Medium–term Business Plan
- New Medium–Term Business Plan: Progressive Development of "One MIZUHO" —The Path to a Financial Services Consulting Group
Medium–term business plan progress
In fiscal 2016, Mizuho began to implement its three–year medium–term business plan, entitled Progressive Development of "One Mizuho"–The Path to a Financial Services Consulting Group.
Under the medium–term business plan, we will perfect the One Mizuho strategy by creating a new business model as a financial services consulting group. The two foundations for this effort will be the full implementation of the "customer first principle" promoted in the previous medium–term business plan and the pursuit of operational excellence. Mizuho has also defined 5 basic polices and 10 basic strategies with regards to business strategies, financial strategy, and management foundations.
Fiscal 2018 will be the final year of our current medium–term business plan, but, as the business environment is becoming increasingly challenging, it will be difficult to attain the Gross Profits target laid out in the plan. Also, our expense ratio target for fiscal 2018 is in the higher end of the 60 – 70% range, and therefore we expect to exceed our medium–term business plan target (approx. 60%). However, we are on track to achieve our targets regarding our Common Equity Tier 1 (CET1) capital ratio, reducing cross–shareholdings, and other key indicators.
Financial services consulting group
—The most trusted partner in solving problems and supporting the sustainable growth of customers and communities—
|Targets for FY2018 in the medium–term business plan||FY2015 results||FY2016 results||FY2017 results|
|CET1 Capital Ratio1||approx. 10%||8.77%||9.27%||10.15%|
|Consolidated ROE2||approx. 8%||10.0%||8.5%||7.7%|
|RORA (Profit Attributable to Owners of Parent)||approx. 0.9%||1.0%||0.9%||0.9%|
|Cross–shareholdings disposal3||JPY550 billion||JPY115.7 billion||JPY275.3 billion||JPY398.0 billion|
|Proportion of Non–interest Income4||approx. 60%||54%||54%||58%|
|Expense Ratio5||approx. 60%6||60.0%||66.0%||72.1%|
- 1.Basel III fully–effective basis (based on current regulations), excluding Net Unrealized Gains on Other Securities
- 2.Excluding Net Unrealized Gains on Other Securities
- 3.Shares listed on Japanese stock exchanges, acquisition cost basis, cumulative amount from FY2015 to FY2018
- 4.The scope of companies subject to aggregated management accounting has been changed since FY2017 (FY2015 results are unchanged)
- 5.Group aggregated
- 6.Our expense ratio target for fiscal 2018 is in the higher end of the 60 - 70% range, and therefore we expect to exceed our medium-term business plan target (approx. 60%).
Fully implementing the "customer first principle" introduction of the in–house company system
To thoroughly strengthen our "customer first principle" approach and to realize our goal of becoming a financial services consulting group, we have introduced a new in–house company system.
Specifically, Mizuho has established five in–house companies that formulate and implement group–wide strategies across banking, trust banking, securities, and other group entities, for each customer segment. Product and research functions have been reorganized into two independent units to enhance expertise and promote utilization across all the in–house companies.
With the in–house company system as our base, we will work to strengthen relationships with our customers, and, by gaining a thorough understanding of their needs, we will proceed with the implementation of our One Mizuho strategy. By finding solutions to the issues confronting our customers, we will work to strengthen our earnings power.
Pursuing operational excellence
In addition to differentiating our strategies through a focus on the "customer first principle", we are pursuing operational excellence as a means of strengthening strategy implementation.
To accomplish this, we will thoroughly review our existing business processes, consolidate common operations and incorporate technological innovation (such as Fintech) and new ideas. In this way, we are aiming to improve operational efficiency and to enhance the value of our services by raising the sophistication of our operations.
We made steady progress on streamlining Head Office functions, improving operational processes using digital technology such as robotic process automation, and transforming employee mindsets. Going forward, we will fundamentally revise our business processes and change the way we go about our work.
Selecting and focusing of business areas
As we determine which areas to focus on and which to streamline, we are flexibly allocating resources to targeted clients and markets, aiming to use our limited resources as effectively as possible, which will lead to improvement in earnings power.
In our areas of focus, we will expand our scope of risk–taking and our depth of commitment as we also begin to strengthen our position in new business and growth domains.
(rounded figures, JPY billion)
|FY2018 business strategy|
|Retail & Business Banking Company||
|Corporate & Institutional Company||
|Global Corporate Company||
|Global Markets Company||
|Asset Management Company||
- 1.equity capital markets
- 2.Group of approximately 300 blue–chip companies around the world that Mizuho focuses on
- 3.Non–investment grade