At the beginning of every year we publish our PSA Perspective, a report intended as a long shelf-life look at the year ahead. This year Pelham Smithers discusses Japan's economy, the outlook for the stock market, and some stand-out themes and developments for the year. These include the digital yen and the demise of live action entertainment in Japan. We also update our noted PSA Focus List of stocks. Table of Contents Overview 3 Background: 4 Japan’s Economic Outlook 5 Ja...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
We lower our fair value estimate for no-moat Mizuho Financial Group to JPY 175 from JPY 199 as we roll our model forward and incorporate information from the new five-year business plan. Mizuho on May 22 held a briefing to discuss the plan, aimed at first stopping and then reversing the trend of declining profits that has affected it even more severely than other large Japanese banks. Like megabank rivals Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, Mizuho’s net interes...
We lower our fair value estimate for no-moat Mizuho Financial Group to JPY 175 from JPY 199 as we roll our model forward and incorporate information from the new five-year business plan. Mizuho on May 22 held a briefing to discuss the plan, aimed at first stopping and then reversing the trend of declining profits that has affected it even more severely than other large Japanese banks. Like megabank rivals Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, Mizuho’s net interes...
We lower our fair value estimate for no-moat Mizuho Financial Group to JPY 175 from JPY 199 as we roll our model forward and incorporate information from the new five-year business plan. Mizuho on May 22 held a briefing to discuss the plan, aimed at first stopping and then reversing the trend of declining profits that has affected it even more severely than other large Japanese banks. Like megabank rivals Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, Mizuho’s net interes...
Mizuho Financial Group lowered its net profit guidance for the fiscal year ending March 2019 from JPY 570 billion to JPY 80 billion, as it now plans to book an extraordinary loss of about JPY 680 billion in the fiscal fourth quarter. Of the JPY 680 billion, JPY 500 billion is to write down the value of fixed assets (JPY 40 billion for branch closures and the remainder of JPY 460 billion to write down the value of software) and JPY 180 billion is mainly for losses on foreign bonds. Mizuho’s lo...
Mizuho Financial Group lowered its net profit guidance for the fiscal year ending March 2019 from JPY 570 billion to JPY 80 billion, as it now plans to book an extraordinary loss of about JPY 680 billion in the fiscal fourth quarter. Of the JPY 680 billion, JPY 500 billion is to write down the value of fixed assets (JPY 40 billion for branch closures and the remainder of JPY 460 billion to write down the value of software) and JPY 180 billion is mainly for losses on foreign bonds. Mizuho’s los...
Mizuho Financial Group plans to raise its stake in IBJ Leasing (8425 JP) from 3.8% to 20%, according to the Nikkei. IBJ Leasing would issue new shares to Mizuho and use the proceeds to invest in Marubeni (8002 JP) subsidiary MG Leasing, making MG Leasing a 50-50 joint venture of IBJ and Marubeni. The news affects Mizuho in two ways. Financially, a 20% stake in IBJ Leasing as an equity-method affiliate would boost Mizuho’s annual net profit by around 0.5%--material but not enough to change our...
Mizuho Financial Group plans to raise its stake in IBJ Leasing (8425 JP) from 3.8% to 20%, according to the Nikkei. IBJ Leasing would issue new shares to Mizuho and use the proceeds to invest in Marubeni (8002 JP) subsidiary MG Leasing, making MG Leasing a 50-50 joint venture of IBJ and Marubeni. The news affects Mizuho in two ways. Financially, a 20% stake in IBJ Leasing as an equity-method affiliate would boost Mizuho’s annual net profit by around 0.5%--material but not enough to change our...
After having achieved 63% of its full-year net profit guidance of JPY 570 billion in the first two quarters, Mizuho Financial Group reported a poor third fiscal quarter with annualized ROE of only 2.2% for the October-December period, bringing its guidance achievement rate to 72% with one quarter left to go. Mizuho's net interest income held up somewhat better than peers, down only 3.5% year over year, but fees slid 16% and credit costs reappeared to a modest degree (12 basis points of loans on ...
