be unable to collect all the scheduled payments of principal and interest when due according to the contractual terms of the loans. We classify loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as nonaccrual loans. We do not have any loans to borrowers that cause management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms for the periods presented other than those already designated as nonaccrual loans. See “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management” for descriptions of our self-assessment procedures and our internal credit rating system.\n\nOur credit management activities consist of activities such as efforts to provide management consultation to support borrowers’ business initiatives, to increase the quantity and enhance the quality of loan collateral, and to adjust loan balances to an appropriate level, when the borrower’s credit quality is showing a decline. These activities can lead to improvements in obligor classifications through improvements in the business and financial condition of borrowers and, as a result, a reduction in allowance for credit losses on loans.\n\nWe attempt to remove nonaccrual loans from our balance sheet within three years from the time when they are categorized through methods such as collection, charge-offs, disposal and improving the borrowers’ credit rating through restructuring efforts.\n\nLoan modifications\n\nRestructuring efforts are made through our various business revitalization support measures conducted based on requests from borrowers that are in a weakened state that require some form of support. When confronted with the decision of whether to agree to business revitalization support, which includes forgiveness of debt (including debt to equity swaps), reductions in stated interest rates to below market levels and postponement of payment of principal and/or interest (other than insignificant extensions), we carefully consider whether it is beneficial to our shareholders and depositors based on various factors such as whether (i) a legal reorganization process would significantly damage the obligor’s business value such that there is a fear that the obligor will not be able to restructure its business, (ii) the restructuring plan is appropriate and is economically rational from the viewpoint of minimizing our losses compared to other processes, (iii) both the management and shareholders of the obligor will clearly bear responsibility, and (iv) the allocation of losses among creditors is rational and highly justifiable. The triggers and factors that we review to identify restructured loans are modifications imposed by law or a court of law and alterations based on agreement with the borrower such as the reduction of the stated interest rate and forgiveness of debt (including debt to equity swaps), and we consider restructured loans, with respect to which concessions that it would not otherwise consider were granted to borrowers experiencing financial difficulty. We consider the relevant obligor to be in financial difficulty when its rating based on our internal rating system is E2 or below. The types of concessions that we would not otherwise consider include the various forms of business revitalization support described above. In general, modified loans to borrowers experiencing financial difficulty will return to accrual loans when we determine that the borrower poses no problems regarding current certainty of debt fulfillment, i.e., the borrower qualifies for a rating of D or above based on our internal rating system.\n\nWe determine whether restructured loans other than modified loans to borrowers experiencing financial difficulty are nonaccrual loans based on the application of our internal rating system as we do generally with respect to all obligors. We determine whether restructured loans are past due or current by comparing the obligors’ payments with the modified contract terms. The effect of the restructuring on the obligors is considered in developing the allowance based on the restructuring’s effect on the estimation of future cash flows of such loans. See note 4 to our consolidated financial statements included elsewhere in this annual report for further information on loan modifications.\n\nWhile we maintain basic guidelines covering restructured loans, we do not have any standardized modification programs. Instead, we apply various modifications as appropriate for the specific circumstances of\n\n \n\n94\n\nthe obligor in question. We do not have a policy that specifically limits the number of modifications that can be performed for a specific loan.\n\nBalance of nonaccrual loans\n\nThe following table shows our nonaccrual loans as of March 31, 2025 and 2026:\n\n \n\n \n  \nAs of March 31, \n \n \n \n \n\n  \n  2025  \n \n \n  2026  \n \n \nIncrease (decrease)\n \n\n  \nNonaccrual\nloans\n \n  \nRatio to\ntotal loans\n \n \nNonaccrual\nloans\n \n  \nRatio to\ntotal loans\n \n \nNonaccrual\nloans\n \n \nRatio to\ntotal loans\n \n\n  \n(in billions of yen, except percentages)\n \n\nDomestic:\n\n  \n\n  \n\n \n\n  \n\n \n\n \n\nCorporate:\n\n  \n\n  \n\n \n\n  \n\n \n\n \n\nLarge companies\n\n  \n¥\n800\n \n  \n \n1.7\n% \n \n¥\n558\n \n  \n \n1.1\n% \n \n¥\n(242\n) \n \n \n(0.6\n)% \n\nSmall and medium-sized companies\n\n  \n \n92\n \n  \n \n3.4\n \n \n \n86\n \n  \n \n3.1\n \n \n \n(7\n) \n \n \n(0.3\n) \n\nRetail:\n\n  \n\n  \n\n \n\n  \n\n \n\n \n\nHousing loan\n\n  \n \n30\n \n  \n \n0.4\n \n \n \n28\n \n  \n \n0.4\n \n \n \n(3\n) \n \n \n0.0\n \n\nOthers\n\n  \n \n43\n \n  \n \n3.4\n \n \n \n41\n \n  \n \n3.4\n \n \n \n(2\n) \n \n \n0.0\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n \n\nTotal domestic\n\n  \n \n965\n \n  \n \n1.6\n \n \n \n712\n \n  \n \n1.1\n \n \n \n(253\n) \n \n \n(0.5\n) \n\nForeign\n\n  \n \n96\n \n  \n \n0.3\n \n \n \n187\n \n  \n \n0.4\n \n \n \n91\n \n \n \n0.1\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n \n\nTotal nonaccrual loans\n\n  \n¥\n1,062\n \n  \n \n1.1\n \n \n¥\n899\n \n  \n \n0.9\n \n \n¥\n(162\n) \n \n \n(0.2\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n \n\nTotal nonaccrual loans decreased by ¥162 billion, or 15.3%, from March 31, 2025 to ¥899 billion as of March 31, 2026. Nonaccrual loans to domestic borrowers decreased by ¥253 billion due mainly to a decrease in nonaccrual loans to large companies. Nonaccrual loans to foreign borrowers increased by ¥91 billion. The relative impact of foreign currency fluctuations on such amount was immaterial.\n\nReflecting the aforementioned change, the percentage of nonaccrual loans within total loans decreased from 1.1% as of March 31, 2025 to 0.9% as of March 31, 2026. The percentage of nonaccrual loans net of allowance for credit losses on loans to total loans net of allowance for credit losses on loans decreased from 0.25% as of March 31, 2025 to 0.14% as of March 31, 2026 due to a decrease in nonaccrual loans net of allowance for credit losses on loans and an increase in total loans net of allowance for credit losses on loans.\n\nAllowance for Credit Losses on Loans\n\nCalculation of allowance for credit losses on loans\n\nEach reporting period, we make adjustments to the allowance for credit losses on loans through provision (credit) for credit losses in the consolidated statements of income. Loan principal that management judges to be uncollectible, based on detailed loan reviews and a credit quality assessment, is charged off against the allowance for credit losses on loans. In general, we charge off loans when we determine that the obligor should be classified as substantially bankrupt or bankrupt. See the table above in “—Nonaccrual Loans—General” for the definitions of obligor categories. Obligors in the retail portfolio segment are generally determined to be substantially bankrupt when they are past due for more than six months, and as for obligors in the corporate portfolio segment, we separately monitor the credit quality of each obligor without using time-based triggers.\n\nWe maintain an appropriate allowance for credit losses on loans to represent management’s estimate of the expected credit losses in our loan portfolio. Management evaluates the appropriateness of the allowance for credit losses on loans semi-annually. The allowance considers expected credit losses over the remaining expected lives of the applicable instruments. The expected life of each instrument is determined by considering expected\n\n \n\n95\n\nprepayments, contractual terms and cancellation features. The allowance for credit losses involves significant judgments on a number of matters including expectations of future economic conditions, assignment of obligor ratings, valuation of collateral, the timing and amount of future cash flows, and the development of qualitative adjustments.\n\nWhen determining expected credit losses, a single forward-looking macroeconomic scenario is considered over a reasonable and supportable forecast period. This forward-looking macroeconomic scenario is in line with the scenario used for our business plan. If the scenarios are not reflective of management’s expectations, adjustments may be made to the scenario. After the forecast period, we revert to long-term historical loss experience with a certain graduated transition period, to estimate losses over the remaining lives of financial assets measured at amortized cost and certain off-balance-sheet instruments. The macroeconomic scenario is updated semi-annually in principle and is reviewed to reflect current economic conditions and our expectation of future conditions on a timely basis. For March 31, 2025 and 2026, we used the most recent macroeconomic scenario available during our credit loss estimation process.