November 11, 2022

SURUGA bank, Ltd.
Consolidated financial results for the six months ended September 30, 2022
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Kosuke Saga, President
Dividend payment date: ―(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the six months ended September 30, 2022
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income

Profit attributableto owners of parent

Ordinary profit

Six months ended
Millions of yen％
Millions of yen％
September 30, 2022
52,695(2.6)
18,270(14.3)
September 30, 2021
54,142
6.3
21,327103.8(Note)Comprehensive income:(a) Six months ended Sep. 30, 2022: ¥166 million [(99.1)%](b) Six months ended Sep. 30, 2021: ¥18,626 million [167.7%]％

16,391
17,805

(7.9)
224.7

Earnings per share(diluted)

Earnings per share
Six months ended
September 30, 2022
September 30, 2021

Millions of yen

yen

Yen

87.03
76.86

-

(Note) Earnings per share for the six months ended September 30, 2021 and 2022 are not provided because there are no potentiallyshares.

(2) Consolidated financial position
Total assets
Total net assets
As ofMillions of yen
Millions of yen
September 30, 2022
3,586,811
263,284
March 31, 2022
3,589,982
264,229(Reference) Shareholders’ equity: (a) As of September 30, 2022: ¥263,185 million(b) As of March 31, 2022: ¥264,129 million(Note) Net assets ratio = (Total net assets - Non-controlling interests) / Total assets × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

Net assets ratio
%

7.3
7.3

2. Dividends on common stock
Dividends per share
1 quarter -end 2 quarter -end 3rd quarter -end Fiscal year -endstndFiscal year
yen
yen
ended March 31, 2022
0.00
ending March 31, 2023
0.00
ending March 31, 2023 (forecast)(Note) Revision of dividend forecast from the latest announcement: No

yen

Total

yen

yen

-

6.00

6.00

-

6.00

6.00

3. Consolidated earnings forecast for the fiscal year ending March 31, 2023(% represents the change from the previous fiscal year)

Ordinary income

Ordinary profit

Fiscal year ending
Millions of yen%
Millions of yen%
March 31, 2023
86,000(6.5)
11,0003.8(Note) Revision of earnings forecast from the latest announcement: Yes

Profit attributableto owners of parent

Earnings per share

Millions of yen%

yen

10,000

25.6

53.08

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of
consolidation): No(2) Changes in accounting policies, changes in accounting estimates and restatements(A) Changes in accounting policies due to revision of accounting standards: Yes(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: Yes(D) Restatements: No(3) Number of issued shares (common stock)(A) Number of issued shares
As of Sep. 30,(including treasury shares):2022(B) Number of treasury shares:(C) Average number of shares:

232,139,248 shares

As of Sep. 30,
2022
Six months ended
Sep. 30, 2022

43,768,339 shares
188,331,191 shares

As of Mar. 31,
2022
As of Mar. 31,2022
Six months ended
Sep. 30, 2021

232,139,248 shares
43,818,103 shares
231,663,833 shares(Summary of non-consolidated financial results)
1. Non-consolidated financial results for the six months ended September 30, 2022
(1) Non-consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Six months ended
September 30, 2022
September 30, 2021

Ordinary profit

Net income

Millions of yen%

Millions of yen%

Millions of yen%

47,60949,693(4.1)
10.0

17,012
20,875(18.5)
139.3

16,10817,594

(8.4)
319.2

Earnings per share
Six months ended
September 30, 2022
September 30, 2021

Yen

85.53
75.94

(2) Non-consolidated financial position
Total assets
Total net assets
As ofMillions of yen
Millions of yen
September 30, 2022
3,568,440
247,047
March 31, 2022
3,568,782
246,356(Reference) Shareholders’ equity: (a) As of September 30, 2022: ¥247,047 million(b) As of March 31, 2022: ¥246,356 million(Note) Net assets ratio = Total net assets / Total assets × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

Net assets ratio
%

6.9
6.9

2. Non-consolidated earnings forecast for the fiscal year ending March 31, 2023(% represents the change from the previous fiscal year)

Ordinary income
Fiscal year ending
March 31, 2023

Ordinary profit

Net income

Earnings per share

Millions of yen%

Millions of yen%

Millions of yen%

yen

77,000(7.9)

10,000

(0.9)

9,500

20.9

50.43

(Note) This report is outside the scope of audit procedures by certified public accountants or audit firms.
(Note) Explanation on appropriate use of forecast and other special items
1. The company is a “Specified business company” under the Article 17-15-2 of the “Cabinet Office Ordinanceregarding Disclosure of Corporate Information, etc.” and prepares its interim consolidated and interim
non-consolidated financial statements for the six months ended September 30, 2022.
2. The performance forecasts and other forward-looking statements in this report are based on information currently
available to the company and on certain assumptions deemed to be reasonable, and are not intended to guarantee
future performance. Actual performance may differ materially depending on various factors.

Suruga bank, Ltd.

(Appendix)

Table of contents

1. Qualitative information on financial result ······································································································· 2(1) Details of operating results ················································································································· 2(2) Details of financial position ················································································································ 2(3) Details of forecast information, including consolidated earnings forecast ·························································· 2
2. Consolidated financial statements and notes ····································································································· 3(1) Consolidated balance sheets ··············································································································· 3(2) Consolidated statements of income and Consolidated statements of comprehensive income ···································· 4(3) Consolidated statements of changes in net assets ······················································································· 6(4) Notes regarding consolidated financial statements ····················································································· 8(Notes on going-concern assumption) ··································································································· 8(Changes in accounting policies) ········································································································· 8(Changes in accounting estimates) ······································································································· 8(Additional information) ·················································································································· 8
3. Non-consolidated financial statements ··········································································································· 9(1) Non-consolidated balance sheets ·········································································································· 9(2) Non-consolidated statements of income·································································································· 11(3) Non-consolidated statements of changes in net assets·················································································· 12* Financial results for the six months ended September 30, 2022 supplementary information－1－

Suruga bank, Ltd.

1. Qualitative information on financial results(1) Details of operating results
As for the consolidated operating results for the six months ended September 30, 2022, ordinary income decreased by¥1.447 billion year-on-year to ¥52.695 billion. This was mainly due to the decline in interest income reflecting the drop ininterest on loans and bills discounted. Meanwhile, ordinary expenses increased by ¥1.610 billion year-on-year to ¥34.424
billion, mainly due to an increase in the losses on redemptions of bonds.
As a result, ordinary profit decreased by ¥3.057 billion year-on-year to ¥18.270 billion.
Profit attributable to owners of parent decreased by ¥1.414 billion year-on-year to ¥16.391 billion.

(2) Details of financial position
As for the consolidated major account balances as of September 30, 2022, loans and bills discounted came in at ¥2,087.964
billion, down by ¥60.115 billion from March 31, 2022. This was primarily due to the decrease (¥97.008 billion) in consumer
loans (non-consolidated).
Securities amounted to ¥438.814 billion, down by ¥24.618 billion from March 31, 2022.
Deposits amounted to ¥3,304.400 billion, down by ¥2.907 billion from March 31, 2022, despite an increase (¥9.204
billion) in individual deposits.

(3) Details of forecast information, including consolidated earnings forecast
The earnings forecast for the fiscal year ending March 31, 2023 remains changed from that announced on August 10, 2022.
Consolidated(Billions of yen)
Fiscal year ending March 31, 2023
Ordinary income

86.0

Ordinary profit

11.0

Profit attributable to owners of parent

10.0

Non-consolidated(Billions of yen)
Fiscal year ending March 31, 2023
Ordinary income

77.0Core net operating profit

22.0

Net operating profit

17.5

Ordinary profit

10.0

Net income

9.5

Actual credit costs

10.0

Normal credit costs

3.5

Share house-related loans(3.0)

Preventive allowance

9.5(Note) The performance forecasts and other forward-looking statements in this report are based on information currently
available to the company and on certain assumptions deemed to be reasonable, and are not intended to guarantee
future performance. Actual performance may differ materially depending on various factors.

－2－Suruga bank, Ltd.

