MIZUHO SECURITIES CO October 31, 2016
Summary of Consolidated Financial Statements for the Six Months Ended September 30, 2016 Under Japanese GAAPCompany's name: Mizuho Securities Co., Ltd. | URL: http://www.mizuho-sc.com/ |
Representative: Tatsufumi Sakai, President | |
Contact: Akio Arai, General Manager of Accounting Dept. on +81 3-5208-3210 | |
Preparation of supplemental explanatory documents: Yes | |
Holding of quarterly presentation meeting: No | |
-
Consolidated Financial Results for the Six Months Ended September 30, 2016 (April 1, 2016 to September 30, 2016)
(Amounts are rounded down to the nearest millions of yen)
(Note) Comprehensive income:
September 30, 2016:
130,780 million yen
(277.4%)
September 30, 2015:
34,650 million yen
(23.1%)
Consolidated operating results (Percentage figures represent year-on-year changes)
Operating revenues
Net operating revenues
Operating income
Ordinary income
Six months ended
millions of yen
%
millions of yen
%
millions of yen
%
millions of yen
%
September 30, 2016
234,025
(1.3)
203,866
(3.8)
49,150
6.1
49,189
3.9
September 30, 2015
237,027
20.2
211,919
20.3
46,303
48.3
47,352
47.7
Net income attributable to owners of parent
Net income per share
Net income per share
- fully diluted
Six months ended
millions of yen
%
yen
yen
September 30, 2016
131,326
239.1
65.17
―
September 30, 2015
38,723
66.1
19.22
―
Consolidated financial positions
Total assets
Net assets
Equity ratio
September 30, 2016
millions of yen
millions of yen
%
14,306,600
836,259
5.8
March 31, 2016
20,659,503
739,645
3.5
Reference: Equity (i.e. "Shareholders' equity" and "Accumulated other comprehensive income"):
September 30, 2016:
827,507 million yen
March 31, 2016:
714,377 million yen
- Notes
Changes in significant subsidiaries (changes in specified subsidiaries accompanying changes in the scope of consolidation) during the period: Yes
Newly consolidated: None
Excluded: 1 company (Mizuho Securities USA Inc.)
(Note) For further information, please refer to "1. Summary Information (Notes) Changes in significant subsidiaries during the period" on page 2.
Application of specific accounting methods in the preparation of quarterly consolidated financial statements: None
Changes in accounting policies, estimates, and restatements:
Changes in accounting policies in accordance with revisions of accounting standards: None
Changes other than 1) above: None
Changes in accounting estimates: None
Restatements: None
Number of outstanding shares (common stock)
Number of shares issued at end of the period (including treasury stock): September 30, 2016: 2,015,102,652 shares
March 31, 2016: 2,015,102,652 shares
2)
Number of treasury stock at end of the period:
September 30, 2016:
- shares
March 31, 2016:
- shares
3) Average number of outstanding shares for the six months:
Six months ended September 30, 2016 2,015,102,652 shares
Six months ended September 30, 2015 2,015,102,652 shares
* Other important matters Not applicable
APPENDIX [INDEX] 1. Summary Information (Notes) Changes in significant subsidiaries during the period1.
Summary Information (Notes)
p.2
Changes in significant subsidiaries during the period
p.2
2.
Quarterly Consolidated Financial Statements
p.3
(1) Quarterly Consolidated Balance Sheets
p.3
(2) Quarterly Consolidated Statements of Income and Comprehensive Income
p.6
(3) Note on the going-concern assumption
p.8
(4) Note on material changes in shareholders' equity
p.8
3.
Supplemental Information
p.8
(1) Commissions
p.8
(2) Net gain on trading
p.8
(3) Capital adequacy requirement ratio
p.9
(4) Quarterly Consolidated Statements of Income
p.10
4.
(Reference) Quarterly Non-consolidated Financial Statements
p.11
(1) (Reference) Quarterly Non-consolidated Balance Sheets
p.11
(2) (Reference) Quarterly Non-consolidated Statements of Income
p.13
Mizuho Securities USA Inc. was excluded from the scope of consolidation in the period due to the transfer of all its shares.
2. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Millions of yen)
As of March 31, 2016
As of September 30, 2016
Assets
Current assets
Cash and bank deposits
468,021
482,187
Cash segregated as deposits for customers and others
175,926
229,542
Trading assets
7,587,509
6,814,379
Trading securities and others
4,595,554
3,699,643
Derivatives
2,991,955
3,114,735
Receivables - unsettled trades
153,682
―
Operating investment securities
39,886
42,498
Operating loans receivable
13,835
12,556
Receivables related to margin transactions
101,224
85,858
Loans receivable under margin transactions
56,392
32,729
Cash collateral for borrowed securities under margin transactions
44,832
53,128
Collateralized short-term financing agreements-receivable
11,144,682
5,842,103
Deposits paid for securities borrowed
3,698,505
3,665,484
Securities purchased under agreements to resell
7,446,177
2,176,618
Advances paid
2,044
816
Securities: fail to deliver
119,202
80,686
Short-term loans receivable
6,058
5,694
Securities
6,831
453
Deferred tax assets
13,045
32,992
Other current assets
586,598
441,546
Less: Allowance for doubtful accounts
(87)
(57)
Total current assets
20,418,463
14,071,258
Noncurrent assets
Property and equipment
41,564
38,548
Intangible assets
93,390
93,881
Investments and other assets
106,084
102,912
Investment securities
68,605
65,671
Long-term guarantee deposits
13,432
12,973
Net defined benefit asset
16,745
17,334
Deferred tax assets
1,035
986
Other
9,904
9,486
Less: Allowance for doubtful accounts
(3,638)
(3,540)
Total noncurrent assets
241,039
235,342
Total assets
20,659,503
14,306,600
(Millions of yen)
As of March 31, 2016
As of September 30, 2016
Liabilities
Current liabilities
Trading liabilities
5,550,897
5,268,709
Trading securities and others
2,630,040
2,208,367
Derivatives
2,920,857
3,060,341
Receivables - unsettled trades
―
1,087,120
Payables related to margin transactions
42,887
26,279
Borrowings on margin transactions
11,390
2,936
Cash collateral for loaned securities under margin transactions
31,496
23,342
Collateralized short-term financing agreements-payable
11,151,298
4,686,086
Deposits received for securities loaned
1,908,957
737,241
Securities sold under agreements to repurchase
9,242,340
3,948,845
Deposits received
164,745
241,762
Guarantee deposits received
525,163
199,347
Securities: fail to receive
17,012
24,473
Short-term borrowings
619,650
447,248
Commercial paper
513,700
317,800
Bonds and notes due within one year
143,009
160,601
Lease obligations
662
556
Income taxes payable
7,126
2,063
Deferred tax liabilities
3
23
Accrued employees' bonuses
32,077
16,746
Provision for variable compensation
790
406
Provision for bonus point redemption
623
749
Other current liabilities
71,361
44,765
Total current liabilities
18,841,010
12,524,740
Noncurrent liabilities
Bonds and notes
620,666
637,611
Long-term borrowings
409,400
279,200
Lease obligations
858
759
Deferred tax liabilities
22,320
2,031
Provision for directors' retirement benefits
290
177
Provision for executive officers' retirement benefits
186
112
Net defined benefit liability
20,764
21,393
Other noncurrent liabilities
2,335
2,095
Total noncurrent liabilities
1,076,822
943,382
Statutory reserves
Reserve for financial instruments transaction liabilities
2,024
2,219
Total statutory reserves
2,024
2,219
Total liabilities
19,919,857
13,470,341
(Millions of yen)
As of March 31, 2016
As of September 30, 2016
Net assets
Shareholders' equity
Common stock
125,167
125,167
Capital surplus
358,874
358,874
Retained earnings
272,310
385,406
Total shareholders' equity
756,352
869,448
Accumulated other comprehensive income (loss)
Net unrealized gains on (operating) investment securities, net of tax
21,115
19,104
Foreign currency translation adjustments
(64,240)
(62,135)
Remeasurement of defined benefit plans
1,149
1,090
Total accumulated other comprehensive income (loss)
(41,974)
(41,940)
Non-controlling interests
25,268
8,751
Total net assets
739,645
836,259
Total liabilities and net assets
20,659,503
14,306,600
(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the six months ended September 30, 2015 and 2016
(Millions of yen)
Six months ended September 30, 2015
