August 4, 2014

SURUGA Bank LTD.
Consolidated Financial Results for First Quarter of Fiscal Year Ending March 31, 2015
<under Japanese GAAP>
Stock Exchange:
URL:
Representative:

Tokyo (code: 8358)
http://www.surugabank.co.jp
President Mitsuyoshi Okano(Japanese yen amounts of less than one million and the first decimal place have been rounded down.)

1. Consolidated Financial Results (for the three months ended June 30, 2014)(1) Operating Results(Unit: Millions of Yen, %: Changes from corresponding period of the previous fiscal year)

Ordinary Income

Ordinary Profit

Net Income

First Quarter
Ended June 30, 2014

30,536

5.6%

11,435

13.4%

6,936

12.8%

Ended June 30, 2013

28,8988.0%

10,083

42.0%

6,148

45.3%

(Note1) Comprehensive Income: First quarter ended June 30, 2014:\8,433 million (22.0%); First quarter ended June 30, 2013:\6,911 million (159.2%)(Note2) Percentages shown in Ordinary Income, Ordinary Profit and Net Income and Comprehensive Income are the increase (decrease) from the same period
pervious year.

Net Income per ShareNet Income per Share(Diluted)

First Quarter
Ended June 30, 2014\29.31\29.27

Ended June 30, 2013\26.03\25.99(2) Financial Position(Unit: Millions of Yen, except percentages)
Total Assets

Total Net Assets

Own Capital Ratio

June 30, 2014

4,107,035

256,078

6.1%

March 31, 2014

4,098,552

251,816

6.0%(Reference) Own Capital: June 30, 2014: \253,882 million; March 31, 2014: \249,595 million(Note) Own Capital Ratio = (Total Net Assets – Subscription Rights to Shares – Minority Interests) / Total Assets * 100

2. Dividend on Common Stock
Annual Cash Dividends par Sharestnd

1 Quarter-End

2 Quarter-End

3rd Quarter-EndFiscal Year-End

Fiscal year ended March 31, 2014―\7.50―\9.50\17.00Fiscal year ending March 31, 2015
Fiscal year ending March 31, 2015
(Forecasts)―\8.50―\8.50\17.00Total(Note) Revision of forecasts for dividends for quarter in review: No

3. Earnings Forecasts (for the fiscal year ending March 31, 2015)

Six months
Ending September 30, 2014
Fiscal year
Ending March 31, 2015

(Unit: Millions of Yen, except per share data)
Net Income perNet Income
Share

Ordinary Income

Ordinary Profit

61,5004.8%

22,7001.3%

14,0001.1%\59.15124,000

2.2%

46,000△0.2%

28,6003.5%\120.85(Note1) Percentages shown in Ordinary Income, Ordinary Profit and Net Income are the increase (decrease) from the same period pervious year.
(Note2) Revision of earnings forecasts for quarter in review: No※Note(1) Changes in the scope of consolidated significant subsidiaries during the three months ended June 30, 2014: No(2) Adoption of simplified accounting methods for the preparation of quarterly consolidated financial statements: Yes
Note: For details, please refer to the “Adoption of particular accounting methods for quarterly consolidated financial statements” in the section 2. Items
regarding summary information (notes) on page 3.

(3) Changes in accounting standards, accounting estimates, and restatements.
(A) Changes due to revision of accounting standards:

Yes(B) Changes due to reasons other than (A):No

(C) Changes in accounting estimates:

No(D) Restatements:

No

Note: For details, please refer to the “Adoption of particular accounting methods for quarterly consolidated financial statements” in the section 3. Items
regarding summary information (notes) on page 3.

(4) Number of common shares issued at the end of period(A) Number of stocks issued (including treasury stocks):

June 30, 2014

258,139,248 shares

March 31, 2014

(B) Number of treasury stocks:

June 30, 2014

21,487,975 shares

March 31, 2014

258,139,248 shares
21,557,594 shares(C) Average outstanding stocks for the three months ended:

June 30, 2014

236,621,683 shares

June 30, 2013

236,145,199 shares（Statement relating to the status of the quarterly review procedures）
This quarterly report is not subject to the quarterly review procedures, which are based on the Financial Instruments and Exchange Law.
The audit procedures are not finished at the time of release of these financial statements.

(Notes for using forecasts information etc,)
The description of future performance of this report is based on information, which is presently available and certain assumptions which are considered to bereasonable, and it does not guarantee future performance. Please take note that future performance may differ from forecasts. Regarding the assumptions forfinancial forecasts of this report, please refer to P2 of attached documents.

SURUGA bank LTD.