2. Consolidated financial statements and notes(1) Consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2022
AssetsCash and due from banks
Call loans and bills bought
Monetary claims bought
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Lease receivables and investment assets
Other assets
Property, plant and equipment
Intangible assets
Retirement benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Retirement benefit liability
Provision for share-based compensation
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

－3－

As of
Sep. 30, 2022

874,184
40,24459,73982
99463,432
2,148,079
2,292
5,066
45,24135,227
18,47420,50914,751
1,474(138,917)
3,589,982

902,880
40,26097,00770
99
438,8142,087,964
4,638
4,874
43,75434,934
17,241
20,896
14,363
1,716(122,707)
3,586,811

3,307,307
41
14,479
486
41
292
205
247
75
1,102
1,474
3,325,753

3,304,400
28
15,884
460
―
296
235
221
85
196
1,716
3,323,526

30,043
1,976
245,595(18,131)259,484
1,324
(3)
3,324
4,645
100
264,2293,589,982

30,043
1,974
260,857(18,110)274,764(14,557)(2)
2,982(11,578)98
263,284
3,586,811

Suruga bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the six months
ended
Sep. 30, 2021
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

54,142
38,24037,008
809
4,015
1,990
9,894
32,814
761
749
5,830
1,476
20,958
3,788
21,327
3
3
1,076
487
588
20,255
1,343
1,109
2,453
17,802(3)
17,805－4－

For the six months
ended
Sep. 30, 2022
52,69534,57433,024
413
3,604
1,679
12,83634,424
729
678
5,023
4,574
19,8684,228
18,270
48
48
252
247
5
18,065
1,235
440
1,675
16,390(1)
16,391

Suruga bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains(losses) on hedges
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests－5－

For the six months
ended
Sep. 30, 2021
17,802For the six months
ended
Sep. 30, 2022
16,390

1,375
2
(554)
823
18,626(15,882)1(342)(16,223)166

18,629
(3)

168
(1)

Suruga bank, Ltd.

(3) Consolidated statements of changes in net assets
For the six months ended September 30, 2021
（Millions of yen）
Shareholders' equity

Balance at beginning of current period

Capital stock

Capital surplus

30,0432,045

Retained earnings Treasury shares

Cumulative effects of changes inaccounting policies
Restated balance

238,863

(561)

(69)
30,043

2,045

238,794

Total
shareholders'equity270,391
(69)

(561)

270,321

Changes of items during period
Dividends of surplus(1,158)(1,158)Net income

17,80517,805Purchase of treasury shares
Disposal of treasury shares

(69)

(0)

(0)

99

30

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

-

(69)

16,64799

16,67830,043

1,976

255,441(461)

286,999

Accumulated other comprehensive income
Net unrealized
gains(losses) on
available-forsalesecurities
Balance at beginning of current period

8,954

Total
Non-controlling
DeferredRemeasureaccumulated
interests
gains(losses) on ments of definedother comprehenhedges
benefit plans
sive income
(20)

6,341

15,274

104

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

285,770
(69)

8,954

(20)

6,341

15,274

104285,700

Changes of items during period
Dividends of surplus(1,158)Net income

17,805Purchase of treasury shares(0)

Disposal of treasury shares

30

Net changes of items other thanshareholders' equity

1,375

2

(554)

823

(3)

820

Total changes of items during period

1,375

2

(554)

823

(3)

17,498

Balance at end of current period

10,329

(17)

5,786

16,098100

303,199－6－Suruga bank, Ltd.

（Millions of yen）

For the six months ended September 30, 2022
Shareholders' equity

Balance at beginning of current period

Capital stock

Capital surplus

30,043

1,976

Retained earnings Treasury shares
245,595(18,131)

Total
shareholders'equity259,484

Changes of items during period
Dividends of surplus(1,129)(1,129)Net income

16,391

16,391

Purchase of treasury shares
Disposal of treasury shares

(2)

(0)

(0)

20

18

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period-(2)15,261

20

15,27930,043

1,974

260,857(18,110)274,764

Accumulated other comprehensive income
Net unrealized
gains(losses) on
available-forsalesecurities
Balance at beginning of current period

1,324

Total
Non-controlling
DeferredRemeasureaccumulated
interests
gains(losses) on ments of definedother comprehenhedges
benefit plans
sive income
(3)

3,324

4,645

100

Total net assets

264,229

Changes of items during period
Dividends of surplus(1,129)Net income

16,391

Purchase of treasury shares(0)

Disposal of treasury shares

18

Net changes of items other thanshareholders' equity(15,882)1(342)(16,223)(1)(16,224)

Total changes of items during period(15,882)1(342)(16,223)

(1)

(944)

Balance at end of current period(14,557)

(2)

2,982

(11,578)98

263,284－7－

Suruga bank, Ltd.

(4) Notes regarding consolidated financial statements(Notes on going-concern assumption)
Not applicable.

(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, June 17,2021) was adopted from the beginning of the first half of the current consolidated fiscal year. In addition, in accordancewith the transitional treatment stipulated in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for
Fair Value Measurement, the Bank decided to adopt a new accounting standard stipulated by the Implementation Guidanceon Accounting Standard for Fair Value Measurement in the future. There was no impact on the interim consolidated
financial statements.

(Changes in accounting estimates)
Previously, the bank had set the amortization period of actuarial gains and losses in accounting for retirement benefits to
12 years. However, because the average remaining service life of employees was reduced, the amortization period has beenrevised to 10 years since the first half of this fiscal year.
There was minimal impact on the interim consolidated financial statements.

(Additional information)
With regard to financial estimates that relate to impact from the coronavirus pandemic in the first half of the current
consolidated fiscal year, and assumptions that were used for these estimates, there have been no material changes from theinformation listed in the (Additional information) section of the securities report of the previous consolidated fiscal year.
As such assumptions have a high level of uncertainty, if circumstances concerning the spread of the coronavirus
pandemic and its impact on the economy vary from the original assumptions, financial results could be impacted from thethird quarter of the fiscal year ending March, 2023.

－8－

Suruga bank, Ltd.

3. Non-consolidated financial statements(1) Non-consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2022
AssetsCash and due from banks
Call loans
Monetary claims bought
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Other
Property, plant and equipment
Intangible assets
Prepaid pension costs
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Lease liabilities
Other
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share-based compensation
Provision for reimbursement of deposits
Provision for contingent loss
Acceptances and guarantees
Total liabilities

－9－

As of
Sep. 30, 2022

873,583
40,24459,7398299
466,243
2,138,587
2,292
36,971
36,971
34,418
16,782
15,746
15,6391,474(133,124)
3,568,782

902,200
40,26097,00770
99444,483
2,078,082
4,638
35,61735,61734,083
15,623
16,623
14,964
1,716(117,032)
3,568,440

3,312,181
41
7,725
150
7,574
433
41
205
247
75
1,474
3,322,425

3,311,175
28
7,523
124
7,399
406
－
235
221
85
1,716
3,321,393

Suruga bank, Ltd.

（Millions of yen）
As of
Mar. 31, 2022
Net assets
Share capital
Capital surplus
Legal capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry of non-current assets
General reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Valuation and translation adjustments
Total net assets
Total liabilities and net assets－10－

30,043
18,585
18,585
216,461
30,043
186,41859
103,032
83,326(18,131)
246,958
(598)
(3)
(602)
246,3563,568,782

As ofSep. 30, 2022

30,043
18,585
18,585
231,437
30,043201,39359
103,032
98,302(18,110)
261,955(14,905)(2)(14,908)
247,047
3,568,440

Suruga bank, Ltd.

(2) Non-consolidated statements of income（Millions of yen）
For the six months
ended
Sep. 30, 2021
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Income taxes
Profit49,69336,12734,920
783
3,556
437
9,572
28,817
761
749
5,753
38
19,4542,810
20,875
3
3
1,035
446
588
19,844
1,272
977
2,249
17,594－11－

For the six months
ended
Sep. 30, 2022
47,60934,13530,927
2,071
3,098
97
10,27930,597
727
678
4,951
3,099
18,345
3,473
17,012
48
48
251
245
5
16,80926675
701
16,108

Suruga bank, Ltd.

