November 13, 2020

SURUGA bank, Ltd.
Consolidated financial results for the six months ended September 30, 2020
<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, 2020
(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

Millions of yen％
Millions of yen％
Millions of yen％
Six months ended
September 30, 2020
50,916(20.5)
10,460(47.9)
5,482(65.6)
September 30, 2019
64,062(14.6)
20,09915,972(Note)Comprehensive income:(a) Six months ended Sep. 30, 2020: ¥6,957 million [(38.8)%]; (b) Six months ended Sep. 30, 2019: ¥11,386 million [- %]Earnings per share
Six months ended
September 30, 2020
September 30, 2019

Earnings per share(diluted)

yen

yen

23.66
68.95

-

(Note) Earnings per share for the six months ended September 30, 2019 and 2020 are not provided because there are no
potentially shares.
(2) Consolidated financial position
Total assets
Total net assets
Net assets ratio
Millions of yen
Millions of yen％
As ofSeptember 30, 2020
3,466,121
262,691
7.5
March 31, 2020
3,481,579
256,892
7.3(Reference) Shareholders’ equity:(a) As of September 30, 2020: ¥262,582 million; (b) As of March 31, 2020: ¥256,781 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”.

2. Dividends on common stock
1st quarter -end

2nd quarter -end

Dividends per share
3rd quarter -end Fiscal year -end

yen
yen
Fiscal year
ended March 31, 2020
0.00
ending March 31, 2021
0.00
ending March 31, 2021 (forecast)(Note) Revision of dividend forecast from the latest announcement: No

yen

Total

yen

yen

-

5.00

5.00

-

5.00

5.00

3. Consolidated earnings forecast for the fiscal year ending March 31, 2021(％ represents the change from the previous fiscal year)

Ordinary income

Ordinary profit

Millions of yen%
Millions of yen%
Fiscal year ending
March 31, 2021
96,000(18.6)
8,000(80.8)(Note) Revision of earnings forecast from the latest announcement: No

Profit attributableto owners of parent

Earnings per share

Millions of yen

%

yen

6,000

(76.3)

25.90

* 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: No(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: No(D) Restatements: No(3) Number of issued shares (common stock)(A) Number of issued shares
As of Sep. 30, 2020
(including treasury shares):(B) Number of treasury shares:

As of Sep. 30, 2020

(C) Average number of shares:

Six months ended
Sep. 30, 2020

232,139,248 shares

As of Mar. 31, 2020

232,139,248 shares

489,753 shares

As of Mar. 31, 2020

489,165 shares

231,649,801 shares

Six months ended
Sep. 30, 2019

231,650,754 shares(Summary of non-consolidated financial results)
1. Non-consolidated financial results for the six months ended September 30, 2020
(1) Non-consolidated operating results(％ represents the change from the same period in the previous fiscal year)
Ordinary income
Ordinary profit
Net income
Millions of yen%
Millions of yen%
Millions of yen%
Six months ended
September 30, 2020
45,146(20.9)
8,723(55.0)
4,196(73.1)
September 30, 201957,133(18.6)
19,38815,638
Earnings per share
Six months ended
September 30, 2020
September 30, 2019

yen

18.11
67.50

(2) Non-consolidated financial position
Total assets
Total net assets
Net assets ratio
Millions of yen
Millions of yen%
As ofSeptember 30, 2020
3,453,377
249,406
7.2
March 31, 2020
3,469,060
245,218
7.0(Reference) Shareholders’ equity:(a) As of September 30, 2020: ¥249,406 million; (b) As of March 31, 2020: ¥245,218 million(Note) Net assets ratio = Total net assets / Total assets × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

2. Non-consolidated earnings forecast for the fiscal year ending March 31, 2021(％ represents the change from the previous fiscal year)

Ordinary income
Fiscal year ending
March 31, 2021

Ordinary profit

Net income

Earnings per share

Millions of yen%

Millions of yen%

Millions of yen%

yen

85,000(18.6)

7,000(82.4)

5,000(79.5)

21.58(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 Ordinance regarding Disclosure of
Corporate Information, etc.” and prepares its interim consolidated and interim non-consolidated financial statements for the six months
ended September 30, 2020.
2. The performance forecasts and other forward-looking statements in this report are based on information currently available to thecompany 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 results·························································· 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 andConsolidated 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, changes in accounting estimates and restatements) ······ 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 ········································* Financial results for the six months ended September 30, 2020 supplementary information

−1−

12

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, 2020, ordinary
income decreased by ¥13.146 billion year-on-year to ¥50.916 billion. This was primarily due to thedecline in interest income. Meanwhile, ordinary expenses decreased by ¥3.507 billion year-on-yearto ¥40.455 billion, mainly due to the fall in general and administrative expenses.
As a result, ordinary profit decreased by ¥9.639 billion year-on-year to ¥10.460 billion. Profit
attributable to owners of parent decreased by ¥10.490 billion year-on-year to ¥5.482 billion.

(2) Details of financial position
As for the consolidated major account balances as of September 30, 2020, loans and bills
discounted came in at ¥2,423.322 billion, down by ¥79,516 billion from March 31, 2020. This wasprimarily due to the decrease (¥96.138 billion) in consumer loans (non-consolidated).
Securities amounted to ¥208.597 billion, rose by ¥74.737 billion from March 31, 2020.
Deposits amounted to ¥3,180.667 billion, down by ¥24.124 billion from March 31, 2020, despite
an increase (¥64.330 billion) in individual deposits.

(3) Details of forecast information, including consolidated earnings forecast
For the non-consolidated earnings forecast for the fiscal year ending March 31,
2021, the forecasted net operating profit has been revised in consideration of theeffect of a reduction in the provision for general allowance for loan losses (before
revision: ¥27,000 million; after revision: ¥42,000 million).
No changes have been made to all other figures announced on August 14, 2020.
Consolidated

Ordinary income
Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income(Billions of yen)

Fiscal year ending
March 31, 2021
96.0
8.0
6.0
(Billions of yen)

Fiscal year ending
March 31, 2021
85.0
27.0
42.0
7.0
5.0

Actual credit costs

20.0(Note1) The earning forecast for the fiscal year ending March 31, 2021 was calculated with thought toimpacts of the coronavirus (COVID-19) pandemic foreseeable at the present time. However, if the
impacts continue for a long time, the earnings forecast may be revised, for instance, due to further
increase in net credit costs. If matters to be disclosed arise, such matters will be promptly disclosed.
(Note2) 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 materiallydepending on various factors.

−2−Suruga bank, Ltd.

