MIZUHO SECURITIES CO July 29, 2016
Summary of Consolidated Financial Statements for the Three Months Ended June 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 Three Months Ended June 30, 2016 (April 1, 2016 to June 30, 2016)
(Amounts are rounded down to the nearest millions of yen)
(Note) Comprehensive income:
June 30, 2016:
3,427 million yen (-82.3 %)
June 30, 2015:
19,351 million yen (228.7 %)
Consolidated operating results (Percentage figures represent year-on-year changes)
Operating revenues
Net operating revenues
Operating income
Ordinary income
Three months ended
millions of yen
%
millions of yen
%
millions of yen
%
millions of yen
%
June 30, 2016
124,315
2.8
106,726
(2.4)
24,948
0.9
25,343
2.9
June 30, 2015
120,985
34.3
109,307
35.2
24,732
129.8
24,640
127.4
Net income attributable to owners of parent
Net income per share
Net income per share
- fully diluted
Three months ended
millions of yen
%
yen
yen
June 30, 2016
9,467
(42.4)
4.70
-
June 30, 2015
16,445
161.8
8.16
-
Consolidated financial positions
Total assets
Net assets
Equity ratio
June 30, 2016
millions of yen
millions of yen
%
22,329,283
724,824
3.1
March 31, 2016
20,659,503
739,645
3.5
Reference: Equity (i.e. "Shareholders' equity" and "Accumulated other comprehensive income"):
June 30, 2016:
700,224 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: None
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): June 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:
June 30, 2016:
- shares
March 31, 2016:
- shares
3) Average number of outstanding shares for the three months: Three months ended June 30, 2016 2,015,102,652 shares Three months ended June 30, 2015 2,015,102,652 shares
* Other important matters Not applicable
APPENDIX [INDEX]1.
Quarterly Consolidated Financial Statements
p.2
(1) Quarterly Consolidated Balance Sheets
p.2
(2) Quarterly Consolidated Statements of Income and Comprehensive Income
p.5
(3) Note on the going-concern assumption
p.7
(4) Note on material changes in shareholders' equity
p.7
2.
Supplemental Information
p.7
(1) Commissions
p.7
(2) Net gain on trading
p.7
(3) Capital adequacy requirement ratio
p.8
(4) Quarterly Consolidated Statements of Income
p.9
3.
(Reference) Quarterly Non-consolidated Financial Statements
p.10
(1) (Reference) Quarterly Non-consolidated Balance Sheets
p.10
(2) (Reference) Quarterly Non-consolidated Statements of Income
p.12
1
1. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
(Millions of yen)
As of March 31, 2016
As of June 30, 2016
Assets
Current assets
Cash and bank deposits
468,021
624,375
Cash segregated as deposits for customers and others
175,926
188,438
Trading assets
7,587,509
8,785,743
Trading securities and others
4,595,554
5,073,094
Derivatives
2,991,955
3,712,649
Receivables - unsettled trades
153,682
―
Operating investment securities
39,886
41,857
Operating loans receivable
13,835
14,296
Receivables related to margin transactions
101,224
99,788
Loans receivable under margin transactions
56,392
51,294
Cash collateral for borrowed securities under margin transactions
44,832
48,493
Collateralized short-term financing agreements-receivable
11,144,682
11,647,168
Deposits paid for securities borrowed
3,698,505
3,805,140
Securities purchased under agreements to resell
7,446,177
7,842,028
Advances paid
2,044
2,601
Securities: fail to deliver
119,202
59,807
Short-term loans receivable
6,058
5,656
Securities
6,831
2,925
Deferred tax assets
13,045
9,313
Other current assets
586,598
612,985
Less: Allowance for doubtful accounts
(87)
(73)
Total current assets
20,418,463
22,094,887
Noncurrent assets
Property and equipment
41,564
40,928
Intangible assets
93,390
94,466
Investments and other assets
106,084
99,001
Investment securities
68,605
61,063
Long-term guarantee deposits
13,432
13,240
Net defined benefit asset
16,745
17,010
Deferred tax assets
1,035
1,062
Other
9,904
10,202
Less: Allowance for doubtful accounts
(3,638)
(3,578)
Total noncurrent assets
241,039
234,396
Total assets
