August 9, 2018

SURUGA bank, Ltd.
Consolidated financial results for the three months ended June 30, 2018
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Akihiro Yoneyama, President(Amounts and percentages are rounded down to the nearest million yen and first decimal place, respectively.)

1. Consolidated financial results for the three months ended June 30, 2018
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Three months ended
June 30, 2018
June 30, 2017

Millions of yen%

35,26837,953

Profit attributableto owners of parent

Ordinary profit
Millions of yen

(7.0)
8.8

%

4,727
15,701Millions of yen(69.8)
19.7

3,160
10,731%(70.5)
20.5(Note) Comprehensive income: (a) Three months ended June 30, 2018: ¥4,830 million [(62.8)%](b) Three months ended June 30, 2017: ¥13,002 million [200.5%]

Earnings per share
Three months ended
June 30, 2018
June 30, 2017

Earnings per share (diluted)
yen

yen

13.64
46.33

13.64
46.32

(2) Consolidated financial position
Total assets
As ofJune 30, 2018
March 31, 2018

Total net assets

Net assets ratio

Millions of yen

Millions of yen

4,236,521
4,461,576

347,178
344,763

%

8.1
7.6

(Reference) Shareholders’ equity: (a) As of June 30, 2018: ¥345,103 million; (b) As of March 31, 2018: ¥342,667 million(Note) Net assets ratio = {(Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets} × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

2. Dividends on common stock
Dividends per share
1 quarter-end 2 quarter-end 3rd quarter-end Fiscal year-end
stFiscal year
ended March 31, 2018
ending March 31, 2019
ending March 31, 2019 (forecast)

nd

yen

yen

―
―

yen

yen

Total
yen

10.50

―

10.50

21.00

10.50

―

10.50

21.00

(Note) Revision of dividend forecast from the latest announcement: No

3. Consolidated earnings forecast for the fiscal year ending March 31, 2019(% represents the change from the same period in the previous fiscal year)

Profit attributableto owners of parent

Ordinary profit
Millions of yen

First half
Full year

17,00036,500%(45.4)
246.7

Millions of yen

12,00025,000Earnings per share%(43.3)
257.7

yen

51.80
107.92(Note) Revision of earnings forecast from the latest announcement: No
With regard to the earnings forecast for the fiscal year ending March 31, 2019, the Company is currently considering the
expansion of the scope and other matters in self-assessment of loans and bills discounted. The Company may, accordingly,
revise the earnings forecast in the future. In the event the decision is made to revise the earnings forecast, the revised forecast
will be disclosed promptly.
For details, please refer to page 2 of the appendix “1. Qualitative information on financial results, (3) Details of forecast
information, including earnings forecast”.

(Notes)(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of
consolidation): No(2) Adoption of any particular accounting methods for quarterly consolidated financial statements: Yes
Note: For details, please refer to page 6 of the appendix “2. Consolidated financial statements and notes, (3) Notes regarding
consolidated financial statements, (Adoption of any particular accounting methods for quarterly consolidated financial
statements)”.
(3) 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(4) Number of issued shares (common stock)(A) Number of issued shares
As of June 30, 2018
(including treasury shares):232,139,248 shares

As of March 31, 2018

232,139,248 shares(B) Number of treasury shares:

As of June 30, 2018

487,634 shares

As of March 31, 2018507,295 shares(C) Average number of shares:Three months ended
June 30, 2018

231,640,874 shares

Three months ended
June 30, 2017

231,612,301 shares(Note) This report is outside the scope of the external auditor’s quarterly review procedure.
(Note) Explanation on appropriate use of forecast and other special items
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 results ...........................................................................................2(1) Details of operating results.............................................................................................................2(2) Details of financial position ...........................................................................................................2(3) Details of forecast information, including 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) Notes regarding consolidated financial statements.......................................................................6(Notes on going-concern assumption).............................................................................................6(Notes for material changes in shareholders’ equity)......................................................................6(Adoption of any particular accounting methods for quarterly consolidated financial statements) ...........6(Changes in accounting policies, changes in accounting estimates and restatements) .................6* Financial results for the three months ended June 30, 2018 supplementary information.....................7-1-

SURUGA bank, Ltd.