\n\nIn terms of the internal risk ratings, for the corporate portfolio segment, the credit quality review process and the credit rating process serve as the basis for determining the allowance for credit losses on loans. Through such processes loans are categorized into groups to reflect the probability of default, whereby our management assesses the ability of borrowers to service their debt, taking into consideration current financial information, ability to generate cash, historical payment experience, analysis of relevant industry segments and current trends. For the retail portfolio segment, the different categories of past due status of loans are primarily utilized in the credit quality review and the credit rating processes as the basis for determining the allowance for credit losses on loans.\n\nIn general, we estimate expected credit losses collectively on the loans in the case of normal and watch obligors, considering the risk associated with a particular pool and the probability that the exposures within the pool will deteriorate or default. The allowance for credit losses on nonaccrual loans generally includes the allowance for those loans that were individually evaluated for expected credit losses. See note 4 to our consolidated financial statements included elsewhere in this annual report for the definitions of obligor categories and classification of nonaccrual loans.\n\nThe estimation of expected credit losses that are evaluated collectively begins with a quantitative calculation that considers the likelihood of the borrower changing delinquency status or moving from one obligor category or rating to another. The quantitative calculation covers expected credit losses over an instrument’s expected life and is estimated by applying credit loss factors to our estimated exposure at default. The credit loss factors incorporate the probability of default as well as the loss given default based on the historical loss rates. To supplement the historical loss data for overseas obligors, external credit ratings such as S&P are also used to calculate the probability of default. The model and inputs used to determine credit losses on loans that are evaluated collectively are analyzed on a periodic basis by comparing the estimated values with the actual results subsequent to the balance sheet date.\n\nWe divide our overall portfolio into domestic and foreign portfolios, and categorize the domestic portfolio into four portfolio segments according to their risk profiles: corporate, retail, sovereign, and banks and financial institutions.\n\nThe corporate portfolio segment consists of loans originated primarily by Mizuho Bank and Mizuho Trust & Banking, and includes mainly business loans such as those used for working capital and capital expenditure, as well as loans for which the primary source of repayment of the obligation is income generated by the relevant assets such as project finance, asset finance and real estate finance. The corporate portfolio segment is divided into two classes based on their risk characteristics: large companies, and small and medium-sized companies. For the corporate portfolio segment, we consider key economic factors such as gross domestic products for Japan and each relevant foreign location, where the portfolio is significant, and the interest rates in Japan when estimating the credit loss.\n\n \n\n96\n\nThe retail portfolio segment consists mainly of residential mortgage loans originated by Mizuho Bank, and it is divided into two classes based on their risk characteristics: housing loan and others. For the retail portfolio segment, the Japanese unemployment rate is applied as a key factor. As it pertains to modified loans to borrowers experiencing financial difficulty in the retail portfolio segment, the restructuring itself, as well as subsequent payment defaults, if any, are considered in determining obligor categories. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off, or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral.\n\nThe allowance recorded for individually evaluated loans is based on (1) the present value of expected future cash flows, calculated using the discounted cash flow (“DCF”) method, which considers the restructuring effect and subsequent payment default with respect to modified loans to borrowers experiencing financial difficulty, discounted at the loan’s post-modification contractual effective interest rate, (2) the loan’s observable market price, or (3) the fair value of the collateral if the loan is collateral dependent. The collateral that we obtain for loans consists primarily of real estate. In obtaining the collateral, we evaluate the fair value of the collateral and its legal enforceability. We also perform subsequent re-evaluations at least once a year. As it pertains to real estate collateral, valuation is generally performed by an internal appraisal department which is independent from our loan origination departments by using generally accepted valuation techniques such as (1) the replacement cost approach, (2) the sales comparison approach or (3) the income approach. In the case of large real estate collateral, we generally engage third-party appraisers to perform the valuation.\n\nOur methodology for determining the appropriate allowance for credit losses on loans also considers the imprecision inherent in the methodologies used. As a result, the amounts determined under the methodologies described above could be adjusted by management to consider the potential impact of other qualitative factors which include, but are not limited to, imprecision in macroeconomic scenario assumptions and emerging risks such as the conflict in the Middle East and their ripple effects on specific portfolio segments. Considering internal and external factors affecting the credit quality of the portfolio, we incorporated the estimated impacts of the conflict in the Middle East on domestic obligors, weakening obligor credit profiles driven by declining earnings, including ripple effects on the automotive supply chain, changes in interest rates, and other sources of economic uncertainty into the macroeconomic scenario. The macroeconomic scenario was revised to reflect updated key assumptions, including the forecasted business outlook for specific portfolio segments and the current forecast for the growth rate of gross domestic product and interest rates.\n\n \n\n97\n\nBalance of allowance for credit losses on loans \n\nThe following table summarizes changes in our allowance for credit losses on loans in the fiscal years ended March 31, 2025 and 2026:\n\n \n\n \n  \nDomestic\n \n  \n \n \n \n \n \n\n \n  \nCorporate\n \n \nRetail\n \n \nSovereign\n \n  \nBanks and\nother\nfinancial\ninstitutions\n \n  \nForeign(2)\n \n \nTotal\n \n\n \n  \n(in millions of yen)\n \n\nFiscal year ended March 31, 2025\n\n  \n\n \n\n \n\n  \n\n  \n\n \n\nBalance at beginning of fiscal year\n\n  \n¥\n564\n \n \n¥\n56\n \n \n¥\n— \n \n  \n¥\n— \n \n  \n¥\n130\n \n \n¥\n750\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nProvision (credit) for credit losses on loans\n\n  \n \n84\n \n \n \n(1\n) \n \n \n— \n \n  \n \n— \n \n  \n \n12\n \n \n \n96\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCharge-offs\n\n  \n \n(19\n) \n \n \n(6\n) \n \n \n— \n \n  \n \n— \n \n  \n \n(24\n) \n \n \n(48\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRecoveries\n\n  \n \n10\n \n \n \n1\n \n \n \n— \n \n  \n \n— \n \n  \n \n10\n \n \n \n20\n \n\nNet charge-offs\n\n  \n \n(9\n) \n \n \n(5\n) \n \n \n— \n \n  \n \n— \n \n  \n \n(14\n) \n \n \n(28\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOthers(1)\n\n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n  \n \n(2\n) \n \n \n(2\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at end of fiscal year\n\n  \n¥\n639\n \n \n¥\n50\n \n \n¥\n— \n \n  \n¥\n— \n \n  \n¥\n127\n \n \n¥\n816\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nFiscal year ended March 31, 2026\n\n  \n\n \n\n \n\n  \n\n  \n\n \n\nBalance at beginning of fiscal year\n\n  \n¥\n639\n \n \n¥\n50\n \n \n¥\n— \n \n  \n¥\n— \n \n  \n¥\n127\n \n \n¥\n816\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nProvision (credit) for credit losses on loans\n\n  \n \n144\n \n \n \n1\n \n \n \n— \n \n  \n \n— \n \n  \n \n43\n \n \n \n188\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCharge-offs\n\n  \n \n(250\n) \n \n \n(4\n) \n \n \n— \n \n  \n \n— \n \n  \n \n(19\n) \n \n \n(273\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRecoveries\n\n  \n \n5\n \n \n \n1\n \n \n \n— \n \n  \n \n— \n \n  \n \n1\n \n \n \n6\n \n\nNet charge-offs\n\n  \n \n(245\n) \n \n \n(3\n) \n \n \n— \n \n  \n \n— \n \n  \n \n(19\n) \n \n \n(267\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOthers(1)\n\n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n  \n \n19\n \n \n \n19\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance at end of fiscal year\n\n  \n¥\n539\n \n \n¥\n48\n \n \n¥\n— \n \n  \n¥\n1\n \n  \n¥\n170\n \n \n¥\n757\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNotes:\n\n(1)\n\nOthers includes primarily foreign exchange translation.