(3) Non-consolidated statements of changes in net assets
For the six months ended September 30, 2021
（Millions of yen）
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Capital stock

Balance at beginning of current period

Legal capitalsurplus30,043

Other capitalsurplus18,585

Total capitalsurplus3

18,589Legal retained
earnings

Reserve foradvanceddepreciation of
non-current
assetsGeneral reserve

Retained earnings
brought forward

59

103,032

76,76430,043Cumulative effects of changes inaccounting policies
Restated balance(69)
30,043

18,585

3

18,58930,043

59

103,032

76,695

Changes of items during period
Dividends of surplus(1,158)Net income

17,594Purchase of treasury shares
Disposal of treasury shares

(3)

(3)

(65)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

-

-

(3)

(3)

-

-

-

16,37030,043

18,585-

18,58530,043

59

103,032

93,066

Shareholders' equity

Valuation and translation adjustments

Retained earnings

Balance at beginning of current period
Cumulative effects of changes inaccounting policies
Restated balance

Total retained
earnings

Treasury shares

Total
shareholders'equity209,899(561)

257,970(69)
209,830

Net unrealized
gains(losses) on
available-forsalesecurities

Deferred
gains(losses) onhedgesTotal valuationand translation
adjustments

Total net assets

7,211

(20)

7,191

265,162

(69)
(561)

257,901

(69)
7,211

(20)

7,191

265,092

Changes of items during period
Dividends of surplus(1,158)(1,158)(1,158)Net income

17,594

17,594

17,594

(0)

(0)

(0)

99

30

30

Purchase of treasury shares
Disposal of treasury shares(65)

Net changes of items other thanshareholders' equity

1,251

2

1,254

1,254

Total changes of items during period

16,37099

16,466

1,251

2

1,254

17,720

Balance at end of current period

226,201(461)

274,368

8,462

(17)

8,445

282,813－12－

Suruga bank, Ltd.

For the six months ended September 30, 2022
（Millions of yen）
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Capital stock

Balance at beginning of current period

Legal capitalsurplus30,043

Other capitalsurplus18,585

Total capitalsurplus-

Legal retained
earnings

18,585Reserve foradvanceddepreciation of
non-current
assetsGeneral reserve

Retained earnings
brought forward

59

103,032

83,32630,043

Changes of items during period
Dividends of surplus(1,129)Net income

16,108Purchase of treasury shares
Disposal of treasury shares(2)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

-

-

-

-

-

-

-

14,97530,043

18,585-

18,58530,043

59

103,032

98,302

Shareholders' equity

Valuation and translation adjustments

Retained earnings

Balance at beginning of current period

Total retained
earnings

Treasury shares

Total
shareholders'equity216,461(18,131)

246,958

Net unrealized
gains(losses) on
available-forsalesecurities

Deferred
gains(losses) onhedgesTotal valuationand translation
adjustments

Total net assets

(598)

(3)

(602)

246,356

Changes of items during period
Dividends of surplus(1,129)(1,129)(1,129)Net income

16,108

16,108

16,108

(0)

(0)

(0)

20

18

18

Purchase of treasury shares
Disposal of treasury shares(2)

Net changes of items other thanshareholders' equity(14,307)1(14,305)(14,305)

Total changes of items during period

14,97520

14,996(14,307)1(14,305)

690

Balance at end of current period

231,437(18,110)

261,955(14,905)(2)(14,908)

247,047－13－

Financial Results
For the six months ended September 30, 2022

- Supplementary Information -SURUGA bank, Ltd.

Table of contents
Ⅰ. Financial highlights for the six months ended September 30, 2022
1. Financial results

Non-consolidated

・・・・・・・・

2. Major accounts

Non-consolidated

・・・・・・・・

3. Management indicesNon-consolidated

・・・・・・・・

4. Own capital

Non-consolidated

・・・・・・・・

5. Unrealized gains (losses) on securities

Non-consolidated

・・・・・・・・

6. Earnings forecast for the fiscal year ending March 31, 2023

1
3
7
8
9

Non-consolidated, Consolidated

7. Asset quality

Non-consolidated

8. Credit costs

Non-consolidated

9. Dividends

Non-consolidated

10
・・・・・・・・ 11
・・・・・・・・

Ⅱ. Financial data for the six months ended September 30, 2022
1. Details of financial results

Non-consolidated
Consolidated

2. Net operating profit

Non-consolidated

3. Interest margins

Non-consolidated

4. ROA and ROE

Non-consolidated

5. Gains (losses) on securities

Non-consolidated

6. Capital adequacy ratio (domestic standard)

Non-consolidated, Consolidated

7. Composition of own capital (domestic standard)

Non-consolidated, Consolidated

Ⅲ. Status of Loans, etc.
Status of self-assessment, non-performing loans based on thefinancial Reconstruction Law and Risk-monitored loans.

・・・・・・・・・・・・・・・・

12
13

・・・・・・・・

14

15
・・・・・・・・ 16
・・・・・・・・

Non-consolidated

・・・・・・・・

1. Risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

2. Allowance ratio for risk-monitored loans

Non-consolidated, Consolidated

3. Allowance for loan losses

Non-consolidated, Consolidated

4. Non-performing loans based on the Financial Reconstruction Law
5. Status of coverage of non-performing loans based on
the Financial Reconstruction Law

17

18
・・・・・・・・ 19

Non-consolidated
Non-consolidated

6. Loan breakdown by industry, etc.
・・・・・・・・

20

・・・・・・・・

21

Non-consolidated, Consolidated

・・・・・・・・

22

Non-consolidated, Consolidated

・・・・・・・・

22(1) Loan breakdown by industry

Non-consolidated(2) Breakdown of risk-monitored loans by industry

Non-consolidated(3) Consumer loans

Non-consolidated(4) The ratio of loans to small- and medium-sized enterprises, etc.

Non-consolidated

7. Loan breakdown by country(1) Loans to specific foreign countries

Non-consolidated(2) Loans to Asian countries

Non-consolidated

8. Deposits and loans

Non-consolidated

9. Number of branches

Non-consolidated

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Ⅴ. Retirement benefits
1. Retirement benefit expenses

Suruga bank, Ltd.

Ⅰ. Financial highlights for the six months ended September 30, 2022
1. Financial results (Non-consolidated)

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income (Note1）
Core gross operating profit
Expenses (-)
Core net operating profit （Note2）
Excluding gains (loss) on cancellation of investment trusts
Gains (losses) on bonds
Actual net operating profit (Note3）
Provision for general allowance for loan losses (-)(Note4)
Net operating profit
Disposal of non-performing loans (-)
Reversal of allowance for loan losses(Note4)
Recoveries of written-off claims
Gains (losses) on stocks
Ordinary profit
Gains (losses) on disposal of non-current assets
Impairment loss (-)
Net income

Six months ended
Sep. 30, 2022
(a)
28,551
33,407(1,853)2
31,556
18,771
12,784
12,784(3,004)
9,780
9,780
2,875
6,890
1,252
1,826
17,012(197)
516,108(a) - (b)(5,016)(1,959)344(18)(1,632)(1,447)(186)(186)(3,383)(3,569)(3,569)245
506(1,690)1,850(3,863)245(583)(1,486)(Millions of yen)Six months ended
Sep. 30, 2021(b)
33,56735,366(2,197)20
33,18820,218
12,97012,970379
13,34913,349
2,630
6,384
2,942
(24)
20,875(442)
588
17,594

Net credit costs(4,015)(262)(3,753)
Actual credit costs（Note5）(5,268)
1,427(6,695)(Note1) Excludes gains (losses) on bonds.
(Note2) Core net operating profit = Net operating profit + Provision for general allowance for loan losses- Gains (losses) on bonds(Note3) Actual net operating profit = Net operating profit + Provision for general allowance for loan losses(Note4) The net amount of provision for general allowance for loan losses and provision for specific allowance for loan losses
is recorded in reversal of allowance for loan losses.
(Note5) Actual credit costs = Net credit costs (Provision for general allowance for loan losses + Disposal of non-performing
loans - Reversal of allowance for loan losses) - Recoveries of written-off claims(1) Gross operating profit: ¥28.5 billion
・Net interest income decreased by ¥1.9 billion year-on-year, mainly due to a decrease in interest on loans and bills
discounted.
・Loan-deposit income decreased by ¥3.9 billion year-on-year.
・Core gross operating profit decreased by ¥1.6 billion year-on-year, mainly due to a decrease in net interest income.
・Gross operating profit decreased by ¥5.0 billion year-on-year.

Net interest income

Loan-deposit income(Billions of yen)
55.5

(Billions of yen)
44.0

1H,
FY3/191H,
FY3/20

51.9
38.5

1H,
FY3/21

43.5
35.3

1H,
FY3/22

33.4

1H,
FY3/191H,
FY3/23－1－

1H,
FY3/2037.7

1H,
FY3/2134.1

1H,
FY3/2230.2

1H,
FY3/23

Suruga bank, Ltd.

