Mizuho Financial Group raised its full-year net profit target to 1.6 trillion yen from 1.4 trillion yen on Friday, Nov. 13, after first-half net profit rose 29.9% to 896.5 billion yen, and it announced a new share buyback of up to 200 billion yen.

The Tokyo-based lender also lifted its dividend forecast for the year to March 2027 to 200 yen a share from 150 yen. It paid 145 yen for the previous year. The revised profit goal would be a 28.1% increase on fiscal 2025, according to the bank's interim statements, and Mizuho has already booked about 56% of it in six months.

For investors in Asia, the results are a direct read on how Japan's big banks are turning higher domestic interest rates into income. Mizuho is one of the country's three major banking groups, alongside Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group.

Mizuho's interest income and fees both climb

Ordinary profit, a Japanese measure close to pretax profit, rose 47.3% to 1.252 trillion yen in the six months to Sept. 30, 2026. Ordinary income, the equivalent of revenue, rose 15.1% to 4.993 trillion yen.

The gains came from almost every line. Net interest income rose 18.2% to 771.3 billion yen from 652.7 billion yen a year earlier. Net fee and commission income rose 19.3% to 557.8 billion yen, and net trading income edged up to 444.7 billion yen. Net other operating income jumped to 260.0 billion yen from 54.2 billion yen.

Sales of shareholdings also helped. Net gains related to stocks climbed to 205.0 billion yen from 130.4 billion yen.

Consolidated net business profit, the measure Mizuho uses for core earnings, rose 55% to 1.064 trillion yen from 685.8 billion yen a year earlier. General and administrative expenses rose 7.2% to 1.036 trillion yen, far slower than revenue.

The balance sheet grew too. Loans rose to 102.8 trillion yen at the end of September from 99.8 trillion yen at the end of March, and deposits rose to 174.8 trillion yen from 165.9 trillion yen.

Credit costs turn from a gain to a charge

One line moved the other way. Mizuho booked net credit-related costs of 7.5 billion yen in the half, compared with a net gain of 32.4 billion yen a year earlier, when reversals of loan loss allowances exceeded new charges. Write-offs of loans rose to 35.9 billion yen from 14.2 billion yen.

Mizuho had set aside forward-looking provisions of about 165 billion yen for Middle East and other external risks at the time of its first-quarter results, according to a report by Pulse 2.0. At that time Mizuho raised its full-year profit goal by 100 billion yen to 1.4 trillion yen, citing the Bank of Japan's June rate increase, and doubled its planned buybacks for the year to 200 billion yen.

Capital ratios slipped slightly as the balance sheet expanded. The common equity tier 1 ratio under international rules fell to a preliminary 12.74% at the end of September from 13.16% six months earlier. Comprehensive income fell 69.5% to 257.3 billion yen, a sign that market moves cut the value of holdings booked through equity even as reported profit rose.

Buyback and dividend

The new buyback covers up to 35 million shares, or 1.4% of shares outstanding excluding treasury stock, and runs from Nov. 16, 2026 to Feb. 28, 2027 through market purchases, Mizuho said in a separate filing. All repurchased shares will be cancelled on March 23, 2027. Together with the 200 billion yen of repurchases already planned for the year as of August, as reported by Pulse 2.0, that brings buybacks announced for fiscal 2026 to as much as 400 billion yen.

The bank said it uses a total payout ratio of 50% or more as a guide for buybacks, alongside progressive increases in dividends per share. The interim dividend of 100 yen a share, up from the 75 yen previously forecast, totals 241.8 billion yen and will be paid on Dec. 4.

The outlook still leans on the Bank of Japan, whose most recent policy meeting left rates on hold. Any further increase would feed directly into the interest income that drove the first half.

Mizuho will hold its results briefing for analysts and institutional investors on Friday, Nov. 20, and plans to file its semi-annual securities report on Nov. 27.