\n\n(2)\n\nThe majority of total foreign consist of corporate.\n\nAllowance for credit losses on loans decreased by ¥59 billion, or 7.3%, from March 31, 2025 to ¥757 billion as of March 31, 2026 due mainly to charge-offs of loans to certain domestic corporate borrowers, offset in part by provision for credit losses on loans to domestic corporate borrowers. As a result, the percentage of allowance for credit losses on loans against total loans decreased by 0.10 percentage points to 0.72%.\n\nProvision for credit losses on loans increased by ¥93 billion from the fiscal year ended March 31, 2025 to ¥188 billion for the fiscal year ended March 31, 2026. The increase was due mainly to increases in provision for credit losses on loans to domestic corporate borrowers and foreign borrowers.\n\nCharge-offs increased by ¥225 billion from the fiscal year ended March 31, 2025 to ¥273 billion for the fiscal year ended March 31, 2026. The increase was due mainly to charge-offs of loans to certain domestic corporate borrowers.\n\n \n\n98\n\nInvestments\n\nThe majority of our investments are available-for-sale and held-to-maturity securities, which as of March 31, 2025 and 2026 were as follows:\n\n \n\n \n \nAs of March 31,\n \n \nIncrease (decrease)\n \n\n \n \n2025\n \n \n2026\n \n\n \n \nAmortized\ncost\n \n \nFair\nvalue\n \n \nNet\nunrealized\ngains\n(losses)\n \n \nAmortized\ncost\n \n \nFair\nvalue\n \n \nNet\nunrealized\ngains\n(losses)\n \n \nAmortized\ncost\n \n \nFair\nvalue\n \n \nNet\nunrealized\ngains\n(losses)\n \n\n \n \n(in billions of yen)\n \n\nAvailable-for-sale securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDebt securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapanese government bonds\n\n \n¥\n8,379\n \n \n¥\n8,362\n \n \n¥\n(16\n) \n \n¥\n14,978\n \n \n¥\n14,925\n \n \n¥\n(53\n) \n \n¥\n6,599\n \n \n¥\n6,562\n \n \n¥\n(37\n) \n\nOther than Japanese government bonds\n\n \n \n6,736\n \n \n \n6,696\n \n \n \n(40\n) \n \n \n6,994\n \n \n \n6,924\n \n \n \n(70\n) \n \n \n258\n \n \n \n228\n \n \n \n(30\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n15,115\n \n \n¥\n15,059\n \n \n¥\n(56\n) \n \n¥\n21,972\n \n \n¥\n21,849\n \n \n¥\n(123\n) \n \n¥\n6,857\n \n \n¥\n6,790\n \n \n¥\n(67\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nHeld-to-maturity securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDebt securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nJapanese government bonds\n\n \n¥\n419\n \n \n¥\n400\n \n \n¥\n(20\n) \n \n¥\n420\n \n \n¥\n393\n \n \n¥\n(26\n) \n \n¥\n— \n \n \n¥\n(7\n) \n \n¥\n(7\n) \n\nAgency mortgage-backed securities\n\n \n \n3,766\n \n \n \n3,628\n \n \n \n(139\n) \n \n \n4,433\n \n \n \n4,318\n \n \n \n(115\n) \n \n \n667\n \n \n \n690\n \n \n \n24\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal\n\n \n¥\n4,186\n \n \n¥\n4,027\n \n \n¥\n(158\n) \n \n¥\n4,852\n \n \n¥\n4,711\n \n \n¥\n(141\n) \n \n¥\n667\n \n \n¥\n684\n \n \n¥\n17\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nAvailable-for-sale securities measured at fair value increased by ¥6,790 billion from March 31, 2025 to ¥21,849 billion as of March 31, 2026. The increase was due primarily to our purchases of Japanese government bonds, offset in part by our sales, and redemptions by the Japanese government, of Japanese government bonds. Held-to-maturity securities measured at amortized cost increased by ¥667 billion from March 31, 2025 to ¥4,852 billion as of March 31, 2026. See note 3 to our consolidated financial statements included elsewhere in this annual report for details of other investments included within investments.\n\nThe amount of our funding through deposits significantly exceeds our total loans. As a result, we allocate a significant portion of such excess among investments in debt securities, including Japanese government bonds, and investments in equity securities consisting mainly of common stock of Japanese listed company customers. We will continue our efforts to dispose of cross-shareholdings in order to decrease the potential impact on our financial position due to fluctuations in stock prices, and to be able to fully perform financial intermediary functions even under periods of stress.\n\nFluctuations in long-term interest rates lead to changes in the fair value of our portfolio of debt securities, a majority of which consists of Japanese government bonds. As of March 31, 2026, we had a total of ¥21,849 billion of available-for-sale securities measured at fair value within our investments, of which ¥14,925 billion were Japanese government bonds. We had ¥15,059 billion and ¥21,849 billion of available-for-sale securities measured at fair value as of March 31, 2025 and 2026, respectively, and net unrealized losses of ¥56 billion and ¥123 billion were reflected in accumulated other comprehensive income, net of tax, as of such dates, respectively. As the negative interest rate policy of the Bank of Japan that started in February 2016 ended in March 2024 and interest rates have been raised gradually since then and the resulting fluctuations in interest rates may have a substantial impact on the value of our Japanese government bonds portfolio, in order to prepare for the risk of sudden and significant future interest rate change, we continue to manage our Japanese government bonds portfolio conservatively by managing the average remaining period of our portfolio and strengthening risk management, including through the use of internal stress tests. Based on aggregated non-consolidated figures of our principal banking subsidiaries on a managerial accounting basis under Japanese GAAP after taking into account hedging activities, the average remaining period of our Japanese\n\n \n\n99\n\ngovernment bond portfolio included in available-for-sale securities within our investments and excluding held-to-maturity securities as of March 31, 2026 was approximately 0.9 years compared to 1.0 years as of March 31, 2025.\n\nRisk management related to our securities portfolio continues to be a key focus in light of the increase in instability and uncertainty in the global economy in recent years.\n\nTrading Account Assets\n\nTrading account assets increased by ¥11,098 billion from March 31, 2025 to ¥48,696 billion as of March 31, 2026. The increase was due mainly to an increase in the market value of receive-variable, pay-fixed derivative instruments based on interest rate contracts, reflecting a fluctuation in long-term interest rates.\n\nLiabilities\n\nThe following table shows our liabilities as of March 31, 2025 and 2026:\n\n \n\n \n  \nAs of March 31,\n \n  \nIncrease\n(decrease)\n \n\n \n  \n  2025  \n \n  \n  2026  \n \n\n \n  \n \n \n  \n \n \n  \n \n \n\n \n  \n(in billions of yen)\n \n\nDeposits\n\n  \n¥\n173,791\n \n  \n¥\n179,038\n \n  \n¥\n5,248\n \n\nDue to trust accounts\n\n  \n \n303\n \n  \n \n302\n \n  \n \n(1\n) \n\nCall money and funds purchased\n\n  \n \n2,745\n \n  \n \n3,192\n \n  \n \n446\n \n\nPayables under repurchase agreements\n\n  \n \n38,395\n \n  \n \n37,732\n \n  \n \n(663\n) \n\nPayables under securities lending transactions\n\n  \n \n1,675\n \n  \n \n2,067\n \n  \n \n392\n \n\nOther short-term borrowings\n\n  \n \n5,537\n \n  \n \n2,923\n \n  \n \n(2,614\n) \n\nTrading account liabilities\n\n  \n \n21,208\n \n  \n \n28,802\n \n  \n \n7,594\n \n\nBank acceptances outstanding\n\n  \n \n274\n \n  \n \n391\n \n  \n \n117\n \n\nIncome taxes payable\n\n  \n \n133\n \n  \n \n239\n \n  \n \n106\n \n\nDeferred tax liabilities\n\n  \n \n37\n \n  \n \n51\n \n  \n \n14\n \n\nAccrued expenses\n\n  \n \n571\n \n  \n \n671\n \n  \n \n100\n \n\nLong-term debt\n\n  \n \n14,914\n \n  \n \n20,839\n \n  \n \n5,924\n \n\nOther liabilities\n\n  \n \n6,608\n \n  \n \n7,171\n \n  \n \n563\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal liabilities\n\n  \n¥\n266,191\n \n  \n¥\n283,418\n \n  \n¥\n17,226\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal liabilities increased by ¥17,226 billion from March 31, 2025 to ¥283,418 billion as of March 31, 2026. The increase was due primarily to increases of ¥7,594 billion in trading account liabilities, ¥5,924 billion in long-term debt and ¥5,248 billion in deposits, offset in part by a decrease of ¥2,440 billion in short-term borrowings. We analyze short-term borrowings, consisting of due to trust accounts, call money and funds purchased, payables under repurchase agreements, payables under securities lending transactions and other short-term borrowings, on a combined basis.