Mizuho CEO Expressed Optimism on Dealmaking Prospects in Japan and US

Mizuho Financial Group Inc.s chief executive officer, Masahiro Kihara, expressed optimism that momentum in investment banking will continue both at home and in the US, where Japan's third-biggest lender has been expanding. According to Kihara, Mizuho has completed the integration of US boutique investment bank Greenhill Co., which it purchased two years ago, and is now reaping the benefits.

The integration has enabled Mizuho to pursue large-scale M&A deals, with Kihara citing the bank's ability to advise on transactions worth over $10 billion. This is a significant increase from the bank's previous capacity, which was limited to deals worth around $5 billion. The expanded capabilities are expected to boost Mizuho's investment banking revenue, which has been growing steadily over the past year.

In the US, Mizuho's acquisition of Greenhill has allowed the bank to tap into the country's thriving M&A market. The US M&A market has been on a tear, with deal values reaching a record high of $4.6 trillion in 2023, according to data from Refinitiv. Mizuho's expanded presence in the US is expected to help the bank capture a larger share of this market.

Mizuho's expansion into the US is part of the bank's broader strategy to diversify its revenue streams and reduce its dependence on Japan's domestic market. The bank has been investing heavily in its global investment banking business, with a focus on building out its capabilities in the US and other key markets.

The integration of Greenhill has also enabled Mizuho to tap into the US bank's network of clients and relationships, which has helped to drive growth in the bank's US investment banking business. According to Kihara, Mizuho's US investment banking revenue has grown by over 20% in the past year, driven by a surge in M&A activity.

Looking ahead, Kihara expressed optimism that Mizuho's dealmaking momentum will continue in both Japan and the US. The bank is well-positioned to capitalize on the ongoing M&A boom, with a strong balance sheet and a deep bench of investment banking talent. As the global economy continues to evolve, Mizuho is poised to play a leading role in the world of investment banking.