Investor Presentaiton
Reference: Non-JPY Banking Operations
Control of Interest Rate Risks
Proactively lowered the amount of interest rate risks in
Non-JPY Banking as a whole
Impact of U.S. interest rates hike
(USD B)
BK4, management accounting
Non-JPY Balance Sheet (Mar-22)
1,2
Amount of interest rate risks
Decrease the amount
to approx. 1/8
compared to the
U.S. 10 Year Treasury yield
(FY21 H2:
Increase in
Profits
Linked to rising
Loans
Customer
Deposits
Cost Control
Cost increases,
highest risk in FY21
approx. 85bps increase)
interest rates
215.2
285.7
Medium and Long
Term Funding
85.1
through the pace
was controlled as
liquid deposit ratio
increases
.
Sep-21
Dec-21
Mar-22
Managed the increase in unrealized losses through
integrated control of interest rate risks in Foreign Bonds
portfolio and Non-JPY ALM
Increase/decrease in Unrealized Gains/Losses in FY21 Q4
Foreign Bonds (after applying deferred hedge)² + Non-JPY ALM 3:
Approx. -JPY 20.0B
Increase in
Profits
Securities
Corporate Bonds
Currency Swaps
and other
•
•
Improvement in
reinvestment yield
Unrealized losses
are controlled by
hedging and other
76.3
Market Operations
100.0
Other
Repos, Interbank,
Central Banks
deposits and other
99.4
CD & CP
Central Banks
deposits and other
61.1
Increase in
Cost
Increasing funding
costs mainly in the
short term
Expect positive net P/L impact. The decline in foreign bond
carry income will be offset by the profit from deposits and loans
1. Range of change in gains and losses against certain changes in interest rate. Including effects from Non-JPY ALM. 2. Company management basis. 3. FG Consolidated. After applying Net deferred
gains/losses of deferred hedging accounting. 4. New management accounting rules were applied in FY21 (Figures from FY19 were recalculated based on the new rules). Including Non-JPY loans/customer
deposits in Japan and subsidiaries in China, the USA, the Netherlands, Indonesia, Malaysia, Russia, Brazil and Mexico.
MIZUHO
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