(2) Expenses; OHR: 65.7%
・Expenses decreased by ¥1.4 billion year-on-year.
・OHR rose year-on-year to 65.7%.
(OHR(%) = Expenses / Gross operating profit × 100)

Gross operating profit

Expenses

OHR(Billions of yen)

65.7%

60.2%

55.6%

52.8%

44.1%
53.9
42.4
23.8

22.4

1H,FY3/19

1H,FY3/20

36.8

33.5
20.5

20.2

1H,FY3/21

1H,FY3/22

28.5

18.7

1H,FY3/23(3) Core net operating profit: ¥12.7 billion, Net operating profit: ¥9.7 billion
・Core net operating profit decreased by ¥0.1 billion year-on-year, mainly due to a decrease in net interest income exceededa decrease in expenses.
・Net operating profit decreased by ¥3.5 billion year-on-year, mainly due to a decrease in gains (losses) on bonds

Core net operating profit

Net operating profit(Billions of yen)

37.9
29.6
3.3

19.8 18.3

15.9

12.9 13.3

12.7 9.7

1H,FY3/19

1H,FY3/20

1H,FY3/21

1H,FY3/22

1H,FY3/23(4) Ordinary profit: ¥17.0 billion
・Ordinary profit decreased by ¥3.8 billion year-on-year.

(5) Net income: ¥16.1 billion
・Net income decreased by ¥1.4 billion year-on-year, mainly due to a decrease in ordinary profit.

(6) Actual credit costs: (¥5.2) billion
・Net credit costs decreased by ¥0.2 billion year-on-year, mainly due to an increase (¥0.2 billion) in disposal of nonperforming loans and an increase (¥0.5 billion) in reversal of allowance for loan losses.
・Actual credit costs, calculated as net credit costs ((¥4.0) billion) minus the amount of recoveries of written-off claims(¥1.2 billion) amounted to (¥5.2) billion.

－2－

Suruga bank, Ltd.

2. Major accounts (Non-consolidated)(A) Loans and bills discounted
・Loans and bills discounted decreased by ¥171.6 billion, or 7.6% year-on-year.
・Yield on loans and bills discounted dropped by 14 basis points year-on-year to 2.91%.

(Billions of yen)Sep. 30, 2022(a)
Loans and bills discounted(period-end balance)

Sep. 30, 2021(a) – (b)Mar. 31, 2022(b)

2,078.0(171.6)2,249.6

2,138.5

1,741.5(238.8)1,980.4

1,838.5

Asset management company
loans for property investment

40.3

18.1

22.2

33.5

Structured finance

82.7

31.8

50.8

68.9

Loans and bills discounted(average balance)

2,112.9(164.9)2,277.8

2,244.3

Consumer loans(Results of new loans)(Billions of yen)Sep. 30, 2022(a)Sep. 30, 2021(a) – (b)(b)

New consumer loans

24.1

10.1

14.0

New asset management company loans for property investment

7.8

0.5

7.3

Subtotal

31.9

10.5

21.4

New structured finance

20.4

0.3

20.1

Total

52.4

10.9

41.5

New monetary claims bought

39.9

39.9

-

Grand total

92.4

50.9

41.5

Loans and bills discounted(period-end balance)
Consumer loans(period-end balance)

Yield on loans and bills discounted(Billions of yen)
3,085.8
2,671.6
2,790.8
2,418.4
2,249.6
2,455.4
2,078.0
2,210.8
1,980.4
1,741.5

3.36%

Sep.18

Sep.18

Sep.19Sep.20

Sep.21

Sep.22

－3－

3.21%

3.12%

3.05%

2.91%

Sep.19Sep.20

Sep.21

Sep.22

Suruga bank, Ltd.

Consumer loans
Outstanding balance, yield, delinquency rate by loan category(Billions of yen)Jun. 30, 2022

Sep. 30, 2022
Loan category

3.08%
2.75%
3.36%

Period-end
balance
6.68%
1,659.4
0.28%
449.7
2.82%
136.0

1,001.2

3.14%

10.24%

32.8
135.5
92.8
42.6
1,741.5

4.41%
10.46%
11.78%
7.59%
3.65%

Consumer loans(excluding organizational negotiation
partners)

1,636.2

Asset management company loans forproperty investment (B)Period-end
balance
1,606.0
441.8
130.0

Secured loans
Housing loans
Studio apartment loans
Single building apartment loans(including share house loans)
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans
Consumer loans (A)Delinquency
rate

Yield

Delinquency
rate

Yield
3.08%
2.77%
3.37%

7.42%
0.27%
2.76%

1,040.7

3.13%

11.41%

0.46%
2.51%
0.94%
5.94%
6.36%

32.8
139.6
95.0
44.6
1,799.1

4.51%
10.45%
11.78%
7.61%
3.65%

0.23%
2.44%
0.94%
5.63%
7.04%

-

1.50%

1,692.6

-

2.48%

40.3

1.82%

-

35.3

1.82%

-

Structured finance (C)

82.7

2.24%

-

76.0

2.27%

-

Monetary claims bought (D)

97.0

1.95%

-

58.9

1.94%

-

Total (A)+(B)+(C)+(D)1,961.6
3.47%
5.65%
1,969.5
3.51%
6.43%(Note1)Delinquency rate = Loans past due 3 months or more / Loans(Note2)Yield: Yield for customers (excluding guarantee fee, accrued interest), period-end balance basis(Note3)Yield and delinquency rate of Studio apartment loans, secured loans and consumer loans are calculated based on
originals claims before securitization.
(Note4) Organizational negotiation partners are customers who have suspended repayment as a result of structured
negotiations (excluding share house loans).

Share house-related loans (Status of coverage)(Billions of yen)
Total
AMar. 31, 2019
Mar. 31, 2020
Mar. 31, 2021
Mar. 31, 2022

250.3
192.1
135.7
53.6

Share houseclaims
201.9
154.7
107.2
41.9

Collateral or
guarantees, etc.

UnsecuredportionAllowance

Coverage ratio

B

C

D

(B＋D)／A

91.4
72.7
52.5
26.2

158.8
119.3
83.1
27.4

139.3
102.5
76.7
25.7

92.20%
91.29%
95.24%
96.87%

Sep. 30, 2022
32.8
24.0
16.7
16.0
14.1
94.30%(Note1)Based on obligors of share house loans(Note2)Covered amount: Estimated amount, calculated by multiplying the covered amount including collateral, etc. with acertain ratio.
(Note3)Total credit balance, share house loan receivables: Loans and bills discounted, suspense payments equivalent to loans
and bills discounted, and accrued interest on loans and bills discounted.

－4－Suruga bank, Ltd.

Actual credit costs and Allowance for loan losses
Sep. 30, 2022
(Billions of yen)
Item

Actual credit costs

Allowance

Share house-related loans
Investment property loans
Housing loans
Unsecured loans
Monetary claims bought
Business financing loans, etc.

(3.2)
(2.3)
(0.3)
(0.0)
0.0
0.7

14.1
87.5
2.6
3.2
0.2
9.1

Total

(5.2)

117.0

(Note)Investment property loans: Studio apartment loans, Single building apartment loans, Other secured loans－5－Suruga bank, Ltd.

(B) Deposits
・Deposits increased by ¥21.8 billion, or 0.6% year-on-year.
・Yield on deposits was 0.04%.
(Billions of yen)Sep. 30, 2022(a)Sep. 30, 2021(b)(a) – (b)Mar. 31, 2022

Deposits (period-end balance)

3,311.1

21.8

3,289.3

3,312.1

Individual deposits

2,697.3

31.2

2,666.0

2,688.1

Deposits (average balance)

3,346.6

62.0

3,284.6

3,291.5

Deposits(period-end balance)

Yield on deposits

Individual deposits(period-end balance)(Billions of yen)

3,415.9

3,311.1
3,289.3
3,187.1
3,164.9
2,697.3
2,743.3
2,666.0
2,579.4
2,456.1

0.05%

Sep.18

Sep.19Sep.20

Sep.21

Sep. 18

Sep.22

0.03%

0.04%

0.04%

0.04%

Sep. 19

Sep. 20

Sep. 21

Sep. 22(3) Net fees and commissions
・Net fees and commissions increased by ¥0.3 billion year-on-year, mainly due to a decrease (¥0.4 billion) in fees andcommissions, a decrease (¥0.8 billion) in fees and commissions payments.

Net fees and commissions(Millions of yen)

5,900

5,038

1H,FY3/19

Fees and commissions payments

7,968

7,154

(2,115)

Fees and commissions

4,209(3,758)

1H,FY3/20

5,753

3,823

(2,076)(2,197)

1H,FY3/21

－6－

4,951

3,556

1H,FY3/22

3,098(1,853)

1H,FY3/23

Suruga bank, Ltd.