2. Consolidated financial statements and notes(1) Consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2020
AssetsCash and due from banks
Call loans and bills bought
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Lease receivables and investment assets
Other assets
Tangible fixed assets
Intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Borrowed money
Foreign exchanges
Other liabilities
Provision for bonuses
Net defined benefit liability
Provision for directors' retirement benefits
Provision for reimbursement of deposits
Provision for contingent losses
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities

Deferred gains (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, 2020

876,30165
180
978133,860
2,502,838
2,215
6,439
52,98037,507
21,56912,66015,8972,062(183,979)
3,481,579

876,635
158
156
200
208,597
2,423,322
2,383
5,696
46,822
37,571
20,765
13,251
14,3972,254(186,092)
3,466,121

3,204,791
3
15,663
491
35
275
270
245
139
707
2,062
3,224,686

3,180,667
23
18,243
488
271
293
189
87
911
2,254
3,203,429

30,043
2,045
218,587(561)
250,115
6,276
(23)
412
6,665
111
256,892
3,481,579

30,043
2,045
222,911(561)
254,439
7,795
(31)
379
8,143
108
262,691
3,466,121

Suruga bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income(2) Consolidated statements of income
For the six months
ended
Sep. 30, 2019
64,062
48,55947,858
458
5,397
3,970
6,134
43,962
777
610
8,023
1,524
24,385
9,251
20,099
47
34
12
253
251
2
19,892
7,171(3,269)3,902
15,99017
15,972

Ordinary income
Interest income
Interest on loans and bills discounted
Interest and dividends on securities
Fees and commissions
Other operating income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary gains
Gains on disposal of non-current assets
Gain on reversal of subscription rights to shares
Extraordinary losses
Losses on disposal of non-current assets
Impairment loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent−4−（Millions of yen）
For the six months
ended
Sep. 30, 2020
50,91642,504
41,667
428
4,411
2,114
1,885
40,455
791
741
5,921
1,595
22,1509,997
10,460
364
364
293
281
11
10,531
4,005
1,045
5,051
5,480
(2)
5,482

Suruga bank, Ltd.

Consolidated statements of comprehensive income

ProfitOther comprehensive income
Net unrealized gains (losses) 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, 2019
15,990（Millions of yen）
For the six months
ended
Sep. 30, 2020
5,480

(4,301)
2(305)(4,604)
11,386

1,518
(7)
(33)
1,477
6,957

11,342
43

6,960
(2)

Suruga bank, Ltd.

(3) Consolidated statements of changes in net assets
For the six months ended September 30, 2019
（Millions of yen）
Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares30,043

CapitalsurplusRetainedearnings

1,202

193,263

Total
shareholders'equityTreasuryshares(560)

15,972(0)

223,948

15,972
(0)

(0)

0

0

Net changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period-(0)

15,972(0)

15,972

1,202

209,236(560)

239,921

Accumulated other comprehensive income
Total
Remeasureaccumulated
ments ofother
definedcomprehenbenefit plans
sive income

Subscription
rights toshares

Noncontrollinginterests

12

1,280

30,043Net unrealized
Deferred
gains (losses)
on available- gains (losses)
for-saleon hedges
securities

Balance at beginning ofcurrent period
Changes of items during
periodProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period13,352

(35)

3,750

17,067

Total net
assets242,308

15,972(0)
0(4,327)2(305)(4,630)(12)

43(4,599)(4,327)2(305)(4,630)(12)

43

11,373

9,024

(33)

3,444

12,436-

1,324

253,681−6−

Suruga bank, Ltd.

For the six months ended September 30, 2020
（Millions of yen）
Shareholders' equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043Retainedearnings

2,045

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares

218,587

Total
shareholders'equityTreasuryshares(561)

250,115(1,158)(1,158)

5,482

5,482

(0)

(0)

(0)

0

0

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period

-

(0)

4,324

(0)

4,323

30,043

2,045

222,911(561)

254,439

Accumulated other comprehensive income
Total
accumulated
othercomprehensive income

Noncontrollinginterests

Net unrealized
Remeasuregains (losses) Deferred gains
ments ofon available(losses) on
definedfor-salehedgesbenefit planssecurities

Balance at beginning ofcurrent period
Changes of items during
period

6,276

(23)

412

6,665

111

Dividends of surplus

Total changes of items during
periodBalance at end of current
period256,892(1,158)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders' equity

Total net
assets

5,482
(0)
0
1,518

(7)

(33)

1,477

(2)

1,475

1,518

(7)

(33)

1,477

(2)

5,799

7,795

(31)

379

8,143

108

262,691−7−

Suruga bank, Ltd.

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

(Changes in accounting policies, changes in accounting estimates and restatements)
Not applicable.

(Additional information)(Key Assumptions on Estimated Impact from Further Spread of the Coronavirus (COVID-19)
Pandemic)With regard to financial estimates that relate to impact from the coronavirus (COVID-19)
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 the information 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 spreadof the coronavirus (COVID-19) pandemic and its impact on the economy vary from the originalassumptions, financial results could be impacted from the third quarter of the current
consolidated fiscal year (third quarter of the fiscal year ending March, 2021).

−8−

Suruga bank, Ltd.

3. Non-consolidated financial statements(1) Non-consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2020
AssetsCash and due from banks
Call loans
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Other
Tangible fixed assets
Intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Income taxes payable
Lease obligations
Other
Provision for bonuses
Provision for directors' bonuses
Provision for directors' retirement benefits
Provision for reimbursement of deposits
Provision for contingent losses
Acceptances and guarantees
Total liabilities

−9−

As of
Sep. 30, 2020

875,42565
180
978137,7292,496,157
2,215
45,27245,272
36,466
19,752
12,06914,831
2,062(174,146)
3,469,060

875,550
158
156
200
211,9292,418,417
2,383
39,44639,44636,525
18,952
12,707
13,6282,254(178,933)
3,453,377

3,210,823
3
9,816
355
9,460
446
35
270
245
139
2,062
3,223,842

3,187,132
23
13,546
4,234
287
9,025
444
293
189
87
2,254
3,203,970

Suruga bank, Ltd.

（Millions of yen）
As of
Mar. 31, 2020
Net assets
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Retained earnings
Legal retained earnings
Other retained earnings

30,043
18,58918,585
3
192,116
30,043
162,07259
103,032
58,981(561)
240,187
5,054
(23)
5,030
245,218
3,469,060

Reserve for advanced depreciation of non-current assets

General reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities

Deferred gains (losses) on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

−10−

As of
Sep. 30, 2020
30,043
18,58918,585
3
195,154
30,043
165,11159
103,032
62,019(561)
243,226
6,211
(31)
6,180
249,406
3,453,377

Suruga bank, Ltd.

