Loans

12 Months Ended

Mar. 31, 2026

4. Loans

Credit quality information

In accordance with the MHFG Group’s credit risk management policies, the Group uses an internal rating system that consists of credit ratings for the corporate portfolio segment and pool allocations for the retail portfolio segment as the basis of its risk management infrastructure. Credit ratings consist of obligor ratings which represent the level of credit risk of the obligor, and transaction ratings which represent the ultimate possibility of losses expected on individual loans by taking into consideration various factors such as collateral or guarantees involved. In principle, obligor ratings are applied to all obligors except those to which pool allocations are applied, and are subject to regular review at least once a year as well as special review which is required whenever the obligor’s credit standing changes. Pool allocations are applied to small loans that are less than a specified amount by pooling customers and loans with similar risk characteristics, and the risk is assessed mainly based on past due status and managed according to such pools. The Group generally reviews the appropriateness and effectiveness of the approach to obligor ratings and pool allocations once a year in accordance with predetermined policies and procedures.

The Group does not record expected credit losses for accrued interest receivables because uncollectible

accrued interest

is reversed through interest income in a timely manner in line with the Group’s nonaccrual and past due policies for loans. The amount of accrued interest receivables included in Accrued income was ¥239 billion and ¥245 billion at March 31, 2025 and 2026, respectively.

The Group does not believe that its exposure to any particular geographic area and business sector results in a significant concentration of credit risk.

The table below presents the MHFG Group’s definition of obligor ratings used by MHBK and MHTB, and equivalent obligor ratings are determined for the other subsidiaries:


Obligor category (1) (2)	Obligor rating	Definition
Normal	A	Obligors whose certainty of debt fulfillment is very high, hence their level of credit risk is very low.

	B	Obligors whose certainty of debt fulfillment poses no problems for the foreseeable future, and their level of credit risk is low.

	C	Obligors whose certainty of debt fulfillment and their level of credit risk pose no problems for the foreseeable future.

	D	Obligors whose current certainty of debt fulfillment poses no problems, however, their resistance to future economic environmental changes is low.

Watch	E1	Obligors that require observation going forward because of either minor concerns regarding their financial position, or their somewhat weak or unstable business conditions.

	E2	Obligors that require special observation going forward because of problems with their borrowings such as reduced or suspended interest payments, problems with debt fulfillment such as failure to make principal or interest payments, or problems with their financial position as a result of their weak or unstable business conditions.

Intensive control	F	Obligors that are not yet bankrupt but are in financial difficulties and are deemed likely to become bankrupt in the future because of insufficient progress in implementing their management improvement plans or other measures (including obligors that are receiving ongoing support from financial institutions).

Substantially bankrupt	G	Obligors that have not yet become legally or formally bankrupt but are substantially insolvent because they are in serious financial difficulties and are deemed to be incapable of being restructured.

Bankrupt	H	Obligors that have become legally or formally bankrupt.

Notes:

(1)	Special attention obligors are watch obligors with modified debt or 90 days or more delinquent debt. Loans to such obligors are considered nonaccrual.

(2)	The Group classifies loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as nonaccrual loans.

The table below presents credit quality information of loans based on the MHFG Group’s internal rating system at March 31, 2025 and 2026:


	Term loans by origination year
	2024		2023		2022		2021		2020		Prior to 2020		Revolving Loans (2)		Total

	(in billions of yen)
2025

Domestic:
Corporate:
Large companies:
Normal obligors		14,418		5,880		4,464		3,358		3,391		5,256		7,775		44,542
Watch obligors excluding special attention obligors		153		47		29		76		21		49		162		537
Nonaccrual loans		97		49		27		31		46		239		309		800
Small and medium-sized companies:
Normal obligors		489		313		236		164		146		621		536		2,506
Watch obligors excluding special attention obligors		41		18		12		9		7		37		24		148
Nonaccrual loans		8		5		6		5		10		34		24		92
Retail (1) :
Housing Loan:
Normal obligors		342		289		370		405		320		5,026		—		6,753
Watch obligors excluding special attention obligors		—		—		—		—		1		37		—		39
Nonaccrual loans		—		—		—		—		1		29		—		30
Others:
Normal obligors		149		105		54		38		77		306		449		1,179
Watch obligors excluding special attention obligors		15		10		5		3		8		6		7		53
Nonaccrual loans		4		3		1		2		5		19		8		43
Sovereign:
Normal obligors		3,212		55		47		44		86		239		4		3,687
Watch obligors excluding special attention obligors		2		2		1		—		—		—		—		5
Nonaccrual loans		—		—		—		—		—		—		—		—
Banks and other financial institutions:
Normal obligors		160		81		71		252		1		80		221		867
Watch obligors excluding special attention obligors		—		—		—		—		—		—		—		—
Nonaccrual loans		—		—		—		—		—		—		—		—