\n\n \n\n100\n\nDeposits\n\nThe following table shows a breakdown of our deposits as of March 31, 2025 and 2026:\n\n \n\n \n  \nAs of March 31,\n \n  \nIncrease\n(decrease)\n \n\n \n  \n  2025  \n \n  \n  2026  \n \n\n \n  \n \n \n  \n \n \n  \n \n \n\n \n  \n(in billions of yen)\n \n\nDomestic:\n\n  \n\n  \n\n  \n\nNoninterest-bearing deposits\n\n  \n¥\n31,705\n \n  \n¥\n31,456\n \n  \n¥\n(249\n) \n\nInterest-bearing deposits\n\n  \n \n95,655\n \n  \n \n98,319\n \n  \n \n2,665\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal domestic deposits\n\n  \n \n127,360\n \n  \n \n129,775\n \n  \n \n2,416\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nForeign:\n\n  \n\n  \n\n  \n\nNoninterest-bearing deposits\n\n  \n \n2,643\n \n  \n \n2,987\n \n  \n \n344\n \n\nInterest-bearing deposits\n\n  \n \n43,788\n \n  \n \n46,276\n \n  \n \n2,488\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal foreign deposits\n\n  \n \n46,431\n \n  \n \n49,263\n \n  \n \n2,832\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal deposits\n\n  \n¥\n173,791\n \n  \n¥\n179,038\n \n  \n¥\n5,248\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal deposits increased by ¥5,248 billion from March 31, 2025 to ¥179,038 billion as of March 31, 2026. Domestic deposits increased by ¥2,416 billion from March 31, 2025 to ¥129,775 billion as of March 31, 2026. Domestic noninterest-bearing deposits decreased by ¥249 billion from March 31, 2025 to ¥31,456 billion as of March 31, 2026. Domestic interest-bearing deposits increased by ¥2,665 billion from March 31, 2025 to ¥98,319 billion as of March 31, 2026 due mainly to increases in ordinary deposits and other deposits. Foreign deposits increased by ¥2,832 billion from March 31, 2025 to ¥49,263 billion as of March 31, 2026 due mainly to an increase in time deposits.\n\nShort-term Borrowings\n\nThe following table shows a breakdown of our short-term borrowings as of March 31, 2025 and 2026:\n\n \n\n \n \nAs of March 31,\n \n \nIncrease (decrease)\n \n\n \n \n2025\n \n \n2026\n \n\n \n \nDomestic\n \n \nForeign\n \n \nTotal\n \n \nDomestic\n \n \nForeign\n \n \nTotal\n \n \nDomestic\n \n \nForeign\n \n \nTotal\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \n(in billions of yen)\n \n\nDue to trust accounts\n\n \n¥\n303\n \n \n¥\n— \n \n \n¥\n303\n \n \n¥\n302\n \n \n¥\n— \n \n \n¥\n302\n \n \n¥\n(1\n) \n \n¥\n— \n \n \n¥\n(1\n) \n\nCall money and funds purchased, and payables under repurchase agreements and securities lending transactions\n\n \n \n27,644\n \n \n \n15,171\n \n \n \n42,815\n \n \n \n22,846\n \n \n \n20,145\n \n \n \n42,991\n \n \n \n(4,798\n) \n \n \n4,973\n \n \n \n176\n \n\nOther short-term borrowings\n\n \n \n3,072\n \n \n \n2,465\n \n \n \n5,537\n \n \n \n854\n \n \n \n2,069\n \n \n \n2,923\n \n \n \n(2,218\n) \n \n \n(396\n) \n \n \n(2,614\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal short-term borrowings\n\n \n¥\n31,020\n \n \n¥\n17,636\n \n \n¥\n48,656\n \n \n¥\n24,002\n \n \n¥\n22,214\n \n \n¥\n46,216\n \n \n¥\n(7,017\n) \n \n¥\n4,577\n \n \n¥\n(2,440\n) \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal short-term borrowings decreased by ¥2,440 billion from March 31, 2025 to ¥46,216 billion as of March 31, 2026. Domestic short-term borrowings decreased by ¥7,017 billion due mainly to decreases in payables under repurchase agreements and other short-term borrowings. Foreign short-term borrowings increased by ¥4,577 billion due mainly to an increase in payables under repurchase agreements.\n\nTrading Account Liabilities\n\nTrading account liabilities increased by ¥7,594 billion from March 31, 2025 to ¥28,802 billion as of March 31, 2026. The increase was due mainly to an increase in the market value of receive-fixed, pay-variable derivative instruments based on interest rate contracts, reflecting a fluctuation in long-term interest rates.\n\n \n\n101\n\nEquity\n\nThe following table shows a breakdown of equity as of March 31, 2025 and 2026:\n\n \n\n \n  \nAs of March 31,\n \n \nIncrease\n(decrease)\n \n\n \n  \n  2025  \n \n \n  2026  \n \n\n \n  \n \n \n \n \n \n \n \n \n\n \n  \n(in billions of yen)\n \n\nMHFG shareholders’ equity:\n\n  \n\n \n\n \n\nCommon stock\n\n  \n¥\n5,799\n \n \n¥\n5,767\n \n \n¥\n(32\n) \n\nRetained earnings\n\n  \n \n3,344\n \n \n \n4,066\n \n \n \n722\n \n\nAccumulated other comprehensive income, net of tax\n\n  \n \n932\n \n \n \n1,338\n \n \n \n406\n \n\nTreasury stock, at cost\n\n  \n \n(9\n) \n \n \n(312\n) \n \n \n(302\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal MHFG shareholders’ equity\n\n  \n \n10,065\n \n \n \n10,860\n \n \n \n795\n \n\nNoncontrolling interests\n\n  \n \n485\n \n \n \n618\n \n \n \n134\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal equity\n\n  \n¥\n10,550\n \n \n¥\n11,478\n \n \n¥\n928\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal equity increased by ¥928 billion from March 31, 2025 to ¥11,478 billion as of March 31, 2026 due mainly to increases in retained earnings and accumulated other comprehensive income, net of tax, offset in part by an increase in treasury stock, at cost.\n\nRetained earnings increased by ¥722 billion from March 31, 2025 to ¥4,066 billion as of March 31, 2026. The increase was due primarily to net income attributable to MHFG shareholders for the fiscal year ended March 31, 2026 of ¥1,158 billion, offset in part by dividend payments of ¥369 billion and a decrease of ¥67 billion as a result of the cancellation of common stock.\n\nAccumulated other comprehensive income, net of tax, increased by ¥406 billion from March 31, 2025 to ¥1,338 billion as of March 31, 2026. The increase was due primarily to foreign currency translation adjustments of ¥306 billion and defined benefit plan adjustments of ¥154 billion.\n\nNoncontrolling interests increased by ¥134 billion from March 31, 2025 to ¥618 billion as of March 31, 2026. The increase was due mainly to increases in net assets and the share of noncontrolling shareholders of certain investment funds that we consolidate.\n\nLiquidity\n\nWe continuously endeavor to enhance the management of our liquidity profile to meet our customers’ loan demand and deposit withdrawals and respond to unforeseen situations such as adverse movements in stock prices, foreign currency exchange rates, interest rates and other markets or changes in general domestic or international conditions. We manage our liquidity profile through the continuous monitoring of our cash flow situation, the enforcement of upper limits on funds raised in financial markets and other means as further set forth in “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Liquidity Risk Management.”\n\nDeposits, based on our broad customer base and brand recognition in Japan, have been our primary source of liquidity. Our total deposits increased by ¥5,248 billion, or 3.0%, from March 31, 2025 to ¥179,038 billion as of March 31, 2026.\n\nSecondary sources of liquidity include short-term borrowings such as call money and funds purchased and payables under repurchase agreements. We also issue long-term debt, including both senior and subordinated debt, as additional sources for liquidity. We utilize short-term borrowings to diversify our funding sources and to manage our funding costs. We raise senior and subordinated long-term debt for the purpose of improving our total loss absorbing capacity and capital adequacy ratios, which also enhances our liquidity profile. We believe\n\n \n\n102\n\nwe are able to access such sources of liquidity on a stable and flexible basis based on our current credit ratings. The following table shows credit ratings assigned to us and to our principal banking subsidiaries by S&P and Moody’s as of May 31, 2026:\n\n \n\n \n  \nAs of May 31, 2026\n \n\n \n  \nS&P\n \n  \nMoody’s\n \n\n \n  \nLong-term\n \n  \nShort-term\n \n  \nLong-term\n \n  \nShort-term\n \n\nMizuho Financial Group\n\n  \n \nA-\n \n  \n \n— \n \n  \n \nA1\n \n  \n \nP-1\n \n\nMizuho Bank\n\n  \n \nA\n \n  \n \nA-1\n \n  \n \nA1\n \n  \n \nP-1\n \n\nMizuho Trust & Banking\n\n  \n \nA\n \n  \n \nA-1\n \n  \n \nA1\n \n  \n \nP-1\n \n\nWe source our funding in foreign currencies primarily from corporate customers, foreign governments, financial institutions and institutional investors, through short-term and long-term financing, under terms and pricing commensurate with our credit ratings above, and customer deposits. In the event of future declines in our credit quality or that of Japan in general, we expect to be able to purchase foreign currencies in sufficient amounts using the yen funds raised through our domestic customer base. As further measures to support our foreign currency liquidity, we hold foreign debt securities and maintain credit lines and swap facilities denominated in foreign currencies.\n\nIn order to maintain appropriate funding liquidity, our principal banking subsidiaries hold highly liquid investment assets such as Japanese government bonds as liquidity reserve assets. We monitor the amount of liquidity reserve assets and report such amount to the Risk Management Committee, the Balance Sheet Management Committee and our President & Group CEO on a regular basis. Minimum regulatory reserve amounts, or the reserve amount deposited with the Bank of Japan pursuant to applicable regulations that is calculated as a specified percentage of the amount of deposits held by our principal banking subsidiaries, are excluded in connection with our management of liquidity reserve asset levels. We established and apply classifications for the cash flow conditions affecting the group, including the amount of liquidity reserve assets, that range from “Normal” to “Anxious” and “Crisis” categories, and take appropriate actions based on such conditions. As of March 31, 2026, the balance of Japanese government bonds included within our investments and measured at fair value was ¥14.9 trillion (excluding held-to-maturity securities), and a majority of this amount was classified as the principal component of liquidity reserve assets.