Financial Results for 1Q FY2017 September 2017 Forward-looking - - PowerPoint PPT Presentation

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Financial Results for 1Q FY2017 September 2017 Forward-looking - - PowerPoint PPT Presentation

Financial Results for 1Q FY2017 September 2017 Forward-looking Statements This presentation contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995,


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September 2017

Financial Results for 1Q FY2017

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1

This presentation contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance. In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions

  • f strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our Medium-term Business Plan, realize the synergy effects of "One MIZUHO," and implement other strategic initiatives and measures effectively; the effectiveness of our

  • perational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) and our report on Form 6-K furnished to the SEC on January 13, 2017, both of which are available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC’s web site at www.sec.gov. We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

Definitions

FG: Mizuho Financial Group, Inc. BK: Mizuho Bank, Ltd. TB: Mizuho Trust & Banking Co., Ltd. SC: Mizuho Securities Co., Ltd. RBC: Retail & Business Banking Company CIC: Corporate & Institutional Company GCC: Global Corporate Company GMC: Global Markets Company AMC: Asset Management Company Consolidated Net Business Profits = Consolidated Gross Profits - G&A Expenses (excl. Non-Recurring Losses) + Equity in income from investments in Affiliates and certain other consolidation adjustments Net Income Attributable to FG: Profit Attributable to Owners of Parent 2 Banks: Aggregate figures for BK and TB on a non-consolidated basis Group aggregated: Aggregate figures for BK, TB, SC, Asset Management One and other major subsidiaries on a non-consolidated basis Company managerial basis: Managerial figure of the respective in-house company (managerial figures based on results of former business units up to FY2015) Unless otherwise specified, the financial figures used in this presentation are based on Japanese GAAP This presentation does not constitute a solicitation of an offer for acquisition or an offer for sale of any securities

Forward-looking Statements

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2 295.9

  • 97.5

Customer Groups 235.3

  • 34.6

Trading & Others 60.5

  • 62.8
  • 238.5
  • 6.6

57.4

  • 104.2

15.5 9.9 71.5 58.0 113.9

  • 29.5

107.0 3.4 1Q FY17

Change from 1Q FY16

Net Income Gross Profits G&A Expenses (excl. Non-Recurring Losses) Net Business Profits Credit-related Costs Net Gains (Losses) related to Stocks Ordinary Profits 440.1

  • 110.7

84.3

  • 118.6

19.2 13.8 62.3 48.6 142.3

  • 49.8

118.2

  • 14.3

Credit-related Costs 1Q FY17

Change from 1Q FY16

Consolidated Gross Profits Consolidated Net Business Profits Net Gains (Losses) related to Stocks Ordinary Profits Net Income Attributable to FG

Overview of 1Q FY2017 Results

Overview of B/S (Jun-17) Net Assets:

JGB: JPY 15.9tn (+JPY 2.5tn)

Loans: Securities: Deposits: Other Liabilities: Other Assets: JPY 78tn JPY 130tn JPY 35tn JPY 86tn JPY 9tn JPY 60tn

(+JPY 0.1tn) (+JPY 3.0tn) (-JPY 3.0tn) (+JPY 0.1tn) (+JPY 0.0tn) (-JPY 0.0tn)

Stock: JPY 3.9tn (-JPY 0.0tn) Non-JPY bonds: JPY 9.9tn (+JPY 0.2tn)

  • Total Assets: JPY 200tn (+JPY 0.1tn)
  • Risk weighted Assets: JPY 61tn (+JPY 0.0tn)
  • CET1 Ratio5 :11.63% (+0.26%)

[excluding Net Unrealized Gains on Other Securities 9.43% (+0.16%) ]

  • Leverage Ratio: 4.04% (+0.09%)
  • 1. Consolidated Gross Profits - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments
  • 2. Quarterly Profit Attributable to Owners of Parent 3. New management account rules were applied at the beginning of FY2017. Figures for 1Q FY2016 are recalculated based on the new rules
  • 4. Including Net Gains related to ETF of JPY 13.4bn (+JPY 12.8bn from 1Q FY16) 5. Basel III fully-effective basis (based on current regulations)