(4) Individual deposit assets
・Individual deposit assets increased by ¥23.8 billion year-on-year.
・The ratio of investment products to total individual deposit assets dropped by 30 basis points year-on-year to 3.5%.

(Millions of yen)Sep. 30, 2022(a)2,793,207
2,694,493
98,714
2,862
3,855
62,277
14,19815,520Individual deposit assets
Yen deposits
Investment products
Foreign currency deposits
Public bonds
Mutual funds
Personal pension plans
Single premium life insurance
The ratio of investment products tototal individual deposit assets

23,81332,333(8,519)(1,044)(1,277)(5,643)(2,367)
1,812

Sep. 30, 2021(b)
2,769,394
2,662,160
107,233
3,906
5,132
67,92016,565
13,708(0.3)%

3.8%(a) - (b)3.5%

Mar. 31, 2022
2,789,587
2,684,636
104,951
3,516
4,356
68,475
14,656
13,9453.7%

3. Management indices (Non-consolidated)(1) Interest margins
・Loan-deposit margin (after deduction of expenses) shrunk by 2 basis points year-on-year to 1.76%.
・Net interest margin shrunk by 3 basis points year-on-year to 0.78%, mainly due to the decline in yield on interest
earning assets.

(%)

Loan-deposit margin
Loan-deposit margin(after deduction of expenses)
Net interest margin

Six months
ended
Sep. 30, 2022
(a)
2.87

(0.14)

Six months
ended
Sep. 30, 2021
(b)
3.01

1.76

(0.02)

1.78

1.77

0.78

(0.03)

0.81

0.78(a) - (b)Loan-deposit margin
Loan-deposit margin (after deduction of expenses)
Net interest margin

3.31%

3.17%

2.06%
1.72%

3.07%

3.01%

2.87%

1.79%

1.78%

1.76%

0.96%

0.81%

0.78%

1H, FY3/21

1H, FY3/22

1H, FY3/23

1.51%
1.21%
1H, FY3/19

1H, FY3/20－7－

FY3/2022
2.97

Suruga bank, Ltd.

4. Own capital (Non-consolidated)・Capital adequacy ratio rose by 5 basis points year-on-year to 13.59%.

Non-consolidated(Millions of yen)Sep 30, 2022

Sep 30, 2021

13.59%
261,777
284,286
22,5081,925,364
75,361

Capital adequacy ratio
Own capital (Core capital)
Core capital: instruments and reserves
Core capital: regulatory adjustments (-)
Risk-weighted assets
Total required capital

13.54%
275,243
297,805
22,562
2,031,462
78,330Consolidated(Millions of yen)Sep 30, 2022

Sep 30, 2021

13.93%
273,257
300,255
26,997
1,961,331
76,799

Capital adequacy ratio
Own capital (Core capital)
Core capital: instruments and reserves
Core capital: regulatory adjustments (-)
Risk-weighted assets
Total required capital

Capital adequacy ratio (non-consolidated)(Billions of yen)

Own capital (non-consolidated)

8.65%

9.23%

219.7

228.9

Sep.18

Sep.1913.54%

13.59%

275.2

261.7

Sep.21

Sep.22

11.04%

245.3

Sep.20－8－13.82%
286,352
316,400
30,0482,071,839
79,945

Suruga bank, Ltd.

5. Unrealized gains (losses) on securities (Non-consolidated)
・Net unrealized gains on securities decreased by ¥26.8 billion year-on-year.
(Millions of yen)Sep. 30, 2022(a) - (b)(a)
Available-for-salesecurities
Stocks
Bonds
OthersSep. 30, 2021(b)Mar. 31, 2022

(15,832)(26,819)

10,987(1,482)

8,403(1,241)(22,995)(344)(1,675)(24,800)

8,747
434
1,805

7,587
(353)
(8,715)

6. Earnings forecast for the fiscal year ending March 31, 2023
Consolidated(Millions of yen)
Fiscal year ending
Mar. 31, 2023
(forecast)Ordinary income
Ordinary profit
Profit attributable toowners of parent

86,00011,00010,000Non-consolidated(Millions of yen)
Fiscal year ending
Mar. 31, 2023
(forecast)Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income

77,00022,00017,50010,0009,500

Actual credit costs

10,000Normal credit costs

3,500

Share house-related loans(3,000)Preventive allowance

9,500(Note) The performance forecasts and other forward-looking statements in this report are based on information currently available
to the company and on certain assumptions deemed to be reasonable, and are not intended to guarantee future performance.
Actual performance may differ materially depending on various factors.

－9－Suruga bank, Ltd.

7. Asset quality (Non-consolidated)(1) Non-performing loans based on the Financial Reconstruction Law
・Non-performing loans based on the Financial Reconstruction Law decreased by ¥46.5 billion year-on-year.
Non-performing loan ratio declined by 186 basis points year-on-year to 10.77%.

Outstanding balance(Millions of yen, %)Sep. 30, 2022(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total
(A)
Total claims(B)
Non-performing loan ratio(A/B)(a) - (b)(a) - (c)Mar. 31, 2022

Sep. 30, 2021

(b)

(c)

115,342(18,825)

1,946

134,167

113,396

46,662
63,307225,3122,090,407
10.77(19,199)(8,544)(46,568)(60,959)(1.86)(80,206)(23,392)(101,652)(172,778)(3.67)

65,861
71,851
271,880
2,151,366
12.63

126,868
86,699326,964
2,263,185
14.44

Status of coverage(Millions of yen, %)Claimsagainstbankrupt andClaims with

substantiallycollection riskbankrupt

Claims for
special

Total

Change from

attention

Mar. 31, 2022

Non-performing loans
Covered amount (C+D)
Portion secured by collateralor guarantees, etc.
Allowance for loan losses
Coverage ratio (B/A)

(A)
(B)

obligors
115,342
115,342

46,662
31,14563,30735,789225,312
182,278(46,568)(32,922)(C)

45,075

20,768

19,61085,454(18,857)(D)

70,267100.0010,37766.74

16,17856.53

96,82380.89(14,065)
1.74

Unsecured portion (A-C)
Allowance ratio for
unsecured portion (D/E)(E)

70,26725,894

43,696

139,858(27,710)100.00

40.07

37.02

69.22

3.05

80,307100.0037,32937.09

49,931
33.51

167,568
66.17(Reference) As of Mar. 31, 2022
Unsecured portion
Allowance ratio for unsecured portion(2) Risk-monitored loans(Millions of yen, %)Sep.30,2022(a)Loans to bankrupt obligors
Non-accrual delinquent loans
Loans past due 3 months or more
Restructured loans
Total
Coverage ratio

115,342
46,662
3,673
59,633
225,312(a) – (b)(18,825)(19,199)(78)(8,467)(46,568)(a) – (c)1,946
(80,206)
235(23,628)(101,652)

80.89

1.74

5.26

Mar.31,2022

Sep.30,2021

(b)

(c)

134,167
65,861
3,751
68,100271,880

113,396
126,868
3,438
83,261
326,964

79.15

75.63

(Note) Risk-monitored loans are displayed in Enforcement Regulations of the Banking Act of after revision, including thosefor past year.
－10－Suruga bank, Ltd.

8. Credit costs (Non-consolidated)(Millions of yen, %)Six months ended

Six months ended

Sep. 30, 2022(a)Provision for general allowance for loan losses(1)
Disposal of non-performing loans(2)
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses
Reversal of allowance for loan losses(3)
Recoveries of written-off claimsA
Net credit costs(4) (=(1)+(2)-(3))
Actual credit costs(4)- A
Loans and bills discounted (average balance)

Sep. 30, 2021(a) - (b)

2,875
2,095
749
29
6,890
1,252
(4,015)(5,268)2,112,958

(b)

245
(362)
598
7
506
(1,690)(262)
1,427(164,910)

2,630
2,457
151
22
6,384
2,942
(3,753)(6,695)2,277,868

Net credit costs ratio(0.37)(0.05)(0.32)(0.49)
Actual credit costs ratio
0.09(0.58)(Note1) Net credit costs ratio = Net credit costs / The average balance of Loans and bills discounted (annualized)(Note2) Actual credit costs ratio = Actual credit costs / The average balance of Loans and bills discounted (annualized)(Note3) The net amount of reversal of general allowance for loan losses and provision for specific allowance for loan losses arerecorded in reversal of allowance for loan losses.

