Corporate & Institutional Company
As a strategic partner for business development, we are aiming to achieve our vision of collaborative value creation and partnerships with our clients and contribute to the sustainable development of Japan's economy, industries, and society.
We support our clients' business development by providing investment and financing, brokerage, and consulting services not only in the financial sector but also in non–financial sectors.
Under the 5–Year Business Plan, in addition to strengthening our traditional commercial and investment banking functions, we aim to build new partnerships with our clients by leveraging our high level of industry insight and discernment to create new business opportunities and share business risk.
We will also contribute to the sustainable development of the economy, industry, and society by creating social value as well as economic value for our clients through contributions to Japan's growth strategy, supporting industry transformation, and promoting economic activity mainly in Asian economic zones.
Business environment and challenges
The global economy is becoming increasingly uncertain due to increased movements toward protectionist trade policies, political risks in Europe, and the persistence of geopolitical risks in the Middle East and East Asia.
In addition to global competition, the business environment our clients face is becoming increasingly complex as a result of restructurings and competition that transcends industries, due in part to technological advances, as well as enhanced corporate governance frameworks and the implementation of SDG initiatives.
The role of financial institutions in responding to an increasingly complex society and the challenges and needs of clients is becoming more sophisticated and diverse. In light of this, we will create new value by leveraging our high–level risk–taking capabilities and by providing solutions that go beyond the conventional boundaries of finance.
Trends in performance
In FY2018, we achieved our targets as Net Interest Income rose due to an increase in the balance of loans, and fee–based business grew, driven by large–scale M&A projects. KPIs were met for DCM and real estate, while there is still room for improvement for ECM.
Going forward, we will steadily implement the key strategy under the 5–Year Business Plan with the objective of achieving FY2023 targets.
|Net Business Profits||230.0||280.0||＋50.0||240.0||260.0||290.0|
Results are based on FY2018 management accounting rules (including Net Gains Related to ETFs), targets are estimates based on FY2019 management accounting rules.
Progress on key strategies
Expansion of our business domain
The business environment surrounding our clients is changing at a dizzying pace, and our clients' business challenges and needs are becoming more diverse and complex. In addition to our banking, securities, and trust banking capabilities, we added leasing to our business portfolio in March 2019 and are further enhancing the financial services we provide to our clients. Going forward, we will continue contributing to the sustainable growth of the economy, industry, and society by expanding our business scope to include non–financial services and by co–creating value with our clients and society.
Revenue structure reforms
Technological advances are changing the structure of societies and economies at an unprecedented pace. In line with these changes, we are going beyond simply expanding our business domains and also expanding our client base, shifting to assets likely to produce high profitability, and accumulating insights into trends in each industry, with the aim of building a portfolio capable of withstanding future uncertainties and turns in the credit cycle. Through these initiatives, we are establishing a product and business portfolio that combines both growth potential and stability.
Enhance our business base
We are building a solid business base to support new business strategies.
Specifically, we are hiring and training personnel with diverse perspectives and expertise. At the same time, we are transforming our working style to enable each individual employee to maximize their skills, without being bound by time or location.
Also, to address the increasing uncertainty in the business environment, we are continuing to strengthen our risk management, for example by upgrading our system for monitoring economic trends and the state of our business portfolio.
Resolving social issues through renewable energy projects
We provided financing for a woody biomass power generation project in the Tohoku region of Japan, leveraging our expertise and client base in the power industry. Biomass power generation is expected to be a stable energy source because it is not affected by weather conditions. It is also an environmentally–friendly power source with zero CO2 emissions. We will continue to support both stable power supplies and decarbonization through renewable energy initiatives.
Measures to reduce the number of vacant houses through the revitalization of the resale market for existing houses
The Tokyo Metropolitan Government established the Registration System for Business Groups Promoting the Resale Market for Existing Houses and is working to develop a secure market where existing single–family homes can be bought and sold, and to prevent the city from falling into decline due to an increase in the number of vacant houses.
Mizuho is the only registered financial institution under this system, and as part of our commitment to promoting the resale of existing houses, we will support the development of an environment which is conducive to establishing a market that supports the efficient use of existing housing.