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Retail & Business Banking Company


Head of Retail & Business Banking Company Toshitsugu Okabe

We are committed to becoming a financial services consulting company that combines banking, trust banking, and securities services by developing our consulting business with close relationship with our customers, and by maintaining customer–focused business operations.

Medium– to Long–term Company Strategy

While net interest income, which used to be the main source of revenue, is decreasing in the context of prolonged low interest rates, we are seeing changes in the business environment, such as a series of digital innovation and the entry of non–financial enterprises, such as Fintech ventures, in the market hitherto dominated by financial institutions. A transformation from the traditional business model is urgent.

Under such circumstances, the Retail & Business Banking Company is aiming to establish a new retail business model by making the maximum use of the competitive advantage in integrated banking, trust banking, and securities functions to serve the diverse needs of households, SMEs, and middle–market corporations. We are also using advanced technologies and external collaborations in improving the user–friendliness of our services.

Specifically, we will reallocate staff in key sectors across the group, further ramp up our personnel training, and work to improve the quality and productivity of our services so that we can restructure business around non–interest income. We will also work to expand our customer base and maximize profits by developing convenient, non–face–to–face services using Fintech. Furthermore, Mizuho is aiming to be a company that grows along with regional communities and economies. We will contribute to the revitalization of regional communities and economies through the Area One MIZUHO Promotion Project, with our banking, trust banking, and securities entities in each area working as a team to address local issues.

For individual customers, we will maintain customer–focused business operations, fulfilling our social responsibility by encouraging a shift from savings to investments/asset building. We will expand our product lineup and work to improve our customers'financial literacy. We will also move forward with initiatives to improve the convenience of non–face–to–face services for our customers for example by making our online and smartphone services more sophisticated.

For SMEs and middle–market corporations, we will strengthen our initiatives for consulting–based support on such matters as growth strategies, business succession, and IPO. By doing this, we can, as an integrated group, provide both corporations and their owners with optimal solutions that resolve latent issues.

In the medium–to–Long term, we will fundamentally transform our business through operational excellence, for example, by optimizing work procedures through the use of AI and robotics. We will also rethink our branch strategy in each region, such as increasing the number of joint branches that can provide banking, trust banking, and securities services, while also utilizing digital channels. Such initiatives will both cut costs and improve customer convenience.

Fiscal 2016 Results and Plans for Fiscal 2017 and Beyond

The effects of negative interest rate policies meant that decreases in loan deposit income and an unstable market environment continued in fiscal 2016. Although the Retail & Business Banking Company was unable to attain our Net Business Profits target, we did achieve some successes, such as the expansion of our customer base through integrated banking, trust banking, and securities initiatives.

We continued our efforts to establish a face–to–face consulting system by reallocating marketing personnel across the group, with the aim of encouraging households to shift from savings to investments/asset building. Partly because of this, 2.53 million customers used our investment products in fiscal 2016 (an increase of 30,000 year–on–year) and our assets under management expanded steadily to JPY37 trillion (a 5% increase year–on–year). We also enhanced user–friendliness, for example, by introducing advanced technology and the services of outside companies.

As an approach to challenges such as business expansion and succession for SMEs and middle–market corporations, we provided consulting–based support for growth strategies and M&A. We also strengthened our support system for innovative companies with outstanding technologies and ideas. Partly because of this, we had the largest share of transactions supporting SME and middle–market corporation M&A. Also, for IPO, we supported 16 deals as the lead manager (a 14% increase year–on–year) and 31 deals as the transfer agent (a 63% increase year–on–year).

In fiscal 2017, we will accelerate our integrated banking, trust banking, and securities strategies, as well as thoroughly enforce and further develop our consulting style that maintains close relationships with our customers. We will also establish key strategies based on customer needs, and work to boost user–friendliness and increase profits by making face–to–face services more sophisticated and further reinforcing digital contents in non–face–to–face channels.

For individual customers, we will enhance customer–focused consulting services so that we can meet their needs regarding the shift from savings to investments/asset building and asset succession. For their long–term asset building, we will further promote iDeCo1 and NISA2 transactions by giving more focus on financial education for customers. We will also accelerate our digital innovation initiatives and make our products more user–friendly as well as develop a business model that will boost profitability and expand our profit base.
Specifically, we will develop business that utilizes big data, for example, by expanding alliances with online service providers such as the one with J.Score featuring a new type of lending services.