Overview of P/L

<Consolidated> <2 Banks>

3 3 4

( ) represent changes from Mar-17 Consolidated

1 2

(JPY bn)

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3

Overview of In-house Company

(group aggregate, management account, rounded figures) (JPY bn) YoY YoY YoY YoY

RBC

  • 15.4
  • 17.2
  • 1.8

47.0

35.0

  • 4.0
  • 4.0

0.0

31.0

2.0

CIC 40.8 31.3

  • 9.5

218.0

  • 23.0

33.0 43.0

10.0

224.0

6.0

GCC 39.3 16.5

  • 22.8

123.0

8.0

25.0 14.0

  • 11.0

76.0

  • 7.0

GMC 154.3 69.4

  • 84.9

219.0

  • 95.0

99.0 47.0

  • 52.0

147.0

  • 77.0

AMC 4.1 5.7

1.6

24.0

4.0

2.0 3.0

1.0

11.0

1.0

In-house Company Total 223.1 105.7

  • 117.4

631.0

  • 71.0

155.0 103.0

  • 52.0

489.0

  • 75.0

FG Consolidated 203.0 84.3

  • 118.6

640.0

  • 23.4

132.6 118.2

  • 14.3

550.0

  • 53.5

FY17 Net Business Profits Net Income Result Plan Result Plan 1Q FY16 1Q FY17 FY17 1Q FY16 1Q FY17

* Figures for FG Consolidated are Net Income Attributable to FG

*

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4

0.75% 0.71% 0.70% 0.66% 0.65% 0.54% 0.52% 0.51% 0.50% 0.48% 1H FY15 2H FY15 1H FY16 2H FY16 1Q FY17

Loans to Middle Market Firms & SMEs Loans to Large Corporate Customers

50.7 51.5 50.0 50.7 50.9 3.1 2.6 3.1 3.6 2.9 53.9 54.2 53.2 54.4 53.9 1H FY15 2H FY15 1H FY16 2H FY16 1Q FY17

Loans to the Japanese Government, etc. Loans in Japan (excluding loans to the Japanese Government, etc.)

Period-end Balance

1Q 0.95% 2Q 0.92% 3Q 0.90% 4Q 0.88%

Net Interest Income from Customer Groups (In Japan)

Loan Balance in Japan Loan and Deposit Rate Margin in Japan Loan Spread in Japan

1

Sep-15 Mar-16 Sep-16 Mar-17 Jun-17 54.7 53.9 54.0 54.8 53.4

2

2 Banks 2 Banks

Average Balance

(JPY tn) BK, management account

  • 1. Excluding loans to FG. Banking account
  • 2. Domestic Operations, excluding loans to financial institutions (including FG) and the Japanese Government, etc.

1.05% 1.01% 0.94% 0.90% 0.87%

1.01% 0.98% 0.93% 0.89% 0.87%

0.04% 0.03% 0.01% 0.00% 0.00%

1H FY15 2H FY15 1H FY16 2H FY16 1Q FY17

Return on Loans and Bills Discounted ・・・ a Loan and Deposit Rate Margin ・・・ a - b Cost of Deposits and Debentures ・・・ b

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5

0.93% 0.92% 0.91% 0.89% 0.88% 1H FY15 2H FY15 1H FY16 2H FY16 1Q FY17 213.4 237.7 236.5 228.6 129.1 167.1 175.9 173.4 60% 70% 74% 76% Mar-15 Mar-16 Mar-17 Jun-17

Non-JPY denominated Loans Non-JPY denominated Customer Deposits Proportion of Deposit to Loan

90.0 93.2 92.3 94.1 94.7 65.4 68.1 70.9 72.2 68.9 28.8 34.1 38.1 40.5 39.9 184.2 195.3 201.3 206.8 203.4 1H FY15 2H FY15 1H FY16 2H FY16 1Q FY17

