Mizuho Financial Group (8411): 1Q results: Revenue rose 39% while costs grew 11%, market operations particularly strong

Research evidence excerpt

Mizuho Financial Group (8411): 1Q results: Revenue rose 39% while costs grew 11%, market operations particularly strong

J P M O R G A N Asia Pacific Equity Research

31 July 2026

Mizuho Financial Group (8411) Overweight

8411.T, 8411 JP

1Q results: Revenue rose 39% while costs grew Price (30 Jul 26):¥7,818

11%, market operations particularly strong Price Target (Dec-26):¥9,530

Positive: 1Q FY2026 net profit rose 46% YoY to ¥422.9 billion, beating our ¥302.1 Japan Equity Research

billion estimate. Management raised full-year FY2026 guidance for net profit from

Banks

¥1.3 trillion to ¥1.4 trillion, or 12% YoY growth. After announcing a share buyback

of up to ¥100 billion in May, Mizuho FG announced an additional ¥100 billion Takahiro Yano, CFA AC

buyback on July 30. We believe management decided to raise guidance and (81-3) 6736-8616

takahiro.yano@jpmorgan.com

announce an additional buyback despite the ongoing uncertainty over the Middle

Kohichi Takano

East situation because 1Q results were unusually strong. (81-3) 6736 8621

• Market operations particularly strong in 1Q: Figure 1 provides an overview kohichi.takano@jpmorgan.comJPMorgan Securities Japan Co., Ltd.

of 1Q FY2026 results. Net interest income (NII), fee income and opex were in

line with our estimates. In contrast, non-NII items other than fee income were

much higher than we estimated. We believe this reflects higher revenue from

domestic and international sales & trading (S&T) driven by equities, and

profits generated at the banking revenue (i.e. proprietary trading). It appears

domestic business was stronger than international business in NII and fee

income terms. Revenue growth was unable to offset higher costs at the global

corporate & investment banking company (GCIBC), so its net business profit