\n\nUnder the regulatory liquidity requirements in Japan that consist of the liquidity coverage ratio (“LCR”) standard and the net stable funding ratio (“NSFR”) standard, the regulatory minimum requirements of LCR and NSFR are 100% on both a consolidated and non-consolidated basis for banks with international operations or on a consolidated basis for bank holding companies with international operations. Under the disclosure guidelines of the Financial Services Agency, banks and bank holding companies with international operations are required to disclose the three-month averages of daily LCR and to disclose NSFR on a quarterly basis. Set forth below are the averages of the daily end balances of consolidated LCR data of Mizuho Financial Group, and consolidated and non-consolidated LCR data of Mizuho Bank, each for the three months ended March 31, 2026, and consolidated NSFR data of Mizuho Financial Group, and consolidated and non-consolidated NSFR data of Mizuho Bank, each as of March 31, 2026. The figures are calculated based on our financial statements prepared in accordance with Japanese GAAP and the guidelines on LCR and NSFR established by the Financial Services Agency. All yen figures in this table are truncated.\n\n \n\n103\n\nLiquidity Coverage Ratio (LCR)\n\n \n\n \n  \nFor the three months\n ended March 31, 2026 \n \n\n \n  \n\n(in billions of yen,\n\nexcept percentages)\n\n \n\nMizuho Financial Group (Consolidated)\n\n  \n\nTotal high-quality liquid assets (“HQLA”) allowed to be included in the calculation (weighted)\n\n  \n¥\n80,989\n \n\nNet cash outflows (weighted)\n\n  \n \n65,724\n \n\nLCR\n\n  \n \n123.2\n% \n\nMizuho Bank (Consolidated)\n\n  \n\nTotal HQLA allowed to be included in the calculation (weighted)\n\n  \n¥\n78,132\n \n\nNet cash outflows (weighted)\n\n  \n \n63,087\n \n\nLCR\n\n  \n \n123.8\n% \n\nMizuho Bank (Non-consolidated)\n\n  \n\nTotal HQLA allowed to be included in the calculation (weighted)\n\n  \n¥\n76,248\n \n\nNet cash outflows (weighted)\n\n  \n \n61,006\n \n\nLCR\n\n  \n \n125.0\n% \n\nNet Stable Funding Ratio (NSFR)\n\n \n\n \n  \n As of March 31, 2026 \n \n\n \n  \n\n(in billions of yen,\n\nexcept percentages)\n\n \n\nMizuho Financial Group (Consolidated)\n\n  \n\nAvailable stable funding (weighted)\n\n  \n¥\n121,395\n \n\nRequired stable funding (weighted)\n\n  \n \n107,440\n \n\nNSFR\n\n  \n \n112.9\n% \n\nMizuho Bank (Consolidated)\n\n  \n\nAvailable stable funding (weighted)\n\n  \n¥\n116,112\n \n\nRequired stable funding (weighted)\n\n  \n \n101,223\n \n\nNSFR\n\n  \n \n114.7\n% \n\nMizuho Bank (Non-consolidated)\n\n  \n\nAvailable stable funding (weighted)\n\n  \n¥\n110,917\n \n\nRequired stable funding (weighted)\n\n  \n \n95,457\n \n\nNSFR\n\n  \n \n116.1\n% \n\nSince the end of December 31, 2025, Mizuho Trust and Banking has ceased to be subject to regulatory liquidity requirements because of its reclassification, for purposes of regulatory capital requirements, from a bank with international operations subject to international standards to a bank with only domestic operations subject to domestic standards.\n\nFor more information on LCR and NSFR, see “Item 4. Information on the Company—Supervision and Regulation—Liquidity.”\n\n \n\n104\n\nOff-balance-sheet Arrangements\n\nWe engage in various types of off-balance-sheet arrangements in the ordinary course of our business to meet the financing needs of our customers. These arrangements include various guarantees and commitments. The following tables show the contractual or notional amounts of our guarantees and undrawn commitments as of March 31, 2025 and 2026:\n\n \n\n \n  \nAs of March 31,\n \n  \nIncrease\n(decrease)\n \n\n \n  \n  2025  \n \n  \n  2026  \n \n\n \n  \n \n \n  \n \n \n  \n \n \n\n \n  \n(in billions of yen)\n \n\nGuarantees:\n\n  \n\n  \n\n  \n\nPerformance guarantees\n\n  \n¥\n4,100\n \n  \n¥\n4,777\n \n  \n¥\n676\n \n\nGuarantees on loans\n\n  \n \n220\n \n  \n \n244\n \n  \n \n24\n \n\nGuarantees on securities\n\n  \n \n92\n \n  \n \n131\n \n  \n \n39\n \n\nOther guarantees\n\n  \n \n3,309\n \n  \n \n3,793\n \n  \n \n484\n \n\nGuarantees for the repayment of trust principal\n\n  \n \n11\n \n  \n \n7\n \n  \n \n(3\n) \n\nLiabilities of trust accounts\n\n  \n \n330\n \n  \n \n404\n \n  \n \n74\n \n\nDerivative financial instruments\n\n  \n \n80,505\n \n  \n \n75,897\n \n  \n \n(4,608\n) \n\n \n  \nAs of March 31,\n \n  \nIncrease\n(decrease)\n \n\n \n  \n2025\n \n  \n2026\n \n\n \n  \n \n \n  \n \n \n  \n \n \n\n \n  \n(in billions of yen)\n \n\nCommitments:\n\n  \n\n  \n\n  \n\nCommitments to extend credit\n\n  \n¥\n119,733\n \n  \n¥\n130,737\n \n  \n¥\n11,003\n \n\nCommercial letters of credit\n\n  \n \n1,829\n \n  \n \n1,879\n \n  \n \n50\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal commitments\n\n  \n¥\n121,562\n \n  \n¥\n132,615\n \n  \n¥\n11,053\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSee note 22 to our consolidated financial statements included elsewhere in this annual report for the description of the nature of the various types of guarantees and commitments.\n\nThe contractual or notional amounts of these instruments generally represent the maximum potential amounts of future payments without consideration of possible recoveries under recourse provisions or from collateral held. For example, the amount under commitments to extend credit does not necessarily equal the impact that such commitment will have on our future cash flow, because many of these commitments expire without our making actual credit extensions up to the full commitment amount or at all. Also, many of the agreements related to the commitments to extend credit include terms that allow us to refuse, or reduce the amount of, credit extensions based on changes in the financial environment, declines in the obligor’s credit quality and other reasons. Finally, we receive collateral such as real estate and securities at the time of the contract as we deem necessary, and we regularly review the credit quality of the customer based on the internal guidelines and revise the terms of the contract as we deem necessary to manage credit risks.\n\nSome of our off-balance-sheet arrangements are related to activities of special purpose entities, most of which are variable interest entities. For further information, see note 23 to our consolidated financial statements included elsewhere in this annual report.\n\n \n\n105\n\nTabular Disclosure of Contractual Obligations\n\nIn the normal course of business, we enter into contractual obligations that require future cash payments. The following table sets forth a summary of our contractual cash obligations as of March 31, 2026:\n\n \n\n \n  \nDue in one\nyear or less\n \n  \nDue from\none year to\ntwo years\n \n  \nDue from\ntwo years to\nthree years\n \n  \nDue from\nthree years to\nfour years\n \n  \nDue from\nfour years to\nfive years\n \n  \nDue after\nfive years\n \n  \nTotal\n \n\n \n  \n(in billions of yen)\n \n\nTime deposits\n\n  \n¥\n50,757\n \n  \n¥\n985\n \n  \n¥\n653\n \n  \n¥\n272\n \n  \n¥\n887\n \n  \n¥\n377\n \n  \n¥\n53,931\n \n\nCertificates of deposit\n\n  \n \n11,550\n \n  \n \n195\n \n  \n \n170\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n11,915\n \n\nLong-term debt\n\n  \n \n4,984\n \n  \n \n2,603\n \n  \n \n1,228\n \n  \n \n1,363\n \n  \n \n2,067\n \n  \n \n8,593\n \n  \n \n20,839\n \n\nOperating leases\n\n  \n \n75\n \n  \n \n61\n \n  \n \n57\n \n  \n \n51\n \n  \n \n38\n \n  \n \n270\n \n  \n \n552\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal(1)(2)\n\n  \n¥\n67,366\n \n  \n¥\n3,843\n \n  \n¥\n2,109\n \n  \n¥\n1,686\n \n  \n¥\n2,992\n \n  \n¥\n9,240\n \n  \n¥\n87,236\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nNotes:\n\n(1)\n\nContributions to our pension plans, which are not included in the above table, are expected to be approximately ¥20 billion in the fiscal year ending March 31, 2027, based on the current funded status and expected asset return assumptions. For further information, see note 20 to our consolidated financial statements included elsewhere in this annual report.\n\n(2)\n\nUnrecognized tax benefits, which are not included in the above table, were ¥5.4 billion, of which ¥1.7 billion was interest and penalties, as of March 31, 2026. For further information, see note 19 to our consolidated financial statements included elsewhere in this annual report.\n\nCapital Adequacy\n\nAll yen figures and percentages in this subsection are truncated. Accordingly, the total of each column of figures may not be equal to the total of the individual items.\n\nRegulatory Capital Requirements\n\nThe capital adequacy guidelines applicable to Japanese banks and bank holding companies each with international and domestic operations supervised by the Financial Services Agency, including us, require them to measure and apply capital charges with respect to their credit risk, market risk and operational risk.