Europe Americas Asia

Loan Spread outside Japan Loan Balance outside Japan

  • 1. BK (including the subsidiaries in China, the US, the Netherlands, Indonesia, Malaysia,

Russia, Brazil and Mexico)

  • 2. Changes in management account rules in 1Q FY17. Figures from 1H FY15 to 2H FY16 are

recalculated based on the new rules 1, 2

Net Interest Income from Customer Groups (Outside Japan)

Non-JPY Loans and Deposits

3, 4

  • 3. BK (including the subsidiaries in China, the US, the Netherlands, Indonesia, etc.)
  • 4. Including Non-JPY loans and deposits in Japan 5. Changed in management account rules in

1Q FY17. Original figures before the recalculation were Mar-16: USD 168.5bn and Mar-17: USD 179.8bn

5

Period-end Balance Average Balance

(USD bn) BK, management account BK, management account BK, management account

Sep-15 Mar-16 Sep-16 Mar-17 Jun-17 184.5 194.4 202.2 199.3 199.8

1, 2

(USD bn)

Period-end Balance

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6

<Japan> YoY Mizuho 1 (1) 1.6

  • 0.7

SMFG 2 (2) 1.1

  • 0.1

MUFG 3 (3) 0.6

  • 0.6

<Global> YoY Mizuho 10 (5) 27.1

  • 15.5

MUFG 12 (6) 26.0

  • 15.5

SMFG 17 (14) 16.6

  • 6.5

Rank (Prev . Year) Proceeds Rank (Prev . Year) Proceeds

6 5 4 49 44 45 36 37 38 51 55 39 77 80 66 219 221 192 1Q FY15 1Q FY16 1Q FY17

Non-interest Income

Settlement & Foreign Exchange: JPY 35bn (+JPY 0bn) Investment Trust & Annuities: JPY 7bn (-JPY 3bn) Solution Business-related: JPY 13bn (-JPY 9bn)

  • 1. Due to the changes in management account, the figures are recalculated. The original figures before the recalculation that changed were, 1Q FY16: JPY 194bn (Banking in Japan JPY 69bn, Banking
  • utside Japan JPY 52bn, Trust/Asset Management-related JPY 28bn, Securities Business JPY 45bn), 1Q FY15: JPY 198bn (Banking in Japan JPY 64bn, Banking outside Japan JPY 51bn, Trust/Asset

Management-related JPY 28bn, Securities Business JPY 55bn) 2. Apr-17 to Jun-17, Book-runner basis (Source) Thomson Reuters 3. SC Retail & Business Banking Division

Securities Business Trust/Asset Management-related Banking outside Japan Banking in Japan

Non-interest Income from Customer Groups

Syndicated Loan League Table

1 Others: JPY 11bn (-JPY 3bn)

Investment Products

(JPY bn) group aggregate, management account, rounded figures Figures in ( ) represent YoY

In Japan: JPY 38bn (+JPY 2bn) Outside Japan: JPY 7bn (-JPY 1bn) Real Estate: JPY 7bn (-JPY 1bn) Pension/Asset Management: JPY 16bn (+JPY 1bn) Europe: JPY 7bn (-JPY 6bn) Americas: JPY 15bn (-JPY 9bn) Asia: JPY 14bn (-JPY 1bn) Syndicated Loans: JPY 4bn (-JPY 6bn) Investment Banking related: JPY 4bn (-JPY 2bn) Securities-related Fees: JPY 3bn (-JPY 0bn) Investment Trusts: JPY 5bn (+JPY 0bn) Individual Annuities: JPY 2bn (-JPY 4bn) Settlement: JPY 18bn (+JPY 1bn) Foreign Exchange: JPY 17bn (-JPY 0bn)

(JPY tn) (USD bn) (JPY tn) 2 Banks (left) SC 3 (right)

0.22 0.09 0.11 0.13 0.10 0.06 1Q FY15 1Q FY16 1Q FY17

Amount of Individual Annuities Sold Amount of Investment Trusts Sold (excl. MMF)