Six months ended September 30, 2016
Operating revenues
Commissions
124,988
110,784
Brokerage commissions
30,914
21,858
Underwriting and selling fees, and commissions from solicitation to qualifying investors
29,767
29,970
Offering, selling, and other commissions and fees, and commissions from solicitation to qualifying investors
23,019
13,972
Other commissions and fees
41,286
44,982
Net gain on trading
61,752
88,680
Net gain (loss) on operating investment securities
14,017
(3,148)
Interest and dividend income
36,269
37,709
Total operating revenues
237,027
234,025
Interest expenses
25,108
30,158
Net operating revenues
211,919
203,866
Selling, general and administrative expenses
165,616
154,716
Transaction-related expenses
37,253
33,003
Personnel expenses
72,424
67,722
Real estate expenses
17,249
16,263
Administrative expenses
16,906
15,543
Depreciation and amortization
11,668
12,403
Taxes and dues
2,307
1,745
Provision of allowance for doubtful accounts
(200)
(80)
Other
8,007
8,114
Operating income
46,303
49,150
Non-operating income
2,548
1,978
Non-operating expenses
1,499
1,939
Ordinary income
47,352
49,189
Extraordinary gain
13,377
45,482
Gain on sales of noncurrent assets
―
23
Gain on sales of investment securities
555
195
Gain on sales of shares of subsidiaries and affiliates
―
45,263
Indemnity receipt from the erroneous stock order
12,822
―
Extraordinary loss
1,025
968
Loss on sales of noncurrent assets
8
3
Loss on disposal of noncurrent assets
42
95
Loss on sales of investment securities
6
14
Loss on sales of shares of subsidiaries and affiliates
―
0
Loss on impairment of investment securities
21
58
Loss on impairment of golf club membership
―
6
Impairment losses
120
69
Head office transfer cost
538
515
Cost incurred in opening of joint branches
47
9
Provision of reserve for financial instruments transaction liabilities
240
194
Income before income taxes and non-controlling interests
59,704
93,703
Income taxes - current
6,501
4,021
Income taxes - deferred
13,372
(42,858)
Total income taxes
19,873
(38,836)
Net income
39,830
132,540
Net income attributable to non-controlling interests
1,106
1,214
Net income attributable to owners of parent
38,723
131,326
Quarterly Consolidated Statements of Comprehensive Income
For the six months ended September 30, 2015 and 2016
(Millions of yen)
Six months ended September 30, 2015
Six months ended September 30, 2016
Net income
39,830
132,540
Other comprehensive income (loss)
Net unrealized losses on (operating) investment securities, net of tax
(4,364)
(2,042)
Foreign currency translation adjustments
(459)
342
Remeasurement of defined benefit plans
(355)
(58)
Share in other comprehensive income of affiliates accounted for using
equity method
(0)
(1)
Total other comprehensive income (loss)
(5,179)
(1,760)
Comprehensive income
34,650
130,780
(Breakdown)
Attributable to:
Owners of parent
33,686
131,360
Non-controlling interests
964
(580)
-
Note on the going-concern assumption
Not applicable
- Note on material changes in shareholders' equity
-
Commissions
Six months ended September 30, 2015
Six months ended September 30, 2016
Increase/(Decrease)
Amount
Percentage
(%)
Brokerage commissions
30,914
21,858
(9,056)
(29.3)
Equities
22,170
17,013
(5,157)
(23.3)
Bonds
8,281
4,498
(3,783)
(45.7)
Underwriting and selling fees, and
commissions from solicitation to
29,767
29,970
203
0.7
qualifying investors
Equities
9,359
9,542
182
2.0
Bonds
20,270
20,303
33
0.2
Offering, selling, and other commissions
and fees, and commissions from
23,019
13,972
(9,047)
(39.3)
solicitation to qualifying investors
Other commissions and fees
41,286
44,982
3,695
9.0
Total
124,988
110,784
(14,204)
(11.4)
Breakdown by items
Six months ended September 30, 2015
Six months ended September 30, 2016
Increase/(Decrease)
Amount
Percentage
(%)
Equities
33,933
28,138
(5,794)
(17.1)
Bonds
35,205
31,734
(3,470)
(9.9)
Beneficiary certificates
43,465
32,951
(10,513)
(24.2)
Others
12,384
17,959
5,574
45.0
Total
124,988
110,784
(14,204)
(11.4)
Breakdown by instruments
-
Net gain on trading
(Millions of yen)
(Millions of yen)
(Millions of yen)
Six months ended September 30, 2015
Six months ended September 30, 2016
Increase/(Decrease)
Amount
Percentage
(%)
Equities, etc.
