MFG

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net income for Q1 FY2026 rose 39.1% year-on-year to 1,701 billion, with core operating profit up 81.9% to 5,758 billion, indicating strong earnings momentum. The company achieved a record-high ROE of 12.5% and an expense ratio of 47.7%, below the 50% target, reflecting improved cost efficiency. Loan balances grew 3.3% year-on-year, driven by strong domestic demand, and the loan-to-deposit spread remained stable, supporting net interest income. The securities and investment banking segment saw robust performance, with fees and commissions up significantly, particularly in M&A and equity underwriting, aided by the Greenhill acquisition. Credit costs remained low at 61 billion, with no major deterioration in asset quality, and the company raised its full-year guidance for both core operating profit and net income. The company maintained a strong capital position, with CET1 ratio at 10.8%, and announced a shareholder return plan with a 50% payout ratio, including 150 billion in share buybacks. The company noted ongoing geopolitical risks, particularly in the Middle East and the Taiwan Strait, which could impact future performance. Net interest income in the overseas segment declined slightly, and the loan-to-deposit spread narrowed, reflecting pressure from lower policy rates. The company faces uncertainty from potential changes in Japanese government bond yields, which could affect the valuation of its JGB holdings. While credit costs were low, the company remains cautious about the potential for future credit deterioration, especially in the wholesale and overseas portfolios. The company's equity holdings saw a slight decline in value, and there is a risk of further mark-to-market losses if market conditions worsen. The company's guidance for the full year is based on current market conditions, and any adverse changes in the global economy or financial markets could lead to downward revisions. Warning! GuruFocus has detected 4 Warning Sign with MFG. Is MFG fairly valued? Test your thesis with our free DCF calculator. Q: What were the key financial results for the first quarter of fiscal year 2026? A: CFO Masayuki Kojima reported that consolidated net income was 170.1 billion, a 39.1% increase year-over-year. Consolidated business net profit rose to 575.8 billion, up 259.3 billion (81.9%) year-over-year, driven by strong performance across all segments. Credit-related costs were low at 6.1 billion, and profit attributable to parent company shareholders increased 45.5% to 422.9 billion. The annualized ROE stood at 12.5%, with an expense ratio of 47.7%, breaking below the 50% threshold. Q: How did the company perform in its key business segments, particularly in Global Markets and Investment Banking? A: The Global Markets division (GCIBC) performed exceptionally well, with business net profit increasing by approximately 100 billion year-over-year. Both Fixed Income and Equities saw strong growth, particularly in the Americas. Investment Banking also showed robust performance, with M&A activity, especially through Greenhill in the Americas, contributing significantly. The company noted that while there were some large ECM deals, the overall pipeline remained strong, with sponsor-related conditions improving. Q: What is the outlook for the full fiscal year 2026, and how does it compare to the first quarter results? A: The company has raised its full-year guidance. Consolidated business net profit is now expected to grow by 35% year-over-year, and profit attributable to parent company shareholders is expected to grow by 32%. This represents a significant upward revision from the initial forecast, reflecting the strong first-quarter performance and a positive outlook for the remainder of the year. Q: Can you provide details on the loan portfolio and deposit trends? A: Domestic loans continued to grow steadily, with the balance increasing by 3.3 trillion year-over-year. The loan-to-deposit ratio improved to 2.1, and the company saw strong growth in new account openings, particularly in the retail segment. While corporate deposits saw some seasonal decline in June, the overall trend remained stable. The company expects loan growth to continue, with a target of around 7-8% growth for the year. Q: How are credit costs trending, and what is the outlook for the remainder of the year? A: Credit-related costs were very low at 6.1 billion in the first quarter, which was better than expected. The company noted that while the situation in the Middle East and the Hormuz Strait remains a concern, there have been no significant impacts so far. They have set aside 165 billion in reserves for potential losses, indicating a cautious but stable outlook for credit costs. Q: What is the status of the company's capital adequacy and shareholder returns? A: The company's CET1 ratio remained strong at 12.5%. In terms of shareholder returns, the company has maintained its plan to buy back up to 100 billion of its own shares, with 15 billion already executed. The company also noted that it has a payout ratio target