0.28 0.23 0.25 0.14 0.24 0.22 0.37 0.17 0.26 1Q FY15 1Q FY16 1Q FY17

Amount of Equity Investment Trusts Sold Amount of Japanese Bonds Sold Amount of Foreign Bonds Sold 2

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7

  • 0.5

0.5 1.5 2.5 14/4 14/10 15/4 15/10 16/4 16/10 17/4

UST (10y) JGB (10y)

13.8 14.4 8.5 7.8 8.1 0.7 0.6 0.6 0.6 0.6 2.6 0.5 1.2 1.7 4.3 17.2 15.6 10.5 10.2 13.1 Mar-15 Mar-16 Jun-16 Mar-17 Jun-17

Treasury Discount Bills Floating-rate Notes Medium & Long-term Bonds

75.8 142.6 81.3 20.2 0.2

  • 5.3

20.0 FY14 FY15 1Q FY16 2Q FY16 3Q FY16 4Q FY16 1Q FY17 9.7 9.4 9.0 8.7 9.0 Mar-15 Mar-16 Jun-16 Mar-17 Jun-17

Net Gains (Losses) related to Bonds

Securities Portfolio (Bond)

13.0 18.1

  • 162.9

22.5 95.8 81.6

JGB Portfolio Foreign Bond Portfolio Reference: Interest Trend in and outside Japan

1

2

1

  • 11.6

62.8

  • 156.3

8.7

  • Ave. Remaining

Period 3 (years) 2.6 2.5 2.6 1.9 2.4

FY16: 96.5 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17

2 Banks 2 Banks, acquisition cost basis (JPY bn) (JPY tn) (%) (JPY tn) Unrealized Gains /Losses 4 (JPY bn) 2 Banks, acquisition cost basis Unrealized Gains /Losses 4 (JPY bn)

  • 1. Other Securities which have readily determinable fair values 2. Including bonds with remaining period of one year or less 3. Excluding floating-rate notes
  • 4. The base amount to be recorded directly

to Net Assets after tax and other necessary adjustments. Calculated based on the quoted market price if available, or other reasonable value, at the respective period end

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8

1,962.9 1,847.1 1,832.9 1,687.5 1,665.7 Mar-15 Mar-16 Jun-16 Mar-17 Jun-17 Mar-19 96.1 181.4 13.5 51.8 70.7 74.3 71.5 FY14 FY15 1Q FY16 2Q FY16 3Q FY16 4Q FY16 1Q FY17 12 14 16 18 20 4/1 10/1 4/1 10/1 4/1 10/1 4/1

Nikkei Stock Average

Net Gains (Losses) related to Stocks Japanese Stock Portfolio

Securities Portfolio (Stock)

2,132.1 1,603.9 1,838.7

1

Policy for cross-shareholdings disposal Reference: Trend in Japanese Stock Price

1,919.0 1,426.1

Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17

Basic Policy

Reflecting the potential impact on our financial position associated with the risk of stock price fluctuation, unless we consider holdings to be meaningful, we will not hold the shares of other companies as cross-shareholdings

Reduction Plan

Medium-term Business Plan (by Mar-19): JPY 550bn (Compared to the balance as of Mar-15) In Progress as planned

2 Banks Consolidated, acquisition cost basis (JPY bn) (JPY bn)

Reduction Plan by Mar-19 JPY 550bn Reduction Amount by Jun-17

  • JPY 297.2bn

Unrealized Gains/Losses 2

FY16: 210.5

(JPY K)

  • 1. Other Securities which have readily determinable fair values
  • 2. The base amounts to be recorded directly to Net Assets after tax and other necessary adjustments. Based on the average market price of the respective month
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9

1.9 .9 1.9 .9 1.9 .9 0.4 .4 9 8 8 4 FY14 FY15 FY16 1Q FY17

Total Liabilities

  • n Bankruptcies

(JPY tn)

  • No. of

Bankruptcies (K)

1.20% 1.00% 1.00% 0.96% Mar-15 Mar-16 Mar-17 Jun-17

Claims against Bankrupt and Substantially Bankrupt Obligors Claims with Collection Risk Claims for Special Attention NPL Ratio