15,601
9,542
(6,058)
(38.8)
Bonds, etc. · Others
46,150
79,137
32,987
71.5
Bonds, etc.
37,663
67,999
30,336
80.5
Others
8,487
11,138
2,651
31.2
Total
61,752
88,680
26,928
43.6
- Capital adequacy requirement ratio
-
Consolidated base
(Millions of yen)
As of March 31, 2016
As of September 30, 2016
Basic items
Total capital
(A)
699,225
816,064
Supplemental items
Net unrealized gains on (operating) investment securities, net of tax, etc.
22,265
20,194
Reserve for financial instruments transaction liabilities, etc.
2,024
2,219
Allowance for doubtful accounts
68
57
Subordinated long-term borrowings
49,000
39,000
Subordinated short-term borrowings
256,000
256,000
Total
(B)
329,357
317,471
Deducted assets
(C)
204,694
201,684
Equity after deduction (A) + (B) - (C)
(D)
823,888
931,851
Amount equivalent to risk
Amount equivalent to market risk
129,846
120,925
Amount equivalent to counterparty risk
51,713
38,440
Amount equivalent to fundamental risk
83,293
80,864
Total
(E)
264,853
240,231
Consolidated capital adequacy requirement ratio
(D)/(E) * 100
311.0%
387.8%
- Non-consolidated base
(Millions of yen)
As of March 31, 2016
As of September 30, 2016
Basic items
Total capital
(A)
638,275
785,502
Supplemental items
Net unrealized gains on (operating) investment securities, net of tax, etc.
2,644
17,533
Reserve for financial instruments transaction liabilities, etc.
2,005
2,200
Allowance for doubtful accounts
13
8
Subordinated long-term borrowings
49,000
39,000
Subordinated short-term borrowings
256,000
256,000
Total
(B)
309,663
314,742
Deducted assets
(C)
331,633
317,720
Equity after deduction (A) + (B) - (C)
(D)
616,305
782,525
Amount equivalent to risk
Amount equivalent to market risk
92,356
95,046
Amount equivalent to counterparty risk
29,077
31,104
Amount equivalent to fundamental risk
59,682
59,646
Total
(E)
181,116
185,797
Capital adequacy requirement ratio
(D)/(E) * 100
340.2%
421.1%
Quarterly Consolidated Statements of Income
(Millions of yen)
Second quarter ended September 2015
Third quarter ended December 2015
Fourth quarter ended
March 2016
First quarter ended
June 2016
Second quarter ended September 2016
Jul. 1, 2015 -
Oct. 1, 2015 -
Jan. 1, 2016 -
Apr. 1, 2016 -
Jul. 1, 2016 -
Sep. 30, 2015
Dec. 31, 2015
Mar. 31, 2016
Jun. 30, 2016
Sep. 30, 2016
Operating revenues
116,042
118,787
116,133
124,315
109,710
Commissions
59,870
64,781
54,385
54,643
56,140
Brokerage commissions
14,595
15,995
13,324
13,624
8,233
Equities
10,428
11,601
9,433
9,188
7,824
Bonds
3,876
4,178
3,643
4,238
260
Underwriting and selling fees, and commissions from solicitation to qualifying investors
15,315
16,707
13,434
14,036
15,934
Equities
5,092
6,544
5,504
4,202
5,340
Bonds
10,140
10,049
7,852
9,756
10,546
Offering, selling, and other commissions and fees, and commissions from solicitation to qualifying investors
10,179
8,573
7,043
6,925
7,047
Other commissions and fees
19,779
23,504
20,583
20,056
24,925
Net gain on trading
29,716
28,024
38,356
44,350
44,329
Equities, etc.
