Mizuho Financial Group Inc. (8411.TO) is expected to post a net loss of over Y500 billion in fiscal 2008 due to a surge in disposal costs for bad loans, Kyodo News reported Thursday, citing people close to the matter.

Mizuho Financial, one of Japan's three megabank groups, said in May last year that its group net profit fell 49.8 percent in fiscal 2007 from a year earlier to Y311.22 billion.

The megabank's losses stemmed from the impact of the U.S. subprime mortgage crisis.