Total domestic		19,091		6,857		5,322		4,390		4,122		11,979		9,521		61,282

Foreign:
Corporate (3) :
Normal obligors		13,891		4,670		3,086		1,254		580		1,268		8,360		33,108
Watch obligors excluding special attention obligors		220		96		95		36		113		76		95		730
Nonaccrual loans		17		25		19		1		4		19		10		96
Retail:
Normal obligors		2		1		1		1		1		4		—		10
Watch obligors excluding special attention obligors		—		—		—		—		—		—		—		—
Nonaccrual loans		—		—		—		—		—		—		—		—
Sovereign:
Normal obligors		318		220		194		7		2		3		35		778
Watch obligors excluding special attention obligors		—		3		—		—		—		—		—		3
Nonaccrual loans		—		—		—		—		—		—		—		—
Banks and other financial institutions:
Normal obligors		1,333		631		485		112		27		193		454		3,235
Watch obligors excluding special attention obligors		—		—		4		—		—		11		—		16
Nonaccrual loans		—		—		—		—		—		—		—		—

Total foreign		15,781		5,645		3,883		1,411		728		1,574		8,954		37,975

Total		34,872		12,502		9,205		5,801		4,850		13,553		18,475		99,257


	Term loans by origination year
	2025		2024		2023		2022		2021		Prior to 2021		Revolving Loans (2)		Total

	(in billions of yen)
2026

Domestic:
Corporate:
Large companies:
Normal obligors		16,827		7,098		4,561		3,462		2,377		5,846		8,981		49,151
Watch obligors excluding special attention obligors		226		149		128		57		33		72		197		864
Nonaccrual loans		103		54		39		20		13		70		259		558
Small and medium-sized companies:
Normal obligors		534		295		229		173		124		569		546		2,472
Watch obligors excluding special attention obligors		55		20		14		10		8		35		28		170
Nonaccrual loans		9		5		5		5		3		34		24		86
Retail (1) :
Housing Loan:
Normal obligors		508		279		273		348		381		4,784		—		6,573
Watch obligors excluding special attention obligors		—		—		—		—		—		28		—		29
Nonaccrual loans		1		—		—		—		—		27		—		28
Others:
Normal obligors		202		59		74		35		24		269		445		1,109
Watch obligors excluding special attention obligors		14		5		6		3		2		8		7		45
Nonaccrual loans		5		2		3		2		2		20		7		41
Sovereign:
Normal obligors		128		41		46		47		46		237		3		548
Watch obligors excluding special attention obligors		2		—		2		—		—		—		—		4
Nonaccrual loans		—		—		—		—		—		—		—		—
Banks and other financial institutions:
Normal obligors		257		80		76		9		252		21		315		1,009
Watch obligors excluding special attention obligors		—		—		—		—		—		—		56		56
Nonaccrual loans		—		—		—		—		—		—		—		—

Total domestic		18,872		8,088		5,456		4,171		3,267		12,020		10,868		62,742

Foreign:
Corporate (3) :
Normal obligors		15,947		5,187		2,892		1,826		823		1,087		9,884		37,646
Watch obligors excluding special attention obligors		278		99		109		47		16		67		97		714
Nonaccrual loans		36		21		28		—		14		19		69		187
Retail:
Normal obligors		3		1		1		1		1		4		—		13
Watch obligors excluding special attention obligors		—		—		—		—		—		—		—		—
Nonaccrual loans		—		—		—		—		—		—		—		—
Sovereign:
Normal obligors		558		98		119		58		4		8		100		945
Watch obligors excluding special attention obligors		—		—		—		—		—		—		—		—
Nonaccrual loans		—		—		—		—		—		—		—		—
Banks and other financial institutions:
Normal obligors		1,701		643		354		146		10		193		533		3,579
Watch obligors excluding special attention obligors		—		—		—		—		—		8		2		11
Nonaccrual loans		—		—		—		—		—		—		—		—

Total foreign		18,523		6,049		3,504		2,079		867		1,387		10,685		43,094

Total		37,395		14,137		8,960		6,250		4,134		13,407		21,553		105,836

Notes:

(1)

The primary component of the retail portfolio segment is housing loans to individuals which obligor category is classified based on past due status. The trigger to reclassify obligors from normal obligors to watch obligors excluding special attention obligors is when the past due status is more than 30 days.

(2)	There were no significant revolving line of credit arrangements that converted to term loans during the fiscal year ended March 31, 2025 and 2026.

(3)	Corporate of foreign included ¥166 billion and ¥169 billion of lease receivables that were receivables arising from direct financing leasing at March 31, 2025 and 2026, respectively.