3,821
8,615
2,852
(718)
10,261
Bonds, etc. · Others
25,894
19,408
35,504
45,069
34,068
Bonds, etc.
23,622
5,046
28,943
34,823
33,176
Others
2,271
14,362
6,560
10,246
891
Net gain (loss) on operating investment securities
8,387
3,655
(720)
(43)
(3,105)
Interest and dividend income
18,068
22,326
24,112
25,364
12,344
Interest expenses
13,430
15,655
15,940
17,589
12,569
Net operating revenues
102,612
103,132
100,193
106,726
97,140
Selling, general and administrative expenses
81,041
82,831
81,184
81,777
72,938
Transaction-related expenses
18,761
18,791
18,898
17,778
15,224
Personnel expenses
34,874
37,434
34,350
35,550
32,171
Real estate expenses
8,584
8,479
8,970
8,355
7,907
Administrative expenses
8,830
7,060
7,712
7,831
7,711
Depreciation and amortization
5,999
5,984
6,476
6,176
6,227
Taxes and dues
782
1,033
638
1,361
384
Other
3,208
4,047
4,137
4,723
3,311
Operating income
21,570
20,300
19,008
24,948
24,201
Non-operating income
1,638
(88)
976
1,390
588
Non-operating expenses
497
1,367
752
995
944
Ordinary income
22,711
18,844
19,232
25,343
23,845
Extraordinary gain
12,824
69
170
92
45,390
Extraordinary loss
603
812
1,587
606
362
Income before income taxes and non-controlling interests
34,933
18,101
17,815
24,829
68,874
Income taxes - current
2,510
3,409
8,055
4,969
(947)
Income taxes - deferred
9,670
2,498
(1,983)
9,316
(52,175)
Net income
22,752
12,194
11,743
10,543
121,996
Net income attributable to non-controlling interests
473
556
935
1,075
138
Net income attributable to owners of parent
22,278
11,637
10,807
9,467
121,858
4. (Reference) Quarterly Non-consolidated Financial Statements
(1) (Reference) Quarterly Non-consolidated Balance Sheets
(Millions of yen)
As of March 31, 2016
As of September 30, 2016
Assets
Current assets
Cash and bank deposits
283,049
365,091
Cash segregated as deposits for customers and others
170,684
222,425
Trading assets
5,990,021
6,100,324
Trading securities and others
3,115,313
3,030,423
Derivatives
2,874,707
3,069,901
Receivables - unsettled trades
27,923
―
Operating investment securities
19,010
20,477
Operating loans receivable
3,100
2,860
Receivables related to margin transactions
98,958
83,875
Loans receivable under margin transactions
54,181
30,839
Cash collateral for borrowed securities under margin transactions
44,776
53,036
Collateralized short-term financing agreements-receivable
3,949,642
3,839,234
Deposits paid for securities borrowed
3,718,958
3,665,484
Securities purchased under agreements to resell
230,684
173,749
Advances paid
107
199
Securities: fail to deliver
11,937
18,535
Short-term loans receivable
50,711
27,109
Deferred tax assets
8,735
31,907
Other current assets
404,314
439,610
Less: Allowance for doubtful accounts
(16)
(8)
Total current assets
11,018,181
11,151,643
Noncurrent assets
Property and equipment
14,540
14,155
Intangible assets
42,370
46,066
Investments and other assets
308,153
285,447
Investment securities
241,992
233,380
Long-term guarantee deposits
12,216
11,944
Prepaid pension cost
15,020
15,390
Deferred tax assets
1,394
5,005
Other
41,163
23,261
Less: Allowance for doubtful accounts
(3,634)
(3,535)
Total noncurrent assets
365,065
345,669
Total assets
11,383,246
11,497,312
(Millions of yen)
As of March 31, 2016
As of September 30, 2016
Liabilities
Current liabilities
Trading liabilities
4,445,062
4,450,664
Trading securities and others
1,642,885
1,433,336
Derivatives
2,802,176
3,017,328
Receivables - unsettled trades
―
1,088,242
Payables related to margin transactions
42,278
25,861
Borrowings on margin transactions
10,835
2,609
Cash collateral for loaned securities under margin transactions
31,443
23,251
Collateralized short-term financing agreements-payable
3,861,722
3,120,581
Deposits received for securities loaned
1,909,797
737,560