of over 50%, and with the current share price, the dividend yield is expected to be attractive. Q: How is the company's balance sheet and funding position evolving? A: The company's balance sheet remains solid, with total assets increasing by approximately 600 billion year-over-year. The investment portfolio, particularly in JGBs, has been managed with a focus on medium-to-long-term maturities, and the duration gap has been reduced to 0.8. The company continues to see strong growth in its investment banking and global markets businesses, which are driving overall profitability. Q: Can you elaborate on the performance of the company's overseas operations? A: Overseas loans remained stable, with no major changes in the loan-to-deposit ratio. The company saw strong performance in the Americas, particularly in investment banking and global markets. The acquisition of Greenhill has been fully integrated and is contributing positively to M&A advisory revenues. The company expects continued growth in these areas, driven by a strong pipeline and favorable market conditions. Q: What are the key drivers behind the strong performance in the Global Markets division? A: The strong performance in Global Markets was driven by robust activity in both Fixed Income and Equities, particularly in the Americas. The company benefited from favorable market conditions and increased client activity. The sales and trading desks performed well, with strong flows in both cash and derivative products. The company expects this momentum to continue, although it remains cautious about potential market volatility. Q: How does the company view the current M&A environment, and what is the outlook for investment banking fees? A: The M&A environment remains strong, particularly in the Americas, where the company has seen significant activity through its Greenhill subsidiary. The company expects investment banking fees to continue growing, driven by a robust pipeline of deals. While there may be some fluctuations in quarterly results, the overall trend is positive, and the company is well-positioned to capitalize on market opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Mizuho Financial Group (TSE:8411) has drawn fresh attention after reporting higher net interest income and net income for the nine months to December 31, 2025, along with updated full year profit and earnings guidance. See our latest analysis for Mizuho Financial Group. The latest earnings update and a series of recent bond offerings, including US$600 million of senior unsecured bonds and a ﾥ3t shelf registration, have coincided with strong momentum, with a 30 day share price return of 26.2% and a one year total shareholder return of 93.7%. If strong interest in financials has you thinking more broadly about where capital is flowing, this could be a good moment to check out 9 top founder-led companies as potential next ideas. With Mizuho shares up 26.2% in a month and 93.7% over the past year, plus an indicated 21.3% intrinsic discount, the key question is whether there is still a buying opportunity here or if the market is already pricing in future growth. Compared to the narrative fair value of ﾥ6,468, Mizuho Financial Group's last close at ﾥ7,818 sits well above what that framework suggests, which puts extra focus on the assumptions doing the heavy lifting. Read the complete narrative. Want to see what justifies a higher fair value than the consensus target? The narrative leans on richer margins, a different growth path, and a specific future earnings multiple. Curious which ingredients matter most and how they combine into that ﾥ6,468 figure? Result: Fair Value of ﾥ6,468 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, those higher margins and buyback plans could be tested if integration with Rakuten and Greenhill runs into problems or if domestic large deal activity softens. Find out about the key risks to this Mizuho Financial Group narrative. The narrative framework suggests Mizuho Financial Group appears about 20.9% overvalued at ﾥ7,818 compared with a fair value estimate of ﾥ6,468. Our DCF model presents a different view, with a future cash flow value of ﾥ9,935.2, indicating the current price is below that figure. Which perspective do you think is more appropriate? Look into how the SWS DCF model arrives at its fair value. If you look at the numbers and come to a different conclusion, or prefer to test your own assumptions, you can build a complete view in minutes by starting with Do it your way. A great starting point for your Mizuho Financial Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. If you stop with just one stock, you could miss opportunities that fit your goals even better. Give yourself options by scanning a wider field. Spot potential value opportunities early by running your filters through 23 high quality undervalued stocks and seeing which companies line up with solid fundamentals. Prioritize resilience first and hunt for steadier profiles using 47 resilient stocks with low risk scores so you are not only focused on returns but also on risk control. Cast a wider net beyond the usual names and let screener containing 64 high quality undiscovered gems highlight companies that sit off the radar yet meet your quality thresholds. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include 8411.T. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

