Global Corporate Company
As a strategic partner supporting our clients' global business development, we will work with our clients to realize the potential of the cross-regional value chain.
We will connect clients and capabilities in each region, focusing on our network in high–growth Asian economic zones and on our presence in the attractive US capital markets. As a strategic partner supporting our clients' global business development, we will work with our clients to realize the potential of the cross–regional value chain.
To respond to structural issues, including an increase in expenses due to regulatory compliance costs resulting from the introduction of new Basel requirements and the limitations on the potential to raise foreign currency funds, we will optimize our business portfolio with a focus on profitability and sustainability, expand our stable income sources, and streamline our revenue structure while maintaining our bottom line.
Business environment and challenges
The global economy is continuing to make a modest recovery overall, led by the strong growth of the US economy. However, we must remain attentive to factors such as the proliferation of protectionist trade policies arising from US–China trade friction, the political risk developing in Europe, and the geopolitical risk present across the Middle East and East Asia. Our business is facing constraints on future growth in the form of an increase in expenses due to regulatory compliance costs resulting from the introduction of new Basel requirements and the limitations on the potential to raise non–JPY currency funds. Within this business environment, we view these constraints on future growth as structural issues and will advance initiatives to build new business foundations. Specifically, we will increase the fundamental earnings power of our current business base, improve our cost structure, and revise our business portfolio strategy through selection and focus.
Trends in performance
In FY2018, we recorded strong Net Interest Income due to steady improvement in our corporate loans and deposits. We also expanded our non-interest income by capturing large–scale M&A deals and other business. As a result of keeping down our expenses outside Japan through stringent cost control, we were able to achieve our targets for both Gross Profits and Net Business Profits.
Going forward, we will implement the key strategy of the 5–Year Business Plan and aim to achieve our targets for FY2023.
|Net Business Profits||90.0||170.0||＋80.0||160.0||170.0||180.0|
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
Enhance current business areas and reform cost structure
We are continuing to provide consulting and support for our Japanese corporate clients' global expansion and to pursue our Global 300 strategy of focusing on about 300 blue–chip corporate groups worldwide. At the same time, we are enhancing cross–selling tailored to regions and markets, with an emphasis on capital investment, in an effort to strengthen our current business base.
In order to improve our cost structure, in addition to proactively leveraging technology, we will move forward with the optimization of our operational frameworks in each region.
Expand into new business domains
We will raise our transaction banking capabilities in Asia and strengthen our client relationships in US capital markets. In the high–growth region of Asia, we will capture capital flows both inside and outside the region, leverage our strong client base, and develop stable business foundations. In North America, we have achieved a presence in the debt capital market business second only to US financial institutions through our acquisition of Royal Bank of Scotland assets. With the strengths we have from this business, we are expanding our client base and product offerings to strengthen our relationships in capital markets.
Reduce low–return assets
We will look into scaling back businesses that have low return or low potential for improvement. With these cuts to the stock variables of our "stock and flow," we will free up risk–weighted assets and non–JPY currency resources to invest in new and high–return business domains. Through our initiatives to streamline our revenue structure, we will aim to build an optimized business portfolio.
Mizuho Bank and principal subsidiaries, including central bank deposits. Global Corporate Company management accounting basis.
Investment–grade bonds worth USD250 million or more issued by companies in the Americas.
Our Global 300 strategy is yielding positive results
Seeing that the global media industry was moving toward consolidation of communications and content, we acted to be one of the primary banks in a large–scale, representative M&A deal.
This allowed us an opportunity to exercise our advantages in the telecom, media, and technology field, as well as to apply our Global 300 strategy, which is aimed at pulling in more financing deals. Going forward, we will continue striving to reach an even higher level as a global player.
Opening of a new Mizuho Securities office in Frankfurt
Mizuho Securities has established Mizuho Securities Europe GmbH in Frankfurt, Germany as a subsidiary of our United Kingdom–based subsidiary Mizuho International plc. Mizuho Securities Europe began operating in March 2019 and will ensure service continuation and stability for clients in Europe and around the world, regardless of the progress of Brexit negotiations.