9. Dividends
・The company has decided to not pay an interim dividends.
・For the fiscal year ending March 31, 2023, the company is forecasting an annual dividend of ¥6.0 per share.

(yen)
Fiscal year ended

Fiscal year ending

Mar. 31, 2022

Mar. 31, 2023

(result)

Annual dividend per share

6.00

6.00

Interim dividend

0.00

0.00

(Note) Annual dividend per share for the fiscal year ending March 31, 2023 is a forecast.

－11－Suruga bank, Ltd.

Ⅱ. Financial data for the six months ended September 30, 2022
1. Details of financial results (Non-consolidated)(Millions of yen)

Gross operating profit(excluding gains (losses) on bonds)
Domestic gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
International gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
Expenses (excluding non-recurring losses)
Personnel expenses
Non-personnel expenses
Taxes
Actual net operating profit
Core net operating profit
Excluding gains (loss) on cancellation of
investment trust
Provision for general allowance for loan losses
Net operating profit
Gains (losses) on bonds
Non-recurring gains (losses)
Reversal of allowance for loan losses
Recoveries of written-off claims
Gains (losses) on stocks
Ordinary profit
Extraordinary gains (losses)
Gains (losses) on disposal of non-current assets
Impairment loss (-)
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income

Six months ended
Sep. 30, 2022
(a)
28,551（
31,556
28,624（
31,52733,391(1,864)(2,903)（(2,903)
(72)
（
28
15
10
(98)
（
(101)
18,771
6,951
10,265
1,554
9,780
12,784(1)Provision for general allowance for loan losses(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3) Reversal of allowance for loan losses
Provision for general allowance for loan losses
Provision for specific allowance for loan losses(4)Net credit costs (1)+(2)-(3)(5)Recoveries of written-off claims(6)Actual credit costs (4)-(5)－12－(5,016)(1,632)(4,870)(1,588)(1,935)347(3,282)(3,282)
(145)
(45)
(24)
(3)
(118)
(101)
(1,447)
(256)
(808)
(384)
(3,569)(186)

Six months ended
Sep. 30, 2021(b)
33,56733,188 ）33,494
33,115 ）35,326(2,211)
379
379 ）
73
73 ）
39
13
20
- ）
20,218
7,207
11,073
1,938
13,34912,97012,784(186)

12,9709,780(3,004)
7,231
6,890
1,252
1,826
17,012
(202)
(197)
5
16,80926675
701
16,108(3,569)(3,383)(295)
506(1,690)1,850(3,863)
829
245
(583)
(3,035)(1,246)(302)(1,548)(1,486)

13,349
379
7,526
6,384
2,942
(24)
20,875(1,031)(442)
588
19,844
1,272
977
2,249
17,594

2,875
2,095
749
29
6,890
2,439
4,450
(4,015)
1,252(5,268)

245
(362)
598
7
506
(14,900)
15,404(262)(1,690)
1,427

2,630
2,457
151
22
6,384
17,339(10,954)(3,753)
2,942(6,695)(a) - (b)Suruga bank, Ltd.

Details of financial results (Consolidated)(Millions of yen)

Consolidated gross profit
Net interest income
Net fees and commissions
Net other operating income
Expenses (excluding non-recurring losses)
Actual credit costs
Gains (losses) on stocks
OthersOrdinary profit
Extraordinary gains (losses)
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent

Six months ended
Sep. 30, 2022
(a)
29,531
33,845(1,419)(2,894)
20,294(4,405)
4,385
242
18,270(204)
18,065
1,235
440
1,675
(1)
16,391(a) - (b)(6,648)(3,634)395(3,408)(1,428)
1,556
4,409
(692)
(3,057)868(2,190)
(108)
(669)
(778)
2
(1,414)Six months ended
Sep. 30, 2021(b)
36,17937,479(1,814)514
21,722(5,961)(24)
934
21,327(1,072)
20,255
1,343
1,109
2,453
(3)
17,805(1)Provision for general allowance for loan losses(2)Disposal of non-performing loans
3,630
27
3,603
Write-off of loans
2,158
(345)
2,503
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
1,441
364
1,077
Provision for allowance for contingent losses
29722(3) Reversal of allowance for loan losses
6,749
169
6,580
Provision for general allowance for loan losses
2,624(15,209)17,833
Provision for specific allowance for loan losses
4,125
15,378(11,253)(4)Net credit costs (1)+(2)-(3)(3,119)(142)(2,977)(5)Recoveries of written-off claims
1,286(1,697)2,983(6)Actual credit costs (4)-(5)(4,405)
1,556(5,961)(Note) Consolidated gross profit = (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions
payments) + (Other operating income - Other operating expenses)(Reference)(Millions of yen)
Consolidated net operating profit
9,236(5,221)
14,457(Note) Consolidated net operating profit = Consolidated gross profit - Consolidated expenses - Consolidated provision forgeneral allowance for loan losses(Number of consolidated subsidiaries and affiliates)(Companies)
Consolidated subsidiaries

6

-

6

(3,569)(2,200)Six months ended
Sep. 30, 2021(b)
13,3499,460

2. Net operating profit (Non-consolidated)(Millions of yen)

Net operating profit
Per employee (Thousands of yen)Six months ended
Sep. 30, 2022
(a)
9,780
7,260

－13－

(a) - (b)Suruga bank, Ltd.

3. Interest margins (Non-consolidated)
Overall

Yield on interest earning assets
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin

(A)

(B)

(0.14)(0.14)
0.41(0.11)
0.00(%)
Six months ended
Sep. 30, 2021
(b)
2.08
3.05
0.45
1.27
0.04

1.76

(0.02)

1.78

0.78(0.03)

0.81(0.14)(0.15)
0.66(0.11)
0.00(%)
Six months ended
Sep. 30, 2021
(b)
2.08
3.06
0.48
1.23
0.04

1.79

(0.03)

1.82

0.81(0.03)

0.84

Six months ended
Sep. 30, 2022
(a)
1.94
2.91
0.86
1.16
0.04

(A) - (B)(a) - (b)Domestic

Yield on interest earning assets
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin

(A)

(B)

Six months ended
Sep. 30, 2022
(a)
1.94
2.91
1.14
1.12
0.04

(A) - (B)(a) - (b)4. ROA and ROE (Non-consolidated)
(%)

ROA
ROE

Net operating profit basis
Net income basis
Net operating profit basis
Net income basis

Six months ended
Sep. 30, 2022
(a)
0.54
0.89
7.92
13.05

(a) - (b)(0.20)(0.09)(2.42)(0.58)

Six months ended
Sep. 30, 2021
(b)
0.74
0.98
10.34
13.63

5. Gains (losses) on securities (Non-consolidated)(Millions of yen)

Gains (losses) on bonds
Gains on sales
Gains on redemptions
Losses on sales
Losses on redemptions
Losses on devaluation

Six months ended
Sep. 30, 2022(a)
(3,004)
94
101
2,997
-

Gains (losses) on stocks
Gains on sales
Losses on sales
Losses on devaluation

1,826
1,829
2

－14－

(3,383)
(323)
101
2,960
-

Six months ended
Sep. 30, 2021
(b)
379
417
37
-

1,850
1,826
(25)

(24)
3
27

(a) - (b)Suruga bank, Ltd.

6. Capital adequacy ratio (domestic standard)
Non-consolidated(Millions of yen)Sep. 30, 2022(a)Capital adequacy ratio
Own capital (Core capital)
Core capital : instruments and reserves
Core capital : regulatory adjustments (-)
Risk-weighted assets
Total required capital

13.59%
261,777
284,286
22,5081,925,364
75,361Mar. 31, 2022(a) - (b)1.24%
16,53915,491(1,049)(58,907)(1,497)(b)
12.35%
245,238
268,795
23,557
1,984,271
76,858

Consolidated(Millions of yen)Sep. 30, 2022(a)13.93%
273,257
300,255
26,997
1,961,331
76,799

Capital adequacy ratio
Own capital (Core capital)
Core capital : instruments and reserves
Core capital : regulatory adjustments (-)
Risk-weighted assets
Total required capital－15－

Mar. 31, 2022(a) - (b)1.25%
16,457
15,417(1,041)(63,225)(1,671)(b)
12.68%
256,800
284,838
28,0382,024,556
78,470Suruga bank, Ltd.