After having achieved 63% of its full-year net profit guidance of JPY 570 billion in the first two quarters, Mizuho Financial Group reported a poor third fiscal quarter with annualized ROE of only 2.2% for the October-December period, bringing its guidance achievement rate to 72% with one quarter left to go. Mizuho's net interest income held up somewhat better than peers, down only 3.5% year over year, but fees slid 16% and credit costs reappeared to a modest degree (12 basis points of loans on ...
After having achieved 63% of its full-year net profit guidance of JPY 570 billion in the first two quarters, Mizuho Financial Group reported a poor third fiscal quarter with annualized ROE of only 2.2% for the October-December period, bringing its guidance achievement rate to 72% with one quarter left to go. Mizuho's net interest income held up somewhat better than peers, down only 3.5% year over year, but fees slid 16% and credit costs reappeared to a modest degree (12 basis points of loans on ...
Mizuho Financial Group reported better-than-expected results for the July-September quarter, achieving 63% of its full-year profit guidance with half the year still to go. Although net reversals of credit costs and gains on sales of equity securities once again bolstered Mizuho’s bottom line, we think the quality of earnings was better this time than in many recent quarters, with a sequential reduction in Mizuho’s high expense ratio from 74.6% to 67.6% and solid growth in fee income offsetti...
Mizuho Financial Group reported better-than-expected results for the July-September quarter, achieving 63% of its full-year profit guidance with half the year still to go. Although net reversals of credit costs and gains on sales of equity securities once again bolstered Mizuho’s bottom line, we think the quality of earnings was better this time than in many recent quarters, with a sequential reduction in Mizuho’s high expense ratio from 74.6% to 67.6% and solid growth in fee income offsetti...
Mizuho Financial Group is one of Japan’s three largest banking groups, with an 8.4% share of domestic loans and 9.0% share of deposits as of March 2018. In Japan, the environment for banks has been tough for years and we expect it to remain so. The long-running deflationary environment in the country has led to persistently low demand for loans, with the loan/deposit ratio having declined from 74% in 2000 to around 55% at present. The liabilities/net assets ratio for Japan’s approximately 1 ...
We are transferring coverage of Japan's six largest banking groups, all of which we rate as having no moat and a stable moat trend. This includes the three so-called "megabanks" that together account for 25% of banking-system loans and 29% of deposits: Mitsubishi UFJ Financial Group, or MUFG (8306 JP), Sumitomo Mitsui Financial Group, or SMFG (8316 JP), and Mizuho Financial Group (8411 JP). It also includes three second-tier banks: Sumitomo Mitsui Trust (8309 JP), Resona (8308 JP), and Japan Po...
Mizuho Financial Group is one of Japan’s three largest banking groups, with an 8.4% share of domestic loans and 9.0% share of deposits as of March 2018. In Japan, the environment for banks has been tough for years and we expect it to remain so. The long-running deflationary environment in the country has led to persistently low demand for loans, with the loan/deposit ratio having declined from 74% in 2000 to around 55% at present. The liabilities/net assets ratio for Japan’s approximately 1 ...
We are transferring coverage of Japan's six largest banking groups, all of which we rate as having no moat and a stable moat trend. This includes the three so-called "megabanks" that together account for 25% of banking-system loans and 29% of deposits: Mitsubishi UFJ Financial Group, or MUFG (8306 JP), Sumitomo Mitsui Financial Group, or SMFG (8316 JP), and Mizuho Financial Group (8411 JP). It also includes three second-tier banks: Sumitomo Mitsui Trust (8309 JP), Resona (8308 JP), and Japan Po...
No-moat Mizuho Financial Group announced first-quarter results that were in line with our estimates and management’s guidance. Our fair value estimate is unchanged at JPY 190. Performance was fairly even across major business lines. Net interest income is tracking last year’s pace, although margins have compressed slightly. Mizuho highlights the performance of its customer groups as particularly strong, having improved by JPY 43.4 billion year over year. Fee income is weak, just like last ye...
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