(Bloomberg) -- Japan’s Nikkei 225 closed at a fresh high in Tokyo as strong earnings from the tech and finance sectors drove optimism, and as a recovery in gold prices revived risk appetite across Asia. The Nikkei rebounded from Monday’s drop to rise 3.9%, closing at a record 54,720.66. The broader Topix index also advanced 3.1%, marking the biggest gain for both benchmarks since Oct. 6. Most Read from Bloomberg ICE Begins Buying ‘Mega’ Warehouse Detention Centers Across US LA’s $1.2 Billion Graffiti Towers Reach Bankruptcy Exit Deal Congestion Pricing’s Unexpected Winners: Suburban Drivers Chicago Office Tower Sells at an 87% Discount to Pre-Covid Price Forget Free NYC Buses: Just Build 41 Miles of New Subways Tech-related firms like TDK Corp. and Kyocera Corp. were among the Nikkei’s top gainers after their quarterly earnings exceeded market expectations. AI names such as Fujikura Ltd. and Ibiden Co. were also strong amid widespread risk-on sentiment. Banks helped support the Topix, with Mizuho Financial Group Inc. climbing 6.1% after its profit beat estimates and Japan’s third-largest lender expanded its share buyback program. “All caution seems to have vanished,” said Kazuhiro Sasaki, head of research at Phillip Securities Japan. “The yen is considerably weaker than last week, Japan’s ruling party looks on track to win big in the election, and earnings from key sectors like semiconductors appear strong,” he said, referring to a snap vote on Feb. 8. Relative calm in the precious metals market after the weekend’s rout is also bolstering investor confidence, Sasaki added. Better-than-expected data on US manufacturing activity also fueled market sentiment, wrote Andrew Jackson, Japan equity strategist at Ortus Advisors, in a note. Risk is “back on the menu” now, especially for tech names after gains in the US on Monday, he said. Strong earnings from AI-related Japanese firms boosted the benchmarks further in the afternoon session. Cable maker Sumitomo Electric Industries Ltd. gained as much as 15% after raising its full-year income forecast in results released at 3 p.m. Most Read from Bloomberg Businessweek Carvana’s Red-Hot Growth Runs on a Cycle of Borrowed Money The Future of Male Birth Control Could Be Pills, Gels and Implants Industry TV Recap: A Tabloid Drama Cognac Makers Are Uprooting Vines. Dumping Supplies May Be Next Canadians Are Boycotting US Ski Slopes ©2026 Bloomberg L.P.

Wall Street is on alert for further turbulence this week, after the major indexes ended Friday in the red as investors digested a tech sell-off, wild trading in silver and gold, and the long-awaited news that President Trump will nominate financial markets stalwart Kevin Warsh to be the next chair of the Federal Reserve. With another batch of Big Tech earnings ahead, concerns about the AI trade are creeping in amid signs that Nvidia's (NVDA) planned investment in OpenAI (OPAI.PVT) may fall short of what it pledged. On Friday, the tech-focused Nasdaq Composite (^IXIC) led the way down with a loss of roughly 1% after a steep tech sell-off on Thursday. The index ended the week down about 0.2%. Meanwhile, the S&P 500 (^GSPC) lost around 0.4% on Friday but still finished the week up a cumulative 0.3%, and the Dow Jones Industrial Average (^DJI) shed 0.4% in the week's final session, logging a weekly decline of around the same magnitude. Warsh's nomination early Friday capped off months of market speculation, and the 55-year-old former Fed governor is widely seen as a conservative choice by the president. In response to Warsh's nomination, the dollar (DX-Y.NYB) picked up about 0.8% on Friday. Elsewhere in the market, gold (GC=F) sold off by more than 9% on Friday in a turnaround for precious metals. Friday's drop also saw silver (SI=F) and platinum (PL=F) lose more than 28% and 19%, respectively. Oil prices (BZ=F, CL=F) rose roughly 7% over the past five days on tensions around potential US military action in Iran and possible disruptions to the Strait of Hormuz. Some of the week's biggest stock market swings came from the biggest names in tech. While both Meta (META) and Microsoft (MSFT) announced even higher spending targets in their fourth quarter earnings reports, Meta ended the week up 8.8%, while Microsoft went the other way, sliding to a loss of 7.6% on the week. The software sector also faced heavy selling pressure through the week after results from industry giant SAP (SAP), as well as other names like ServiceNow (NOW), failed to calm investor fears that software companies are quickly losing ground to AI. In the week ahead, investors' attention will be focused on Friday's jobs report. Economists expect the US economy added 65,000 jobs last month, with the unemployment rate set to hold at 4.4%. Readings on the manufacturing and services sector, as well as consumer