20,659,503
22,329,283
(Millions of yen)
As of March 31, 2016
As of June 30, 2016
Liabilities
Current liabilities
Trading liabilities
5,550,897
6,295,601
Trading securities and others
2,630,040
2,660,464
Derivatives
2,920,857
3,635,137
Receivables - unsettled trades
―
398,249
Payables related to margin transactions
42,887
34,877
Borrowings on margin transactions
11,390
4,962
Cash collateral for loaned securities under margin transactions
31,496
29,915
Collateralized short-term financing agreements-payable
11,151,298
11,732,490
Deposits received for securities loaned
1,908,957
1,719,648
Securities sold under agreements to repurchase
9,242,340
10,012,842
Deposits received
164,745
207,861
Guarantee deposits received
525,163
572,224
Securities: fail to receive
17,012
38,593
Short-term borrowings
619,650
718,088
Commercial paper
513,700
371,300
Bonds and notes due within one year
143,009
172,605
Lease obligations
662
622
Income taxes payable
7,126
5,441
Deferred tax liabilities
3
5,490
Accrued employees' bonuses
32,077
11,828
Provision for variable compensation
790
993
Provision for bonus point redemption
623
684
Other current liabilities
71,361
57,447
Total current liabilities
18,841,010
20,624,403
Noncurrent liabilities
Bonds and notes
620,666
613,030
Long-term borrowings
409,400
321,400
Lease obligations
858
872
Deferred tax liabilities
22,320
19,199
Provision for directors' retirement benefits
290
215
Provision for executive officers' retirement benefits
186
195
Net defined benefit liability
20,764
21,131
Other noncurrent liabilities
2,335
1,921
Total noncurrent liabilities
1,076,822
977,965
Statutory reserves
Reserve for financial instruments transaction liabilities
2,024
2,090
Total statutory reserves
2,024
2,090
Total liabilities
19,919,857
21,604,459
(Millions of yen)
As of March 31, 2016
As of June 30, 2016
Net assets
Shareholders' equity
Common stock
125,167
125,167
Capital surplus
358,874
358,874
Retained earnings
272,310
263,547
Total shareholders' equity
756,352
747,589
Accumulated other comprehensive income (loss)
Net unrealized gains on (operating) investment securities, net of tax
21,115
16,108
Foreign currency translation adjustments
(64,240)
(64,593)
Remeasurement of defined benefit plans
1,149
1,120
Total accumulated other comprehensive income (loss)
(41,974)
(47,365)
Non-controlling interests
25,268
24,599
Total net assets
739,645
724,824
Total liabilities and net assets
20,659,503
22,329,283
(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
For the three months ended June 30, 2015 and 2016
(Millions of yen)
Three months ended June 30, 2015
Three months ended June 30, 2016
Operating revenues
Commissions
65,118
54,643
Brokerage commissions
16,319
13,624
Underwriting and selling fees, and commissions from solicitation to qualifying investors
14,451
14,036
Offering, selling, and other commissions and fees, and commissions from solicitation to qualifying investors
12,840
6,925
Other commissions and fees
21,506
20,056
Net gain on trading
32,036
44,350
Net gain (loss) on operating investment securities
5,630
(43)
Interest and dividend income
18,200
25,364
Total operating revenues
120,985
124,315
Interest expenses
11,677
17,589
Net operating revenues
109,307
106,726
Selling, general and administrative expenses
84,574
81,777
Transaction-related expenses
18,491
17,778
Personnel expenses
37,550
35,550
Real estate expenses
8,664
8,355
Administrative expenses
8,075
7,831
Depreciation and amortization
5,669
6,176
Taxes and dues
1,524
1,361
Provision of allowance for doubtful accounts
16
(64)
Other
4,581
4,788
Operating income
24,732
24,948
Non-operating income
909
1,390
Non-operating expenses
1,001
995
Ordinary income
24,640
25,343
Extraordinary gain
552
92
Gain on sales of noncurrent assets
―
4
Gain on sales of investment securities
552
8
Gain on sales of shares of subsidiaries and affiliates
―
78
Extraordinary loss
421
606
Loss on sales of noncurrent assets
8
―
Loss on disposal of noncurrent assets
