Mizuho Earnings: Trading Income, Weak Yen Propel Bottom Line; Still Fairly Valued

Mizuho Financial Group's December-quarter cumulative net profit of JPY 642.3 billion is tracking ahead of our financial year March 2024 expectations due to higher trading income and a continued weak JPY. Following tweaks to our assumptions, we raise our full-year net profit estimate to JPY 745 billion from JPY 615 billion. Our fair value estimate rises to JPY 2,550 from JPY 2,490, but our ADR fair value estimate is lowered to $3.43 from $3.56, given the weaker JPY versus the USD since our last update. A weak yen will amplify Mizuho's earnings, given its overseas income. Mizuho's shares are currently fairly valued.