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logoMorningstarAugust 01, 2022

Mizuho Financial Group, Inc.: Weak Yen Helps Japan's Banks Track Full-Year Guidance Despite Bond Losses; We Like SMFG and SMTH

Symbols
MFG
Sector(s)
Financial Services
Rating
Current Price
$2.21
Fair Value
Economic Moat
Stewardship
Summary

Mizuho Financial Group is roughly tied with megabank peer Sumitomo Mitsui Financial Group for the status as Japan’s second-largest bank after Mitsubishi UFJ Financial Group. As of March 2021, Mizuho’s market share of domestic loans was 6.9%, compared with 7.0% for SMFG and 8.3% for MUFG. In Japan, Mizuho has more of a corporate focus than SMFG, which has a larger retail business. Its overseas weighting is slightly smaller than that of MUFG. Unlike its two Japanese megabank peers that own foreign banks outright or hold noncontrolling stakes in local banks overseas, Mizuho expanded in recent years beyond its traditional Japanese borrowers, mainly through its core banking and securities units, focusing on the financing needs of global multinational corporations.

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Analyst Profile

Michael Makdad

Equity Analyst
Michael Makdad is a senior equity analyst for Ibbotson Associates Japan, Inc., a wholly owned subsidiary of Morningstar, Inc. He covers financial and real estate firms.Before joining Morningstar in 2018, Makdad worked in equity and credit research in Tokyo and Hong Kong since 2005 for Lehman Brothers, Nomura, Moody’s, and Haitong Securities. He worked as a sector analyst and in roles where he supervised the research product content and presentation for other analysts across the Asia region.Makdad holds bachelor’s and master’s degrees in business administration from Washington University in St. Louis. He also holds the Chartered Financial Analyst® designation.