Wednesday, February 27, 2013
Mizuho Aims To Meet Basel III Ratio Early
TOKYO (Nikkei)--Mizuho Financial Group Inc. (8411) said Tuesday that it will seek to achieve a higher capital adequacy ratio required under new international standards in fiscal 2015, ahead of their full rollout in 2019.
As part of its new medium-term business plan, Mizuho will aim for a common equity Tier 1 ratio of 8% or more in fiscal 2015. This would put it in compliance with the fully loaded Basel III requirement for big banks operating internationally.
It will seek to achieve the goal by accumulating profits, not raising additional capital. It has set a target of 550 billion yen for fiscal 2015 group net profit, a 10% increase over its forecast for the current fiscal year.
President Yasuhiro Sato told reporters Mizuho will retain "the option of using capital for our growth strategy," indicating the possibility of foreign acquisitions.
Mizuho also announced the departure of seven deputy presidents from the parent company and banking units. The personnel reshuffle comes as Mizuho Bank and Mizuho Corporate Bank prepare to merge in July.
(The Nikkei, Feb. 27 morning edition)