(2) Non-consolidated statements of income

Ordinary income
Interest income
Interest on loans and bills discounted
Interest and dividends on securities
Fees and commissions
Other operating income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary gains
Gains on disposal of non-current assets
Reversal provision for directors' retirement benefits
Extraordinary losses
Losses on disposal of non-current assets
Impairment loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income

For the six months
ended
Sep. 30, 201957,13344,814
44,143
428
4,209
2,216
5,892
37,744
796
610
7,968
58
21,994
6,928
19,388
12
12
226
223
2
19,174
6,887(3,352)
3,535
15,638−11−（Millions of yen）
For the six months
ended
Sep. 30, 2020
45,14639,31438,507
398
3,823
519
1,489
36,423
790
741
5,900
94
20,515
9,122
8,723
364
364
271
271
8,816
3,913
705
4,619
4,196

Suruga bank, Ltd.

(3) Non-consolidated statements of changes in net assets
For the six months ended September 30, 2019
（Millions of yen）
Shareholders' equity
Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

3

Retained earnings
Other retained earnings
Reserve for
Total capital Legal retained advanced
surplusearnings
depreciationof non-current
assets
18,58930,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

34,506

Net income

15,638Purchase of treasury
shares
Disposal of treasury
shares

(0)

(0)

(0)

(0)

3

18,589Net changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period30,043

18,585

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning ofcurrent period
Changes of items during
periodNet income

167,641

30,04359

Treasuryshares(560)

103,032

15,63850,145

Valuation and translation adjustments

215,714

12,250(29)

12,221

Subscription
rights tosharesTotal net
assets12

227,947

15,63815,638

(0)

(0)

(0)

0

0

0

Net changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period-Net unrealized
Total
gains (losses) Deferred gains
Totalvaluation andshareholders' on available- (losses) on
translation
hedgesequityfor-saleadjustments
securities

15,638Purchase of treasury
shares
Disposal of treasury
shares-(4,491)

2(4,489)(12)(4,501)

15,638(0)

15,638(4,491)

2(4,489)(12)

11,136

183,280(560)

231,352

7,759

(27)

7,731

-

239,084−12−

Suruga bank, Ltd.

For the six months ended September 30, 2020
（Millions of yen）
Shareholders' equity
Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

3

Retained earnings
Other retained earnings
Reserve for
Total capital Legal retained advanced
surplusearnings
depreciationof non-current
assets
18,58930,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

58,981Dividends of surplus(1,158)Net income

4,196

Purchase of treasury
shares
Disposal of treasury
shares

(0)

(0)

(0)

(0)

3

18,589Net changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period30,043

18,585

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning ofcurrent period
Changes of items during
period192,116--

30,04359(561)

103,032

Valuation and translation adjustments

Net unrealized
Total
Total
gains (losses) Deferred gains
valuation andshareholders' on available- (losses) on
translation
for-salehedgesequityadjustments
securities

Treasuryshares-240,187

5,054

(23)

5,030

Total net
assets245,218

Dividends of surplus(1,158)(1,158)(1,158)Net income

4,196

4,196

4,196

(0)

(0)

(0)

0

0

0

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period

1,157

(7)

1,150

1,150

3,038

(0)

3,038

1,157

(7)

1,150

4,188

195,154(561)

243,226

6,211

(31)

6,180

249,406

−13−

3,038
62,019Financial Results
For the six months ended September 30, 2020

- Supplementary Information -SURUGA bank, Ltd.

Table of contents
Ⅰ. Financial highlights for the six months ended September 30, 2020
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, 2021

1
3
7
8
9

Non-consolidated, Consolidated

7. Asset quality

Non-consolidated

・・・・・・・・

8. Credit costs

Non-consolidated

・・・・・・・・

10
11

9. Dividends

Non-consolidated

・・・・・・・・・・・・・・・・

12
13

・・・・・・・・

14

15
16

Ⅱ. Financial data for the six months ended September 30, 2020
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

・・・・・・・・

Non-consolidated

・・・・・・・・

1. Risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

2. Allowance ratio for risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

17
18
19

3. Allowance for loan losses

Non-consolidated, Consolidated

・・・・・・・・

20

・・・・・・・・

21

Non-consolidated, Consolidated

・・・・・・・・

22

Non-consolidated, Consolidated

・・・・・・・・

22

Ⅲ. Status of Loans, etc.
Comparison of asset disclosure by standard

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

Non-consolidated
Non-consolidated

6. Loan breakdown by industry, etc.
(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, 2020
1. Financial results (Non-consolidated)
Six months ended
Sep. 30, 2020(a)
36,871
38,524(2,076)15
36,462
20,532
15,93015,859409
16,339(21,638)
37,97730,575
1,144
(0)
8,723
92
4,196

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 (-)
Net operating profit
Disposal of non-performing loans (-)
Recoveries of written-off claims
Gains (losses) on stocks
Ordinary profit
Gains (losses) on disposal of non-current assets
Impairment loss (-)
Net income(Millions of yen)Six months ended
Sep. 30, 2019(b)
42,41844,018(3,758)2,003
42,264
22,43919,824
19,824
154
19,9791,639
18,340
5,046
290
5,270
19,388(223)
215,638(a) - (b)(5,547)(5,494)
1,682(1,988)(5,802)(1,907)(3,894)(3,965)255(3,640)(23,277)
19,63725,529854(5,270)(10,665)315(2)(11,442)

Net credit costs
8,937
2,252
6,685
Actual credit costs（Note4）
7,792
1,398
6,394
(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) Actual credit costs = Net credit costs (Provision for general allowance for loan losses + Disposal of non-performing loans)- Recoveries of written-off claims(1) Gross operating profit: ¥36.8 billion
・Net interest income decreased by ¥5.4 billion year-on-year, mainly due to a decrease in interest on
loans and bills discounted.
・Loan-deposit income decreased by ¥5.8 billion year-on-year.
・Core gross operating profit decreased by ¥5.8 billion year-on-year, mainly due to a decrease in net interest income.
・Gross operating profit decreased by ¥5.5 billion year-on-year.

Net interest income(Billions of yen)
58.3
54.8

55.5

53.8
44.0

1H,
FY3/171H,
FY3/18

Loan-deposit income(Billions of yen)

1H,
FY3/191H,
FY3/20

55.9

51.9
43.5

38.5

1H,
FY3/21

1H,
FY3/17−1−

1H,
FY3/181H,
FY3/191H,
FY3/2037.7

1H,
FY3/21

Suruga bank, Ltd.

(2) Expenses; OHR: 55.6%
・Expenses decreased by ¥1.9 billion year-on-year.
・OHR rose year-on-year to 55.6%, mainly due to a decrease in gross operating profit.
(OHR(%) = Expenses / Gross operating profit × 100)

Gross operating profit

Expenses

OHR(Billions of yen)

57.0

44.7%

54.0

55.6%

52.8%
41.7%

53.9

44.1%
42.4

36.8

24.1

23.8

23.8

22.4

20.5

1H,FY3/17

1H,FY3/18

1H,FY3/19

1H,FY3/20

1H,FY3/21(3) Core net operating profit: ¥15.9 billion, Net operating profit: ¥37.9 billion
・Core net operating profit decreased by ¥3.8 billion year-on-year, mainly due to a decrease in net interest income.
・Net operating profit increased by ¥19.6 billion year-on-year, mainly due to a decrease in provision for general allowance forloan losses.

