Mizuho reported net business profits of JPY 328.7, up by JPY 79.9bn YoY, and 30% progress towards the FY2024 target. Profit attributable to owners of parent was JPY 289.3bn, up by JPY 44.1bn YoY, and 38% progress towards the FY2024 target.
Mizuho attributes the results to a strong performance in Customer Groups in and outside Japan, as well as growth in banking income, capturing market movement. Return-on-Equity (ROE) improved by 0.5ppts to 8% in light of profit growth and efficiency improvements
At Mizuho, you see already a slight improvement in the net interest margin in the first fiscal quarter, based on the Bank of Japan action in March (raising the policy rate to a range of 0 to 0.1%). It is easy to project this out to at least a 0.9% margin given the July action.
In terms of the average duration (after hedging) of the bond portfolio, the domestic side appears to be well positioned for a further rise in rates, while the duration on the foreign bond portfolio could probably be extended in light of upcoming Fed rate cuts.