Global Corporate Company

We aim to be a strategic partner leveraging our global network and comprehensive financial solutions spanning banking, trust banking, and securities to support our clients' global business development.

Basic policy

As a strategic partner supporting our clients' global business development, we will leverage our extensive network in Asian economic zones and our presence in the US capital markets to provide comprehensive financial solutions to clients in each region.

We will build a stable and profitable business portfolio to enable sustainable growth while being aware of constraining factors, including the external regulatory environment and non–JPY currency funding, and recognize the accelerating transformation of business structures triggered by COVID–19 and the SDGs/ESG as business opportunities as we provide clients with sophisticated financial services.

Business environment and challenges

In addition to varying degrees of economic recovery from the COVID–19 pandemic in each region and industry due to differences in vaccine availability and economic measures, the global economy faces various risk factors including concerns of the spread of COVID–19 variants and growing geopolitical risk. Furthermore, increasing interest in the SDGs and ESG topics has triggered the transformation of business structures in all industries and business categories.

Under this business environment, in addition to sophisticated financial intermediary capabilities, financial institutions must be able to provide clients with consultations regarding revisions to their supply chains and shifting to carbon neutral, and deliver multi–faceted solutions and financial products.

Trends in performance

In fiscal 2020, in addition to growth in interest income due to facilitating lending to support clients' challenging situations and efforts to improve profitability, as well as steady efforts to capture business in the European and US capital markets— which were thriving in light of the supply of liquidity and the low interest rate environment—we significantly grew our Gross Profits. Additionally, through strict control of costs outside of Japan and Credit Costs, we realized profit growth exceeding the fiscal 2020 target outlined in the 5–Year Business Plan.

1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

Progress on key strategies

Enhancing current business areas

Thus far we have leveraged our global network to provide consulting services to Japanese corporate clients operating outside of Japan, and by focusing our corporate resources on about 300 blue-chip corporate groups worldwide having stable credit and potential for ancillary transactions via our Global 300 strategy, we are endeavoring to bolster stable revenue and diversify our revenue sources.
Furthermore, we are working to strengthen risk management in light of changes to industry structures during and after the COVID-19 pandemic, and we are building a high quality portfolio in terms of both stability and profitability.

Related key sustainability areas (materiality)

• Industry development & innovation
• Sound economic growth
• Environmental considerations
• Corporate governance
• Environment & society

 

Expanding into new business domains

As outlined in the 5-Year Business Plan, we are continuing to focus on transaction banking in Asia and business in US capital markets by strengthening our solution capabilities and expanding our product line–up.

In addition, in light of the growing awareness around the world of the SDGs and ESG topics, on a global basis we are strengthening our advisory services for green finance and green transitions in order to contribute to the resolution of environmental and social challenges through our business operations.

Related key sustainability areas (materiality)

• Industry development & innovation
• Sound economic growth
• Environmental considerations
• Corporate governance
• Environment & society

 

Addressing structural issues

In light of constraints including the international regulatory environment and non–JPY currency funding, by shifting corporate resources from areas with little potential for profit to high-profitability businesses and growth fields, we will increase the quality of our business portfolio.

In addition, by consolidating international operations and utilizing technology to optimize costs outside of Japan, we are working to enhance the services we provide to clients by streamlining operations.

League tables

	FY2018	FY2019	FY2020
Americas DCM1 (excluding US banks) Share	No. 8 (No. 2) 5.4%	No. 10 (No. 4) 3.4%	No. 9 (No. 3) 4.7%
Americas LCM2 (excluding US banks) Share	No. 7 (No. 2) 3.4%	No. 7 (No. 3) 3.5%	No. 8 (No. 2) 3.3%

1. Bonds issued by investment-grade companies, bookrunner basis Source: Dealogic

2. Loans issued by investment-grade companies, bookrunner basis Source: Refinitiv

 

Transaction banking

 

Amount of arranged ESG–related financing

 

Highlights

Strengthening our presence in the North American capital markets and transitioning to the next generation of financial services

In the area of North American capital markets business, which is a focus area of our key strategies, we significantly grew our share of DCM underwriting for investment grade issuances in North America. In addition, we joined DirectBooks, a consortium formed for the purpose of standardizing and streamlining the process of connecting underwriting financial institutions with investors for investment grade DCM issuances, as the consortium's only Asian financial institution to be designated a "Premier Partner Bank". We will continue working to enhance our high level of service for financing in the North American capital markets.

Realizing sustainability for the environment and society

At Mizuho, we undertake various initiatives to contribute to the achievement of the SDGs, such as green finance initiatives and the provision of financial education for children from underserved households.

We have also designated ESG Champions in each region for the purpose of strengthening our financial advisory capabilities on ESG topics. By sharing our ESG expertise globally and providing clients with sophisticated solutions, we will contribute to solving social issues from a financial perspective.