Core net operating profit

Net operating profit(Billions of yen)

33.0 33.1

29.8 30.0

37.9
29.6
3.3

1H,FY3/17

1H,FY3/18

1H,FY3/19

19.8

18.3

1H,FY3/20

15.9
1H,FY3/21(4) Ordinary profit: ¥8.7 billion
・Ordinary profit decreased by ¥10.6 billion year-on-year, mainly due to an increase in disposal of non-performing loans.

(5) Net income: ¥4.1 billion
・Net income decreased by ¥11.4 billion year-on-year, mainly due to a decrease in ordinary profit.

(6) Actual credit costs: ¥7.7 billion
・Net credit costs increased by ¥2.2 billion year-on-year, mainly due to a decrease (¥23.2 billion) in provision forgeneral allowance for loan losses and an increase (¥25.5 billion) in disposal of non-performing loans.
・Actual credit costs, calculated as net credit costs (¥8.9 billion) minus the amount of recoveries of written-off claims(¥1.1 billion) amounted to ¥7.7 billion.

−2−

Suruga bank, Ltd.

2. Major accounts (Non-consolidated)(1) Loans and bills discounted
・Loans and bills discounted decreased by ¥253.2 billion, or 9.4% year-on-year.
・Consumer loans decreased by ¥244.6 billion, or 9.9% year-on-year.
・Yield on loans and bills discounted dropped by 9 basis points year-on-year to 3.12%.
(Billions of yen)Sep. 30, 2020(a)(a) – (b)Sep. 30, 2019(b)Mar. 30, 2020

Loans and bills discounted(period-end balance)

2,418.4(253.2)

2,671.6

2,496.1

Consumer loans

2,210.8(244.6)2,455.4

2,307.0

Secured loans

2,025.4(206.1)2,231.5

2,099.0

Unsecured loans

185.4(38.4)

223.8

207.9

2,457.0(282.3)2,739.3

2,664.7

Loans and bills discounted(average balance)（Reference）

Sep. 30, 2020(a)(Billions of yen)Sep. 30, 2019(b)(a) – (b)New consumer loans

8.7

6.0

2.7

New asset management company loans for property investment

4.5

4.5

-

Subtotal

13.2

10.5

2.7

New asset finance

9.7

9.7

-

Total

22.9

20.2

2.7

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

Yield on loans and bills discounted(Billions of yen)
3,286.0
3,184.6
3,085.8
2,671.6
2,963.4
2,835.7
2,790.8
2,418.4
2,455.4
2,210.8

Sep.16

Sep.17

Sep.18

Sep.19Sep.20−3−

3.59%

Sep.16

3.58%

Sep.17

3.36%

3.21%

3.12%

Sep.18

Sep.19Sep.20Suruga bank, Ltd.

Consumer loans
Outstanding balance, yield, delinquency rate by loan category
Sep. 30, 2020
Loan category

Period-end
balance
2,025.4
522.7
180.8
1,129.8
153.4
38.5
185.4
122.4
63.0

Secured loans
Housing loans
Studio apartment loans
Single building apartment loans
Share house loans
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans(Billions of yen)Sep. 30, 2020
Jun. 30, 2020
Yield
Yield
Delinquency Period-end
Delinquency
ratebalance
rate
3.07%
5.81%
2,065.5
3.09%
4.70%
2.85%
0.51%
537.7
2.86%
0.79%
3.40%
1.79%
188.9
3.40%
1.92%
3.26%
3.80%
1,144.8
3.28%
3.68%
1.46%
45.87%
153.9
1.46%
31.34%
4.81%
1.15%
39.9
4.85%
1.29%
10.26%
2.13%
195.7
10.23%
1.93%
11.61%
0.83%
129.2
11.56%
0.78%
7.64%
4.66%
66.4
7.65%
4.15%

Consumer loans

2,210.8

3.66%

5.51%

2,261.2

3.69%

4.47%

Consumer loans(excluding share house-related loans)

2,021.8-

2.32%

2,070.9-

2.34%

Asset management company loans
17.8
2.25%
9.9
2.23%
for property investment(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)Corporate loans for property investment : Asset management company loans for property investment and asset financethat are defined as new business fields in the mid-term management plan.

Share house loans (Non-performing loans based on the Financial Reconstruction Law)
(Billions of yen)

Total credit
balanceSep. 30, 2019
Dec. 31, 2019
Mar. 31, 2020
Jun. 30, 2020
Sep. 30, 2020

246.1
244.4
192.1
190.4
189.1

Claims against
bankrupt andsubstantiallybankrupt obligors
89.9
91.3
45.9
50.2
56.1

Claims withcollection
riskClaims for
specialattention

41.1
36.2
28.9
38.3
58.3

97.7
99.8
100.7
87.4
62.4

Collateral or Unsecured
portionguarantees, etc.
Share house claims
B
C
199.3
90.6
155.5
198.4
91.1
153.2
154.7
72.7
119.3
154.0
72.1
118.2
153.5
71.8
117.3

Total credit balance

Subtotal(Non-perfor
ming loans)

Normalassets

228.8
227.4
175.5
176.0
177.0

17.3
17.0
16.5
14.4
12.1
(Billions of yen)
Coverage
Allowance
ratio
D(B + D) / A
135.1
91.74%
133.1
91.79%
102.5
91.29%
103.7
92.36%
106.5
94.31%

A
Sep. 30, 2019
246.1
Dec. 31, 2019
244.4
Mar. 31, 2020
192.1
Jun. 30, 2020
190.4
Sep. 30, 2020
189.1
(Note1)Based on obligors of share house loans(Note2)Covered amount: Estimated amount, calculated by multiplying the covered amount including collateral, etc.
with a certain 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, 2020

(Billions of yen)
Item

Actual credit costs

Allowance

Share house-related loans

4.1

106.5

Investment property loans

2.9

55.8

Housing loans

0.0

4.5

Unsecured loans

0.1

2.6

Business financing loans, etc.

0.4

9.3

Total

7.7

178.9

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

(2) Deposits
・Deposits increased by ¥22.2 billion, or 0.7% year-on-year.
・Individual deposits increased by ¥123.3 billion, or 5.0% year-on-year.
・Yield on deposits rose by 1 basis points year-on-year to 0.04%.
(Billions of yen)Sep. 30, 2020(a)Sep. 30, 2019(b)(a) – (b)Mar. 30, 2020

Deposits (period-end balance)

3,187.1

22.2

3,164.9

3,210.8

Individual deposits

2,579.4

123.3

2,456.1

2,515.1

Deposits (average balance)

3,189.7

110.8

3,078.9

3,099.2

Deposits(period-end balance)

Yield on deposits

Individual deposits(period-end balance)(Billions of yen)
4,097.6

4,076.0
3,415.9
3,187.1
3,164.9
3,208.2
2,743.3
2,579.4
2,456.1

3,134.7

0.10%

0.09%
0.05%
0.03%

Sep.16

Sep.17

Sep.18

Sep.19Sep. 16

Sep.20Sep. 17

Sep. 18

Sep. 19(3) Net fees and commissions
・Net fees and commissions decreased by ¥1.6 billion year-on-year, mainly due to a decrease (¥0.3 billion)in fees and commissions, a decrease (¥2.0 billion) in fee and commissions payments.

