Mizuho Financial Group Essay ⋆ Business Essay Examples ⋆ EssayEmpire

The Mizuho Financial Group, Inc. (MHFG), established in 2003 with JPY 1.54 trillion in capital, is a bank holding company that engages in managing and operating banks, long-term credit banks, specialized securities companies, and other subsidiaries. As of March 31, 2008, (consolidated) it reported gross profits of JPY 1.661 trillion, net income of JPY 311.2 billion, and a net profit of JPY 511.1. billion. With headquarters in Tokyo, it counts 146 consolidated subsidiaries and 47,449 employees worldwide (2007). The word mizuho means a fresh harvest of rice, and when used in the phrase mizuho country, it means fruitful country, alluding poetically to Japan.

MHFG is currently organized into three main business groups (corporate, retail, and asset management) as part of the group’s strategic plan called “Channel to Discovery.” The Global Corporate Group accounts for approximately 51 percent of group profits and is handled by Mizuho Corporate Bank, Ltd. (MHCB), with Mizuho Securities Co., Ltd. (MHSC). The Global Retail Group, handled by Mizuho Bank, Ltd. (MHBK), accounts for approximately 37 percent of profits. The Global Asset and Wealth Management Group, accounting for around 10 percent of profits, is managed by Mizuho Trust and Banking Co., Ltd. (MHTB), Mizuho Private Wealth Management Co., Ltd. (established in 2005), and three other subsidiaries. Additionally, three affiliated firms manage group strategy: Mizuho Financial Strategy Co., Ltd.; Mizuho Research Institute, Ltd.; and Mizuho Information and Research Institute, Inc. In 2007, MHSC and Shinko Securities Co., Ltd., entered into a merger agreement, which will dissolve MHSC, with Shinko being the surviving entity, taking effect on May 7, 2009. The merger has been delayed due to the impact of the subprime mortgage crisis.

MHFG has its origins in Mizuho Holdings, Inc. (established in 2000), which was a result of a merger of Dai-ichi Kangyo Bank (DKB), Fuji Bank, and the Industrial Bank of Japan (IBJ). The trust bank and securities subsidiaries of these three banks were merged to form MHTB and MHSC, and two years later the banking activities were reorganized into MHCB and MHBK, when they became the principal subsidiaries of Mizuho Holdings. A year later, through a stock exchange, Mizuho Holdings became MHFG.

MHFG offers a wide range of financial services such as banking, securities, trust and asset management, credit card services, private banking services, and venture capital. MHBK boasts over 11,000 ATM machines and 515 branches throughout Japan, and offers retail services and support through asset management consulting and personal loans to individual customers.

MHBK also offers services such as savings accounts, cash cards, international money transfers, credit cards, and internet banking. In 2004 the Mizuho Mileage Club was created to allow customers to accumulate points via banking transactions and credit card usage. Another new service is a “wallet phone” service with NTT DoCoMo called “iD,” in which customers can use their mobile phones as credit cards.

MHCB offers merger and acquisition advisory services, various forms of securitization, pensions, and loan services. MHSC, a wholesale securities company focusing mainly on debt-related and equity-related business, provides financial products and services supporting investment banking, domestic and overseas institutional investors, financial institutions, and corporations. MHTB offers various trust services and banking services of deposits and loans to corporate clients.

MHFG has over 770 offices worldwide operating in banking, derivatives, securities, trust banking, and asset management. MHCB provides products and services to major corporations, financial institutions, and public-sector entities in the Americas, including New York, Chicago, Los Angeles, Houston, Atlanta, Toronto, Mexico City, São Paulo, and the Cayman Islands. In 2006 as part of its new slogan “Channel to Discovery,” the MHCB expanded into developing markets in Asia by opening branches in New Delhi, India; Wuxi, China; and Ho Chi Minh City, Vietnam. The Mizuho Corporate Bank (China) was created the following year. Other growth has been in Thailand, South Korea, and Singapore as well as in Milan, Dubai, and Moscow. Mizuho Bank (Switzerland) and Mizuho Trust & Banking (Luxembourg) support the key world financial centers of Tokyo, London, and New York.

Terunobu Maeda, named president and chief executive officer (CEO) of MHFG in 2002, was previously the vice president of Fuji Bank. Other MHFG companies are currently led by Hiroshi Saito, president and CEO of MHCB; Seiji Sugiyama, president and CEO of MHBK; Keisuke Yokoo, president and CEO of MHSC; and Teruhiko Ikeda, chairman of MHTB.

Bibliography:

“History and Development of The Mizuho Group,” www.mizuho-fg.co.jp (cited March 2009);
MHFG Press Release, April 28, 2008, www.mizuho-fg.co.jp (cited March 2009);
Mizuho Financial Group, Inc., www.mizuho-fg.co.jp (cited March 2009).

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