Global Corporate Company
We aim to be a strategic partner leveraging our global network and seamless 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 expansive network in highgrowth Asian economic zones and our presence in the attractive 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 the procurement of non-JPY currency, and provide clients with sophisticated financial services, making steady efforts to secure business opportunities related to changes in trade flows and industry reorganization in a post-COVID-19 era.
Business environment and challenges
The global economy is facing an unprecedented crisis due to deteriorating demand and a worsening real economy as a result of the COVID-19 pandemic. However, countermeasures were successfully implemented by national governments and central banks, and the stability of the financial system has been maintained. The Global Corporate Company continues to support our clients and the economy by fulfilling our financial intermediary function with calculated risk taking.
Also, the structural challenges that we previously identified, including increasing compliance costs pertaining to international regulations and non-JPY currency liquidity management, remain just as important as before. We will continue initiatives to increase the earnings power of our current business base, improve our cost structure, and optimize our business portfolio by focusing on core competencies.
Trends in performance
In fiscal 2019, we recorded strong Net Interest Income as a result of steadily capturing financing needs of clients around the world, including a large-scale financing deal with a Japanese company operating outside Japan. We also expanded our non-interest income through efforts in US capital markets and by strengthening transaction banking. Furthermore, as a result of stringent cost control, we were able to achieve our targets for both Gross Profits and Net Business Profits. Going forward, we will steadily implement our key strategy and aim to achieve our targets for the 5-Year Business Plan.
| Items | FY2018 Performance |
FY2019 | FY2020 Targets |
|
| Performance | Year–on–year | |||
| Gross Profits | 400.2 | 417.8 | 17.5 | 384.0 |
| Net Business Profits | 169.2 | 178.7 | 9.5 | 128.0 |
- Gross Profits and Net Business Profits include Net Gains related to ETFs.
- Results are based on FY2019 management accounting rules, targets are estimates based on FY2020 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 on about 300 blue-chip corporate groups worldwide having stable credit and potential for ancillary transactions via our Global 300 strategy, we have built up a stable revenue base. Going forward, we will continue to pursue revenue streams with upside potential by enhancing our current business base.
Related SDGs
Expanding into new business domains
We are raising our transaction banking capabilities in Asia and strengthening our client relationships in US capital markets. We will also aim to expand our transaction banking income by capturing capital flows in the high-growth region of Asia, with an awareness of changes to supply chains in the wake of the COVID-19 pandemic.
Further, mainly leveraging our strength of debt capital market business in US capital markets, we will increase our non-interest income by expanding our client base and product offerings.
Related SDGs
Addressing structural issues
In light of constraints including the international regulatory environment and non-JPY currency procurement, by shifting corporate resources from areas with little potential for profit to new business areas and high-profitability businesses, we will increase the quality of our business portfolio.
In addition, as an initiative to improve our cost structure, by consolidating operations, utilizing technology to streamline operations, and optimizing costs outside of Japan, we are further strengthening our framework to ensure our stable provision of financial services even in times of crisis such as the COVID-19 pandemic.
League tables
| FY2017 | FY2018 | FY2019 | |
| Americas DCM1 (excluding US banks) |
No. 10 (No. 4) |
No. 8 (No. 2) |
No. 10 (No. 4) |
| Americas LCM2 (excluding US banks) |
No. 10 (No. 3) |
No. 7 (No. 2) |
No. 7 (No. 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
Expense ratio
Note: This data is based on FY2019 management accounting rules.
Highlights
Results yielded by our Global 300 strategy
Leveraging Mizuho's financial consulting capabilities, we acted as a lead arranger for one of the largest syndicated loan arrangement and bond underwriting deals in Central America for a parastatal enterprise in the region.
We secured this deal as a result of putting the Global 300 strategy into practice, adopting a focused strategy for a non-Japanese company and steadily building a business relationship with the client including relationships with their senior management. We will continue our endeavors to increase Mizuho's presence in global markets.
ESG initiatives
Mizuho signed a facility agreement and served as the sole arranger for a sustainability-linked cross-border syndicated loan to provide financing to a Thai company. With the exception of Japan, this was the first deal in Asia to incorporate the assessment of ESG initiatives as part of a cross-border syndicated loan. We will continue proactively providing a wide range of solutions, including advice and financing support, to companies that promote ESG topics.
