Mizuho Warns Over Russia-Ukraine Impact
Shares in Japan’s third-largest lender, Mizuho, are sitting on major support today following the release of Q1 earnings yesterday. The group noted a 56% drop in net-profits which fell back to 51.4 billion yen. The group cited major downside risks from Russia-Ukraine violence as the main driver behind the dip in performance. CEO Masahiro Kihara said during the earnings call: “We have solid results, the Russia-Ukraine conflict and other factors, uncertainties are increasing. We will keep a sense of high alert and make efforts for steady business operations.”
Looking, the annual profit forecast issued for the year ending March 2023 was below analyst estimates. Mizuho gave guidance of 540 billion for the year as a whole, short of the 563.6 billion yen the market was looking for. However, the figure still marks an uptick on the prior year with Mizuho noting that it expects bad loan costs to fall by more than half over the period.
Shares in Mizuho have formed a large descending triangle pattern over the correction lower from circa 168 highs. With trend line resistance dominating overhead, the stock is sitting on big support at the 1518.5 level, a break of which will open the way for a deeper move down towards the 1438 level. To the topside, 1606 remains the key resistance for bulls to break.