Net fees and commissions(Millions of yen)
6,130

7,392

7,019

(889)

1H,FY3/17

Fees and commissions

1H,FY3/18

7,968

7,154

5,871

(1,521)Fees and commissions payments

5,900

5,038

(2,115)4,209(3,758)

1H,FY3/19−6−

1H,FY3/20

3,823(2,076)

1H,FY3/21

0.04%

Sep. 20

Suruga bank, Ltd.

(4) Individual deposit assets
・Individual deposit assets increased by ¥104.6 billion year-on-year.
・The ratio of investment products to total individual deposit assets dropped by 90 basis points year-on-year to 4.0%.
(Millions of yen)Sep. 30, 2020(a)2,683,959
2,575,551
108,407
3,918
6,568
63,655
19,91914,345

Individual 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

4.0%

104,604
123,410(18,807)(61)(1,315)(13,108)(3,476)(847)

Sep. 30, 2019(b)
2,579,355
2,452,141
127,214
3,979
7,883
76,76323,395
15,192(0.9%)

4.9%(a) - (b)Mar. 31, 2020
2,618,226
2,511,282
106,9433,857
7,195
59,88521,312
14,6934.0%

3. Management indices (Non-consolidated)(1) Interest margins
・Loan-deposit margin (after deduction of expenses) expanded by 7 basis points year-on-year to 1.79%.
・Net interest margin shrunk by 25 basis points year-on-year to 0.96%, mainly due to the decline in yield oninterest earning assets.
(%)
Six months ended
Sep. 30, 2020
(a)
3.07

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

Six months ended
Sep. 30, 2019(a) - (b)(b)(0.10)
3.17
0.07

1.72

1.74

0.96

(0.25)

1.21

1.14

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

2.29%

1.42%

1H, FY3/17

3.48%
2.31%

1.62%

1H, FY3/18

3.15

1.79

Loan-deposit margin3.49%

FY3/2020

3.31%

3.17%

3.07%

1.72%

1.79%

2.06%

1.51%

1H, FY3/19

−7−

1.21%
1H, FY3/20

0.96%
1H, FY3/21

Suruga bank, Ltd.

4. Own capital (Non-consolidated)・Capital adequacy ratio rose by 181 basis points year-on-year to 11.04%.

Non-consolidated(Millions of yen)Sep 30, 2020
11.04%
245,379
268,684
23,3042,221,267
85,552

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

Sep 30, 2019
9.23%
228,920
259,72330,802
2,479,648
95,777(Millions of yen)Sep 30, 2020
11.25%
254,520
280,446
25,9262,262,296
87,193

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）
Own capital (non-consolidated)(Billions of yen)

12.22%

295.9

Sep.1612.70%

11.04%

8.65%

9.23%

219.7

228.9

245.3

Sep.18

Sep.19Sep.20325.5

Sep.17−8−

Sep 30, 2019
9.33%
235,739
272,539
36,8002,524,020
97,552

Suruga bank, Ltd.

5. Unrealized gains (losses) on securities (Non-consolidated)
・Net unrealized gains on securities decreased by ¥2.1 billion year-on-year.
(Millions of yen)Sep. 30, 2020(a)
Available-for-salesecurities
Stocks
Bonds
Others(a) - (b)Sep. 30, 2019(b)Mar. 31, 2020

8,535

(2,197)

10,732

6,785

6,960
417
1,158

(2,341)
(286)
431

9,301
703
727

5,850
276
659

6. Earnings forecast for the fiscal year ending March 31, 2021
Consolidated

Ordinary income
Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income
Actual credit costs(Millions of yen)
Fiscal year ending
Mar. 31, 2021
(forecast)
96,0008,000
6,000(Millions of yen)
Fiscal year ending
Mar. 31, 2021
(forecast)
85,00027,00042,0007,000
5,000
20,000(Note1) The earning forecast for the fiscal year ending March 31, 2021 was calculated with thought to impacts of thecoronavirus (COVID-19) pandemic foreseeable at the present time. However, if the impacts continue for a long time,the earnings forecast may be revised, for instance, due to further increase in net credit costs. If matters to bedisclosed arise, such matters will be promptly disclosed.

(Note2) 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 increased by ¥27.6 billion year-on-year.
Non-performing loan ratio rose by 158 basis points year-on-year to 15.48%.
Outstanding balance(Millions of yen, %)Sep. 30, 2020(a)(a) - (b)(a) - (c)Mar. 31, 2020(b)

Sep. 30, 2019(c)

Claims against bankrupt andsubstantially bankrupt obligors

100,725

8,086(41,612)

92,639142,337

Claims with collection risk

118,573

37,897

19,36180,67699,212Claims for special attention

157,576(18,347)82

175,923

157,494

Total

(A)

376,875

27,637(22,169)

349,238

399,044

Total claims(B)

2,433,372(78,707)(255,731)

2,512,079

2,689,103

(A/B)

15.48

1.58

0.65

13.90

14.83

Non-performing loan ratio
Status of coverage(Millions of yen, %)Claims against
bankrupt andsubstantiallybankrupt
obligors

Claims withcollection risk

Claims for
specialattention

Total

Change from
Mar. 31, 2020

Non-performing loans(A)

100,725

118,573

157,576

376,875

27,637

Covered amount (C+D)(B)

100,725

94,70784,656

280,089

14,888Portion secured by collateralor guarantees, etc.

(C)37,42745,49742,343

125,269

6,661

Allowance for loan losses(D)

63,29849,20942,312

154,8208,227

100.00

79.87

53.72

74.31

(1.62)(E)

63,29873,076115,232

251,606

20,976

Allowance ratio for unsecured portion(D/E)

100.00

67.34

36.71

61.53

(2.03)

56,94549,427124,260

230,630

100.00

58.94

48.69

63.56

Coverage ratio (B/A)
Unsecured portion (A-C)(Reference) As of Mar. 31, 2020
Unsecured portion
Allowance ratio for unsecured portion(2) Risk-monitored loans(Millions of yen, %)Sep.30,2020(a)(a) – (b)(a) – (c)Mar.31,2020(b)

Sep.30,2019(c)Loans to bankrupt obligors

1,682

153

(1,275)

1,529

2,957

Non-accrual delinquent loans

215,533

45,552(23,006)

169,981

238,539

8,348

1,826

(854)

6,522

9,202

Restructured loans

149,227(20,173)935

169,400

148,292

Total

374,792

27,359(24,199)

347,433

398,99174.72(1.59)(7.34)

76.31

82.06

Loans past due 3 months or more

Coverage ratio−10−Suruga bank, Ltd.