[Attachment]○ Contents of the attachment

１．Qualitative information.............................................................................................................................................................. 2(1) Description of business performance ....................................................................................................................... 2(2) Description of financial position .................................................................................................................................. 2(3) Description of forward-looking information such as consolidated earnings forecast ........................ 2
２． Items regarding summary information (notes)............................................................................................................. 3(1) Changes in the scope of consolidated significant subsidiaries during the three months
ended June 30, 2014 ......................................................................................................................................................... 3(2) Adoption of particular accounting methods for quarterly consolidated financial statements ........ 3(3) Changes in accounting standards, accounting estimates, and restatements ........................................ 3
３． Quarterly consolidated financial statements ............................................................................................................... 4(1) Quarterly consolidated balance sheets.................................................................................................................... 4(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income..................................................................................................................................................... 5(3) Explanatory notes regarding the going concern assumption ......................................................................... 7(4) Note for Material Changes in Shareholders’ Equity.......................................................................................... 71SURUGA bank LTD.

１．Qualitative information(1) Description of business performanceWith regard to the profit and loss situation on a consolidated basis ordinary income was up ¥1.638
billion from the same period of the previous year to ¥30.536 billion owing to factors such as gains fromincrease in interest on loans and discounts.
Ordinary expenses totaled ¥19.101 billion, up ¥287 million year-on-year owing to factors such asincrease in Interest on deposits and Fees and commissions payments.
As a result, ordinary profit increased ¥1.352 billion from a year earlier to ¥11.435 billion.
Net income during the period performed a year-on-year increase of ¥788 million to ¥6.936 billion.
(2) Description of financial position
With regard to our main accounts on a consolidated basis at the end of the period, balance of deposits
was up ¥12.629 billion to ¥3.822287 trillion from the end of the previous fiscal year, as the balance ofindividual deposits grew ¥ 59.282 billion.
Balance of loans and bills discounted totaled ¥2.88672 trillion, up ¥ 7.979 billion from the same periodof the previous year as the personal loan balance (non-consolidated) increased ¥29,126 billion.
Balance of securities totaled ¥224.030 billion, down ¥5.140 billion compared to the end of the previous
fiscal year.
(3) Description of forward-looking information such as consolidated earnings forecast
There is no change in forecasts for the year ending March 31, 2015 from the figures published on May 8, 2014.
Consolidated
Millions of Yen
Six month ending
September 30, 2014

Fiscal year ending
March 31, 2015

Ordinary income

61,500124,000

Ordinary profit

22,70046,000Net income

14,00028,600Non-consolidated
Six month ending
September 30, 2014

Fiscal year ending
March 31, 2015

Ordinary income

57,500116,000

Net business profit24,000

48,500Ordinary profit

22,50045,500Net income

14,00028,500500

1,000

Credit-related expenses in real terms(Note) The earnings forecast was created based on the information available as of the date of this announcement and actual
results may differ from the forecast figures owing to various factors in the future.

2

SURUGA bank LTD.

2. Items regarding summary information (notes)(1) Changes in the scope of consolidated significant subsidiaries during the three months ended June 30,2014
There is no applicable item.
(2) Adoption of particular accounting methods for quarterly consolidated financial statements
The Company calculates tax expenses for the Company and its consolidated subsidiaries bymultiplying a reasonably estimated effective tax rate by net income before taxes for the currentquarter.
(3) Changes in accounting standards, accounting estimates, and restatements
Suruga Bank has adopted the main clause of Article 35 of the accounting standard for retirement
benefits (ASBJ Statement No. 26, May 17, 2012, hereinafter referred to as the "Retirement Benefits
Statement") and the main clause of Article 67 of the guidance on accounting standard for retirement
benefits (ASBJ Guidance No.25, May 17, 2012) from first quarter ended June 30, 2014. Accordingly thecalculation methods of Retirement benefit obligations and Service cost were reconsidered. The
method for attributing the expected benefit obligations was changed from the straight-line basis to abenefit formula basis. The method of determining the discount rate applied in the calculation ofprojected benefit obligation was changed from the method using the number of year approximate to
the employees’ average remaining service period to the method using the single weighted average
discount rate that reflects the estimated period and amount of benefit payment in each period.
The Retirement Benefits Standard and other standards were applied in accordance with thetransitional treatment set forth in Article 37 of the Retirement Benefits Statement, and the effect of
the change in the calculation methods of retirement benefit obligations and service cost were added
to or deducted from Retained earnings at the beginning of first quarter ended June 30, 2014.
As a result, Net defined benefit asset decreased by \3.158 billion, Retained earnings decreased by\2.046 billion as of the beginning of the three months ended June 30, 2014. In addition, both Ordinary
profit and Income before income taxes increased by \6 million at first quarter ended June 30, 2014.

