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Retail & Business Banking Company

Head of Retail & Business Banking Company Toshitsugu Okabe

Offering more sophisticated and speedier services than before spanning seamlessly the range from banking, trust banking and securities as well as asset management and research & consulting for a wide variety of customers

The Retail & Business Banking Company provides services to individual customers, small to medium–sized enterprises (SMEs) and middle–market corporations.

For individual customers, drawing on the group's capabilities, the Company speedily offers optimal products and services, in ways that comprehensively satisfy customer needs in the fields of asset management and asset succession. Mizuho has banking branches in every prefecture in Japan and stands No. 1 among Japanese megabanks in ATM network and number of joint branches through which it provides banking, trust banking and securities services. The Company is working to increase customer convenience through initiatives that include full utilization of this network while also further developing and increasing the sophistication of its Internet and smartphone banking services.

For SMEs and middle–market corporate customers, the Company provides support and solutions for their potential management issues, by formulating consulting–based growth strategies to meet the needs of both corporations and their owners, drawing on the group's capabilities. These needs of customers include dealing with business expansion and succession issues, launching overseas operations as well as support in asset succession and management for corporate owners, etc.

Moreover, Mizuho engages in the Area One MIZUHO Promotion Project with the aim of growing together with regional economies and societies that surround our customers. In regional areas, local economies are shrinking as a result of the population decline, and needs for welfare and medical care are rising due to the aging of the population. The objective of this project is to contribute to the revitalization of regional areas by addressing these issues across the group, centered on banking, trust banking and securities functions, in collaboration with regional governments and financial institutions as well as local businesses and residents.

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Key Aspects of the Company

Conditions in the External Environment

  • Concerns about the slowdown in the global economy, changes in the business environment resulting from negative interest rate policy
  • Increasing prominence of the shift from savings to investment/asset building and business succession issues
  • Additional entries into the financial sector by companies in other sectors utilizing Fintech

Issues

  • Accelerate integrated strategies for banking, trust banking, securities, asset management and research and consulting functions as well as integrated strategies for corporations and their owners
  • Structuring efficient front–line systems and optimizing service channels
  • Expansion of services for beginner and early–stage investors

Strengths

  • Group's areawide strategy promotion structure
  • Customer base and channel network
  • Corporates: About 800,000 customers
  • Individuals: About 24 million
  • Staffed locations: 790 locations

Interim Results for Fiscal 2016

Steady Progress through Financial Services Consulting Based on Integration of Banking, Trust Banking and Securities Functions

During the interim period of fiscal 2016, conditions were challenging because of the decrease in net interest income from deposits and loans owing to the negative interest rate policy and also because of instability in the market environment. However, the Company took positive initiatives to address these issues through close collaboration of its banking, trust banking and securities functions.

To give increased impetus to the shift from savings to investments/asset building among individual customers, it took steps to upgrade the asset management system on a group basis by drawing on FinTech and other new technologies. As a result, the value of new investments by individual customers in investment products expanded about 20% over the same period of the previous year.

In addition, by supporting the growth strategies of SMEs and middle–market corporate customers, the Company saw especially steady increase in M&A deals related to business expansion and business succession and in IPO–related business connected with offering increased support to companies with innovative technology and ideas. Also, as a new initiative, we established the "M's Salon" membership service for providing support for the growth of innovative companies. This service provides members with various forms of support for solving management issues and accelerating their growth.

Net Business Profit for Fiscal 2018 (Plan)
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  • *Before head office expense deduction
Investment Products
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No. of IPO arranger
Rank Company Name Deals Market Share
1 MHSC 9 22%
1 Daiwa Securities 9 22%
3 Nomura Securities 8 20%
3 SMBC Nikko Securities 8 20%
5 SBI Securities 5 12%
  • *April to September 2016
    Source: Prepared based on data from CAPITAL EYE, excluding REIT and global offerings

TOPIC

Strengthening Initiatives in the FinTech Area

Mizuho, in collaboration with startup companies, is moving forward actively with initiatives to offer services that make use of FinTech, AI and other technologies in the Internet and mobile device domains.

We have already developed a number of services centering mainly around applications for smartphones that make active use of advanced technologies and the services of third parties. These include the SMART FOLIO advisory service that uses an automated asset management advice tool, a balance checking service with LINE that enables customers to check their account balances easily, the Lifetime Financial Record by Moneytree and Mizuho Calendar by Creco Services.

As a result, Mizuho has received the MCPC* award for the sixth consecutive year (with a special award in fiscal 2016).

  • *MCPC:Mobile Computing Promotion Consortium

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