Mizuho Financial Group (8411) Q2 2025 earnings summary

Executive summary

• Exceeded FY2025 financial targets ahead of schedule, driven by sustainable growth investments and strong FY24 H1 results, with net income attributable to FG up 36% year-over-year to JPY 566.1B and consolidated ROE at 8.9%.

• Focused on cost reduction, operational stability, and reinventing products/services amid a challenging environment.

• Shifted to a new HR framework (CANADE) and intensified employee engagement through extensive town hall meetings.

• Emphasized balancing growth investment with shareholder returns and maintaining market trust.

• Ordinary income rose 8.0% year-over-year to ¥4,585.2 billion for 1H FY2024, with profit attributable to owners up 36.1% to ¥566.1 billion.

Financial highlights

• Forecasted FY2024 net business profit of JPY 1.17 trillion, up JPY 100 billion year-over-year, with consolidated gross profits at JPY 1,561.5B (+JPY 230.3B YoY).

• ROA increased from 3.1% to 3.3% and consolidated ROE at 8.9% (+1.6ppt YoY).

• Cost reductions achieved through divestment of low-profit assets and reduction in cross-shareholdings; expense ratio improved to 56.7% (-3.0ppt YoY).

• Net income and ROE have increased; EPS improvement remains a focus.

• Interim dividend per share raised to ¥65.00, with full-year estimate at ¥130.00.

Outlook and guidance

• FY24 net business profits forecast raised to JPY 1.17T and net income to JPY 820B, reflecting strong H1 results and BOJ rate hike impact.

• Plans to further diversify revenue sources, especially non-interest income, and continue disciplined growth investments.

• Shareholder return policy remains progressive dividends with intermittent share buybacks; annual dividend forecast increased to JPY 130/share, with share buybacks up to JPY 100B planned.

• CET1 capital ratio at 10.5% (Basel III finalization basis), supporting further growth investment and shareholder returns.

• Net income per share for FY2024 projected at ¥323.48.