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Global Markets Company

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By drawing on the broad range of products and services of Mizuho's banking, trust banking, and securities functions, we will provide comprehensive solutions to effectively meet customer needs while generating high and stable profits, and are aiming to become a top-class Asian player in the global market. Head of Global Markets Company Junichi Kato

Providing solutions using market products to customers and managing a stable portfolio in ALM / Investment businesses

The Global Markets Company conducts sales & trading by offering solutions to customers through providing market products, and engages in ALM* and investment businesses through asset management and fund–raising.

In the Sales & Trading business, the Company responds to the risk hedging and asset management needs of a wide range of customers in Japan and overseas. It has an in–depth understanding of customers' needs and draws on detailed analysis and forecasts of financial market trends. It also takes advantage of its sophisticated knowledge and experience, etc., in various financial products and its expertise to offer optimal solutions to each customer.

In the ALM / Investment business, it identifies changes in the market quickly through early warning control, and implements diversified investment suited to the market environment and the outlook. In this way, it works to conduct portfolio management that achieves a high and stable performance.

  • *Asset liability management (ALM): Comprehensive management of assets and liabilities
Breakdown of Gross Profit (Fiscal 2015)
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Key Aspects of the Company

Conditions in the External Environment

  • Higher volatility in each market due to uncertainty about the future outlook, declining risk appetite of market participants, and increasing geopolitical risks
  • Growing needs among customers for risk hedges and asset management

Issues for Mizuho

  • Responding to the needs of investors including hedge funds, overseas management companies, etc.
  • Enhancement of portfolio management

Mizuho's Strengths

  • Sophisticated product capabilities based on collaboration among banking, trust banking and securities functions
  • Sales & Trading structure that provide customized solutions for a wide variety of needs by customer segment and individual company
  • Portfolio management structure that optimizes asset allocation and adjusts risks by diversified investment depending on market environment

New Medium–term Business Plan for the Company (FY2016 through FY2018)

Achieve the aims of Mizuho's market business model by pursuing "Customer First" Principle (Customer–focused Perspective)

The Company responds to various kinds of risk hedging and asset management needs of customers related to interest rates, foreign exchange, equities, etc., by offering market products. The Company's basic strategy under its new medium–term business plan is to achieve Mizuho's market business model by offering products and solutions that meet the needs of each customer segment and individual company through the "customer first" approach.

In the Sales & Trading business, it works to offer optimal solutions to meet customer needs through collaboration between banking and securities functions. It places a particular focus on its business for global investors, expanding its product line–up and upgrading its capabilities.

In the ALM / Investment business, it is enhancing portfolio management through emphasis on early warning control and diversified investment, aiming to generate stable profits.

With Sales & Trading and ALM / Investment as its two pillars of business, the Global Markets Company aims to establish a base for generating stable profits and enhance its capabilities for providing high quality services to its customers.

Net Business Profit for Fiscal 2018 (Plan)
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  • *Before head office expense deduction
Sales & Trading Related Income*
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  • *Global Markets Company managerial basis

Major Strategies under the New Medium–term Business Plan

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Providing Solutions that Support Sustainable Growth of Customers and Society

Initiatives to help customers attain sustainable growth and contribute to the sound development of financial markets through responding to risk hedge and asset management needs

Mizuho provides support for customers' business and financial strategies by offering high–quality solutions that make use of market products and answers to customer needs for risk hedges and asset management, through collaboration among its banking, trust banking and securities functions.

We also cover a wide range of business domains, and among companies providing clearing services of Japan Securities Clearing Company (JSCC), MHBK stands No.1 in such services for yen interest rate derivatives.

In addition, we are an active participant in the International Swaps and Derivatives Association (ISDA) and other industry groups. Within these associations, we provide support to our customers for responding to regulations and contribute to the sound development of financial markets by making proposals based on our abundant knowledge and know–how accumulated through various businesses.

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Dealing room in the Head Office of MHBK

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Dealing room in the Head Office of MHBK

Review of Fiscal 2015

Provided effective portfolio management and strengthened capabilities for providing services to customers

Sales & Trading Business

In the Sales & Trading business, MHBK worked to further develop its business by offering proposals for optimal market products, such as foreign exchange, interest rate, commodities, etc., responding to changes in the market environment. Meanwhile, MHSC took steps to strengthen its capabilities for offering products in the equity and fixed income businesses.

In addition to these initiatives, in Japan and overseas, we focused on further advancing the collaboration between our banking and securities functions, and thereby steadily expanded our customer business.

Trends in Sales & Trading–related Income*1,2
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  • *1Index with FY2013 results defined as 100
  • *2Transaction Banking Unit managerial basis

ALM / Investment Business

In the ALM / Investment business, business environment was quite challenging as investment yields dropped substantially along with the global decline in interest rates and shrinkage in the spreads between short–term and long–term. We worked to identify changes in the market at an early stage, and then conduct operations that timely capture market movements. In addition, we took sufficient account of risk and return, and, through optimal allocation among bonds, equities, credit instruments, etc. worked to manage portfolios based on diversified investment.

Trends in ALM / Investment–related Income*1,2
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  • *1Index with FY2013 results defined as 100
  • *2Transaction Banking Unit managerial basis

TOPICS

Issuance of U.S. dollar–denominated Formosa Bonds (offshore bonds issued in the Taiwan market)

To support customers' business in non–yen currencies, Mizuho issues non–yen currency denominated bonds not only in U.S. dollars but also Hong Kong dollars, Singapore dollars, etc., to provide a stable non–yen currency funding base.

In fiscal 2015, we newly issued Formosa Bonds denominated in U.S. dollars. In this way, Mizuho is working to further diversify its non–yen currency funding sources and follow on from this to expand opportunities for offering products to large investors in the Taiwan market.

  • Note:The above contains statements that constitute forward–looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. See the disclaimer at the bottom of page 3 of 2016 Integrated Report(PDF/10,751KB) for information regarding factors that could cause actual results to differ from those in the forward–looking statements.
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