  • 49.3

<5bps>

  • 7.8

<0bps>

  • 26.7

<3bps> +5.5 <reversal> +15.5 <reversal>

Credit-related Costs

Credit Portfolio

Disclosed Claims under the FRA

FY14 FY15 FY14 FY15 FY16 1Q FY17

Expenses related to Portfolio Problems

  • 82.4
  • 44.6
  • 36.0
  • 4.3

Reversal of (Provision for) General Reserve for Possible Losses on Loans

  • 0.8
  • 45.1
  • Gains on Reversal of Reserves for Possible

Losses on Loans and Others

74.5 17.0 31.9 19.8 FY16 1Q FY16 1Q FY17 1.0 0.8 0.8 0.7

Reference: Domestic Corporation Statistics Summary

Source: Teikoku Databank

2 Banks, banking account + trust account 2 Banks, banking account + trust account

  • 1. Ratio of Credit-related Costs (annualized) against Total Claims (period-end balance, based on the Financial Reconstruction Act (FRA))

(JPY bn) (JPY tn) Figures in < > represent Credit-related Costs Ratio1

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10

Asia / Oceania 48% Americas 33% Europe 19% Japanese 30% Non-Japanese 70% 75% 72% 72% 73% 0.9% 0.6% 0.7% 0.6% Mar-15 Mar-16 Mar-17 Jun-17

Investment Grade Level Ratio NPL Ratio

Non-Japanese 47% Japanese 53% 0% 20% 40% 60% 80% 100%

FI

General Corporate Non-Chinese Chinese

Hong Kong 24% Singapore 18% China 9%

Thailand

9%

Australia

8% Taiwan 8% India 7%

South Korea

7%

Indo- nesia 3% Others 7%

China USD 8.3bn Asia / Oceania USD 94.9bn Total USD 199.8bn

(Preliminary)

* Management accounting rules were changed in FY16. The original figures for Investment Grade Level was 73% for Mar-16. All other figures remain unchanged

Quality of Loan Portfolio*

BK (including the banking subsidiary in China) GCC management basis

Loan Portfolio Outside Japan (Jun-17)

BK (including the banking subsidiaries in China, the US, the Netherlands Indonesia, Malaysia, Russia, Brazil and Mexico), GCC management basis Period-end Balance

Loan Portfolio Outside Japan

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11 Necessity of cost structural reform to advance to the next phase of securing competitiveness Increasing uncertainties against the prospects for significant increase in Gross Profits

重視する 方向性 Mizuho’s Initiatives Business Environment

Prolonged negative interest rates Tightening of financial regulations US interest rate hike Advances in technology Increase of geopolitical risk

  • Fully implement the Customer First Principle
  • Operational Excellence

Introduction of the in-house company system Selecting and focusing

  • f business areas

Establishment of a resilient financial base Proactive involvement in financial innovation

Embedding a corporate culture that encourages the active participation of our workforce

5 Basic Policies

FY16

Medium-term Business Plan

Progressive Development of “One MIZUHO”

Begin structural reform from FY17 responding to further environmental change

FY17 FY18

Direction

  • 1. Cost competitiveness

Fundamentally reform cost structure

  • 2. Top-line profit

Thoroughly strengthen

  • ur advantages
  • 3. HR management

reform

Make the best use

  • f HR

FY17 Important year to build the foundation for reform

Medium- and Long-term Direction for Mizuho [from May 2017 Presentation]

Heightened uncertainty leads to necessity for foundation building looking beyond

  • ur Medium-term Business Plan
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12

Significant reduction in expenses through the promotion of Operational Excellence and Fundamental Cost Structural Reform

* Figures for FY2016 are recalculated based on FY2017 management account rules

Investment decision based on management environment

(JPY bn)

Expense Amount

JPY 1.42tn

45 10 23 Strategic Expenses Core Expenses Operational Excellence effects

FY2017 FY2016 FY2018 66.9% Higher 60% level Approx. 60%

Integrating procurement Streamlining front-line

  • perations and infrastructure,

etc. Integrating systems, etc. Streamlining head office functions Revisiting operations

Examples of expense reduction through streamlining initiatives IT-related : 20

(Branch infrastructure renewal, etc.)