1. Qualitative information on financial results(1) Details of operating results
As for the consolidated operating results for the three months ended June 30, 2018, ordinary
income decreased by ¥2.685 billion year-on-year to ¥35.268 billion. This was primarily due to thedecline in interest income reflecting the drop in interest on loans and bills discounted. Meanwhile,
ordinary expenses increased by ¥8.289 billion year-on-year to ¥30.540 billion, mainly due to the risein net credit costs, including provision for allowance for loan losses, given the review of anassessment regarding the recoverable amount on loans and bills discounted, following the ongoing
consultations with customers in April 2018 and onward in respect of share house-related loans.
As a result, ordinary profit decreased by ¥10.974 billion year-on-year to ¥4.727 billion.
Profit attributable to owners of parent decreased by ¥7.571 billion year-on-year to ¥3.160 billion.

(2) Details of financial position
As for the consolidated major account balances as of June 30, 2018, deposits amounted to¥3,863.549 billion, down by ¥216.423 billion from March 31, 2018, mainly due to a decrease of¥148.658 billion in individual deposits.
Loans and bills discounted came in at ¥3,155.563 billion, down by ¥92.596 billion from March 31,
2018, mainly due to a decrease of ¥68.607 billion in consumer loans (non-consolidated).
Securities amounted to ¥153.284 billion, up by ¥21.747 billion from March 31, 2018.

(3) Details of forecast information, including earnings forecast
The earnings forecast for the fiscal year ending March 31, 2019 remains unchanged from thatannounced on June 6, 2018.
The Company is considering the expansion of the scope and other matters in self-assessment ofloans and bills discounted as of September 30, 2018, in addition to the review of an assessment
regarding the recoverable amount on loans and bills discounted, following the ongoing consultations
with customers who have been granted loans for investment in share houses, etc. The company may,accordingly, revise the earnings forecast in the future, mainly due to an additional provision forallowance for loan losses. In the event the decision is made to revise the earnings forecast, therevised forecast will be disclosed promptly.
Consolidated

Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Net operating profit
Ordinary profit
Net income
Actual credit costs(Billions of yen)
Fiscal year ending
March 31, 2019
(Forecast)First half Full year
17.0
36.5
12.0

25.0

(Billions of yen)
Fiscal year ending
March 31, 2019
(Forecast)First half Full year
22.0
45.0
16.5
35.0
11.5
24.0
9.5

19.0

(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 bereasonable, 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
As ofMarch 31, 2018
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
Provision for directors' 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
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets-3-（Millions of yen）
As of
June 30, 2018

973,397
2,141
86
1,571
131,537
3,248,159
2,514
5,995
65,07652,12027,111
10,50916,6952,877(78,218)
4,461,576

831,295
1,706
136
489
153,284
3,155,563
3,146
6,237
63,701
51,745
26,587
10,823
16,054
2,746(86,997)
4,236,521

4,079,972
1,085
23
28,300
699
182
265
2,507
365
137
396
2,877
4,116,813

3,863,549
1,545
32
17,584
31
86
263
2,564
335
137
466
2,746
3,889,343

30,043489
292,841(582)
322,791
18,489(15)
1,402
19,876
172,078
344,763
4,461,576

30,043
488
293,569(560)
323,541
20,232(15)
1,345
21,56212
2,063
347,178
4,236,521

SURUGA bank, Ltd.

(2) Consolidated statements of income andConsolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the three months For the three months
ended
ended
June 30, 2017
June 30, 2018
37,95335,26832,27330,43630,85829,466
1,082
750
3,368
3,105
946
1,041
1,363
684
22,25130,540
1,005
654
948
576
3,771
3,920
814
775
13,36013,1783,299
12,011
15,701
4,727
1
0
1
0
142
88
142
88
15,560
4,639
4,745
1,467
10,8153,171
84
10
10,731
3,160

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
Extraordinary losses
Losses on disposal of non-current assets
Income before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-4-

SURUGA bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）
For the three months For the three months
ended
ended
June 30, 2017
June 30, 2018
10,815
3,171

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-

1,977
(10)
220
2,187
13,002

1,716
(0)
(57)
1,659
4,830

12,874
128

4,845
(15)

SURUGA bank, Ltd.

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

(Notes for material changes in shareholders’ equity)
Not applicable.

(Adoption of any particular accounting methods for quarterly consolidated financial
statements)(Calculation of income taxes)
Income taxes reported by the company and its subsidiaries are calculated by multiplying income
before income taxes for the three months ended June 30, 2018 with the reasonably estimatedeffective tax rate after applying tax effect accounting to income before income taxes for the fiscal
year ending March 31, 2019, including the current first quarter.

