Mizuho Financial Group completed the repayment of all public funds last year, and it repurchased and cancelled a portion of common stock held by its subsidiary, with a total value of about ¥130bn ($1.2bn). The bank also issued ¥400bn of non-dilutive preferred securities to strengthen its capital base. The group’s Tier 1 ratio rose by 8.3% in 2006. Mizuho increased its fiscal year-end cash dividends per shape of common stock to ¥7000, more than double the previous year’s level. Considering earnings estimates and other factors, the group plans to increase its cash dividend per share payout for fiscal 2007 to ¥10,000, while dividends on preferred stock will be made as prescribed.
In line with consolidating its international footprint, last year Mizuho listed its American depository receipts (ADRs) on the New York Stock Exchange (NYSE) with the objective of enhancing the transparency of its corporate governance and raising investors’ trust in the group.
Three of the bank’s business units have implemented strategies to respond to a diverse range of customer needs. Mizuho Corporate Bank (MHCB) obtained financial holding company status in the US; its wholly owned banking subsidiary in China commenced operations in June 2007; and Mizuho Securities and Shinko Securities reached an agreement to merge their operations by January of next year. MHCB continues to expand its overseas network and conclude strategic links with leading foreign financial groups, while the bank’s growth strategy remains focused on domestic retail banking. Mizuho continues to expand its investment banking and securities business to enhance future growth and diversity.
“It is our greatest honour to be awarded for three consecutive years,” says chief executive Terunobo Maeda. “We steadily implemented our Channel to Discovery plan with the objective of winning the ever-stronger support of our customers and creating a world-leading financial group. Under the plan, we proceeded with our business strategies both in Japan and overseas to meet the diversified needs of our customers, and listed our ADRs on the NYSE in November 2006.
As a result, in fiscal 2006, we secured the group’s comprehensive profitability and maintained our financial soundness. We continue to strengthen our competitiveness and profitability, to enhance the quality of our capital and reinforce our capital base to sustain our top-line growth strategies.”
