Mizuho raises ordinary profit forecast to 2.18 trillion yen after 47.3% growth
Key Facts
Mizuho Financial Group raised its ordinary profit forecast for the fiscal year ending in March 2027 to 2.18 trillion yen from 1.98 trillion yen, after ordinary profit rose 47.3% year on year in the six months ended September 30, 2026, to about 1.25 trillion yen. The group said first-half results prompted it to revise its estimates for the fiscal year ending next March. It also raised its forecast for profit attributable to owners of the parent to 1.60 trillion yen from 1.40 trillion yen. The announcement came as part of an update on results for the period and the full-year outlook. Mizuho shares, listed under the ticker MFG, closed at $10.12 at the end of the November 12 session, according to EL7 data.
The group's ordinary income rose 15.1% year on year to 4.99 trillion yen in the first half of fiscal 2026. Profit growth included an increase in net interest income to 771.28 billion yen, compared with 652.68 billion yen in the same period a year earlier. Coverage attributed the rise in profit to strength in core banking operations and the trading desk, amid Japan's shift away from near-zero interest rates. Growth in interest income helped offset a slight increase in general and administrative expenses. Strong returns from sales of some of the group's large equity holdings also supported results, according to the coverage.
On a quarterly basis, Mizuho posted net profit of 473.6 billion yen in the period from July to September 2026, up 19% from the same period a year earlier. The result provides detail on second-quarter performance within the total that lifted first-half profit. First-half figures also show growth in ordinary profit and ordinary income, alongside an increase in net interest income compared with the corresponding period. Performance strength was linked, according to the coverage, to core banking operations and the trading desk, with contributions from returns on sales of equity holdings. Improved estimates were reflected in higher forecasts for ordinary profit and profit attributable to owners of the parent for the fiscal year.
The increase in the forecast for profit attributable to owners of the parent coincided with an expansion of the share buyback program for the fiscal year ending in March 2027 to 400 billion yen. Reuters reported that the group raised the program's total after announcing additional purchases. Coverage also showed that Mizuho raised its estimate for profit attributable to owners of the parent to 1.60 trillion yen from 1.40 trillion yen previously. The higher forecast and buyback put shareholder-return decisions alongside the operating performance update. The available facts provide no further detail on the pace or timing of the purchases.
On risks, Chief Executive Masahiro Kihara warned that tighter restrictions on data-center construction in the United States could slow projects and increase development costs. Kihara described this possibility as a potential risk, according to Reuters. The warning comes alongside the group's higher profit forecasts following its first-half results. The statement gave no quantitative estimate of any potential effect on Mizuho's profits or timeline for changes to the restrictions. The date of the group's next results update was not included in the available information.