Summary Results for FY2010

Consolidated Gross Profits for fiscal 2010 increased by JPY 36.6 billion on a year-on-year basis to JPY 2,033.2 billion.
Gross Profits of the banking subsidiaries increased by JPY 26.3 billion on a year-on-year basis (increased by JPY 103.9 billion after adjustment of the impact for fiscal 2009 of a change in the recipients of dividend payments under our schemes for capital raising through issuance of preferred debt securities by SPCs). This was due to a year-on-year increase in income from Customer Groups (JPY 24.2 billion) arising mainly from non-interest income, accompanied by an increase in income from the Trading segment derived from flexible and timely operations properly interpreting market trends, and by other factors.
G&A Expenses of the banking subsidiaries decreased by JPY 30.0 billion on a year-on-year basis mainly due to continued overall cost reduction efforts.

Aggregated Consolidated Gross Profits (Net Operating Revenues) of our two securities subsidiaries (Mizuho Securities and Mizuho Investors Securities) decreased by JPY 54.9 billion on a year-on-year basis.

As a result, Consolidated Net Business Profits amounted to JPY 741.7 billion, a year-on-year increase of JPY 39.0 billion.

Credit-related Costs of the 3 Banks amounted to a net reversal of JPY 16.0 billion, a year-on-year improvement of JPY 173.1 billion. This was primarily due to our efforts to implement appropriate credit management while responding to our customers' financing needs. On a consolidated basis, Credit-related Costs were also maintained at a low level of a cost of JPY 16.6 billion.

Net Losses related to Stocks of the 3 Banks amounted to JPY 76.2 billion. This was mainly due to recording impairment losses reflecting a decline in stock prices.

As a result, Consolidated Net Income for fiscal 2010 increased by JPY 173.8 billion on a year-on-year basis to JPY 413.2 billion.

The average loan balance for the second half of fiscal 2010 increased by JPY 0.1 trillion from that of the first half. This was primarily due to an increase in overseas loans, offset in part by a decrease in domestic loans, particularly those to large corporate customers. Meanwhile, the fiscal year-end loan balance as of March 31, 2011 increased by JPY 0.9 trillion compared with that of September 30, 2010, mainly due to an increase in overseas loans.

The domestic loan-and-deposit rate margin for the fourth quarter (i.e. three-month period from January to March 2011) was 1.37%, an improvement of 0.02% from that for the third quarter (i.e. three-month period from October to December 2010).

Non-interest income from Customer Groups of the 3 Banks (on a managerial accounting basis) for fiscal 2010 increased by JPY 38.6 billion on a year-on-year basis.

Non-interest income from overseas business substantially increased compared with the previous fiscal year. In addition, we have seen increases in income associated with investment trusts and individual annuities, income from foreign exchanges business, profits from trust and asset management business of Mizuho Trust & Banking, and others.

We continue to pursue "strengthening of stable capital base" and "steady returns to shareholders" as our "disciplined capital management" policy. However, considering the ongoing global discussions with respect to capital, uncertainty over the economy and market trends, and other factors, we are placing a higher priority on "strengthening of stable capital base."

In the last fiscal year, we strengthened our capital base mainly as a result of earning JPY 413.2 billion of Consolidated Net Income and issuing common stock in July 2010 (the number of shares issued: 6 billion shares, total amount paid in: JPY 751.6 billion). As a result, our financial base was significantly improved. Our Consolidated Tier 1 Capital Ratio was 11.93% as of March 31, 2011, a year-on-year improvement of 2.84%.

Amid the ongoing global discussions on the revision of capital regulations, we aim to increase, as our medium-term target, our Consolidated Tier 1 Capital Ratio (under Basel II) to 12% or above and our Common Equity Capital Ratio^* (under Basel III) as of the end of fiscal 2012, when the new capital regulations are scheduled to be implemented, to the mid-8% level.

We announced Mizuho's Transformation Program in May 2010, and continue to work to improve profitability and enhance our financial base. We will strive to strengthen further our financial base mainly by accumulating retained earnings and improving asset efficiency through the steady implementation of the Program. Accordingly, we believe we will be able to sufficiently meet the new capital regulations.

• *The calculation of our Common Equity Capital Ratio includes the outstanding balance of the Eleventh Series Class XI Preferred Stock that will be mandatorily convertible in July 2016.
  Meanwhile, as of today, details - such as the calculation method for the capital adequacy ratio under the new capital regulations - have yet to be determined. Therefore, our Common Equity Capital Ratio is the estimated figure that Mizuho Financial Group calculates based on the publicly-available materials which have been issued as of today.

• (Note)The outstanding balance of the Eleventh Series Class XI Preferred Stock as of March 31, 2011 (excluding treasury stock) was JPY 416.8 billion (the rest of the balance, 55.8% of the initial amount issued of JPY 943.7 billion, had already been converted into common stock).

(As of May 13, 2011)