Message from the Group CEO

A major paradigm shift is taking place amid the advancement of globalization and the current heightened uncertainty in global affairs. What does this shift indicate? I believe it means that each country needs to recognize its own strengths and challenges and forge its own path to success. Now more than ever, Japan must lay down such a path to tackle its myriad challenges, including labor shortages stemming from the declining birthrate and aging population, low self-sufficiency in food and energy, and diminishing global competitiveness among local industries.

Against this backdrop, our financial results for the first half of fiscal 2025 showed strong growth in interest income, primarily driven by the Bank of Japan’s rate hikes, while our solutions and investment banking businesses also performed well, both in and outside Japan. As a result, Profit Attributable to Owners of Parent reached JPY 689.9 billion. This represents 67% progress toward the annual plan of JPY 1.02 trillion, which in July we revised upward by JPY 80.0 billion from the plan announced at the beginning of the fiscal year . Reflecting the strong progress in our financial results, we have further revised upward our annual outlook for Profit Attributable to Owners of Parent to JPY 1.13 trillion (up JPY 190.0 billion compared to the outlook announced at the beginning of the fiscal year and JPY 110.0 billion compared to the outlook announced in July). For the interim cash dividend for fiscal 2025, we have set the dividend at JPY 72.50 per share. Based on our dividend policy of increasing dividends per share by approximately JPY 5 each fiscal year in line with the steady growth of our stable earnings base, we expect an annual dividend of JPY 145, representing an increase of JPY 5 from the previous fiscal year. In addition, in accordance with our shareholder return policy targeting a total payout ratio of 50% or higher, we will also implement a share buyback (up to JPY 200.0 billion, with a cumulative total up to JPY 300.0 billion for the fiscal year).

In fiscal 2024, we achieved the financial targets of our medium-term business plan ahead of schedule. Starting in fiscal 2025, we introduced new medium-term financial targets, and we feel confident that we have made a strong start.

Trend in earnings (JPY billion)

* Consolidated Gross Profits (including Net Gains (Losses) related to ETFs and Others) - G&A Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments.

Under our Purpose of “Proactively innovate together with our clients for a prosperous and sustainable future,” we are creating value for our clients, society, and the economy and further developing our unique competitive edge.

In Japan, we provide convenient, reliable financial services by integrating digital (online), remote (contact centers), and physical (branches and ATMs) channels, ensuring accessibility for all customers. We are also improving customer experience through the launch of our new point-based program Mizuho Point Mall and through partnerships with companies such as Rakuten Group, which operates its own economic ecosystem. In support of the Japanese government’s plan for doubling asset-based income, we are leveraging the strengths of our banking, securities, and trust banking businesses to facilitate asset building and investment. Alongside this, we are promoting the broader adoption of Nippon Individual Savings Accounts and expanding our collaboration with Rakuten Securities.

In regard to enhancing the competitiveness of Japanese companies, we are utilizing our long history of industry insights, our experience in supporting startups, our strengths in investment banking, our financing capabilities, and our consulting expertise to offer thorough assistance to a wide range of clients—from startups, small- and medium-sized enterprises, and middle-market firms to large companies. For global Corporate & Investment Banking (CIB), with the acquisition of US M&A advisory firm Greenhill, we have been advancing our strong presence in US capital markets and our comprehensive global network while simultaneously furthering collaboration across regions. Our aim is to rank in the top 10 for global CIB as a strategic partner for our clients.

We will continue to transform ourselves and innovate together with our clients and society. By doing so, we will put our Purpose into action and help society and the communities where we do business benefit from the enormous changes happening in the world.