8. Credit costs (Non-consolidated)
Six months ended
Sep. 30, 2020(a)(Millions of yen, %)Six months ended
Sep. 30, 2019(b)(a) - (b)Provision for general allowance for loan losses(1)(21,638)(23,277)

1,639

Disposal of non-performing loans(2)30,57525,529

5,046

770

401

369

29,20824,9274,281

Losses on sales of delinquent loans

628

228

400

Provision for allowance for contingent losses

(31)

(26)

(5)

A

1,144

854

290

(3) (=(1)+(2))

8,937

2,252

6,685

(3)- A

7,792

1,398

6,394

2,457,070(282,299)

2,739,369

Net credit costs ratio

0.72

0.24

0.48

Actual credit costs ratio

0.63

0.17

0.46

Write-off of loans
Provision for specific allowance for loan losses

Recoveries of written-off claims
Net credit costs
Actual credit costs
Loans and bills discounted (average balance)(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)

9. Dividends
・The company has decided to not pay an interim dividends.

Fiscal year ending
Mar. 31, 2021

(yen)
Fiscal year ended
Mar. 31, 2020
(result)

Annual dividend per share

5.00

5.00

Interim dividend

0.00

0.00

(Note) Annual dividend per share for the fiscal year ending March 31, 2021 is a forecast.

−11−Suruga bank, Ltd.

Ⅱ. Financial data for the six months ended September 30, 2020
1. Details of financial results (Non-consolidated)
Six months ended
Sep. 30, 2020(a)
36,871（
36,462
36,779（36,37038,458(2,087)
408
（
409
92
（
92
65
10
16
（
20,532
7,460
11,3491,721
16,33915,930Gross 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)
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(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)Net credit costs (1)+(2)(4)Recoveries of written-off claims(5)Actual credit costs (3)-(4)−12−(a) - (b)(5,547)(5,802)(5,501)(5,756)(5,450)1,682(1,734)
255
(46)
(46)
(45)
(1)
0
(1,907)26(1,637)(297)(3,640)(3,894)(Millions of yen)Six months ended
Sep. 30, 2019(b)
42,41842,264 ）42,28042,126 ）43,908(3,769)
2,142
154 ）
138
138 ）
110
11
16
- ）
22,4397,434
12,986
2,018
19,97919,82415,859(3,965)19,824(21,638)
37,977409(29,254)
1,144
(0)
8,723
92
92
8,816
3,913
705
4,619
4,196

(23,277)
19,637
255(30,302)854(5,270)(10,665)
306
315
(2)
(10,358)(2,974)
4,057
1,084(11,442)

1,639
18,340
154
1,048
290
5,270
19,388
(214)
(223)
2
19,174
6,887(3,352)
3,535
15,638(21,638)
30,575770
29,208
628
(31)
8,937
1,144
7,792

(23,277)
25,529401
24,927
228
(26)
2,252
854
1,398

1,639
5,046
369
4,281
400
(5)
6,685
290
6,394

Suruga bank, Ltd.

Details of financial results (Consolidated)
Six months ended
Sep. 30, 2020(a)
40,722
41,712(1,509)519
22,167
8,386
(0)
291
10,46070
10,531
4,005
1,045
5,051
(2)
5,482

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
Equity in gains (losses) of affiliates
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(a) - (b)(6,880)(6,069)1,117(1,927)(2,663)(134)(5,316)(1)(239)(9,639)276(9,361)(3,166)
4,314
1,149
(19)
(10,490)(Millions of yen)Six months ended
Sep. 30, 2019(b)
47,60247,781(2,626)2,446
24,830
8,520
5,316
1
530
20,099(206)
19,892
7,171(3,269)3,902
1715,972(1)Provision for general allowance for loan losses(22,258)(23,838)(2)Disposal of non-performing loans
32,01424,548
Write-off of loans
975
(121)
Provision for specific allowance for loan losses
29,10423,931
Losses on sales of delinquent loans
1,966
764
Provision for allowance for contingent losses
(31)
(26)
(3)Net credit costs (1)+(2)
9,756
710
(4)Recoveries of written-off claims
1,369
843
(5)Actual credit costs (3)-(4)
8,386
(134)
(Note) Consolidated gross profit = (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions
payments) + (Other operating income - Other operating expenses)

1,580
7,466
1,096
5,173
1,202
(5)
9,046
526
8,520

(Reference)(Millions of yen)
19,623
21,191
Consolidated net operating profit
40,814(Note) Consolidated net operating profit = Consolidated gross profit - Consolidated expenses - Consolidated provision for generalallowance for loan losses(Number of consolidated subsidiaries and affiliates)
Consolidated subsidiaries
Equity-method accounted affiliates

(1)
(1)

(Companies)
91

19,637
13,980(Millions of yen)Six months ended
Sep. 30, 2019(b)
18,34012,1218-

2. Net operating profit (Non-consolidated)
Six months ended
Sep. 30, 2020(a)
37,977
26,101

Net operating profit
Per employee (Thousands of yen)

−13−(a) - (b)Suruga bank, Ltd.

3. Interest margins (Non-consolidated)
Overall

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

(0.42)(0.09)(0.21)(0.17)
0.01(%)
Six months ended
Sep. 30, 2019
(b)
2.71
3.21
0.68
1.50
0.03

1.79

0.07

1.72

0.96

(0.25)

1.21(0.41)(0.08)(0.23)(0.15)
0.01(%)
Six months ended
Sep. 30, 2019
(b)
2.70
3.21
0.69
1.44
0.03

1.83

0.07

1.76

0.99

(0.26)

1.25

1.09(0.69)
14.66(10.96)(%)
Six months ended
Sep. 30, 2019
(b)
1.10
0.93
16.94
14.45

Six months ended
Sep. 30, 2020
(a)
2.29
3.12
0.47
1.33
0.04

(a) - (b)Domestic

Yield on interest earning assets(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)Six months ended
Sep. 30, 2020
(a)
2.29
3.13
0.46
1.29
0.04

(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, 2020
(a)
2.19
0.24
31.60
3.49

(a) - (b)5. Gains (losses) on securities (Non-consolidated)

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

Six months ended
Sep. 30, 2020
(a)
409
73
430
94
-

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

(0)
0

−14−

255
67
225
37
-

(Millions of yen)Six months ended
Sep. 30, 2019
(b)
154
6
205
57
-

(5,270)(5,439)
(117)
(52)

5,270
5,439
117
52

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

6. Capital adequacy ratio (domestic standard)
Non-consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital : instruments and reserves
Core capital : regulatory adjustments (-)
Risk-weighted assets
Total required capital(Millions of yen)Sep. 30, 2020(a)11.04%
245,379
268,684
23,3042,221,267
85,552(a) - (b)
0.76%
3,941
2,785
(1,157)(126,315)(5,022)

Consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital : instruments and reserves
Core capital : regulatory adjustments (-)
Risk-weighted assets
Total required capitalMar. 31, 2020(b)
10.28%
241,438
265,899
24,461
2,347,582
90,574(Millions of yen)Sep. 30, 2020(a)11.25%
254,520
280,446
25,9262,262,296
87,193−15−(a) - (b)
0.83%
5,292
4,028
(1,263)(128,274)(5,100)Mar. 31, 2020(b)
10.42%
249,228
276,418
27,1892,390,570
92,293

Suruga bank, Ltd.

