Mizuho CEO Sees Profit Reaching 1 Trillion Yen in Four Years

(Bloomberg) — Mizuho Financial Group Inc. is aiming for a net income of 1 trillion yen ($6.4 billion) over the next three to four years, according to the chief executive officer of Japan’s third-largest bank. 

Masahiro Kihara told Bloomberg Television on Wednesday that domestic corporate banking, asset and wealth management, and global corporate and investment banking would all contribute to growth. Mizuho previously projected record annual net income of 820 billion yen for the current fiscal year ending in March, meaning the increase would require an uplift of more than 20%.

“The momentum in Japan is changing dramatically,” Kihara told BTV’s Haslinda Amin during an interview in Davos, Switzerland, where he is attending the World Economic Forum.

Japanese banks have been enjoying bumper earnings, spurred by rising interest rates and a buoyant stock market at home. Swaps traders and economists are predicting the Bank of Japan to hike rates again this week, a move that may help lenders including Mizuho generate more income from lending. 

Kihara said conditions are set for the central bank to raise rates, given the continuing trend of wage increases by companies. If that translates into higher consumption, the BOJ could move again in July, followed by another hike in January or February 2026, he added. 

He said one of the biggest risks is that US inflation turns out to be more persistent than expected, prompting the Federal Reserve to keep policy rates higher for longer. “That will definitely one aspect that we really have to be careful,” he said.   

Kihara also echoed confidence voiced by other banking chiefs that US President Donald Trump would be good for the banking industry. Mizuho aims to increase its revenue from the US to 30% of the total, up from the current 25%, and expects an increase in business from mergers and acquisitions, he said. In November, the lender announced its first share buyback since 2008.

“President Trump is very friendly to business,” he said. “We have a sizable operation in the US. We have been adding capabilities in the investment banking areas; this will be a good opportunity for us too.”

Mizuho is pushing to expand overseas revenue, with a particular focus on the investment banking business in the US. It bought New York-based boutique advisory firm Greenhill & Co. in 2023.

(Updates with Kihara’s comments on BOJ and US inflation in fourth to sixth paragraphs)

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