UPDATE 1-Mizuho returns to profit, keeps forecast

* Q2 net profit 92.3 bln yen VS 38.4 bln yen loss

* Keeps 200 bln yen forecast VS 144 bln consensus

* Shares finish up 1.7 pct ahead of results (Recasts with quarterly figures, adds details)

TOKYO, Nov 13 (Reuters) - Mizuho Financial Group (8411.T), Japan's second-largest bank, posted its first profit in five quarters, helped by an improvement in share prices, and it stuck to its forecast.

Japan's banks have suffered smaller credit losses than their Western rivals, but they have also been slower to rebound, hampered by their dependence on domestic lending and rock-bottom interest rates.

Economists expect deflation to persist until at least the second quarter of 2011, a Reuters poll recently showed, meaning that interest rates and revenues from lending will have little chance for growth. [ECILT/JP]

Mizuho, which has steadily lost ground to smaller rival Sumitomo Mitsui Financial Group (8316.T), reported a group net profit of 92.3 billion yen ($1.02 billion) for the July-September quarter, against a net loss of 38.4 billion yen last year.

The results compare with an average estimate of 60.8 billion yen in a poll of three analysts.

Mizuho stuck to its forecast for a full-year profit of 200 billion yen. That compares with an average estimate of 144.2 billion yen in a poll of 10 analysts by Thomson Reuters I/B/E/S.

Mizuho had failed to turn a profit for four straight quarters, losing a total of 726.3 billion yen. The bank was particularly hurt by its exposure to the equity market.

Japanese banks traditionally take stakes in their corporate clients to cement business ties, making them vulnerable to swings in equity prices.

The benchmark Nikkei 225 .N225 rose 1.8 percent during July-September, compared with a 16.5 percent fall a year earlier.

Shares of Mizuho have fallen about 30 percent so far this year, making it one of the worst performing stocks among Japanese banks. .IBNKS.T.

Mizuho's shares finished up 1.7 percent before the results, compared with a 0.2 percent rise in the banks index.

Japanese banks do not release July-September numbers. Reuters calculated the figures by subtracting the previous quarter's results from the April-September numbers released on Friday. (Reporting by David Dolan; Editing by Jean Yoon)