Mizuho shares fell over 7% after clarification of Rakuten Bank report
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shares Mizuho Financial Group It fell as much as 7.7 percent on Monday after the Japanese lender said it had not yet decided on the investment. Rakuten Bank.
explanation Followed by Yomiuri Shimbun reported It was reported on Sunday that Mizuho plans to make additional investments in the major online bank, citing knowledgeable sources.
Mizuho is currently a 14.99% stake At Rakuten Card Co., the credit card and financial services unit of the Japanese e-commerce and internet services giant. Rakuten Group.
Yomiuri Shimbun reported that Mizuho plans to withdraw its stake in Rakuten Card and invest in Rakuten Bank instead.
Mizuho said they explored various options “including the possibility of investing in Rakuten Bank” but no decision had been made.
The newspaper also reported that Mizuho Securities Co.’s 49% stake in Rakuten Securities will remain unchanged.
Mizuho’s posts
Analysts are closely monitoring any announcements Mizuho may make regarding Rakuten Bank.
“Right now, [Fintech] “Rakuten Group’s segment is undergoing a restructuring process, scheduled to be completed in October 2026, in which debit, card and securities will be reorganized into the same group,” Jefferies analysts said in a note. he said.
Jefferies analysts added that the worst-case scenario for Rakuten Bank would be to overpay for its securities and card segments, but Mizuho’s direct intervention could prevent this.
The news comes after Mizuho announced a 660% increase in fourth-quarter profits compared to a year ago. Net profit for the quarter ended March rose to 228.7 billion yen ($1.44 billion), compared with 30.1 billion yen a year earlier, helped by factors such as strong growth in wage business and a higher central bank policy rate.
Shares of Mizuho were last traded down 7.2%, while Rakuten Bank rose more than 8%.