The table below presents gross charge-offs recognized for the fiscal year ended March 31, 2025 and 2026:


	March 31, 2025
	2024		2023		2022		2021		2020		Prior to 2020		Revolving Loans		Total

	(in billions of yen)
Domestic:
Corporate:
Large companies		7		3		—		—		—		—		2		13
Small and medium-sized companies		2		2		—		—		—		—		1		6
Retail:
Housing Loan		—		—		—		—		—		1		—		1
Others		—		2		—		—		—		2		—		4

Total domestic		10		7		—		—		—		4		4		24

Foreign:
Total foreign (Note)		—		11		6		—		4		2		—		24

Total		10		18		6		—		4		5		4		48


	March 31, 2026
	2025		2024		2023		2022		2021		Prior to 2021		Revolving Loans		Total

	(in billions of yen)
Domestic:
Corporate:
Large companies		6		5		1		—		1		194		39		245
Small and medium-sized companies		2		2		—		—		—		1		1		5
Retail:
Housing Loan		—		—		—		—		—		1		—		1
Others		—		1		—		—		—		—		—		2

Total domestic		8		8		1		—		1		196		40		254

Foreign:
Total foreign (Note)		1		1		3		—		—		14		—		19

Total		9		9		4		—		1		210		40		273

Note: The majority of total foreign consist of corporate.

Loans are generally carried at the principal amount adjusted for unearned income and deferred net nonrefundable loan fees and costs. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the loan as an adjustment of yield using a method that approximates the interest method. Interest income on performing loans is accrued and credited to income as it is earned. Unearned income and discounts or premiums on purchased loans are deferred and recognized over the life of the loan using a method that approximates the interest method.

Unearned income and deferred loan fees w

ere

¥284 billion and ¥312 billion at March 31, 2025 and 2026, respectively.

The Group uses, as a practical expedient, the fair value of the collateral when recording the net carrying amounts of loans and determining the allowance for credit losses of such loans, for which the repayment is expected to be provided substantially through the operation or sale of the collateral, when the borrower is experiencing financial difficulty based on the assessment as of the reporting date. As of March 31, 2026, collateral relating to these loans was primarily comprised of real estate. There were no significant changes in the extent to which collateral secures these loans during this fiscal year and no significant concentration of collateral against any portfolio segment.

Nonaccrual loans

The MHFG Group considers loans to be nonaccrual when it is probable that the Group will be unable to collect all the scheduled payments of principal and interest when due according to the contractual terms of the loans. The Group classifies loans to special attention, intensive control, substantially bankrupt and bankrupt obligors as nonaccrual loans. There are no loans that are 90 days past due and still accruing. The Group does not have any loans to borrowers that cause management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms for the periods presented other than those already designated as nonaccrual loans. The table below presents nonaccrual loans information at March 31, 2025 and 2026, and interest income recognized on nonaccrual loans for the fiscal years ended March 31, 2025 and 2026:


	Amortized cost (1)						Interest income recognized (2)
	Nonaccrual loans with an allowance		Nonaccrual loans without an allowance		Total nonaccrual loans		Interest income recognized (2)

	(in billions of yen)
2025

Domestic:
Corporate:
Large companies		788		12		800		12
Small and medium-sized companies		79		13		92		1
Retail:
Housing Loan		18		12		30		1
Others		26		17		43		1

Total domestic		911		54		965		15

Foreign:
Total foreign (3)		92		4		96		5

Total		1,003		58		1,062		20


	Amortized cost (1)						Interest income recognized (2)
	Nonaccrual loans with an allowance		Nonaccrual loans without an allowance		Total nonaccrual loans		Interest income recognized (2)

	(in billions of yen)
2026

Domestic:
Corporate:
Large companies		542		16		558		9
Small and medium-sized companies		77		9		86		2
Retail:
Housing Loan		17		11		28		1
Others		24		17		41		1

Total domestic		659		53		712		12

Foreign:
Total foreign (3)		138		49		187		10

Total		798		102		899		22

Notes:

(1)	Amounts represent the outstanding balances of nonaccrual loans. The MHFG Group’s policy for placing loans in nonaccrual status is consistent with the Group’s definition of nonaccrual loans.

(2)	Amounts represent the amount of interest income on nonaccrual loans recognized on a cash basis and included in Interest income on loans in the consolidated statements of income.

(3)	The majority of total foreign consist of corporate.

The remaining balance of nonaccrual loans that has been partially charged off, was ¥6,150 million and ¥18,032 million as of March 31, 2025 and 2026, respectively.

