Mizuho Gets a Lift from Strong Trading Income and a Weak JPY

Mizuho Financial Group is one of Japan’s three largest banking groups, with a 6.7% share of domestic loans and 8.5% share of deposits as of March 2023. Mizuho lacks the large consumer finance, credit card, and leasing operations of its two rivals, leaving it dependent on banking, securities and asset management for future returns. Its securities business has been performing well, in our view, including overseas. However, the dependence on banking means the need for expense reductions is even more important for Mizuho’s future profitability than it is for its two megabank rivals.