\n\nUnder the guidelines, banks and bank holding companies have several choices for the methodologies to calculate their capital requirements for credit risk and market risk, and under the finalized Basel III reforms, the standardized approaches and the advanced measurement approaches for operational risk are replaced with a single revised standardized approach to be used by all banks. We use the advanced internal ratings-based approach which was revised under the Basel III finalization framework for the calculation of credit risk. For the calculation of market risk and operational risk, we use the standardized approach for the calculation of both risks.\n\nAs a bank and bank holding company with international operations, Mizuho Bank is required to have a minimum Common Equity Tier 1 capital ratio of 4.5%, Tier 1 capital ratio of 6.0%, and total capital ratio of 8.0% on both a consolidated and non-consolidated basis, and Mizuho Financial Group is required to have the same minimum Common Equity Tier 1 capital ratio, Tier 1 capital ratio, and total capital ratio on a consolidated basis. Since transitioning to a domestic standard applied to a bank with only domestic operations from December 31, 2025, Mizuho Trust & Banking is required to have, on both a consolidated and non-consolidated basis, a minimum Core capital ratio of 4.0%, and a minimum Common Equity Tier 1 capital ratio of 4.5% , which is calculated on the assumption that it is a bank with international operations, to continue using the advanced internal ratings-based approach for the calculation of credit risk.\n\n \n\n106\n\nIn addition, as a bank and bank holding company with international operations, we are also subject to capital conservation buffers and countercyclical buffers, and Mizuho Financial Group is also subject to additional loss absorbency requirements for a global systemically important bank (“G-SIB”) and domestic systemically important bank (“D-SIB”). These buffer requirements must be met with Common Equity Tier 1 capital. The capital conservation buffer and the additional loss absorbency requirements currently applicable to us are 2.5% and 1.0%, respectively. The countercyclical buffer is a weighted average of the buffers deployed across all the jurisdictions to which the banking organization has credit exposures, which, ranging from 0% to 2.5%, would be imposed on banking organizations, subject to national discretion by the respective regulatory authorities. Since transitioning to a domestic standard applied to a bank with only domestic operations from December 31, 2025, Mizuho Trust & Banking is no longer subject to the capital conservation buffers and countercyclical buffer requirements. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Capital Adequacy.”\n\nWe, as a bank and bank holding company with international operations, are required to maintain a minimum leverage ratio of 3.15% from April 1, 2024. In addition, Mizuho Financial Group is subject to the leverage ratio buffer requirement for G-SIBs of 0.55% from April 1, 2024, and thus the minimum leverage ratio requirement together with the minimum leverage ratio buffer requirement applicable to Mizuho Financial Group from April 1, 2024 is 3.70% in total. The leverage ratio is a measure of non-risk based capital adequacy that is calculated by dividing Tier 1 capital (as numerator) by the total exposure (denominator), with adjustments made to on- and off-balance assets. Since transitioning to a domestic standard applied to a bank with only domestic operations from December 31, 2025, Mizuho Trust & Banking is no longer subject to the leverage ratio requirements. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Leverage Ratio.”\n\nUnder Total Loss Absorbing Capacity (“TLAC”) regulations, Mizuho Financial Group is required to meet minimum TLAC requirements of at least 18% of the resolution group’s risk-weighted assets and at least 7.10% from April 1, 2024, which requirement had been 6.75% until March 31, 2024, of its total exposure. Japanese G-SIBs are allowed to count the Japanese Deposit Insurance Fund Reserves in an amount equivalent to 3.5% of their consolidated risk-weighted assets as their external TLAC. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Total Loss Absorbing Capacity.”\n\n \n\n107\n\nConsolidated Capital Adequacy Ratios, Leverage Ratios and TLAC Ratios\n\nOur consolidated capital adequacy ratios, leverage ratios and TLAC ratios as of March 31, 2025 and 2026, calculated in accordance with Japanese GAAP and the guidelines established by the Financial Services Agency, were as set forth in the following table:\n\n \n\n \n  \nAs of\n \n \nIncrease\n(decrease)\n \n\n \n  \nMarch 31,\n2025\n \n \nMarch 31,\n2026\n \n\n \n  \n(in billions of yen, except percentages)\n \n\nCommon Equity Tier 1 (CET1) capital\n\n  \n¥\n9,506.2\n \n \n¥\n10,650.5\n \n \n¥\n1,144.2\n \n\nAdditional Tier 1 capital\n\n  \n \n1,741.9\n \n \n \n2,083.0\n \n \n \n341.0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTier 1 capital\n\n  \n \n11,248.2\n \n \n \n12,733.5\n \n \n \n1,485.3\n \n\nTier 2 capital\n\n  \n \n1,507.5\n \n \n \n1,519.2\n \n \n \n11.6\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal capital\n\n  \n¥\n12,755.7\n \n \n¥\n14,252.8\n \n \n¥\n1,497.0\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nRisk-weighted assets\n\n  \n¥\n71,844.4\n \n \n¥\n80,925.3\n \n \n¥\n9,080.9\n \n\nCET1 capital ratio\n\n  \n \n13.23\n% \n \n \n13.16\n% \n \n \n(0.07\n%) \n\nRequired CET1 capital ratio(1)\n\n  \n \n8.11\n% \n \n \n8.13\n% \n \n \n0.02\n% \n\nTier 1 capital ratio\n\n  \n \n15.65\n% \n \n \n15.73\n% \n \n \n0.08\n% \n\nRequired Tier 1 capital ratio(1)\n\n  \n \n9.61\n% \n \n \n9.63\n% \n \n \n0.02\n% \n\nTotal capital ratio\n\n  \n \n17.75\n% \n \n \n17.61\n% \n \n \n(0.14\n%) \n\nRequired total capital ratio(1)\n\n  \n \n11.61\n% \n \n \n11.63\n% \n \n \n0.02\n% \n\nCET1 available after meeting the bank’s minimum capital requirements\n\n  \n \n8.73\n% \n \n \n8.66\n% \n \n \n(0.07\n%) \n\nTotal Exposure(2)\n\n  \n¥\n235,543.8\n \n \n¥\n261,045.7\n \n \n¥\n25,501.9\n \n\nLeverage ratio(3)\n\n  \n \n4.77\n% \n \n \n4.87\n% \n \n \n0.10\n% \n\nExternal TLAC ratio (risk-weighted assets basis, excluding capital buffers)\n\n  \n \n26.86\n% \n \n \n26.38\n% \n \n \n(0.48\n%) \n\nExternal TLAC ratio (total exposure basis, including capital buffers)(4)\n\n  \n \n9.29\n% \n \n \n9.30\n% \n \n \n0.01\n% \n\n \n\nNotes:\n\n(1)\n\nThe required ratios described above, as of March 31, 2025 and 2026, include the capital conservation buffer of 2.5%, the countercyclical buffer of 0.11% and 0.13%, respectively, and the additional loss absorbency requirements for G-SIBs and D-SIBs of 1.00%, which are all in addition to the regulatory minima. The respective required amounts are determined by applying the ratios to the sum of the risk-weighted assets. These buffers and additional loss absorbency requirements are applied to us but not to our banking subsidiaries.\n\n(2)\n\nAs of March 31, 2025 and 2026, our total exposures (excluding the impact of any applicable exemption of deposits with the Bank of Japan) were ¥291,989.8 billion and ¥309,313.2 billion, respectively.\n\n(3)\n\nAs of March 31, 2025 and 2026, our leverage ratios on a consolidated basis (excluding the impact of any applicable exemption of deposits with the Bank of Japan) were 3.85% and 4.11%, respectively.\n\n(4)\n\nAs of March 31, 2025 and 2026, our external TLAC ratios on a total exposure basis (excluding the impact of any applicable exemption of deposits with the Bank of Japan) were 7.49% and 7.85%, respectively.\n\nOur total capital ratio as of March 31, 2026 was 17.61%, a decrease of 0.14% points compared to March 31, 2025. Our Tier 1 capital ratio as of March 31, 2026 was 15.73%, an increase of 0.08% points compared to March 31, 2025. Our Common Equity Tier 1 capital ratio as of March 31, 2026 was 13.16%, a decrease of 0.07% points compared to March 31, 2025. The decrease in our total capital ratio and Common Equity Tier 1 capital ratio was due mainly to an increase in risk-weighted assets, partially offset by an increase in capital. We believe that we were in compliance with all capital adequacy requirements to which we were subject as of March 31, 2026.\n\n \n\n108\n\nPrincipal Banking Subsidiaries\n\nCapital adequacy ratios and leverage ratios of our principal banking subsidiaries, on a consolidated basis, as of March 31, 2025 and 2026, calculated in accordance with Japanese GAAP and the guidelines established by the Financial Services Agency, were as set forth in the following table:\n\n \n\n \n  \nAs of\n \n \nIncrease\n(decrease)\n \n\n \n  \nMarch 31,\n2025\n \n \nMarch 31,\n2026\n \n\nMizuho Bank\n\n  \n\n \n\n \n\nCommon Equity Tier 1 capital ratio\n\n  \n \n     11.42\n% \n \n \n     11.57\n% \n \n \n0.15\n% \n\nTier 1 capital ratio\n\n  \n \n14.06\n% \n \n \n14.38\n% \n \n \n0.32\n% \n\nTotal capital ratio\n\n  \n \n16.27\n% \n \n \n16.38\n% \n \n \n0.11\n% \n\nLeverage ratio\n\n  \n \n4.26\n% \n \n \n4.43\n% \n \n \n0.17\n% \n\nMizuho Trust & Banking(1)\n\n  \n\n \n\n \n\nCommon Equity Tier 1 capital ratio\n\n  \n \n31.60\n% \n \n \n— \n \n \n \n— \n \n\nTier 1 capital ratio\n\n  \n \n31.60\n% \n \n \n— \n \n \n \n— \n \n\nTotal capital ratio\n\n  \n \n31.60\n% \n \n \n— \n \n \n \n— \n \n\nLeverage ratio\n\n  \n \n13.49\n% \n \n \n— \n \n \n \n— \n \n\nCore capital ratio\n\n  \n \n— \n \n \n \n29.28\n% \n \n \n— \n \n\n \n\nNotes:\n\n(1)\n\nSince transitioning to a domestic standard applied to a bank with only domestic operations from December 31, 2025, Mizuho Trust & Banking is required to have a minimum Core ratio of 4.0% and is no longer subject to the leverage ratio requirements.