Loan modifications to borrowers experiencing financial difficulty

The MHFG Group grants certain modifications of loans to borrowers experiencing financial difficulty. The following table presents loan modifications to borrowers experiencing financial difficulty by type of modification during the fiscal years ended March 31, 2025 and 2026:


	Term extension (2)		Interest rate reduction (2)		Term extension and interest rate reduction (2)		Principal forgiveness		Other		Total (3)(4)

	(in billions of yen)
2025
Domestic:
Corporate:
Large companies		408		—		—		—		3		412
Small and medium-sized companies		28		—		—		—		—		28
Retail:
Housing Loan		—		—		—		—		—		—
Others		5		—		—		—		—		5

Total domestic		441		—		—		—		3		445

Foreign:
Total foreign (1)		2		—		—		—		7		9

Total		443		—		—		—		10		454


	Term extension (2)		Interest rate reduction (2)		Term extension and interest rate reduction (2)		Principal forgiveness		Other		Total (3)(4)

	(in billions of yen)
2026
Domestic:
Corporate:
Large companies		159		—		20		10		3		193
Small and medium-sized companies		28		—		—		—		—		29
Retail:
Housing Loan		—		—		—		—		—		—
Others		4		—		—		—		—		4

Total domestic		191		—		20		10		3		225

Foreign:
Total foreign (1)		—		14		—		—		—		15

Total		191		15		20		10		3		240

Notes:

(1)	The majority of total foreign consist of corporate.

(2)

The financial effects of loan modifications, which were largely in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 11.0

months and 20.2 months, and reducing the weighted-average contractual interest rate by 0.5% and 1.0% for the fiscal years ended March 31, 2025 and 2026, respectively.

(3)	Commitments to lend to borrowers experiencing financial difficulty that were granted modifications were immaterial at March 31, 2025 and 2026.

(4)	The allowance for credit losses on loans is based on macroeconomic-sensitive models that rely on historical performance and macroeconomic scenarios to forecast expected credit losses. Modifications of loans impact expected credit losses by affecting the likelihood of default.

The following table presents the delinquent status of modified loans to borrowers experiencing financial difficulty, including loans that were modified during the fiscal years ended March 31, 2025 and 2026:


	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total

	(in billions of yen)
2025
Domestic:
Corporate:
Large companies		—		—		3		4		408		412
Small and medium-sized companies		—		—		—		—		28		28
Retail:
Housing Loan		—		—		—		—		—		—
Others		—		—		—		—		5		5

Total domestic		—		—		3		4		441		445

Foreign:
Total foreign (Note)		—		—		7		7		2		9

Total		—		—		10		11		443		454


	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total

	(in billions of yen)
2026
Domestic:
Corporate:
Large companies		—		—		3		3		189		193
Small and medium-sized companies		—		—		—		—		29		29
Retail:
Housing Loan		—		—		—		—		—		—
Others		—		—		—		—		4		4

Total domestic		—		—		3		3		222		225

Foreign:
Total foreign (Note)		—		—		—		—		15		15

Total		—		—		3		3		236		240

Note: The majority of total foreign consist of corporate.

Payment default is deemed to occur when the loan becomes three months past due or the obligor is downgraded to the category of substantially bankrupt or bankrupt. The loans modified and subsequently defaulted during the fiscal years ended March 31, 2025 and 2026 were insignificant.

Age analysis of past due loans

The table below presents an analysis of the age of the amortized cost basis in loans that are past due at March 31, 2025 and 2026:


	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total

	(in billions of yen)
2025
Domestic:
Corporate:
Large companies		1		—		38		39		45,840		45,879
Small and medium-sized companies		—		1		5		6		2,741		2,746
Retail:
Housing Loan		15		5		11		31		6,791		6,822
Others		4		1		9		15		1,260		1,275
Sovereign		—		—		—		—		3,693		3,693
Banks and other financial institutions		—		—		—		—		867		867

Total domestic		21		6		63		90		61,192		61,282

Foreign:
Total foreign (Note)		—		—		17		17		37,958		37,975

Total		21		6		80		108		99,150		99,257


2026
Domestic:
Corporate:
Large companies		—		1		44		44		50,528		50,573
Small and medium-sized companies		1		—		6		7		2,721		2,727
Retail:
Housing Loan		10		3		10		23		6,608		6,630
Others		4		1		9		14		1,180		1,195
Sovereign		—		—		—		—		552		552
Banks and other financial institutions		—		—		—		—		1,065		1,065

Total domestic		15		4		69		88		62,654		62,742

Foreign:
Total foreign (Note)		—		—		9		9		43,085		43,094

Total		15		4		78		97		105,739		105,836

Note: The majority of total foreign consist of corporate.

Net losses on sales of loans

Net losses on sales of loans were ¥43,457 million, ¥6,604 million and ¥27,828 million for the fiscal years ended March 31, 2024, 2025 and 2026, respectively. These net losses include unrealized gains and losses on loans held for sale, representing the adjustments to the lower of cost or fair value at the end of each reporting period. The gains and losses on sales of loans are recorded in Other noninterest income and expenses, respectively.