Masahiro Kihara’s appointment as president and CEO of Mizuho Financial Group in February 2022 marked a decisive inflection point for Japan’s third-largest megabank. The move came in the aftermath of a series of information technology system failures in 2021 that triggered a public reprimand from regulators and a broader crisis of confidence within the institution. But rather than focusing purely on systems or compliance fixes, Kihara diagnosed a deeper problem: Mizuho’s culture lacked openness and agility. 

A cultural reckoning after crisis

“We had a very significant system trouble... and I was driving as acting CEO because of that,” Kihara explained. “I thought number one, that we have to change our corporate culture so that our people can speak out and make bold challenges.”

He initiated a deliberate cultural transformation, starting with a redefinition of Mizuho’s corporate purpose — “Proactively innovate together with our clients for a prosperous and sustainable future” — and launched a series of open dialogues with employees. Internal engagement rose from 51% in 2022 to 62% in 2024, while inclusion scores surpassed their 2025 targets, signalling momentum in the internal transformation.

Five-pronged strategy for reform and growth

Building on this cultural reset, Kihara laid out a five-point strategy that underpins Mizuho’s medium-term business plan:

Retail reform and deposit resilience:


With deposit acquisition lagging rivals, Mizuho began rethinking its retail proposition. “I was looking at our new deposit base... that was shrinking actually,” said Kihara. He acknowledged the need for a more intuitive user experience and began investing in technologies and partnerships to rebuild its retail presence.

Asset and wealth management:

As Japan shifts from savings to investment, Mizuho aims to capture emerging demand across customer segments. The group acquired a 49% stake in Rakuten Securities and 14.9% of Rakuten Card, and launched Mirai Wealth Partners, a financial advisory joint venture targeting JPY 50 billion (about $357 million) in client assets over five years. “Affluent people become high net worth, and high net worth become ultra-high net worth,” Kihara said, stressing a long-term approach to customer lifecycle development.

Revitalising Japanese corporates:

With domestic competitiveness waning, Mizuho has intensified its support for local firms, offering risk capital, succession planning, and advisory services. Kihara said: “We wanted to revive the corporates in Japan,” particularly mid-sized firms that form the industrial backbone.

Global corporate and investment banking (CIB):


The 2023 acquisition of Greenhill & Company for $550 million bolstered Mizuho’s United States (US) mergers and acquisitions (M&A) franchise. Despite a current stall in M&A activity due to market uncertainty, Kihara remains optimistic: “Once the new global mechanism becomes clear, corporate action will revive, and then it’s time for Greenhill to come out.” Greenhill has also enabled synergies with Mizuho’s platform, particularly in cross-border deals involving Japanese, US and European corporates.

Sustainability and innovation:
This cross-cutting theme encompasses environmental, social and governance (ESG), technology innovation and capital allocation. Mizuho has committed to mobilising JPY 100 trillion (about $714 billion) in sustainable finance by 2030 and achieving net zero financed emissions by 2050. The group has also invested in generative AI tools and launched a five-level digital certification programme to upskill staff.

Managing headwinds with prudence

Mizuho’s financial results suggest that Kihara’s strategy is gaining traction. In financial year (FY) 2024, which ended in March 2025, the bank posted record profits of JPY 885.4 billion (about $6.2 billion), a 30.1% year-on-year increase, with return on equity improving to 9.4% from 6.2% in FY2022. Consolidated net business profits reached a record JPY 1.14 trillion (about $7.98 billion), and the group announced a dividend increase and a share buyback — its first in 16 years.

Still, challenges remain. Customer deposits declined by 1% in FY2024, while the cost-to-income ratio stayed elevated at 63%, despite heavy investments in digital transformation. “The most important part is how you control your embedded cost... and we are working on that,” said Kihara, noting inflation, IT expenses and regulatory costs as persistent pressures.

Mizuho’s fee income, comprising 31% of gross profit, trails peers, Mitsubishi UFJ Financial Group (MUFG)’s 40% and Sumitomo Mitsui Financial Group (SMFG)’s 38%, suggesting room for further diversification. However, the bank maintains a balanced revenue structure: roughly one-third each from interest, fees, and transaction banking.

Digital and international expansion: cautious but deliberate

In the retail space, Mizuho is revamping its channels — transitioning from legacy branches to next-gen models and upgrading the Mizuho Direct app’s user interface and experience (UI/UX). The bank is also deploying artificial intelligence (AI)-powered tools like Wiz Chat, a generative pre-trained transformer (GPT)-based internal platform to support operational efficiency and innovation.

Internationally, Mizuho continues to build strategic footprints. In Asia, it invested in Credibook, an Indonesian fintech, and is actively exploring further regional opportunities. Kihara acknowledged that Asia remains “more of a transaction banking and foreign exchange (FX) business” compared to the capital markets orientation of the US and Europe, but sees potential in combining customer-led expansion with tech acquisition.

He remains wary of liquidity risks in overseas operations, especially given Mizuho’s reliance on wholesale funding outside Japan. “We have to be really careful on how we use our liquidity,” he said, highlighting a disciplined allocation strategy based on regional returns.

Investor confidence and shareholder value

Kihara’s emphasis on transparency and shareholder engagement appears to be paying off. “Investors are always very tough,” he said. “But we have a very good relationship... they give us very good suggestions and we hear them.”

The bank has increased its annual dividend by JPY 5 to JPY 145 ($0.03 to $1.00) and pledged another buyback in 2025, reinforcing investor confidence amid rising interest in Japanese equities. Mizuho’s price-to-book ratio has improved from 0.42 in early 2022 to 0.93 at the end of 2024, and its share price more than doubled in the same period.

Looking ahead: staying the course

Having achieved its original three-year financial target one year ahead of schedule, Mizuho has launched a refreshed three-year plan through FY2027. Kihara affirmed the bank will continue to prioritise its five focus areas without deviation: “We will stick on that, but we will try to grow our financial target moving into fiscal year 2027.”

By combining cultural renewal with disciplined execution, Kihara has positioned Mizuho as a more agile and responsive institution. His strategy reflects a nuanced understanding of Japan’s evolving financial landscape and the demands of a volatile global environment.

Whether through cautious steps into US M&A, selective fintech investments in Asia, or a retail transformation grounded in co-creation, Mizuho under Kihara is seeking not merely to grow, but to adapt — structurally, culturally and strategically — for a new era of Japanese banking.