Expenses Outside Japan : 15 Taxes, etc. : 10 Breakdown of Core Expenses *

35

Operational Excellence Effects

JPY 12bn

JPY 35bn

JPY 70bn

(vs FY2015)

FY2020 Mid-50% range

JPY 100bn

30

Structural Reform Task Force

Expense Ratio

(Group aggregated, management account, rounded figures)

Expense Plan [from May 2017 Presentation]

  • Reconsider personnel and

expense structures from medium- and long-term viewpoints

  • Reduce expenses to absorb

depreciation burden related to the Next-Generation IT Systems

Fundamental Structural Reform

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13

7.76% 8.77% 9.27% 9.43%

2.7% 2.1% 2.1% 2.2%

Mar-15 Mar-16 Mar-17 Jun-17

  • 1. Basel III fully-effective basis (based on current regulations). Including the Eleventh Series Class XI Preferred Stocks (the balance as of Mar-16: JPY 98.9bn, mandatory conversion on Jul. 1, 2016)

up to Mar-16

  • 2. Assuming Net Income Attributable to FG for FY17 of JPY 550.0bn

Steady dividend payout policy with a dividend payout ratio on a consolidated basis

  • f approx. 30% as a guide for our consideration

Dividend Policy

Steady Return to Shareholders Strengthening of the Stable Capital Base

CET1 Capital Ratio

1 Target: approx. 10%

(as of Mar-19, excluding Net Unrealized Gains on Other Securities)

Medium-term Business Plan Improve stress tolerance toward changing external changes through steady accumulation of retained earnings Comprehensively take into account management and regulatory environment, progress against the Medium-term Business Plan (CET1 Capital Ratio of approx. 10%), steady dividend payout ratio of approx. 30% and others factors

Cash Dividend per Share of Common Stock CET1 Capital Ratio1

Net Unrealized Gains

  • n Other Securities

10.46% 10.85%

FY16: JPY 7.50 (Dividend payout ratio 31.4%) FY17 (estimated):JPY 7.50 (Dividend payout ratio 34.6%2)

11.37%

Capital Management

11.63%

Pursue an appropriate balance between strengthening of the stable capital base and steady return to shareholders

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14

1,962.9 1,687.5 1,665.7 Mar-15 Mar-17 Jun-17 Mar-19

Financial Targets for FY2018

CET1 Capital Ratio1 Approx.10% [9.43%] Consolidated ROE2

  • Approx. 8%

[6.5%] Group Expense Ratio3

  • Approx. 60%

Excluding expenses related to the Next-Generation IT Systems, etc.: higher 50% level FY2020: aim for the mid-50% range Cross-shareholdings Disposal

JPY 550bn4 RORA

(Net Income Attributable to Owners of FG)

  • Approx. 0.9%

[0.7%]

Progress Against the Major Financial Targets

CET1 Capital Ratio Cross-shareholding Disposal Proportion of Non-interest Income FY15 54% 46%

Non- interest Income

[ ] 1Q FY17 Results

(JPY bn)

Expense Ratio

  • 1. Basel III fully-effective basis (based on current regulations), excluding Net Unrealized Gains on Other Securities 2. Excluding Net Unrealized Gains on Other Securities
  • 3. Group aggregated
  • 4. Shares listed on the Japanese stock markets, acquisition cost basis, cumulative amount from FY15 to FY18

(excluding Net Unrealized Gains on Other Securities)

Approx. 10%

Net Interest Income

FY15 1Q FY17 FY18

  • JPY 297.2bn

Reduction Amount

JPY 550bn

Progress Against the Financial Targets of the Medium-term Business Plan

60% 65% 77.5% 60.0% 70% 75%

53%

47% 1Q FY17 FY18

  • Approx. 60%

Non- interest Income Net Interest Income 8.77% Mar-16 Jun-17 Mar-19 9.43% Approx. 60% level