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

-6-

SURUGA bank, Ltd.

Financial Results for the three months ended June 30, 2018
- Supplementary Information (1) Operating results for the three months ended June 30, 2018 (Non-consolidated)(Millions of yen)

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income(Gains (losses) on bonds)
Core gross operating profit (Note1)
Expenses
Personnel expenses
Non-personnel expenses
Core net operating profit (Note2)
Actual net operating profit (Note3)
Provision for general allowance forloan losses
Net operating profit
Non-recurring gains (losses)
Gains (losses) on stocks
Ordinary profit
Extraordinary gains (losses)
Income before income taxes
Income taxes (Note4)
Net income
Net credit costs (Note5)
Provision for general allowance
for loan losses
Disposal of non-performing loans
Recoveries on written-off claims
Actual credit costs (Note6)

Three months ended
June 30, 2018 June 30, 2017(a)(b)
26,42928,23927,63529,062(1,360)
(842)
154
19
141
4
26,28728,23512,087
12,258
4,320
4,577
6,686
6,427
14,20015,976
14,342
15,980(a) - (b)FY3/2018(1,810)(1,427)
(518)
135
137
(1,948)
(171)
(257)
259
(1,776)(1,638)115,171
118,336(3,507)
342
281
114,890
46,742
17,77725,07868,14868,429(1,478)76(1,554)46,49915,820(11,319)
207
4,500
(88)
4,411
1,367
3,043

15,904(978)857
14,926(139)
14,787
4,539
10,247(84)(10,341)(650)(10,426)51(10,376)(3,172)(7,204)

10,470

1,644

8,826

21,930(13,258)
5,454
8,670
(414)
8,256
3,032
5,223
(Millions of yen)
65,363(1,478)76(1,554)46,49911,948266
10,203

1,568
263
1,381

10,3803
8,822

18,864
1,346
64,016(Note1) Core gross operating profit = Gross operating profit - 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 amount of Income taxes for the fiscal year ended March 31, 2018 is that of Total income taxes.
(Note5) Net credit costs = Provision for general allowance for loan losses + Disposal of non-performing loans(Note6) Actual credit costs = Net credit costs - Recoveries on written-off claims-7-

SURUGA bank, Ltd.

(A) Gross operating profit： ¥26.4 billion･Net interest income decreased by ¥1.4 billion year-on-year, mainly due to a decrease ininterest on loans and bills discounted.
･Yen loan-deposit income decreased by ¥1.0 billion year-on-year.
･Core gross operating profit decreased by ¥1.9 billion year-on-year, mainly due to a decrease in
net interest income.
･Gross operating profit decreased by ¥1.8 billion year-on-year.

24.0(Billions of yen) Yen loan-deposit income

Net interest income(Billions of yen)

27.9

29.0

27.3

27.6

1Q,
1Q,
1Q,
1Q,
1Q,
FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

23.3

24.9

26.6

27.7

26.6

1Q,
FY3/151Q,
FY3/161Q,
FY3/171Q,
FY3/181Q,
FY3/19(B) Expenses; OHR: 45.7%･Expenses decreased by ¥0.1 billion year-on-year.
･OHR rose year-on-year to 45.7%, mainly due to a decrease in gross operating profit,
despite a decrease in expenses.
(OHR(%) = Expenses / Gross operating profit × 100)
(Billions of yen)

Gross operating profit

50.0%
23.4

11.7

1Q, FY3/15

46.6%

43.2%
27.1

11.7

1Q, FY3/16

OHR

Expenses

26.5

12.3

1Q, FY3/17

43.4%
28.2

12.2

1Q, FY3/18

45.7%
26.4

12.0

1Q, FY3/19(C) Core net operating profit: ¥14.2 billion, Net operating profit: ¥15.8 billion･Core net operating profit decreased by ¥1.7 billion year-on-year, mainly due to a decrease in
net interest income.
･Net operating profit remained essentially flat year-on-year, mainly due to a decrease inprovision for general allowance for loan losses, despite a decrease in gross operating profit.
(Billions of yen)Core net operating profit

