First Half Results Show Mizuho Balance Sheet Continues To Strengthen

The financial position of Mizuho Financial Group, the Japanese banking group, has continued to improve. First half results published yesterday show that the bank's non performing loans ratio (NPL) has dropped on a gross basis to 1.85%, down 0.31% and

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The financial position of Mizuho Financial Group, the Japanese banking group, has continued to improve.

First half results published yesterday show that the bank’s non-performing loans ratio (NPL) has dropped on a gross basis to 1.85%, down 0.31% and on a net basis by 0.58% compared to 0.75% for the period ending in September this year.

Mizuho says plans to resolve the public funding issue quickly are progressing on schedule, with Yen 600 billion outstanding as of October 2005. The bank says it will be paid off in full by the end of the 2006financial year.

Growing revenues and profits – ordinary profit rose to Yen 453.0 billion in the first half, compared to Yen 154.3 billion in the same period last year – has help to strengthen the balance sheet.

The BIS Capital Ratio at September 30, 2005 was 10.73% and the Tier One Capital Ratio was 5.44%. Net Deferred Taxable Assets (DTA) dipped below 20% to 19.6% of the Tier One Ratio.

Credit-related costs were down sharply in the first half, by Yen 29.0 billion Yen to Yen 14.6 billion. General and administrative costs fell by Yen 28.1 billion over a year ago.

The loan book is growing, having edged up by Yen 0.9 trillion since March this year. Commission income climbed Yen 25.1 billion to Yen 171. 6 billion over a year ago.

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