Japan's Mizuho Q3 profit falls 36 pct as stocks rally comes full circle

TOKYO Fri Jan 31, 2014 2:10am EST

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TOKYO Jan 31 (Reuters) - Mizuho Financial Group Inc posted a 35.7 percent decline in October-December net profit as stock-related income fell from the end of 2012 when shares prices shot up ahead of the election of a pro-growth government.

The Japanese lender, like bigger rival Mitsubishi UFJ Financial Group Inc, has enjoyed a bumper year in its stock portfolio since Prime Minister Shinzo Abe campaigned for office promising to end a decade of deflation.

Gains made from trading shares and from the rising value of stocks held soared in subsequent quarters compared with the year prior. But the on-year comparison lost its shine in the latest quarter which is pitted against the end-2012 rally.

A dip in stock-related income brought net profit down in October-December to 133.4 billion yen ($1.3 billion) from 207.5 billion yen a year earlier, Reuters calculations show based on nine-month figures.

In April-December, profit rose 43.7 percent to 563.1 billion yen.

The bank kept its full-year forecast at 600 billion yen, or 7 percent higher than the year prior, compared with the 638.3 billion yen mean estimate of 18 analysts polled by Thomson Reuters.

Shares of Mizuho closed up 0.9 percent ahead of the earnings release, compared with a 0.6 percent decline in the benchmark index. ($1 = 102.7150 Japanese yen) (Reporting by Taiga Uranaka; Editing by Christopher Cushing)

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