7. Composition of own capital (domestic standard)(Millions of yen)
September 30, 2022
Non-consolidatedCore capital: instruments and reserves(1)
Directly issued qualifying common stock or preferred stock mandatorily convertible
into common stock capital plus related capital surplus and retained earnings
Capital and capital surplus
Retained earnings
Treasury shares (-)
Earnings to be distributed (-)
Accumulated other comprehensive income included in Core capital
Remeasurements of defined benefit plans
Subscription rights to acquire common stock or preferred stock mandatorily
convertible into common stock
Adjusted non-controlling interests (amount allowed to be included in Core capital)
Reserves included in Core capital: instruments and reserves
General allowance for loan losses
Eligible non-cumulative perpetual preferred stock subject to transitional arrangement
included in Core capital: instruments and reserves
Eligible capital instrument subject to transitional arrangement included in Core
capital: instruments and reserves
Capital instrument issued through the measures for strengthening capital by public
institutions included in Core capital: instruments and reserves
45% of revaluation reserve for land included in Core capital: instruments and reserves
Non-controlling interests included in Core capital subject to transitional arrangementsCore capital: instruments and reserves(A)Core capital: regulatory adjustments(2)
Total intangible fixed assets (net of related tax liability, excluding those relating tomortgage servicing rights)
Goodwill (including those equivalent)
Other intangible fixed assets other than goodwill and mortgage servicing rights

Deferred tax assets that rely on future profitability excluding those arising from
temporary differences (net of related tax liability)
Shortfall of eligible provisions to expected losses
Gains on sale related to securitization transactions
Gains (losses) due to changes in own credit risk on fair valued liabilities
Prepaid pension cost
Net defined benefit asset
Investments in own shares (excluding those reported in the net assets)
Reciprocal cross-holdings in relevant capital instruments issued by other financial
institutions
Investments in the capital of banking, financial and insurance entities that are outside
the scope of regulatory consolidation (“Other financial institutions”), net of eligible
short positions, where the bank does not own more than 10% of the issued sharecapital (amount above the 10% threshold)Amount exceeding the 10% threshold on specified items
Significant investments in the common stock of Other financial institutions, net of
eligible short positions
Mortgage servicing rights
Deferred tax assets arising from temporary differences (net of related tax liability)

Amount exceeding the 15% threshold on specified items
Core capital: regulatory adjustments(B)
Total capital
Total capital
(A-B)
(C)
Risk-weighted assets(3)
Credit risk-weighted assets
Total of items included in risk-weighted assets subject to transitional arrangements
Amount equivalent to market risk × 12.5
Amount equivalent to operational risk × 12.5
Credit risk-weighted assets adjustments
Amount equivalent to operational risk adjustments
Total amount of risk-weighted assets(D)
Capital adequacy ratio (non-consolidated)
Capital adequacy ratio (non-consolidated)(C/D)
Capital adequacy ratio (consolidated)
Capital adequacy ratio (consolidated)
(C/D)

－16－

Consolidated

261,955

274,764

48,629231,437(18,110)-32,017
260,857(18,110)
2,982
2,982

-

-

22,331
22,331

22,48922,489

-

-

-

-

-

-

284,28619
300,255

10,905

12,406

10,905

1,229
11,176-

5

11,603-

14,585
-

-

-

-

-

-

-

-

-

22,50826,997

261,777

273,257

1,786,581
138,782
1,925,364

1,799,224
162,106
1,961,331

13.59

-

-

13.93

Suruga bank, Ltd.

Ⅲ. Status of loans, etc.
Status of self-assessment, non-performing loans based on the financial Reconstruction Law and Risk-monitored loans.
Non-consolidated (As of September 30, 2022)(Millions of yen)Self-assessment result(by obligor classification)

Non-performing loans based on the
Financial Reconstruction Law and Risk-monitored loans* Includes total claims (“Claims for special attention” includes only
loans and bills discounted).

* Includes total claims.

Classification
Category
Credit balance

Nonclassification

Classification
Ⅱ

Classification
Ⅲ

Category

ClassificationⅣ

Credit balance

CollateralorAllowance
guarantees,etc.

Coverage
ratio

Bankrupt obligors
511[73]
Effectively bankrupt
obligors

109

402

-

70,594

44,236-[70,193]

14,591

16,553

15,516[10,377]-

114,831[70,193]
Potentiallybankrupt obligors[73]

46,662[10,377]

Claims against bankrupt
and substantially bankrupt
obligors

45,07570,267100.00%20,768

10,37766.74%

19,61016,17856.53%

85,45496,82380.89%

115,342

Claims with collection risk
46,662Loans past

Substandard
obligors
Obligors
requiring
caution122

80,199--Claimsfor
specialattentiondue 3 months or more
3,673
Restructured loans
59,63380,322
Subtotal
225,312

Other
obligors
requiring
caution11,955638,164-

Normal assets

650,119

1,865,094
Normal obligors

1,197,959---

1,295,333

779,557

15,516[10,377][70,267]

1,197,959

Total
2,090,407[80,645]

Total
2,090,407(Note1) “Total claims” includes “Loans and bills discounted”, “Customers’ liabilities for acceptances and guarantees”,“Foreign exchanges”, “Securities lent”, “Suspense payment” and “Accrued interest”.
(Note2) Numbers shown in brackets under “Self-assessment result” represent the reserved amount for each category.

－17－

Suruga bank, Ltd.

1. Risk-monitored loans
The following table shows figures after partial direct write-off of loans.
The amounts of partial direct write-off of loans for the six months ended September 30, 2022 were as follows:(a) Non-consolidated: ¥3,159 million; (b) Consolidated: ¥3,159 million
Loans to “Potentially bankrupt obligors”, “Effectively bankrupt obligors” and “Bankrupt obligors” under self-assessment areplaced on non-accrual status.
Non-consolidated(Millions of yen, %)Sep. 30, 2022
Loans to bankrupt obligors
Non-accrualdelinquent loans
Riskmonitored Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)
Loans to bankrupt obligors% to loans Non-accrual delinquent loans
and bills Loans past due 3 months or morediscounted Restructured loans
Total

(a)
115,342
46,662
3,673
59,633
225,312Mar. 31, 2022 Sep. 30, 2021(a) - (b)(a) - (c)(18,825)(19,199)(78)(8,467)(46,568)

1,946(80,206)
235(23,628)(101,652)(b)
134,167
65,861
3,751
68,100271,880(c)
113,396
126,868
3,438
83,261
326,9642,090,407(60,959)(172,778)

2,151,366

2,263,185

5.51
2.23
0.17
2.85
10.77

(0.72)(0.83)
0.00(0.31)(1.86)

0.50(3.37)
0.02(0.82)(3.67)

6.23
3.06
0.17
3.16
12.63

5.01
5.60
0.15
3.67
14.44

Consolidated(Millions of yen, %)Mar. 31, 2022 Sep. 30, 2021

Sep. 30, 2022
Loans to bankrupt obligors
Non-accrual delinquent loans
Riskmonitored Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)
Loans to bankrupt obligors% to loans Non-accrual delinquent loans
and bills Loans past due 3 months or morediscounted Restructured loans
Total

(a)
115,988
51,215
3,673
59,633
230,511(a) - (b)(a) - (c)(18,867)(19,063)(78)(8,467)(46,474)

2,100(79,990)
235(23,628)(101,283)(b)
134,855
70,278
3,751
68,100276,985

2,108,809(60,728)(172,111)

2,169,537

2,280,920

5.50
2.42
0.17
2.82
10.93

(0.71)(0.81)
0.00(0.31)(1.83)

0.51(3.33)
0.02(0.83)(3.61)

6.21
3.23
0.17
3.13
12.76

4.99
5.75
0.15
3.65
14.54

－18－

(c)
113,888
131,205
3,438
83,261
331,794

Suruga bank, Ltd.