Net operating profit

11.6 11.8

15.1

15.4

14.3 14.2

15.9

1Q, FY3/15

1Q, FY3/16

1Q, FY3/17

1Q, FY3/18

15.9

14.2

15.8

1Q, FY3/19(D) Ordinary profit: ¥4.5 billion, Net income: ¥3.0 billion･Ordinary profit decreased by ¥10.4 billion year-on-year, mainly due to an increase in
net credit costs.
･Net income decreased by ¥7.2 billion year-on-year, mainly due to a decrease in ordinary profit.
(E) Actual credit costs: ¥10.2 billion･Net credit costs increased by ¥8.8 billion year-on-year, mainly due to an increase of ¥10.3 billion
in disposal of non-performing loans, despite a decrease of ¥1.5 billion in provision forgeneral allowance for loan losses.
･Actual credit costs, calculated as net credit costs (¥10.4 billion) minus the amount ofrecoveries on written-off claims (¥0.2 billion) amounted to ¥10.2 billion.

-8-

SURUGA bank, Ltd.

(2) Loans and deposits (Non-consolidated)(A) Loans and bills discounted･Loans and bills discounted (period-end balance) decreased by ¥93.5 billion year-on-year.
･Yield on loans and bills discounted (overall) dropped by 12 basis points year-on-year to 3.45%.
(Millions of yen）

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

June 30, 2018(a)(a) - (b)(a - b)/ (b)June 30, 2017(b)

March 31, 2018

3,150,480(93,523)(2.8)%

3,244,003

3,245,9782,857,384
2,593,318
264,066(74,474)(76,571)
2,097(2.5)%(2.8)%
0.8%

2,931,858
2,669,889
261,969

2,925,991
2,654,576
271,414

3,172,465(42,928)(1.3)%

3,215,393

3,229,776(Billions of yen)Three months ended
June 30, 2018
16.2

New consumer loans

FY3/2018
353.3(Reference) Business alliance with Japan Post Bank(Billions of yen)Three months ended
FY3/2018
June 30, 2018
New housing loans
6.1
35.6
Loans and bills discounted (period-end balance)
Consumer loans (period-end balance)(Billions of yen)
3,244.0
3,150.4
3,133.8
2,989.3
2,885.9
2,931.8
2,857.3
2,800.2
2,622.6
2,499.6

June 14June 15

June 16

June 17

June 18

Yield on loans and bills discounted(overall)
3.44%

3.52%

3.58%

3.57%

3.45%

1Q,
1Q,
1Q,
1Q,
1Q,
FY3/15 FY3/16 FY3/17 FY3/18 FY3/19(B) Deposits･Deposits (period-end balance) decreased by ¥200.2 billion year-on-year.
･Yield on deposits (overall) dropped by 4 basis points year-on-year to 0.05%.
（Millions of yen）

Deposits(period-end balance)
Individual deposits
Deposits (average balance)

June 30, 2018(a)3,871,567
3,043,189
3,942,549(a) - (b)(200,241)(185,184)(117,086)(a - b) June 30, 2017
/ (b)
(b)
(4.9)%
4,071,808(5.7)%
3,228,373(2.8)%
4,059,635

Deposits (period-end balance)
Individual deposits (period-end balance)

March 31, 2018

4,089,649
3,191,847
4,047,017

Yield on deposits (overall)(Billions of yen)
3,988.0
4,089.8
4,071.8
3,871.5
3,826.5
3,228.3
3,122.9
3,043.1
2,931.3
2,786.4
0.10%

June 14June 15

June 16

June 17

June 18
-9-

0.10%

0.10%

0.09%

0.05%

1Q,
1Q,
1Q,
1Q,
1Q,
FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

SURUGA bank, Ltd.

(3) Interest margins (Non-consolidated)･Loan-deposit margin (after deduction of expenses, overall) dropped by 11 basis points year-on-year
to 2.16%.
･Net interest margin (overall) dropped by 12 basis points year-on-year to 1.46%, mainly due tothe decline in return on investments.
Overall(%)

Three months
ended
June 30, 2018(a)(a) - (b)Three months
ended
June 30, 2017(b)

FY3/2018

3.45(0.12)

3.57

3.61

0.05

(0.04)

0.09

0.08

2.16

(0.11)

2.27

2.37

1.46

(0.12)

1.58

1.68

Three months
ended
June 30, 2018(a)(a) - (b)Three months
ended
June 30, 2017(b)

FY3/2018

3.45(0.13)

3.58

3.61

0.05

(0.03)

0.08

0.07

2.20

(0.10)

2.30

2.40

1.49

(0.13)

1.62

1.72

Yield on loans and bills
discounted
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin
Domestic(%)

Yield on loans and bills
discounted
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin

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

3.34%

3.41%

3.48%

3.48%

3.39%

2.09%

2.21%

2.24%

2.27%

2.16%

1.54%

1.39%

1.58%

1.46%

1Q,
FY3/161Q,
FY3/171Q,
FY3/181Q,
FY3/191.24%
1Q,
FY3/15- 10 -SURUGA bank, Ltd.