sentiment from the University of Michigan, will also feature. In the corporate world, another busy week of earnings awaits investors as two more "Magnificent Seven" companies — Alphabet (GOOG, GOOGL) and Amazon (AMZN) — report earnings, alongside other tech heavyweights including Palantir (PLTR) and Advanced Micro Devices (AMD). Walt Disney (DIS), PepsiCo (PEP), Eli Lilly (LLY), Novo Nordisk (NVO), Toyota (TM), and Philip Morris (PM) are also set to report. Market reaction to Trump's appointment of former Fed official Kevin Warsh to lead the central bank was largely muted. The dollar held on to gains, but stocks moved down Friday on a wave of other news; gold tumbled in a metals sell-off that analysts have called a necessary correction. "Warsh has a strong pedigree to be chair of the Federal Reserve, with a background somewhat similar to Chair Powell," Deutsche Bank economists wrote in a client note. If confirmed by the Senate, Warsh will step into a Fed divided over the path of interest rates, with multiple officials voting against the central bank's policy decision at its last several meetings. While Warsh has more recently called for lower interest rates and a re-work of the central bank, his earlier tenure as a governor showed a preference for a more hawkish stance on policy with a focus on the risks of high inflation. Warsh noted in a recent speech before the IMF that the decision by the Fed, then chaired by Ben Bernanke, to move toward quantitative easing in the aftermath of the financial crisis was what ultimately pushed Warsh to resign from the central bank. "There is a sense that a Warsh Fed technically leans more hawkish with an unwillingness to utilize the balance sheet to cap long-term rates," Allianz Investment Management senior investment strategist Charlie Ripley wrote in emailed commentary. "With inflation risks continuing to loom on the horizon, balancing political pressures to reduce policy rates will remain a challenge." Warsh will now have to face a Senate confirmation process that could be held up if North Carolina Senator Thom Tillis, a Republican, maintains his stance that he will not vote for the next Fed chair until the Justice Department resolves its investigation into Fed Chair Powell. Throughout the economy, it's starting to feel like all roads lead to AI. Investors will get another read on Big Tech's willingness to throw money at the opportunity when Alphabet and Amazon report earnings on Wednesday and Thursday, respectively. Like their "Mag Seven" brethren, the two companies are expected to boost their capex estimates as they jockey for position in the AI arms race unfolding. "Fears about 'AI ROI' have returned to the fore, raising questions about valuations," Capital analyst Kyle Rodda wrote in email commentary, noting the market's harsh reaction to Microsoft's spending numbers. "It implies diminishing pay-offs from AI investments and less growth at a time when valuations are at extremes and the market is almost priced to perfection." Ballooning spending is also beginning to stress the debt markets, said Apollo chief economist Torsten Sløk, writing in a note Friday morning that AI's turn toward debt funding is "increasing concentration and correlation risk." (Disclosure: Yahoo Finance is owned by Apollo Global Management.) "AI-related exposure is becoming pervasive across portfolios, with apparent diversification across issuers and sectors increasingly masking a single macro bet on AI," Slok wrote. "What began as a largely self-funded capex cycle is quickly becoming a financing event." And there is the raw material side of the AI equation. Alongside the tech companies themselves, investors will continue to watch trading in the commodities underpinning the AI build-out. Prices across both precious and base metals have soared over the past few of months, even with Friday's sharp downturn. The labor market and economic growth impacts of AI also warrant close watching. Job growth was substantially weaker in 2025 than the year prior, with 584,000 additions to payroll employment in 2025 compared to 2024's 2 million additions, according to the Bureau of Labor Statistics. Yet, at the same time, GDP is growing. The economic growth indicator increased at an annual rate of 4.4% in the third quarter of 2025, against the second quarter's annual rate of 3.8%, raising questions about where productivity is coming from — and what it should be attributed to. Investors will get a read on fourth quarter GDP movement in February. "The US economy is producing at a very high level and the 4.4% real growth rate is much higher than normal and is likely to moderate over the course of the year, but if we can stay above 3% for the entire year it could lead to double-digit returns in the stock market," Northlight Asset Management chief investment officer Chris Zaccarelli wrote in emailed commentary. "It is often said that the stock market is not the economy and vice versa. However, higher corporate profits do drive stock prices and to the extent a sustainable increase in productivity and output allow companies to meaningfully increase