Mizuho Financial Group on Tuesday announced a three-year business plan aimed at repaying 1.47 trillion yen in borrowed public funds and boosting the group's profitability through a new unit and a tieup.

"We are now entering a future-oriented and customer-oriented phase, after having been through a crisis-management phase," Terunobu Maeda, president and CEO of Japan's largest banking group, told a news conference.

Mizuho plans to return the 1.47 trillion yen from a government-backed capital injection by the end of March 2007, which would make it the first of the three major banking groups to complete repayment of public funds.

By paying back the money, Mizuho will free itself from the obligations placed by the government, such as lending to small companies.

Strategies to boost earnings include a plan to set up a wholly owned private banking unit for wealthy clients.

Mizuho Private Wealth Management Co. is scheduled to be launched this autumn.

It will provide consulting services and various personalized financial products for clients who have 500 million yen or more in assets.

Mizuho has also tied up with three U.S. banks -- Wachovia Bank, N.A.; Wells Fargo Bank, N.A.; and the Bank of New York -- to enhance its product lineup, and its retail banking and asset management services.

With these strategies, Mizuho plans to boost its group net profit to 650 billion yen in the business year to March 2008, up 210 billion yen from the year to March 2005.

It also aims to increase its overall market value to 10 trillion yen from the current 6 trillion yen.

Mizuho said it plans to apply for listing on the New York Stock Exchange as early as June 2006 in an effort to win further trust from investors.