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Hirokazu Kihara, President and Group CEO of Japan's major banking group Mizuho Financial Group, stated in a recent interview that the goal is to raise the return on equity (ROE) from the current level of over 9% to approximately 11.5% to 12% by fiscal 2028 (ending March 2029).

Mizuho is seeking to further improve capital efficiency, as its existing ROE target—achieving over 10% by fiscal 2027—is expected to be met ahead of schedule. Kihara noted that the ROE for fiscal 2025 is projected to be "above 10% but below 10.5%."

Driven by factors such as the Bank of Japan's interest rate hikes, Mizuho forecasts that net income for fiscal 2025 will reach 1.13 trillion yen, marking the highest level since the group adopted its current structure in 2000. This growth in net income will also support the rise in ROE.

In its mid-term financial goals announced in May this year, Mizuho explicitly aimed to achieve an ROE of over 10% by fiscal 2027. With this target now close to being achieved in less than a year, Kihara has resolved to set a new goal for fiscal 2028.

"I imagine investors are watching what kind of target we will set for fiscal 2028," he said.

Kihara indicated that the new target will be in a "challenging yet reasonable range" and admitted, "Intuitively, I tend to aim for around 11.5% to 12%."

While Mitsubishi UFJ Financial Group has unveiled plans to lift its medium- to long-term ROE to 12%, Kihara emphasized that his decision was not influenced by the policies of other major banks.

"I am planning the development path from the perspective of increasing the price-to-book ratio (PBR) by 50%," Kihara added.