\n\nWe believe each of our principal banking subsidiaries was in compliance with all capital adequacy requirements to which it was subject as of March 31, 2026.\n\nOur securities subsidiary in Japan is also subject to the capital adequacy requirement under the Financial Instruments and Exchange Act. Under this requirement, securities firms whose total assets exceed ¥1 trillion, such as Mizuho Securities, must maintain a minimum capital adequacy ratio of 120% both on a consolidated and non-consolidated basis calculated as a percentage of capital accounts less certain assets, as determined in accordance with Japanese GAAP, against amounts equivalent to market, counterparty and basic risks. Specific guidelines are issued as a ministerial ordinance and a regulatory notice that detail the definition of essential components of the capital ratios, including capital, disallowed assets and risks, and related measures. Failure to maintain a minimum capital ratio will trigger mandatory regulatory actions. For example, each on a non-consolidated basis, a capital ratio of less than 140% will call for regulatory reporting, a capital ratio of less than 120% may lead to an order to change the business conduct or place the property in trust and a capital ratio of less than 100% may lead to a temporary suspension of all or part of the business operations and further, to the cancellation of the license to act as a securities broker and dealer. We believe, as of March 31, 2026, that our securities subsidiary in Japan was in compliance with all capital adequacy requirements to which it was subject.\n\nRecent Accounting Pronouncements\n\nSee note 2 to our consolidated financial statements included elsewhere in this annual report.\n\nReconciliation with Japanese GAAP\n\nOur consolidated financial statements are prepared in accordance with accounting principles and policies as summarized in note 1 to our consolidated financial statements included elsewhere in this annual report. These principles and policies differ in some respects from Japanese GAAP. For reporting based on Japanese banking regulations, we prepare our annual and semi-annual financial results using financial statements in accordance\n\n \n\n109\n\nwith Japanese GAAP. In addition, pursuant to the Japanese securities law, we prepare our semi-annual financial statements, and pursuant to the requirements of the Tokyo Stock Exchange, we prepare our quarterly financial statements, both of which are also under Japanese GAAP. To show the major reconciling items between our U.S. GAAP financial statements and our Japanese GAAP financial statements, we have provided below, with respect to our most recent fiscal year, a reconciliation of consolidated net income and shareholders’ equity under U.S. GAAP with those amounts under Japanese GAAP.\n\n \n\n \n  \nAs of and for the fiscal\nyear ended March 31, 2026\n \n\n \n  \nTotal MHFG\nshareholders’\nequity\n \n \nNet income\nattributable\nto MHFG\nshareholders\n \n\n \n  \n(in billions of yen)\n \n\nU.S. GAAP\n\n  \n¥\n10,859.6\n \n \n¥\n1,158.0\n \n\nDifferences arising from different accounting for:\n\n  \n\n \n\n1.  Derivative financial instruments and hedging activities\n\n  \n \n14.4\n \n \n \n579.1\n \n\n2.  Investments\n\n  \n \n(132.0\n) \n \n \n(692.1\n) \n\n3.  Loans\n\n  \n \n313.3\n \n \n \n8.4\n \n\n4.  Allowances for credit losses on loans and off-balance-sheet instruments\n\n  \n \n270.3\n \n \n \n83.7\n \n\n5.  Premises and equipment\n\n  \n \n(49.4\n) \n \n \n38.3\n \n\n6.  Land revaluation\n\n  \n \n117.4\n \n \n \n(5.4\n) \n\n7.  Business combinations\n\n  \n \n(110.4\n) \n \n \n(10.5\n) \n\n8.  Pension liabilities\n\n  \n \n47.0\n \n \n \n49.0\n \n\n9.  Consolidation of variable interest entities\n\n  \n \n111.2\n \n \n \n(52.5\n) \n\n10. Deferred taxes\n\n  \n \n(126.0\n) \n \n \n(3.0\n) \n\n11. Foreign currency translation\n\n  \n \n— \n \n \n \n85.6\n \n\n12. Other\n\n  \n \n1.1\n \n \n \n9.9\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nJapanese GAAP\n\n  \n¥\n11,316.5\n(1) \n \n¥\n1,248.6\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nNote:    \n\n(1)\n\nIncludes total accumulated other comprehensive income and stock acquisition rights.\n\nThe following is a summary of the significant adjustments made to consolidated shareholders’ equity and net income, as shown in the above table, to reconcile the U.S. GAAP results with the Japanese GAAP results. The paragraphs below refer to the corresponding items set forth in the table above.\n\n \n\n1.\n\nDerivative financial instruments and hedging activities\n\nUnder U.S. GAAP, for a derivative to qualify for hedge accounting, it must be highly effective in achieving offsetting changes in fair values or variable cash flows of the hedged items attributable to the particular risk being hedged. The hedging relationship must be designated and formally documented at inception. Such documentation must include the particular risk management objective and strategy for the hedge, the identification of the derivative used as the hedging instrument, the hedged item and the risk exposure being hedged and the method for assessing the hedge effectiveness. The criteria for designation and measurement of hedge effectiveness under U.S. GAAP are more rigorous than under Japanese GAAP. As a result, most of the eligible hedge derivatives under Japanese GAAP are accounted for as trading account assets or liabilities under U.S. GAAP with changes in fair value of the derivatives recognized in earnings.\n\nRequirements for bifurcation of embedded derivatives differ between Japanese GAAP and U.S. GAAP. Embedded derivatives that are deemed to be clearly and closely related to their host contracts are not bifurcated under U.S. GAAP, while Japanese GAAP allows an entity to bifurcate embedded derivatives if the entity manages the risk of the embedded derivatives and host contracts separately. Bifurcated derivatives are recorded\n\n \n\n110\n\non the balance sheet at fair value with changes in fair value recognized in earnings under both Japanese GAAP and U.S. GAAP.\n\n \n\n2.\n\nInvestments\n\nThe cost basis of certain investments differs between Japanese GAAP and U.S. GAAP primarily due to the following reasons:\n\nUnder U.S. GAAP, equity securities (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are measured at fair value with changes in fair value recognized in earnings, while under Japanese GAAP, those securities are measured at fair value with changes in fair value recognized in other comprehensive income.\n\nUnder U.S. GAAP, we report foreign currency denominated debt securities as trading securities, and the entire amount of changes in their fair values are recognized in earnings, while under Japanese GAAP, only the changes attributable to movements in foreign currency exchange rates are recognized in earnings.\n\nUnder U.S. GAAP, available-for-sale debt securities are impaired if the fair value is less than the amortized cost (excluding accrued interest receivable). For available-for-sale debt securities, in the cases where we have the intent to sell an available-for-sale debt security or more likely than not will be required to sell an available-for-sale debt security before the recovery of its amortized cost basis, the entire difference between amortized cost basis and fair value is recognized immediately through earnings. In other cases, we evaluate expected cash flows to be received and determine if a credit loss exists, and if so, the amount of the credit loss is recognized in provision (credit) for credit losses, while the remaining decline in fair value is recognized in other comprehensive income, net of applicable taxes. Under Japanese GAAP, significant declines in the fair value of securities below cost that are deemed to be “other-than-temporary” are recorded in earnings unless short term recovery is reasonably expected. A decline in the fair value of a security of 50% or more of its cost is a strong indicator of an other-than-temporary decline, which requires compelling evidence to prove otherwise. A decline in the fair value of 30% or more but less than 50% of its cost is an indicator of an other-than-temporary decline, in which case the probability of recovery must be evaluated to determine whether an other-than-temporary decline has occurred. Generally, if the decline in the fair value is less than 30%, it is not considered to be an other-than-temporary decline.\n\n \n\n3.\n\nLoans\n\nUnder U.S. GAAP, loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the contractual life of the relevant loan using the interest method, while certain fees and costs are recognized in earnings at the time the loan is originated under Japanese GAAP.\n\nIn addition, certain loan participations and sales of loans to special purpose vehicles in connection with asset securitization transactions under Japanese GAAP do not meet sales criteria under U.S. GAAP due to different applicable criteria, and therefore the relevant loans are recognized on the balance sheet under U.S. GAAP.\n\n \n\n4.