2. Allowance ratio for risk-monitored loans
Non-Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Sep. 30, 2022(a)
225,31285,45496,82342.97
80.89(a) - (b)(46,568)(18,857)(14,065)
2.19
1.74(a) - (c)(101,652)(48,010)(17,026)
8.15
5.26(Millions of yen, %)Mar. 31, 2022 Sep. 30, 2021(b)(c)
271,880
326,964
104,311
133,464
110,888
113,849
40.78
34.82
79.15
75.63

(a) - (c)(101,283)(48,187)(16,600)
8.33
5.01(Millions of yen, %)Mar. 31, 2022 Sep. 30, 2021(b)(c)
276,985
331,794
103,440
132,752
114,698
117,299
41.40
35.35
78.75
75.36

(a) - (c)(19,082)(3,183)(15,898)(Millions of yen)Mar. 31, 2022 Sep. 30, 2021(b)(c)
133,124
136,11438,96939,57094,15496,543(a) - (c)(19,094)(3,623)(15,472)

Mar. 31, 2022(b)
138,917
40,953
97,964

Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Sep. 30, 2022(a)
230,51184,565
100,699
43.68
80.37

(a) - (b)(46,474)(18,875)(13,999)
2.28
1.62

3. Allowance for loan losses
Non-consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses

Sep. 30, 2022(a)
117,032
36,38780,645(a) - (b)(16,092)(2,582)(13,509)

Consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses

Sep. 30, 2022(a)
122,70738,18584,521(a) - (b)(16,210)(2,768)(13,443)(Millions of yen)Sep. 30, 2021
(c)
141,801
41,80899,993

4. Non-performing loans based on the Financial Reconstruction Law
Non-consolidated
Sep. 30, 2022(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total

(A)

(a) - (b)(a) - (c)(Millions of yen)Mar. 31, 2022 Sep. 30, 2021(b)(c)

115,342(18,825)

1,946

134,167

113,396

46,662
63,307225,312(19,199)(8,544)(46,568)(80,206)(23,392)(101,652)

65,861
71,851
271,880

126,868
86,699326,964

5. Status of coverage of non-performing loans based on the Financial Reconstruction Law
Non-consolidated

Total coverage
Allowance for loan losses
Collateral or guarantees, etc.
Coverage ratio(B)

Sep. 30, 2022(a)
182,278
96,82385,454(a) - (b)(32,922)(14,065)(18,857)(a) - (c)(65,036)(17,026)(48,010)

(B/A)

80.89

1.74

5.26

－19－

(Millions of yen, %)Mar. 31, 2022 Sep. 30, 2021(b)(c)
215,200
247,314110,888
113,849
104,311
133,464
79.15

75.63

Suruga bank, Ltd.

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry (Non-consolidated)(Millions of yen)Sep. 30, 2022(a)
Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others(a) - (b)Mar. 31, 2022

Sep. 30, 2021(a) - (c)

(b)

(c)

2,078,082(60,505)(171,613)

2,138,587

2,249,695

37,8963,942
47
100
14,115244
3,434
14,71232,53022,893
121,595
52,463
26,693
1,747,411

2,880
(101)
(12)
(100)
105
6
1,596
1,829
379
8,432
13,966
1,252
6,178(96,911)

3,198
(188)
(24)
(100)
1,611
29
1,860
1,908
2,459
(934)
39,0006,515
13,559(240,501)

35,0164,043
59
200
14,010238
1,838
12,88332,151
14,461
107,629
51,211
20,515
1,844,322

34,6984,130
71
200
12,504215
1,574
12,80430,071
23,827
82,59545,94813,134
1,987,912(2) Breakdown of risk-monitored loans by industry (Non-consolidated)(Millions of yen)Mar. 31, 2022

Sep. 30, 2021(a) - (c)

(b)

(c)

(46,568)(101,652)

271,880

326,964

9,245
(271)
589
(64)
3
(1)
114
(2)
328
129
6,030
0
108
Real estate, goods rental and leasing(1)
Services
701
2
Government and municipal government
Others
208,190(46,361)(Note)”Others” includes real estate financing for rent to individuals.

(950)
(106)
(1)
(4)
122
3
(2)
(148)
(100,566)

9,516
653
4
116
199
6,030
109
699
254,551

10,195
695
4
118
206
6,027
110
849
308,756

Sep. 30, 2022(a)
Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance(a) - (b)225,312－20－

Suruga bank, Ltd.

(3) Consumer loans (Non-consolidated)(Millions of yen)Sep. 30, 2022
Consumer loans
Secured loans
Housing loans
Unsecured loans
Asset management company loans forproperty investment
Structured finance, etc.
Total

(a)
1,741,561
1,606,027
441,815
135,534(a) - (b)(a) - (c)Mar. 31, 2022

Sep. 30, 2021

(97,008)(87,079)(15,850)(9,929)(238,848)(217,577)(33,287)(21,271)(b)
1,838,569
1,693,106457,665
145,463(c)
1,980,409
1,823,604
475,102
156,805

40,313

6,716

18,11333,597

22,20082,725
1,864,599

13,757(76,535)

31,833(188,903)

68,968
1,941,134

50,892
2,053,502(4) The ratio of loans to small- and medium-sized enterprises, etc. (Non-consolidated)(%)
Sep. 30, 2022

Mar. 31, 2022(a) - (b)Sep. 30, 2021(a) - (c)

(a)
(b)
(c)
The ratio of loans to small- and
95.50(0.93)(1.02)
96.43
96.52
medium-sized enterprises, etc.
(Note)”Loans to small- and medium-sized enterprises” includes consumer loans which comprise 88.03% of this total.

7. Loan breakdown by country(1) Loans to specific foreign countries (Non-consolidated)
Not applicable.
(2) Loans to Asian countries (Non-consolidated)
Not applicable.

8. Deposits and loans (Non-consolidated)(Millions of yen)Sep. 30, 2022

Deposits
Loans

period-end balance
average balance
period-end balance
average balance(a)3,311,175
3,346,690
2,078,082
2,112,958(a) - (b)(a) - (c)(1,006)55,118(60,505)(131,440)

21,83762,017(171,613)(164,910)

Mar. 31, 2022

Sep. 30, 2021(b)
3,312,181
3,291,572
2,138,587
2,244,398(c)
3,289,338
3,284,673
2,249,695
2,277,868

9. Number of branches (Non-consolidated)(Branches)
Sep. 30, 2022(a) - (b)(a)
Number of branches

117(a) - (c)
(1)

－21－

(4)

Mar. 31, 2022

Sep. 30, 2021

(b)

(c)
118

121

Suruga bank, Ltd.

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Non-consolidated
Sep. 30, 2022
Fair
value

Net unrealized gains(losses)

Gains

LossesMar. 31, 2022
Fair Net unrealized gains(losses)
value
Gains Losses(Millions of yen)Sep. 30, 2021
Fair
value

Net unrealized gains(losses)

Gains Losses
Available-for-sale432,636 (15,832) 8,713 24,546 454,234 (1,482) 9,332 10,814 400,818 10,987 11,770
783
securities
Stocks
16,678 8,403 8,666
263 15,862 7,587 7,901
314 17,023 8,747 9,087
339
Bonds
171,353 (1,241)
47 1,288 143,556 (353)140
494 140,088
434
474
39
Others244,603 (22,995)- 22,995 294,816 (8,715) 1,290 10,005 243,706 1,805 2,208403(Note1) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note2) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.
Consolidated(Millions of yen)Sep. 30, 2021

Sep. 30, 2022
Mar. 31, 2022
Fair Net unrealized gains (losses) Fair Net unrealized gains (losses) Fair Net unrealized gains (losses)
value
Gains Losses value
Gains Losses value
Gains Losses
Available-for-sale433,442 (15,123) 9,423 24,546 457,899 1,961 12,775 10,814 404,388 14,337 15,120
783
securities
Stocks
17,484
9,113 9,376
263 16,605 8,233 8,548
314 17,910 9,538 9,878
339
Bonds
171,353 (1,241)
47 1,288 143,556 (353)140
494 140,088
434
474
39
Others244,603 (22,995)- 22,995 297,737 (5,918) 4,087 10,005 246,389 4,364 4,767
403(Note1) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note2) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.

Ⅴ. Retirement benefits
1. Retirement benefit expenses
Non-consolidated
Six months ended
Sep. 30, 2022
Service cost
205
Interest cost
48
Expected returns on plan assets(483)
Amortization of unrecognized net actuarial gains (losses)(490)
Others (Note)
108
Retirement benefit expenses(611)(Note) “Others” includes the contribution to a defined contribution pension plan.

(Millions of yen)Six months ended
Sep. 30, 2021
234
50
(517)
(794)
109
(917)

Consolidated(Millions of yen)Six months ended
Six months ended
Sep. 30, 2022
Sep. 30, 2021
Service cost (Note1)
216
258Interest cost
48
50
Expected returns on plan assets
(483)
(517)
Amortization of unrecognized net actuarial gains (losses)
(490)
(794)
Others (Note2)
121
117
Retirement benefit expenses
(586)
(884)
(Note1) Retirement benefit expenses of consolidated subsidiaries adopting a simplified method are included in “Service cost”.
(Note2) “Others” includes the contribution to a defined contribution pension plan.

－22－