29
6
Loss on sales of investment securities
5
14
Loss on sales of shares of subsidiaries and affiliates
―
0
Loss on impairment of investment securities
0
221
Loss on impairment of golf club membership
0
―
Impairment losses
59
―
Head office transfer cost
172
291
Cost incurred in opening of joint branches
―
5
Provision of reserve for financial instruments transaction liabilities
145
66
Income before income taxes and non-controlling interests
24,771
24,829
Income taxes - current
3,990
4,969
Income taxes - deferred
3,702
9,316
Total income taxes
7,693
14,285
Net income
17,078
10,543
Net income attributable to non-controlling interests
633
1,075
Net income attributable to owners of parent
16,445
9,467
Quarterly Consolidated Statements of Comprehensive Income
For the three months ended June 30, 2015 and 2016
(Millions of yen)
Three months ended June 30, 2015
Three months ended June 30, 2016
Net income
17,078
10,543
Other comprehensive income (loss)
Net unrealized gains (losses) on (operating) investment securities, net of tax
1,758
(5,018)
Foreign currency translation adjustments
692
(2,067)
Remeasurement of defined benefit plans
(177)
(28)
Share in other comprehensive income of affiliates accounted for using
equity method
―
(0)
Total other comprehensive income (loss)
2,273
(7,115)
Comprehensive income
19,351
3,427
(Breakdown)
Attributable to:
Owners of parent
18,203
4,077
Non-controlling interests
1,148
(649)
-
Note on the going-concern assumption
Not applicable
- Note on material changes in shareholders' equity
-
Commissions
Three months ended June 30, 2015
Three months ended June 30, 2016
Increase/(Decrease)
Amount
Percentage
(%)
Brokerage commissions
16,319
13,624
(2,694)
(16.5)
Equities
11,742
9,188
(2,553)
(21.7)
Bonds
4,405
4,238
(166)
(3.8)
Underwriting and selling fees, and
commissions from solicitation to
14,451
14,036
(415)
(2.9)
qualifying investors
Equities
4,267
4,202
(65)
(1.5)
Bonds
10,129
9,756
(372)
(3.7)
Offering, selling, and other commissions
and fees, and commissions from
12,840
6,925
(5,914)
(46.1)
solicitation to qualifying investors
Other commissions and fees
21,506
20,056
(1,450)
(6.7)
Total
65,118
54,643
(10,475)
(16.1)
Breakdown by items
Three months ended June 30, 2015
Three months ended June 30, 2016
Increase/(Decrease)
Amount
Percentage
(%)
Equities
17,323
14,174
(3,148)
(18.2)
Bonds
19,693
16,933
(2,759)
(14.0)
Beneficiary certificates
22,926
16,476
(6,449)
(28.1)
Others
5,175
7,058
1,882
36.4
Total
65,118
54,643
(10,475)
(16.1)
Breakdown by instruments
-
Net gain on trading
(Millions of yen)
(Millions of yen)
(Millions of yen)
Three months ended June 30, 2015
Three months ended June 30, 2016
Increase/(Decrease)
Amount
Percentage
(%)
Equities, etc.
11,779
(718)
(12,498)
―
Bonds, etc. · Others
20,256
45,069
24,813
122.5
Bonds, etc.
14,040
34,823
20,782
148.0
Others
6,215
10,246
4,031
64.9
Total
32,036
44,350
12,314
38.4
- Capital adequacy requirement ratio
-
Consolidated base
(Millions of yen)
As of March 31, 2016
As of June 30, 2016
Basic items
Total capital
(A)
699,225
705,682
Supplemental items
Net unrealized gains on (operating) investment securities, net of tax, etc.
22,265
17,228
Reserve for financial instruments transaction liabilities, etc.
2,024
2,090
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
314,377
Deducted assets
(C)
204,694
211,983
Equity after deduction (A) + (B) - (C)
(D)
823,888
808,077
Amount equivalent to risk
Amount equivalent to market risk
129,846
123,448
Amount equivalent to counterparty risk
51,713
56,295
Amount equivalent to fundamental risk
83,293
81,848
Total
(E)
264,853
261,591
Consolidated capital adequacy requirement ratio
(D)/(E) * 100
311.0%
308.9%
- Non-consolidated base
(Millions of yen)
As of March 31, 2016
As of June 30, 2016
Basic items
Total capital
(A)
638,275
651,984
Supplemental items
Net unrealized gains on (operating) investment securities, net of tax, etc.
2,644
9,983
Reserve for financial instruments transaction liabilities, etc.