7. Composition of own capital (domestic standard)(Millions of yen）
September 30, 2020

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 andreserves
Non-controlling interests included in Core capital subject to transitionalarrangementsCore 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, netof 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 transitionalarrangements
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

243,226

254,439

48,632
195,154561-

32,089222,911
561
379
379

-

-

25,45825,45825,58325,583

-

-

-

-

-

-

-

-

-

43

268,684

280,446

13,228

14,943

13,228

1,488
13,454

-

310

8,870
-

9,249
-

-

-

-

-

1,205

1,422

-

-

1,205
23,304

1,422
25,926245,379

254,520

2,036,657

2,046,717--

184,6092,221,267

215,578
2,262,296

11.04%--

11.25%

Suruga bank, Ltd.

Ⅲ. Status of loans, etc.
Comparison of asset disclosure by standard
Non-consolidated (As of September 30, 2020)
Classification and status of coverage by disclosure standard
Self-assessment result(by obligor classification)* Includes total claims (“Claims for special
attention” includes only loans and bills
discounted).

* Includes total claims.

Classification

Category
Creditbalance

Nonclassification

Category

Classification
Ⅱ

Classification
Ⅲ

Classification
Ⅳ

1,134

-

[537]

Bankrupt obligors
1,701
[537]
Effectively bankrupt
obligors

567

63,39535,628-99,024[62,760][62,760]

Potentiallybankrupt obligors
53,544

41,162

118,573[49,209]

Substandard
obligors
Obligors
requiring
cautionNon-performing loans based on
the Financial Reconstruction Law

23,866[49,209]-

Creditbalance
Claimsagainstbankrupt
andsubstantiallybankrupt
obligors

CollateralorAllowance
guarantees,
etc.

37,427

63,298* Includes loans andbills discounted.

Coverage
ratio

45,49749,20979.87%

118,573

Claims for
specialattention
224

190,044--

42,34342,312Category

Outstandingbalance

Loans tobankrupt
obligors

1,682

Non-accrualdelinquentloans

215,533

Loans pastdue 3 months
or more8,348

Restructured
loans

149,227

Total

374,792

100%

100,725

Claims withcollection
risk(Millions of yen)
Risk-monitoredloans

53.72%

157,576
Subtotal

190,268

125,269

154,82074.31%

376,875

Other
obligors
requiring
caution12,530896,745--909,275
Normal obligors

Normalassets2,056,496

1,114,529---

1,244,791

1,164,714

23,866[49,209][63,298]

1,114,529
Total
2,433,372[112,508]

Total
2,433,372(Note1) “Total claims” includes “Loans and bills discounted”, “Customers’ liabilities for acceptances and guarantees”, “Foreignexchanges”, “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, 2020 were as follows:(a) Non-consolidated: ¥2,711 million; (b) Consolidated: ¥2,711 million
Loans to “Potentially bankrupt obligors”, “Effectively bankrupt obligors” and “Bankrupt obligors” under self-assessment areplaced on non-accrual status.
Non-consolidated

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(Millions of yen, %)Sep. 30, 2020
(a)
1,682
215,533
8,348
149,227
374,792(a) - (b)153
45,552
1,826(20,173)
27,359(a) - (c)(1,275)(23,006)(854)
935(24,199)

Mar. 31, 2020
(b)
1,529
169,981
6,522
169,400
347,433

Sep. 30, 2019
(c)
2,957
238,5399,202
148,292
398,991

2,418,417(77,740)(253,225)

2,496,157

2,671,642

0.06
8.91
0.34
6.17
15.49

0.00
2.11
0.08
(0.61)
1.58(0.05)(0.01)
0.00
0.62
0.56

0.06
6.80
0.26
6.78
13.91

0.11
8.92
0.34
5.55
14.93

Consolidated

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(Millions of yen, %)Sep. 30, 2020
(a)
2,237
220,554
8,348
149,227
380,368(a) - (b)(1,922)44,5001,826(20,173)
24,232(a) - (c)(1,528)(25,826)(854)
935(27,272)

Mar. 31, 2020
(b)
4,159
176,0546,522
169,400
356,136

Sep. 30, 2019
(c)
3,765
246,380
9,202
148,292
407,640

2,423,322(79,516)(254,364)

2,502,838

2,677,686

0.09
9.10
0.34
6.15
15.69

(0.07)
2.07
0.08(0.61)
1.47(0.05)(0.10)
0.00
0.62
0.47

0.16
7.03
0.26
6.76
14.22

0.14
9.20
0.34
5.53
15.22

−18−

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, 2020(a)374,792
125,236
154,844
41.31
74.72

(a) - (b)27,3596,648
8,291(0.87)(1.59)(a) - (c)(24,199)(28,507)(18,862)(2.22)(7.34)(Millions of yen, %)Mar. 31, 2020
Sep. 30, 2019(b)(c)
398,991
347,433
153,743
118,588
173,706
146,553
43.53
42.18
82.06
76.31

(a) - (c)(27,272)(29,560)(21,013)(2.39)(7.41)(Millions of yen, %)Mar. 31, 2020
Sep. 30, 2019(b)(c)
407,640
356,136
156,173
120,588
178,405
151,629
43.76
42.57
82.07
76.43

(a) - (c)(23,409)(17,328)(6,081)(Millions of yen)Mar. 31, 2020
Sep. 30, 2019(b)(c)
202,342
174,146
83,75388,063
118,589
86,083(a) - (c)(26,046)(17,971)(8,075)(Millions of yen)Mar. 31, 2020
Sep. 30, 2019(b)(c)
212,138
183,979
88,162
92,450123,975
91,529(a) - (c)Mar. 31, 2020(b)(Millions of yen)Sep. 30, 2019(c)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, 2020(a)
380,368
126,613
157,392
41.37
74.66

(a) - (b)24,232
6,025
5,763(1.20)(1.77)

3. Allowance for loan losses
Non-consolidated

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

Sep. 30, 2020(a)
178,933
66,425112,508(a) - (b)4,787
(21,638)
26,425

Consolidated

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

Sep. 30, 2020(a)
186,092
70,191
115,900(a) - (b)2,113
(22,259)
24,371

4. Non-performing loans based on the Financial Reconstruction Law
Non-consolidated
Sep. 30, 2020(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total

(A)

(a) - (b)100,725

8,086(41,612)

92,639142,337

118,573
157,576
376,875

37,897(18,347)
27,637

19,361
82(22,169)

80,676
175,923
349,238

99,212
157,494
399,044

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, 2020(a)
280,089
154,820
125,269(a) - (b)14,8888,227
6,661(a) - (c)(47,414)(18,920)(28,494)

(B/A)

74.31

(1.62)(7.76)−19−(Millions of yen, %)Mar. 31, 2020
Sep. 30, 2019(b)(c)
327,503265,201
173,740
146,593
153,763
118,608
75.93

82.07

Suruga bank, Ltd.