(4) Non-performing loans based on the Financial Reconstruction Law (Non-consolidated)･Non-performing loans based on the Financial Reconstruction Law increased by ¥106.4 billion
year-on-year.
･Non-performing loan ratio rose by 338 basis points year-on-year to 4.27%.

June 30, 2018

June 30, 2017

(Millions of yen)March 31, 2018

Claims against bankrupt andsubstantially bankrupt obligors

13,213

7,929

10,573Claims with collection risk

72,907

12,59547,722Claims for special attention

49,496

8,681

13,874

Total (Non-performing loans based on
the Financial Reconstruction Law)

135,616

29,20572,170Non-performing loan ratio

4.27%

0.89%

2.20%

(Note1) Total claims = Loans and bills discounted + Foreign exchanges + Accrued interest + Customers’ liabilities
for acceptances and guarantees + Securities lent + Suspense payment (”Claims for special attention” include
only “Loans and bills discounted”)(Note2) The above figures are based on the category of claims as defined in the Article 4 of the “Ordinance for
Enforcement of the Act on Emergency Measures for the Revitalization of Financial Functions”.
(Note3) The relationship between categories of obligors, etc.
(a) ”Claims against bankrupt and substantially bankrupt obligors” correspond to the claims against“Effectively bankrupt obligors” or “Bankrupt obligors” under self-assessment.
(b) ”Claims with collection risk” correspond to the claims against “Potentially bankrupt obligors” underself-assessment.
(c) ”Claims for special attention” correspond to the claims against “Obligors requiring caution” underself-assessment which are classified by category of claims as “Loans past due 3 months or more” or“Restructured loans”.

Claims against bankrupt and substantiallybankrupt obligors
Claims with collection risk
Claims for special attention

135.6
13.2

(Billions of yen)

72.9

48.5
6.9
20.7

44.7

35.9

20.8

7.9
17.8
19.0

7.5
15.0
13.3

June 14June 15

June 16

29.2
7.9
12.5
8.6

49.4

June 17

June 18- 11 -

Non-performing loan ratio
Non-performing loan ratio (after deduction ofallowance)
Non-performing loan ratio (after deduction ofcollateral, guarantees and allowance)
4.27%
1.67%
1.48%
1.13%
0.89%
3.17%
1.41%
1.24%
0.94%
0.78%
1.45%
0.30%
0.26%
0.15%
0.18%
June 14June 15

June 16

June 17

June 18

SURUGA bank, Ltd.

(5) Capital adequacy ratio (domestic standard)･Capital adequacy ratio (non-consolidated) dropped by 35 basis points year-on-year to 12.14%.

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)
June 30, 2018 June 30, 201712.14%
12.49%
328,260
317,567
346,814331,582
18,55314,0142,701,826
2,541,520
108,073
101,660

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

June 30, 201812.21%
334,780
357,010
22,2292,741,213
109,648(Millions of yen)
June 30, 201712.70%
326,470
343,231
16,7602,569,098
102,763(Note) Total required capital = Risk-weighted assets × 0.04

Capital adequacy ratio （non-consolidated）
Own capital (non-consolidated)
12.08%

12.01%

12.49%

12.14%

276.8

288.0

317.5

328.2

252.4

June 14June 15

June 16

June 17

June 18

11.62%(Billions of yen)

- 12 -SURUGA bank, Ltd.