2,005
2,072
Allowance for doubtful accounts
13
11
Subordinated long-term borrowings
49,000
39,000
Subordinated short-term borrowings
256,000
256,000
Total
(B)
309,663
307,066
Deducted assets
(C)
331,633
344,653
Equity after deduction (A) + (B) - (C)
(D)
616,305
614,397
Amount equivalent to risk
Amount equivalent to market risk
92,356
86,451
Amount equivalent to counterparty risk
29,077
33,836
Amount equivalent to fundamental risk
59,682
60,029
Total
(E)
181,116
180,318
Capital adequacy requirement ratio
(D)/(E) * 100
340.2%
340.7%
Quarterly Consolidated Statements of Income
(Millions of yen)
First quarter ended
June 2015
Second quarter ended September 2015
Third quarter ended December 2015
Fourth quarter ended
March 2016
First quarter ended
June 2016
Apr. 1, 2015 -
Jul. 1, 2015 -
Oct. 1, 2015 -
Jan. 1, 2016 -
Apr. 1, 2016 -
Jun. 30, 2015
Sep. 30, 2015
Dec. 31, 2015
Mar. 31, 2016
Jun. 30, 2016
Operating revenues
120,985
116,042
118,787
116,133
124,315
Commissions
65,118
59,870
64,781
54,385
54,643
Brokerage commissions
16,319
14,595
15,995
13,324
13,624
Equities
11,742
10,428
11,601
9,433
9,188
Bonds
4,405
3,876
4,178
3,643
4,238
Underwriting and selling fees, and commissions from solicitation to qualifying investors
14,451
15,315
16,707
13,434
14,036
Equities
4,267
5,092
6,544
5,504
4,202
Bonds
10,129
10,140
10,049
7,852
9,756
Offering, selling, and other commissions and fees, and commissions from solicitation to qualifying investors
12,840
10,179
8,573
7,043
6,925
Other commissions and fees
21,506
19,779
23,504
20,583
20,056
Net gain on trading
32,036
29,716
28,024
38,356
44,350
Equities, etc.
11,779
3,821
8,615
2,852
(718)
Bonds, etc. · Others
20,256
25,894
19,408
35,504
45,069
Bonds, etc.
14,040
23,622
5,046
28,943
34,823
Others
6,215
2,271
14,362
6,560
10,246
Net gain (loss) on operating investment securities
5,630
8,387
3,655
(720)
(43)
Interest and dividend income
18,200
18,068
22,326
24,112
25,364
Interest expenses
11,677
13,430
15,655
15,940
17,589
Net operating revenues
109,307
102,612
103,132
100,193
106,726
Selling, general and administrative expenses
84,574
81,041
82,831
81,184
81,777
Transaction-related expenses
18,491
18,761
18,791
18,898
17,778
Personnel expenses
37,550
34,874
37,434
34,350
35,550
Real estate expenses
8,664
8,584
8,479
8,970
8,355
Administrative expenses
8,075
8,830
7,060
7,712
7,831
Depreciation and amortization
5,669
5,999
5,984
6,476
6,176
Taxes and dues
1,524
782
1,033
638
1,361
Other
4,597
3,208
4,047
4,137
4,723
Operating income
24,732
21,570
20,300
19,008
24,948
Non-operating income
909
1,638
(88)
976
1,390
Non-operating expenses
1,001
497
1,367
752
995
Ordinary income
24,640
22,711
18,844
19,232
25,343
Extraordinary gain
552
12,824
69
170
92
Extraordinary loss
421
603
812
1,587
606
Income before income taxes and non-controlling interests
24,771
34,933
18,101
17,815
24,829
Income taxes - current
3,990
2,510
3,409
8,055
4,969
Income taxes - deferred
3,702
9,670
2,498
(1,983)
9,316
Net income
17,078
22,752
12,194
11,743
10,543
Net income attributable to non-controlling interests
633
473
556
935
1,075
Net income attributable to owners of parent
16,445
22,278
11,637
10,807
9,467
3. (Reference) Quarterly Non-consolidated Financial Statements
(1) (Reference) Quarterly Non-consolidated Balance Sheets
(Millions of yen)
As of March 31, 2016
As of June 30, 2016
Assets
Current assets
Cash and bank deposits
283,049
347,513
Cash segregated as deposits for customers and others
170,684
183,960
Trading assets
5,990,021
7,132,075
Trading securities and others
3,115,313
3,566,531
Derivatives
2,874,707
3,565,544
Receivables - unsettled trades
27,923
―
Operating investment securities
19,010
19,542
Operating loans receivable
3,100
2,880
Receivables related to margin transactions
98,958
97,799
Loans receivable under margin transactions
54,181
49,356
Cash collateral for borrowed securities under margin transactions
44,776
48,442
Collateralized short-term financing agreements-receivable
3,949,642
4,091,745
Deposits paid for securities borrowed
3,718,958
3,858,472
Securities purchased under agreements to resell
230,684
233,273
Advances paid
107
755
Securities: fail to deliver
11,937
21,731
Short-term loans receivable
50,711
43,470
Deferred tax assets
8,735
5,565
Other current assets
404,314
462,149
Less: Allowance for doubtful accounts
(16)
(12)
Total current assets
11,018,181
12,409,176
Noncurrent assets
Property and equipment
14,540
14,275
Intangible assets
42,370
45,482
Investments and other assets
308,153
305,931