profits, we should expect the market to increase as well." Economic data: S&P Global manufacturing PMI, January, final reading (51.9 previously); ISM manufacturing, January (48.3 expected, 47.9 previously) Earnings calendar: Palantir (PLTR), Walt Disney (DIS), Mizuho Financial (MFG), Simon Property Group (SPG), NXP Semiconductors (NXPI), IDEXX Laboratories (IDXX), Teradyne (TER), Tyson Foods (TSN), Hess Midstream LP (HESM) Economic data: JOLTS job openings, December (+7.3 million expected, +7.15 million previously); JOLTS quits level, December (+3.16 million previously); JOLTS layoffs level, December (+1.69 million previously); Wards total vehicle sales, January (15.4 million expected, 16.02 million previously) Earnings calendar: Advanced Micro Devices (AMD), Merck (MRK), PepsiCo (PEP), Amgen (AMGN), Pfizer (PFE), Eaton Corporation (ETN), Chubb (CB), Emerson Electric (EMR), TransDigm (TDG), Illinois Tool Works (ITW), Mondelez International (MDLZ), Suncor Energy (SU), Marathon Petroleum (MPC), Chipotle (CMG), Electronic Arts (EA), PayPal (PYPL), Corteva (CTVA), Prudential Financial (PRU), Archer-Daniels-Midland (ADM), Super Micro Computer (SMCI), Galaxy Digital (GLXY) Economic data: MBA mortgage applications, week ended Jan. 30 (-8.5% previously); ADP employment change, January (+45,000 expected, +41,000 previously); S&P Global US services PMI, January, final reading (52.5 previously); ISM services index, January (53.3 expected, 54.4 previously) Earnings calendar: Alphabet (GOOG, GOOGL), Eli Lilly (LLY), AbbVie (ABBV), Novartis (NVS), Novo Nordisk (NVO), Mitsubishi UFJ Financial (MUFG), Uber Technologies (UBER), Qualcomm (QCOM), UBS Group (UBS), Boston Scientific (BSX), Arm Holdings (ARM), CME Group (CME), McKesson (MCK), GSK (GSK), O'Reilly Automotive (ORLY), Brookfield Asset Management (BAM), Equinor (EQNR), Phillips 66 (PSX), Aflac (AFL), AllState (ALL), MetLife (MET), Yum! Brands (YUM), Fox Corporation (FOX), Equifax (EFX), T. Rowe Price (TROW) Economic data: Challenger job cuts, year-on-year, January (-8.3% previously); Initial jobless claims, week ended Jan. 31 (213,000 expected, 209,000 previously); Continuing claims, week ended Jan. 24 (1.85 million expected, 1.83 million previously) Earnings calendar: Amazon (AMZN), Shell (SHEL), Linde (LIN), Sony Group (SONY), ConocoPhillips (COP), Bristol Myers Squibb (BMY), KKR (KKR), Intercontinental Exchange (ICE), Barrick Mining (B), Cummins (CMI), The Cigna Group (CI), Monolithic Power Systems (MPWR), Roblox (RBLX), Thomson Reuters (TRI), Cardinal Health (CAH), Ares Management (ARES), Rockwell Automation (ROK), Xcel Energy (XEL), Microchip (MCHP), Estée Lauder (EL), Strategy (MSTR), The Hershey Company (HSY), Reddit (RDDT), Kenvue (KVUE), Blue Owl Capital (OBDC), Ralph Lauren (RL), The Carlyle Group (CG), Affirm (AFRM) Economic data: Change in nonfarm payrolls, January (+65,000 expected, +50,000 previously); Unemployment rate, January (4.4% expected, 4.4% previously); Average hourly earnings, month-on-month, January (+0.3% expected, +0.3% previously); Average hourly earnings, year-on-year, January (+3.8% previously); University of Michigan sentiment, February preliminary reading (55.0 expected, 56.4 previously) Earnings calendar: Toyota (TM), Philip Morris (PM), Ubiquiti (UI), Cboe Global Markets (CBOE), Biogen (BIIB), AerCap Holdings (AER), Centene (CNC), nVent Electric (NVT), Roivant Sciences (ROIV), Plains All American Pipeline (PAA), AutoNation (AN), MarketAxess Holdings (MKTX), Piper Sandler (PIPR), Under Armour (UAA) Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance

State Street STT is slated to report first-quarter 2025 results on April 17, before the opening bell. The company’s revenues and earnings are expected to have increased year over year. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. In the last reported quarter, STT’s earnings beat the Zacks Consensus Estimate. Growth in fee revenues and higher net interest income (NII) primarily aided results. Also, improvements in total assets under custody and assets under management (AUM) balances were other positives. However, higher expenses were a headwind. State Street has an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a surprise of 9.31%, on average. State Street Corporation price-eps-surprise | State Street Corporation Quote The Zacks Consensus Estimate for State Street’s first-quarter earnings of $1.99 per share has been revised marginally upward over the past seven days. The figure implies a 17.8% rise from the year-ago quarter. The consensus estimate for sales of $3.30 billion suggests 5.2% year-over-year growth. NII: The Federal Reserve kept interest rates unchanged at 4.25%-4.5% in the first quarter of 2025 amid sticky inflation and the impact of Trump’s tariff on the economy. This is likely to have had a positive impact on STT’s NII, given relatively higher yields on interest-earning assets, partially offset by higher funding costs. Further, the yield curve steepened during the quarter due to economic uncertainties, aiding NII through asset repricing. The Zacks Consensus Estimate for average interest-earning