(6) Composition of own capital (domestic standard)(Millions of yen)
June 30, 2018
Non-consolidated
Consolidated
Amounts
Amounts
excluded
excluded
under
under
transitionaltransitionalarrangearrangements
mentsCore capital: instruments and reserves(1)
Directly issued qualifying common stock or preferred stock mandatorily convertible
315,774
into common stock capital plus related capital surplus and retained earnings
Capital and capital surplus
48,632Retained earnings
267,702
Treasury shares (-)
560
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
12
convertible into common stock
Adjusted non-controlling interests (amount allowed to be included in Core capital)
Reserves included in Core capital: instruments and reserves
31,027
General allowance for loan losses
31,027
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)
346,814
Core capital: regulatory adjustments(2)
Total intangible fixed assets (net of related tax liability, excluding those relating to
13,594
mortgage servicing rights)
Goodwill (including those equivalent)
Other intangible fixed assets other than goodwill and mortgage servicing rights
13,594
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
4,958
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)
18,553
Total capital
Total capital
(A-B)
(C)
328,260
Risk-weighted assets(3)
Credit risk-weighted assets
2,482,204
Total of items included in risk-weighted assets subject to transitional arrangements
21,780Intangible fixed assets other than goodwill and mortgage servicing rights (net4,876
of related tax liability)_
Deferred tax assets (net of related tax liability)
15,125Prepaid pension cost _1,778
Net defined benefit asset
Amount equivalent to market risk × 12.5
Amount equivalent to operational risk × 12.5
219,621
Credit risk-weighted assets adjustments
Amount equivalent to operational risk adjustments
Total amount of risk-weighted assets(D)
2,701,826
Capital adequacy ratio (non-consolidated)
Capital adequacy ratio (non-consolidated)(C/D)
12.14%
Capital adequacy ratio (consolidated)
Capital adequacy ratio (consolidated)(C/D)-- 13 -

323,541

30,531
293,569
560
1,076
1,076
12

31,142
31,142-

1,237
357,010
3,398

15,612

3,458

3,398

1,780
13,832

3,458

-

581

-

1,239
-

6,035
-

1,508
-

-

-

-

-

-

-

1,139

-

616

-

-

-

1,139
-

22,229616-

334,780
2,491,394
23,180
4,961

16,054
2,164
249,818
2,741,213
12.21%SURUGA bank, Ltd.

(7) Unrealized gains (losses) on securities (Non-consolidated)･Net unrealized gains (losses) on securities increased by ¥1.2 billion year-on-year, mainly due toan increase in unrealized gains on stocks.
(Millions of yen)
June 30, 2018

June 30, 2017

Fair Net unrealized gains (losses)
Value
LossesGains

March 31, 2018

Net unrealized gains (losses)

Fair
value

Gains

LossesNet unrealized gains (losses)

Fair
value

Gains

Losses24,81825,400581

24,604

24,69995

Othersecurities

138,254

27,254

27,592

338 104,564 25,996

26,463467 116,151

Stocks43,25926,685

26,791

106

45,151 24,434

24,521

87

41,275

Bonds

85,101

67

130

62

50,247

(215)

52

268

62,850

(7)

90

98

Others

9,893

501

670

169

9,165

1,777

1,889

111

12,025

221

609

388

(Note1) The 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 the period-end and theacquisition cost.
(Note3) Unrealized gains (losses) on held-to-maturity bonds were as shown in the table below.
(Millions of yen)
June 30, 2018
Net unrealized gains (losses) Book
Gains Losses value

Book
value
Held-tomaturity
bondsJune 30, 2017

-

-

-

March 31, 2018

Net unrealized gains (losses)
Gains- 14,999

1

Losses1-

Net unrealized gains (losses)

Book
value

Gains
-

-

Losses--(8) Individual deposit assets (Non-consolidated)･Individual deposit assets decreased by ¥205.7 billion year-on-year.
･The ratio of investment products to total individual deposit assets dropped by 40 basis points
year-on-year to 4.8%.
(Millions of yen)

Individual deposit assets
Yen deposits
Investment products
Foreign currency
deposits
Public bonds
Mutual funds
Personal pension
plansSingle premium life
insurance
The ratio of investment
products to total
individual deposit assets

June 30, 2018(a)
3,193,263
3,037,527
155,736(205,754)(184,484)(21,270)(a - b)/ (b)(6.0)%(5.7)%(12.0)%

June 30, 2017(b)
3,399,017
3,222,011
177,006

5,662

(700)

(11.0)%

6,362

5,908

8,560
91,681(1,069)(14,599)(11.1)%(13.7)%

9,629
106,280

8,837
93,65434,484(5,879)(14.5)%

40,36335,697

15,347977

6.7%

14,37015,245(0.4)%

5.2%

4.7%(a) - (b)4.8%

- 14 -March 31, 2018
3,345,282
3,185,938
159,344