3

SURUGA bank LTD.

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets
Millions of Yen

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 bonus
Provision for directors' bonus
Net defined benefit liability
Provision for directors’ retirement benefits
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equityValuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

4

As of Mar. 31, 2014

As of Jun. 30, 2014

700,543
183,295
39
905
218,8902,878,723
3,858
5,558
39,58048,97130,995
5,268
3,222
4,108
△25,410
4,098,552

746,349
137,36744
1,054
224,030
2,886,702
3,036
5,311
39,34348,78330,669
2,331
3,549
3,954
△25,494
4,107,035

3,809,658
2,805
5
25,189
667
140
278
2,902
282
523
174
4,108
3,846,735

3,822,287
2,600
49
17,972
15
―
237
2,949
243
482
165
3,954
3,850,957

30,043
20,278203,340△16,626
237,035
10,955△13
1,617
12,560406
1,813
251,816
4,098,552

30,043
20,380205,982△16,581239,824
12,546△41
1,553
14,058381
1,813
256,078
4,107,035

SURUGA bank LTD.

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensiveincome
Millions of Yen

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 noncurrent assets
Extraordinary loss
Loss on disposal of noncurrent assets
Income before income taxes and minority interests
Total income taxes
Income before minority interests
Loss attributable to minority interests
Interim net income

5Three months ended
Jun. 30, 2013

Three months ended
Jun. 30, 2014

28,89824,44923,395
857
3,050
1,022
376
18,814
809
793
3,102
1,120
11,624
2,156
10,08351
51
26
26
10,109
3,969
6,139
△8
6,148

30,53626,09525,395
456
3,072
988
380
19,101
957
946
3,474
823
12,4291,416
11,43500551
551
10,883
3,959
6,923△126,936

SURUGA bank LTD.

Quarterly consolidated statements of comprehensive income
Millions of Yen

Three months ended
Jun. 30, 2013

Three months endedJun. 30, 2014

6,139

6,923

Valuation difference on available-for-sale securities

754

1,603

Deferred gains or losses on hedges

17

△28

Remeasurements of defined benefit plans―△64771

1,510

6,911

8,433

6,910

8,434

1

△0

Income before minority interests
Other comprehensive income

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

6SURUGA bank LTD.

(3) Explanatory notes regarding the going concern assumption
There is no applicable item.

(4) Note for Material Changes in Shareholders’ Equity
There is no applicable item.

7

SURUGA bank LTD.

（Reference data）【Non-consolidated】(1) Interest margin
All operations（％）

Three months ended
Jun. 30, 2014(a)
Yield on outstanding loans
Yield on deposits
Loan – deposit margin
Loan – deposit marginA
BA-B(after deduction from expense ratio)

Net interest margin(a) – (b)Three months ended
Jun. 30, 2013

3.44
0.10
3.34

0.12
0.01
0.11

3.32
0.09
3.23

3.38
0.09
3.29

2.09

0.10

1.99

2.06

1.24△0.26

1.50

1.31

Domestic operations（％）

Three months ended
Jun. 30, 2014(a)
Yield on outstanding loans
Yield on deposits
Loan – deposit margin
Loan – deposit margin

March. 31, 2013

(b)

AB
A-B

(after deduction from expense ratio)

Net interest margin(a) – (b)Three months ended
Jun. 30, 2013

March. 31, 2013

(b)

3.45
0.09
3.36

0.10
0.01
0.09

3.35
0.08
3.27

3.40
0.09
3.31

2.11

0.11

2.00

2.08

1.28

△0.27

1.55

1.35

(2) OHR（％）

Three months ended
Jun. 30, 2014(a)
OHR50.0(a) – (b)Three months ended
Jun. 30, 2013

March. 31, 2013

(b)

1.2

48.8

(3) The capital adequacy ratio

47.6
（％）

As of Jun. 30,2015(a) – (b)(a)
The capital adequacy ratio(Domestic standard)

11.62

As of Jun. 30,2014

（ｂ）

0.52

11.10

March. 31, 2013

11.42

The capital adequacy ratio has been calculated based on the new domestic standard from the fiscal year ended March 31, 2014.

(4)ROE， ROA（％）

Three months ended
Jun. 30, 2014(a)
ROEROA

Three months ended
Jun. 30, 2013(a) – (b)
11.86
0.67

△0.03
0.01

＊ROE: Net income per average own capital
ROA: Net income per average total assets

8March. 31, 2013(b)
11.89
0.66

13.22
0.72