assets is pegged at $274.4 billion, which implies a 1.5% fall from the previous quarter. Our estimate for the metric is pegged at $262.6 billion. Further, a cautious approach regarding future rate cuts by the Fed and a challenging operating backdrop are likely to have dampened the overall lending scenario. Lending activities were decent in the first two months of the quarter per the Fed’s latest data. This is likely to have supported State Street’s NII to some extent. The Zacks Consensus Estimate for NII (on a fully taxable-equivalent or FTE basis) of $730.1 million indicates a sequential decline of 2.5%. We project NII on an FTE basis of $715.2 million. Fee Revenues: Higher volatility and volume in foreign exchange (FX) markets are likely to have boosted State Street’s FX trading services income. Also, higher-for-longer interest rates and concerns regarding a potential trade war, given Donald Trump’s tariff policies, weakened the dollar. This nullified the positive impact of the high volatility to some extent. The consensus estimate for FX trading services income is pegged at $372.6 million, suggesting a 3.5% sequential rise. We expect the metric to be $350.9 million. On the other hand, the consensus estimate for management fees of $549.7 million implies a 4.6% decline on a sequential basis. Further, the Zacks Consensus Estimate for servicing fees of $1.26 billion indicates a 1.6% fall from the prior quarter. Our estimates for management fees and servicing fees are $532 million and $1.26 billion, respectively. The consensus estimate for software and processing fees suggests a 14.7% decrease to $220.9 million. Our estimate for the same is $222.2 million. Moreover, the Zacks Consensus Estimate for securities finance revenues of $108.4 million suggests an 8.2% decline. Our estimate for the same is $109.6 million. Overall, the Zacks Consensus Estimate for total fee revenues of $2.6 billion indicates a 3.3% decline from the prior quarter. We project the metric to be $2.54 billion. Expenses: Higher information systems and communication expenses, inflationary pressure and the company’s strategic buyouts and investments in franchises are expected to have increased operating expenses in the first quarter. Further, management’s efforts to streamline its business model to enhance its operating efficiency are expected to have led to a rise in expenses related to restructuring. We anticipate total adjusted non-interest expenses to be $2.47 billion, up 3.6% from the prior quarter. Mizuho Financial Acquisition: In February, State Street agreed to acquire global custody and related businesses from Mizuho Financial Group, Inc. MFG outside of Japan. The financial details of the transaction have not been disclosed. The deal is anticipated to be completed by the fourth quarter of 2025 and is subject to requisite regulatory and other customary closing approvals. Following the completion of the deal, State Street will partner with Mizuho Financial to support its Japanese clients with global custody and related services. Meanwhile, Mizuho Financial will continue to offer trust and custody services for domestic assets within Japan, capitalizing on its expertise and network. IFDS Joint Venture Restructuring: In February, STT announced a restructuring of the nearly 20-year-old European component of the International Financial Data Services (IFDS) LP joint venture (JV) arrangement in Luxembourg and Ireland with SS&C Technologies Holdings, Inc. Under the plan, transfer agency services offered by IFDS in Ireland and Luxembourg will be integrated into the operations of their respective organizations. The restructuring is expected to be completed during the second half of 2025, subject to customary approvals. IFDS Canada, the JV operating in the North American region, remains immune to this restructuring move. As per our model, the likelihood of State Street beating the Zacks Consensus Estimate is high this time around. This is because the company has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Earnings ESP: The Earnings ESP for State Street is +0.45%. Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are a couple of other bank stocks that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this time: The Earnings ESP for First Horizon Corporation FHN is +3.80% and it carries a Zacks Rank #3 at present. The company is slated to report first-quarter 2025 results on April 16. Over the past seven days, the Zacks Consensus Estimate for FHN’s quarterly earnings has remained unchanged at 40 cents. Truist Financial TFC is scheduled to announce first-quarter 2025 results on April 17. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +0.15%. Quarterly earnings estimates for TFC have been revised 1.1% lower to 86 cents over the past week. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street Corporation (STT) : Free Stock Analysis Report First Horizon Corporation (FHN) : Free Stock Analysis Report Mizuho Financial Group, Inc. (MFG) : Free Stock Analysis Report Truist Financial Corporation (TFC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research