Message from the Group CEO (1/2)
As President & Group CEO of MHFG, I would like to express our deep appreciation for your continued interest in and support of our Group.
We announced a new medium–term business plan for the next three–year period starting from fiscal 2016, entitled Progressive Development of "One MIZUHO"—The Path to a Financial Services Consulting Group.
To enable you to gain a more in–depth understanding of Mizuho, including the spirit of the new medium–term business plan, I would like to provide an explanation of our plans.
First, let us take a look at the business model transitions that have been made in the financial industry. What we have positioned as Phase Ⅳ, or the decade of the 2010s, is a time of exploring a new business model after the Lehman Crisis. In the previous medium–term business plan, Mizuho presented a progressive business model, the "One MIZUHO Strategy," which promoted the integrated strategy among banking, trust banking and securities functions. In preparing our new medium–term business plan, we gave consideration to creating a new business model that would take account of the management environment, the accomplishments and challenges under the previous medium–term business plan, the unchanging value as a financial institution and Mizuho's Corporate Identity.
Understanding of Management Environment
Although the world economy is likely to continue to grow, the slowdown in the rate of growth in the United States and in the emerging countries, such as China, will limit the overall economic growth going forward, and uncertainty about its future course is growing. While paying careful attention to the development of regulatory reforms of the global financial system, we are aware of the necessity for establishing a financial base supported by a balance sheet that is resilient against the uncertainties in the world economy, and by a sustainable and stable profit structure.
Also, in view of structural changes in the economic and social environment in Japan and overseas, including Japan's declining birthrate and the aging and shrinking population, the globalization of business activities, continuing technological innovation, climate change and other factors, as a global financial services group with its base in Japan, we will help address and contribute to the solutions of a wide range of social issues. Consideration of these factors has given us a renewed awareness of the necessity of creating new business opportunities. Especially, in the midst of technological progress, the accelerating financial innovation, as exemplified by Fintech, has made clear the need to create new value for our customers by working together with selected third parties, and thereby establish unique competitiveness.
- Transition of the Business Model for the Financial Industry, Our Corporate Philosophy and Unchanging Value as a Financial Institution
Accomplishments and Challenges to be Addressed under the Previous Medium–term Business Plan
Under the previous medium–term business plan, One MIZUHO New Frontier Plan— Stepping Up to the Next Challenges, we focused on the actual needs of our customers, and, to respond effectively to their diverse and differing needs, we introduced a group management structure by which group–wide business units took the lead in formulating and promoting business strategies and initiatives for banking, trust banking, securities and other functions. Over the three years of the previous plan, under the banner of One MIZUHO, we positioned the "customer first" principle (customer–focused perspective) as a cornerstone of the plan and implemented our "One MIZUHO Strategy." As a result, we met almost all of our financial targets and made progress toward reforming to a sustainable and stable profit structure. We also successfully enhanced our corporate governance by shifting to a "Company with Three Committees" and by strengthening the functions of the holding company.
On the other hand, as one of the Global Systemically Important Financial Institutions (G–SIFIs), we believe that it is necessary for us to further strengthen our capital base and establish a sustainable and stable profit structure through such measures as further cost structure reforms.
- Achievements of Principal Financial Targets under the Previous Medium–term Business Plan
- *1Excluding Net Unrealized Gains on Other Securities, figures in ( ) includes Net Unrealized Gains on Other Securities
- *2Including Eleventh Series Class Ⅺ Preferred Stock
- *4Two banks basis
- *5Including hedging effects. Tier 1 Capital is calculated based on Basel Ⅲ phase–in basis, including Eleventh Series Class Ⅺ Preferred Stock in the CET1 Capital