For our corporate customers, especially among SMEs and middle–market corporations, we will upgrade our solutions functions and enhance collaboration with the Research & Consulting Unit in order to further develop our consulting–based support for their growth strategies to deal with management issues such as M&A, IPO, and business succession.

In addition to the aforementioned initiatives, we will promote operational excellence, revise work processes by utilizing digital technology innovations, and take actions to cut costs.

  • 1.Individual–type defined contribution pension plan
  • 2.Small–lot, tax exempt investment accounts

1. Current Environment

External Environment

Economy, Regulations, and Competition
  • Increasing uncertainty in the global economy
  • Negative interest rate policies continue
  • Increasing convergence of strategies of our competitors
  • Entry of non–financial enterprises such as Fintech ventures
  • Recovery expected of the asset management business
  • SMEs and middle–market corporations looking for successors outside the founders' family as they reach old age without successors
  • Financial assets held by households exceed JPY1,800 trillion
  • Japan's demographic changes

Internal Conditions

  • An established customer–focused consulting structure with integrated banking, trust banking, and securities functions
  • Reallocated human resources to key sectors (trust banking and securities), trained people who can work across banking, trust banking, and securities entities
  • Customer base and channel network
    Staffed locations: 797 (as of June 30, 2017)
  • Deteriorating net interest income due to the continuing negative interest rate policies
  • High expense ratio

2. Value Creation

Value for Customers

  • Serving a wide range of customer needs with financial services consulting that integrates our banking, trust banking, and securities functions
  • High–quality customer–focused services that maintain a high level of expertise and professional ethics
  • New value in services such as remittances, payments, and asset management by utilizing Fintech
  • Sophisticated business and assets succession solutions for SMEs and middle–market corporations confronting such issues as aging top executives and insufficient human resources

Value for Society

  • Facilitate the flow of funds to enable the sustainable growth of household financial assets and the Japanese economy
  • Support the growth strategies of SMEs and middle–market corporations
  • Adopt an integrated approach that combines our banking, trust banking, and securities functions to address regional challenges, and collaborate with local businesses and citizens

3. Business Plans

Risk Appetite Policy

  • Promote initiatives to establish and entrench customerfocused business operations
  • Proactively invest resources in key sectors aimed at augmenting non–interest income
  • Make efficient use of resources and establish a low–cost business model by utilizing digital innovations and external alliances

Action Plans

  • Implement sophisticated consulting business that will contribute to the asset building in the household sector
  • Provide optimal solutions that support the growth strategies of our SME and middle–market corporation customers
  • Make our online and smartphone services more userfriendly by utilizing digital innovations
  • Boost efficiency and productivity by transforming work processes
  • Promotion for practicing and establishing fiduciary duties

Interim Results for Fiscal 2017


  • *1FY2016 results recalculated based on FY2017 management account rules
  • *2FY2016 results: JPY13 billion



  • *Any Japanese involvement, excluding real estate deals
    Source: Thomson Reuters



  • *Prepared based on data from CAPITAL EYE. Top Left basis, excluding REIT and global offerings.


  • *Prepared based on disclosure materials of each company, excluding REIT, ETF and PRO MARKET

Solutions that Support Sustainable Growth for Our Customers and Society

Area One MIZUHO Promotion Project

Mizuho is engaged in the Area One MIZUHO Promotion Project, which adopts an integrated approach that combines our banking, trust banking, and securities functions to address regional issues in collaboration with local public entities, financial institutions, businesses, and citizens.

It aims to strengthen partnerships with local communities so that we can actively tackle such issues as regional socioeconomic problems due to depopulation and the increasing need for welfare and medical care that accompanies the aging of society, and can contribute to the social and economic revitalization of regions.


Membership–based Service to Support the Growth of Innovative Companies

Mizuho established M's Salon in November 2016. This is a membership–based service to support the growth of companies that have the potential to bring about innovation. It offers its members a range of service options that will help to resolve management issues typically confronted by growing companies that use outstanding technologies and ideas in creating innovative business, and help to accelerate their growth.

We will contribute to the Japanese economy and social progress through our support for the innovative companies that will play a leading role in the future.