\n\nAllowances for credit losses on loans and off-balance-sheet instruments\n\nThe allowance for credit losses on loan under U.S. GAAP considers expected credit losses over the remaining expected lives of the applicable instruments. The expected life of each loan is determined by considering expected prepayments, contractual terms and cancellation features. When determining expected credit losses, a single forward-looking macroeconomic scenario is considered over a reasonable and supportable forecast period. This forward-looking macroeconomic scenario is consistent with what is used in our stress testing and is in line with the scenario used for our business plan. If the scenario does not reflect a sudden change in economic conditions adequately, adjustments may be made to the scenario. After the forecast period, we revert to long-term historical loss experience with a certain graduated transition period, to estimate losses over the remaining lives of loans.\n\n \n\n111\n\nIn general, we estimate expected credit losses collectively on the loans in the case of normal obligors and watch obligors, considering the risk associated with a particular pool and the probability that the exposures within the pool will deteriorate or default. The estimation of expected credit losses that are evaluated collectively begins with a quantitative calculation that considers the likelihood of the borrower changing delinquency status or moving from one obligor category or rating to another. The quantitative calculation covers expected credit losses over an instrument’s expected life and is estimated by applying credit loss factors to our estimated exposure at default. Under Japanese GAAP, a collective allowance is generally estimated using historical loss experience based on historical results according to the obligor ratings, whereas under U.S. GAAP the allowance is based on the methodology that reflects expected credit losses over the remaining lives and requires consideration of a broader range of information such as relevant information about past events supportable forecasts, inclusive of macroeconomic assumptions, and the expected life of the loan.\n\nUnder both Japanese GAAP and U.S. GAAP, the allowance for credit losses for specifically identified nonaccrual loans is based on the present value of expected future cash flows discounted at the loan’s initial effective interest rate or, as a practical expedient, the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The differences between Japanese GAAP and U.S. GAAP arise from the difference in the scope of the loans that are subject to the individual and portfolio nonaccrual analysis.\n\nIn addition to these effects based on differences between Japanese GAAP and U.S. GAAP, due to the difference in the timing of public filings between our consolidated financial statements under U.S. GAAP and those under Japanese GAAP, we evaluate newly available information such as macroeconomic assumptions and obligor credit worthiness, which could result in the allowance for credit losses on loans being different between Japanese GAAP and U.S. GAAP.\n\nThis reconciling item also includes the differences between U.S. GAAP and Japanese GAAP relating to the allowance for credit losses on off-balance-sheet instruments. We generally use the same methodology to reserve for losses on these instruments as we do for loans.\n\n \n\n5.\n\nPremises and equipment\n\nUnder Japanese GAAP, a company can elect to allocate entity-wide long-lived assets that do not have identifiable cash flows that are largely independent of the cash flows of other assets and liabilities, among individual divisions within an entity, whereas U.S. GAAP does not have such an election. Under Japanese GAAP, we have been making this election since the fiscal year ended March 31, 2019.\n\nWith regard to internal-use software, under U.S. GAAP, the costs to develop or obtain software that allow for access to or conversion of old data by new systems are capitalized and amortized once the software is ready for its intended use, while they are expensed after full implementation across the company under Japanese GAAP. On the other hand, the general and administrative costs and the overhead costs are expensed as the costs of internal-use software under U.S. GAAP, but they are capitalized under Japanese GAAP.\n\n \n\n6.\n\nLand revaluation\n\nUnder Japanese GAAP, we revalued our holdings of land during the fiscal year ended March 31, 1998 pursuant to the Act Concerning Revaluation of Land (Act No. 34 of 1998). The revaluation gains are recorded directly in equity, and the related deferred tax liabilities are also recognized. Under U.S. GAAP, there is no applicable provision that allows for the revaluation of land other than for impairments, and accordingly the revaluation gains are reversed.\n\n \n\n7.\n\nBusiness combinations\n\nUnder U.S. GAAP, goodwill is not amortized and an impairment loss is recorded to the extent the carrying amount of the goodwill exceeds its estimated fair value at the measurement date. Under Japanese GAAP,\n\n \n\n112\n\ngoodwill is amortized over an appropriate period not to exceed 20 years and an impairment loss is recorded only if the effects of the goodwill are no longer expected.\n\n \n\n8.\n\nPension liabilities\n\nUnder Japanese GAAP, we adopted as of April 1, 2000 pension accounting that is based on the actuarial present value of accrued benefit obligations. The cumulative effect of the accounting change was amortized over a specified number of years, and actuarial gains and losses are amortized over a specified number of years. Under U.S. GAAP, we recalculated the benefit obligation at April 1, 2004 and accounted for the obligation as if we had adopted the accounting method in accordance with ASC 715, “Compensation—Retirement Benefits,” beginning in the fiscal year ended March 31, 1990, as permitted for a foreign private issuer. The cumulative effect of the accounting change, as well as actuarial gains and losses since the adoption, had been fully amortized by April 1, 2004.\n\nUnder both Japanese GAAP and U.S. GAAP, an employer is required to recognize the overfunded or underfunded status of a defined benefit plan as an asset or liability in its consolidated balance sheets. Actuarial gains or losses and prior service costs or benefits that have not yet been recognized through earnings as net periodic benefit cost are recognized in other comprehensive income, net of tax, until they are amortized as a component of net periodic benefit cost. Actuarial gains or losses are amortized based on the corridor approach according to ASC 715 under U.S. GAAP, while they are amortized over a specified number of years under Japanese GAAP. Due mainly to the differences in the balances of actuarial gains or losses and prior service costs or benefits and in amortization methods, there are differences in the amounts of shareholders’ equity and net income between U.S. GAAP and Japanese GAAP.\n\nUnder U.S. GAAP, we enhanced the calculation of the benefit obligations by refining the anticipated future mortality rate assumption improvement in the calculation.\n\nDuring the fiscal year ended March 31, 2026, certain subsidiaries of ours partially withdrew assets from employee retirement benefit trusts, which were established for the payment of employees’ severance pay and retirement pensions. Under U.S. GAAP, no gains or losses have been recognized as a consequence of this transaction.\n\nSee note 20 to our consolidated financial statements included elsewhere in this annual report for further discussion.\n\n \n\n9.\n\nConsolidation of variable interest entities\n\nUnder U.S. GAAP, variable interest entities are to be consolidated if we are deemed to be the primary beneficiary of the variable interest entity. Under Japanese GAAP, consolidation is not based on variable interests. We consolidate certain variable interest entities, such as entities related to asset-backed securitizations, investments in securitization products and investment funds. See note 23 to our consolidated financial statements included elsewhere in this annual report for further discussion.\n\n \n\n10.\n\nDeferred taxes\n\nUnder U.S. GAAP, all available evidence, both positive and negative, must be considered to determine whether, based on the weight of that evidence, deferred tax assets are realizable or whether a valuation allowance is needed. Possible sources of taxable income, which are considered to determine whether deferred tax assets are realizable, include net unrealized gains on available-for-sale securities. Under Japanese GAAP, the assessment as to whether deferred tax assets are realizable is primarily based on estimates of future taxable income.\n\nAdditionally, differences in the carrying amount of assets and liabilities between U.S. GAAP and Japanese GAAP create temporary differences that result in differences in deferred tax assets and liabilities.\n\n \n\n113\n\n11.\n\nForeign currency translation\n\nUnder Japanese GAAP, the income statement items of our foreign entities are translated into yen, our presentation currency, using the respective fiscal year-end exchange rates, while under U.S. GAAP, they are translated into the presentation currency using the average rates of exchange for the respective fiscal years.\n\n \n\n12.\n\nOther\n\nThis adjustment reflects the effects of miscellaneous items.\n\n \n\n114"}