Investment securities
241,992
234,634
Long-term guarantee deposits
12,216
12,020
Prepaid pension cost
15,020
15,207
Deferred tax assets
1,394
―
Other
41,163
47,645
Less: Allowance for doubtful accounts
(3,634)
(3,575)
Total noncurrent assets
365,065
365,689
Total assets
11,383,246
12,774,865
(Millions of yen)
As of March 31, 2016
As of June 30, 2016
Liabilities
Current liabilities
Trading liabilities
4,445,062
5,124,854
Trading securities and others
1,642,885
1,632,937
Derivatives
2,802,176
3,491,917
Receivables - unsettled trades
―
420,857
Payables related to margin transactions
42,278
34,391
Borrowings on margin transactions
10,835
4,527
Cash collateral for loaned securities under margin transactions
31,443
29,864
Collateralized short-term financing agreements-payable
3,861,722
4,221,597
Deposits received for securities loaned
1,909,797
1,720,708
Securities sold under agreements to repurchase
1,951,925
2,500,889
Deposits received
136,356
175,516
Guarantee deposits received
154,013
195,464
Securities: fail to receive
4,271
15,183
Short-term borrowings
479,403
570,948
Commercial paper
513,700
371,300
Bonds and notes due within one year
55,602
78,063
Lease obligations
377
379
Income taxes payable
4,400
2,240
Accrued employees' bonuses
13,217
4,543
Provision for variable compensation
790
993
Provision for bonus point redemption
623
684
Other current liabilities
31,422
23,134
Total current liabilities
9,743,240
11,240,153
Noncurrent liabilities
Bonds and notes
548,766
527,147
Long-term borrowings
409,400
321,400
Lease obligations
857
771
Deferred tax liabilities
―
1,429
Provision for retirement benefits
18,034
18,432
Other noncurrent liabilities
1,885
1,491
Total noncurrent liabilities
978,944
870,671
Statutory reserves
Reserve for financial instruments transaction liabilities
2,005
2,072
Total statutory reserves
2,005
2,072
Total liabilities
10,724,190
12,112,897
Net assets
Shareholders' equity
Common stock
125,167
125,167
Capital surplus
381,649
381,649
Retained earnings
149,594
145,168
Total shareholders' equity
656,411
651,984
Valuation and translation adjustments
Net unrealized gains on (operating) investment securities, net of tax
21,626
16,812
Net deferred gains or losses on hedges, net of tax
(18,982)
(6,829)
Total valuation and translation adjustments
2,644
9,983
Total net assets
659,056
661,968
Total liabilities and net assets
11,383,246
12,774,865
(2) (Reference) Quarterly Non-consolidated Statements of Income
For the three months ended June 30, 2015 and 2016
(Millions of yen)
Three months ended June 30, 2015
Three months ended June 30, 2016
Operating revenues
Commissions
38,454
30,463
Net gain on trading
34,855
40,358
Net gain (loss) on operating investment securities
1,080
(162)
Interest and dividend income
5,411
8,325
Total operating revenues
79,801
78,985
Interest expenses
5,301
7,392
Net operating revenues
74,500
71,593
Selling, general and administrative expenses
57,488
55,731
Transaction-related expenses
12,748
11,586
Personnel expenses
21,816
20,697
Real estate expenses
6,451
6,315
Administrative expenses
11,005
10,910
Depreciation and amortization
3,403
3,998
Taxes and dues
1,073
1,218
Provision of allowance for doubtful accounts
20
(61)
Other
967
1,065
Operating income
17,012
15,861
Non-operating income
3,442
2,983
Non-operating expenses
209
411
Ordinary income
20,245
18,434
Extraordinary gain
320
184
Gain on sales of noncurrent assets
―
4
Gain on sales of investment securities
320
1
Gain on sales of shares of subsidiaries and affiliates
―
178
Extraordinary loss
394
309
Loss on sales of noncurrent assets
8
―
Loss on disposal of noncurrent assets
28
5
Loss on sales of investment securities
1
15
Loss on impairment of investment securities
0
216
Loss on impairment of shares of subsidiaries and affiliates
115
―
Loss on impairment of golf club membership
0
―
Impairment losses
59
―
Head office transfer cost
35
―
Cost incurred in opening of joint branches
―
5
Provision of reserve for financial instruments transaction liabilities
145
66
Income before income taxes
20,171
18,309
Income taxes - current
992
1,834
Income taxes - deferred
3,862
2,765
Total income taxes
4,855
4,600
Net income
15,316
13,709
Not applicable
2. Supplemental InformationMizuho Securities Co. Ltd. published this content on 29 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 July 2016 07:17:03 UTC.
Original documenthttp://www.mizuho-sc.com/english/company/financial/financial_results/er/pdf/data201703e_1q.pdf
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