Securities sold under agreements to repurchase
1,951,925
2,383,021
Deposits received
136,356
208,311
Guarantee deposits received
154,013
190,198
Securities: fail to receive
4,271
6,105
Short-term borrowings
479,403
319,998
Commercial paper
513,700
317,800
Bonds and notes due within one year
55,602
83,095
Lease obligations
377
372
Income taxes payable
4,400
819
Accrued employees' bonuses
13,217
10,840
Provision for variable compensation
790
406
Provision for bonus point redemption
623
749
Other current liabilities
31,422
28,099
Total current liabilities
9,743,240
9,852,145
Noncurrent liabilities
Bonds and notes
548,766
539,438
Long-term borrowings
409,400
279,200
Lease obligations
857
665
Provision for retirement benefits
18,034
18,814
Other noncurrent liabilities
1,885
1,812
Total noncurrent liabilities
978,944
839,930
Statutory reserves
Reserve for financial instruments transaction liabilities
2,005
2,200
Total statutory reserves
2,005
2,200
Total liabilities
10,724,190
10,694,276
Net assets
Shareholders' equity
Common stock
125,167
125,167
Capital surplus
381,649
381,649
Retained earnings
149,594
278,686
Total shareholders' equity
656,411
785,502
Valuation and translation adjustments
Net unrealized gains on (operating) investment securities, net of tax
21,626
19,830
Net deferred gains or losses on hedges, net of tax
(18,982)
(2,296)
Total valuation and translation adjustments
2,644
17,533
Total net assets
659,056
803,036
Total liabilities and net assets
11,383,246
11,497,312
(2) (Reference) Quarterly Non-consolidated Statements of Income
For the six months ended September 30, 2015 and 2016
(Millions of yen)
Six months ended September 30, 2015
Six months ended September 30, 2016
Operating revenues
Commissions
79,643
75,907
Net gain on trading
64,068
81,846
Net gain on operating investment securities
3,272
66
Interest and dividend income
12,921
18,889
Total operating revenues
159,906
176,709
Interest expenses
12,547
17,169
Net operating revenues
147,358
159,539
Selling, general and administrative expenses
116,372
118,210
Transaction-related expenses
26,701
26,091
Personnel expenses
42,297
45,085
Real estate expenses
12,659
13,195
Administrative expenses
24,112
22,441
Depreciation and amortization
7,080
8,152
Taxes and dues
1,894
1,484
Provision of allowance for doubtful accounts
(198)
(81)
Other
1,826
1,841
Operating income
30,986
41,329
Non-operating income
4,139
6,929
Non-operating expenses
467
661
Ordinary income
34,659
47,597
Extraordinary gain
13,143
67,834
Gain on sales of noncurrent assets
―
22
Gain on sales of investment securities
321
179
Gain on sales of shares of subsidiaries and affiliates
―
67,633
Indemnity receipt from the erroneous stock order
12,822
―
Extraordinary loss
800
1,519
Loss on sales of noncurrent assets
8
―
Loss on disposal of noncurrent assets
40
94
Loss on sales of investment securities
2
15
Loss on impairment of investment securities
0
―
Loss on impairment of shares of subsidiaries and affiliates
119
―
Loss on liquidation of subsidiaries and affiliates
―
1,129
Loss on impairment of golf club membership
―
6
Impairment losses
120
69
Head office transfer cost
220
―
Cost incurred in opening of joint branches
47
9
Provision of reserve for financial instruments transaction liabilities
240
194
Income before income taxes
47,002
113,911
Income taxes - current
78
79
Income taxes - deferred
13,943
(33,394)
Total income taxes
14,022
(33,315)
Net income
32,979
147,227
Not applicable
3. Supplemental InformationMizuho Securities Co. Ltd. published this content on 31 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 11 November 2016 11:47:06 UTC.
Original documenthttps://www.mizuho-sc.com/english/company/financial/financial_results/er/pdf/data201703e_2q.pdf
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