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry (Non-consolidated)
Sep. 30, 2020(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(Millions of yen)(a) - (b)(a) - (c)Mar. 31, 2020(b)

Sep. 30, 2019(c)

2,418,417(77,740)(253,225)

2,496,157

2,671,642

41,6554,341
4
251
11,404179
1,163
14,56229,75920,13839,42930,1896,519
2,218,814

3,670
(75)
(3)
2
(883)
47
(13)
647
(930)
(170)
12,001
2,992
2,349(97,375)

4,319
(230)
4
(4)
2,656
(877)
(62)
4,733
(1,844)(7,124)(14,306)
2,509
2,893
(245,891)

37,9854,416
7249
12,287132
1,176
13,91530,68920,30827,42827,1974,170
2,316,189

37,336
4,571
0
255
8,748
1,056
1,225
9,829
31,60327,26253,73527,6803,626
2,464,705(2) Breakdown of risk-monitored loans by industry (Non-consolidated)
Sep. 30, 2020(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)(Millions of yen)(a) - (c)Mar. 31, 2020(b)

Sep. 30, 2019(c)374,792

27,359(24,199)

347,433

398,991

6,927
850
4
121
4
6,137
800
139
1,161
358,646

(273)
(3)
0
(2)
0
(168)
330
0
(728)
28,204

5,486
(269)
0
(29)
(76)
4,054
(6,079)(36,890)(527)
10,132

7,200
853
4
123
4
6,305
470
139
1,889
330,442

1,441
1,119
4
150
80
2,083
6,879
37,0291,688
348,514(Note)”Others” includes real estate financing for rent to individuals.

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Suruga bank, Ltd.

(3) Consumer loans (Non-consolidated)

Consumer loans
Housing loans
Other loans(Millions of yen)Sep. 30, 2020(a)2,210,878
522,778
1,688,100(a) - (b)(96,138)(28,609)(67,529)(a) - (c)(244,605)(59,270)(185,334)

Mar. 31, 2020(b)
2,307,016
551,387
1,755,629

Sep. 30, 2019(c)
2,455,483
582,048
1,873,434(4) The ratio of loans to small- and medium-sized enterprises, etc. (Non-consolidated)
Sep. 30, 2020(a)
The ratio of loans to small- andmedium-sized enterprises, etc.

97.57(a) - (b)(%)(a) - (c)(0.35)(0.89)

Mar. 31, 2020(b)

Sep. 30, 2019
(c)

97.92

98.46

(Note)“Loans to small- and medium-sized enterprises” includes consumer loans which comprise 91.41% 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)

Deposits
Loans

period-end balance
average balance
period-end balance
average balance

Sep. 30, 2020(a)
3,187,132
3,189,765
2,418,417
2,457,070(a) - (b)(23,691)
90,473(77,740)(207,694)(a) - (c)22,191
110,766(253,225)(282,299)

Mar. 31, 2020(b)
3,210,823
3,099,292
2,496,157
2,664,764

Sep. 30, 2019(c)
3,164,941
3,078,999
2,671,642
2,739,369

9. Number of branches (Non-consolidated)(Branches)

Number of branches

Sep. 30, 2020
(a)
126

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(a) - (b)(a) - (c)(4)(4)

Mar. 31, 2020(b)
130

Sep. 30, 2019(c)130

Suruga bank, Ltd.

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Non-consolidated
Sep. 30, 2020
Fair
value
Available-for-sale
193,730
securities
Stocks
15,235
Bonds
116,584
Others61,910Net unrealized gains(losses)

Gains

LossesFair
value

Mar. 31, 2020
Net unrealized gains(losses)
Gains Losses(Millions of yen)Sep. 30, 2019
Fair
value

Net unrealized gains(losses)

Gains

Losses

8,535

8,948

412 118,691

6,785

7,386

600 113,579 10,732 11,167

435

6,960
417
1,158

7,172
458
1,316

212 14,125
41 103,146
158
1,419

5,850
276
659

6,193
368
824

343
92
165

294
2
138

17,577
94,509
1,493

9,301
703
727

9,596
705
865

(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.
(Millions of yen)Sep. 30, 2019

Consolidated
Sep. 30, 2020
Fair
value

Net unrealized gains (losses)

Mar. 31, 2020
Fair
value

Gains Losses
Available-for-sale
196,874 11,459 11,871
412 121,297
securities
Stocks
16,102 7,730 7,943
212 14,844
Bonds
116,584417
458
41 103,146
Others64,187 3,311 3,469
158
3,306

Net unrealized gains (losses)

Gains

LossesFairvalue

Net unrealized gains (losses)

Gains

Losses

9,171

9,772

600 116,261 13,192 13,627

435

6,472
276
2,422

6,816
368
2,587

343
92
165

294
2
138

18,261
94,5093,491

9,888 10,182703
705
2,600 2,738(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(Millions of yen)Six months ended
Six months ended
Sep. 30, 2020
Sep. 30, 2019
Service cost
247
253
Interest cost
51
52
Expected returns on plan assets
(400)
(439)
Amortization of unrecognized net actuarial gains (losses)
(48)
(438)
Others (non-recurring extra retirement payments, etc.) (Note)107
107
Retirement benefit expenses
(40)
(464)
(Note) “Others (non-recurring extra retirement payments, etc.)” includes the contribution to a defined contribution pension plan.
Consolidated(Millions of yen)Six months ended
Six months ended
Sep. 30, 2020
Sep. 30, 2019
Service cost (Note1)
267
264Interest cost
51
52
Expected returns on plan assets
(400)
(439)
Amortization of unrecognized net actuarial gains (losses)
(48)
(438)
Others (non-recurring extra retirement payments, etc.) (Note2)
103
113
Retirement benefit expenses
(25)
(446)
(Note1) Retirement benefit expenses of consolidated subsidiaries adopting a simplified method are included in “Service cost”.
(Note2) “Others (non-recurring extra retirement payments, etc.)” includes the contribution to a defined contribution pension plan.

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