Kiyoshi Ota Bloomberg | getty images
shares of Mizuho Financial Group fell as much as 7.7% on Monday after the Japanese lender clarified it had not yet decided on the investment Rakuten Bank.
Explanation came after Yomiuri Shimbun informed Mizuho plans to make additional investments in the leading online bank, it reported on Sunday, citing informed sources.
Mizuho currently has one 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 planned to withdraw its stake in Rakuten Card and invest in Rakuten Bank instead.
Mizuho said it was exploring various options, “including the possibility of investing in Rakuten Bank” but that no decision had been made.
The newspaper also reported that Mizuho Securities Co.’s 49% stake in Rakuten Securities would remain unchanged.
mizuho shares
Analysts are keeping an eye on any upcoming announcements made by Mizuho regarding Rakuten Bank.
“Currently, the (fintech) segment of Rakuten Group is undergoing a restructuring, scheduled to be completed in October 2026, under which banks, cards and securities will be reorganized into a single group,” Jefferies analysts said in a note.
Jefferies analysts said the worst-case scenario for Rakuten Bank would be to overpay for its securities and cards segments, but that could be prevented by direct intervention from Mizuho.
The news comes after Mizuho reported a 660% increase in fourth-quarter profit from a year ago. Net profit rose to 228.7 billion yen ($1.44 billion) in the quarter ending March from 30.1 billion yen a year earlier, helped by factors including strong growth in its fee business and higher central bank policy rates.
Mizuho shares last traded 7.2% lower, while Rakuten Bank rose more than 8%.
