Mizuho Financial Group's Investment Plans Uncertain, Shares Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: CNBC
- Stock Volatility: Mizuho Financial Group's shares fell as much as 7.7% on Monday after the company clarified that it has yet to decide on an investment in Rakuten Bank, indicating market uncertainty regarding its investment strategy.
- Investment Plans Undecided: Despite reports from Yomiuri Shimbun suggesting Mizuho plans to increase its stake in Rakuten Bank, Mizuho stated it is exploring various options, including the possibility of investing in Rakuten Bank, indicating that its investment decisions are still under evaluation.
- Strong Financial Performance: Mizuho reported a 660% year-on-year increase in net profit for the fourth quarter, reaching 228.7 billion yen ($1.44 billion), driven by strong growth in its fee business and a higher central bank policy rate, demonstrating robust fundamentals.
- Market Focus on Restructuring: Analysts noted that Rakuten Group's fintech segment is undergoing reorganization, expected to be completed by October 2026, and Mizuho's direct intervention could help avert overvaluation risks in Rakuten Bank's securities and card segments.
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Analyst Views on MFG
Wall Street analysts forecast MFG stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 9.270
Low
38.88
Averages
38.88
High
38.88
Current: 9.270
Low
38.88
Averages
38.88
High
38.88
About MFG
Mizuho Financial Group Inc is a Japan-based company mainly engaged in the banking, trust banking, securities, and other financial services. The Company operates through five business segments: Retail & Business Corporations Company (RBC), Corporate & Investment Banking Company (CIBC), Global Corporate & Investment Banking Company (GCIBC), Global Markets Company (GMC), and Asset Management Company (AMC). The CIBC segment operates for clients of large corporate corporations, financial corporations and public corporations in Japan. The GCIBC segment operates for clients of overseas-affiliated Japanese companies and non-Japanese companies. The GMC segment is engaged in investment business in interest rates, equity, among others. The AMC segment is engaged in the development and provision of products that meet the asset management needs of clients from individuals to institutional investors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Plans Undecided: Despite reports from Yomiuri Shimbun suggesting Mizuho plans to increase its stake in Rakuten Bank, Mizuho stated it is exploring various options, including the possibility of investing in Rakuten Bank, indicating that its investment decisions are still under evaluation.
- Strong Financial Performance: Mizuho reported a 660% year-on-year increase in net profit for the fourth quarter, reaching 228.7 billion yen ($1.44 billion), driven by strong growth in its fee business and a higher central bank policy rate, demonstrating robust fundamentals.
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- Hedging Needs Rise: Banks are purchasing credit derivatives to mitigate risk exposure to single companies, allowing them to increase lending and derivative trading without breaching credit limits, thereby enhancing overall profitability.
- Hedge Fund Profit Opportunities: With credit derivatives for hyperscalers priced unusually high relative to their credit ratings, Andrew Weinberg of Saba Capital Management notes that now is an optimal time to sell high-rated credit default swaps, anticipating substantial returns.
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- Market Hype: In 2023, The Pokémon Company continues to release new card sets, particularly special 30th-anniversary products, driving excitement and attracting a wave of young collectors and investors, creating a new collecting frenzy.
- Increased Speculation: Due to the scarcity of cards, many scalpers quickly buy up new releases and resell them at inflated prices, leading to market volatility and panic among consumers who feel compelled to purchase quickly to avoid missing out, further driving up prices.
- Collectors vs. Speculators: Despite the influx of speculators, many genuine collectors are still pursuing complete card sets, providing stability to the market and demonstrating the enduring appeal of collecting culture.
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- Impact of Rising Rates: Higher yen rates are improving lending margins and supporting net interest income, with Sumitomo Mitsui and Mizuho seeing profit increases of 34% and 41%, respectively, indicating that healthy corporate funding demand and stronger fee income are driving revenue growth.
- Sustainability Challenges: Despite strong current earnings, analysts note that rising credit costs and geopolitical risks could pressure future profitability, especially as global interest rates change, requiring banks to allocate more capital to support balance sheet expansion.
- Monitoring External Environment: Japanese banks are closely monitoring developments in the Middle East, with Mitsubishi UFJ's CEO stating that ongoing tensions could negatively impact earnings, while further rises in oil prices may also affect global economic growth.
See More
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- Stock Volatility: Mizuho Financial Group's shares fell as much as 7.7% on Monday after the company clarified that it has yet to decide on an investment in Rakuten Bank, indicating market uncertainty regarding its investment strategy.
- Investment Plans Undecided: Despite reports from Yomiuri Shimbun suggesting Mizuho plans to increase its stake in Rakuten Bank, Mizuho stated it is exploring various options, including the possibility of investing in Rakuten Bank, indicating that its investment decisions are still under evaluation.
- Strong Financial Performance: Mizuho reported a 660% year-on-year increase in net profit for the fourth quarter, reaching 228.7 billion yen ($1.44 billion), driven by strong growth in its fee business and a higher central bank policy rate, demonstrating robust fundamentals.
- Market Focus on Restructuring: Analysts noted that Rakuten Group's fintech segment is undergoing reorganization, expected to be completed by October 2026, and Mizuho's direct intervention could help avert overvaluation risks in Rakuten Bank's securities and card segments.
See More
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- Earnings Highlights: Mizuho Financial Group reported a GAAP EPS of ¥502.92 for FY 2023, showing a modest year-over-year growth of 0.6%, which reflects the company's resilience in maintaining profitability amid a competitive market environment.
- Revenue Performance: The total revenue reached ¥9,085.44 billion, indicating Mizuho's efforts to stabilize income despite limited growth, particularly in the context of increasing economic uncertainty.
- Market Dynamics: Mizuho faces growing market pressure as issuers reconsider their roles in bond issuance, which could potentially impact the bank's future debt underwriting business and overall revenue.
- Technological Investment: Mizuho is set to receive Anthropic's Mythos AI model in the coming weeks, and this technological investment is expected to enhance operational efficiency and customer service capabilities, helping the bank maintain its competitive edge in digital transformation.
See More
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