May 11, 2017

SURUGA bank, Ltd.
Consolidated financial results for the fiscal year ended March 31, 2017
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
http://www.surugabank.co.jp
Representative:
Akihiro Yoneyama, President
Dividend payment date: June 2, 2017
(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the fiscal year ended March 31, 2017
(1) Consolidated operating results(% represents the change from the previous fiscal year)
Profit attributable
Ordinary profit
to owners of parent

Ordinary income

Fiscal year ended
Millions of yen%
Millions of yen%
March 31, 2017
145,753
4.5
58,222
3.2
March 31, 2016
139,430
6.3
56,395
5.5(Note) Comprehensive income: (a) Fiscal year ended March 31, 2017: ¥42,776 million [46.1 %](b) Fiscal year ended March 31, 2016: ¥29,272 million [（35.8）%]
Net income
per share(diluted)

Net income
per share

Net incomeon net assets

Millions of yen%

42,62736,71716.0
11.6

Ordinary profit
on total assets

Fiscal year ended
yen
yen
%
March 31, 2017184.10184.02
13.3
March 31, 2016
156.15156.02
12.4(Reference) Equity in gains (losses) of affiliates: (a) Fiscal year ended March 31, 2017: ¥1 million(b) Fiscal year ended March 31, 2016: ¥18 million

Ordinary profit
on ordinary income

%

%

1.3
1.3

39.9
40.4

(2) Consolidated financial position
Total assets
Total net assets
Net assets ratio
Net assets per share
As ofMillions of yen
Millions of yen%
yen
March 31, 2017
4,471,725
340,379
7.5
1,459.48
March 31, 2016
4,390,146
302,237
6.8
1,296.14(Reference) Shareholders’ equity: (a) As of March 31, 2017: ¥338,029 million; (b) As of March 31, 2016: ¥300,031 million(Note) Nets 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”.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2017
March 31, 2016

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at year-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen(43,542)
134,240

78,403(13,029)(4,635)(19,163)924,300
894,075

2. Dividends on common stock
1st
Quarter-end

Dividends per share
2nd
Fiscal3rd
Year
Quarter Quarter
-end
-end
-end

Total

Total
dividends

Dividend
payout ratio

Dividends
on net assets(Consolidated)(Consolidated)

Fiscal year
yen
yen
yen
yen
yen
Millions of yen
ended March 31, 2016
9.50
10.50
20.00
4,685
ended March 31, 2017
10.00
12.00
22.00
5,094
ending March 31, 2018
10.50
10.50
21.00
(forecast)(Note) Breakdown of fiscal year-end dividend for the fiscal year ended March 31, 2017:(a) Ordinary dividend: ¥11.00; (b) Special dividend: ¥1.00

%

%

12.8
11.9

1.5
1.5

11.3

3. Consolidated earnings forecast for the fiscal year ending March 31, 2018(% represents the change from the same period in the previous fiscal year)
Profit attributable
Net income per share
Ordinary profit
to owners of parent
1H, FY3/2018
FY3/2018

Millions of yen%

Millions of yen%

yen

30,00061,500

7.1
5.6

20,50043,000

6.6
0.8

88.51
185.65(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 Mar. 31, 2017
(including treasury shares):(B) Number of treasury shares:

As of Mar. 31, 2017

(C) Average number of shares:

Fiscal year ended
March 31, 2017

232,139,248 shares

As of Mar. 31, 2016

232,139,248 shares

530,965 shares

As of Mar. 31, 2016

659,080 shares

231,538,348 sharesFiscal year ended
March 31, 2016

235,134,205 shares(Reference) Summary of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2017
(1) Non-consolidated operating results(% represents the change from the previous fiscal year)
Ordinary profit
Net income

Ordinary income
Fiscal year ended
March 31, 2017
March 31, 2016

Millions of yen%

Millions of yen%

Millions of yen%

134,286
127,267

5.5
4.5

57,16054,4325.0
4.9

41,72835,807

16.5
11.4

Net income per share
Fiscal year ended
March 31, 2017
March 31, 2016

Net income per share(diluted)

yen

yen

180.22152.28180.14152.16(2) Non-consolidated financial position
Total assets
Total net assets
Net assets ratio
Net assets per share
As ofMillions of yen
Millions of yen%
yen
March 31, 2017
4,465,825
331,551
7.4
1,431.41
March 31, 2016
4,381,220
293,482
6.6
1,267.58(Reference) Shareholders’ equity: (a) As of March 31, 2017: ¥331,527 million; (b) As of March 31, 2016: ¥293,421million(Note) Net assets ratio = {(Total net assets - Subscription rights to shares) / 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, 2018
Ordinary profit(% represents the change from the same period in the previous fiscal year)
Net income
Net income per share

Millions of yen

1H, FY3/2018
FY3/2018

29,00060,000%

5.5
4.9

Millions of yen

20,00042,000

%

4.6
0.6

yen

86.35
181.34(Note) This report is outside the scope of the external auditor’s audit 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. Overview of operating results, etc. ···································································· 2(1) Overview of operating results ······································································ 2(2) Overview of financial position ····································································· 3(3) Future outlook························································································ 4
2. Basic approach to the selection of accounting standards ··········································· 4
3. Consolidated financial statements and notes ························································· 5(1) Consolidated balance sheets········································································ 5(2) Consolidated statements of income and Consolidated statements of comprehensive income ·········· 7(3) Consolidated statements of changes in net assets ··············································· 9(4) Consolidated statements of cash flows ·························································· 11(5) Notes to consolidated financial statements ····················································· 12(Notes on going-concern assumption) ···························································· 12(Changes in accounting policies, changes in accounting estimates and restatements) ····· 12(Additional information) ··········································································· 12(Segment information)·············································································· 13(Per share data) ······················································································ 14(Significant subsequent events) ··································································· 14
4. Non-consolidated financial statements ····························································· 15(1) Non-consolidated balance sheets ································································ 15(2) Non-consolidated statements of income ························································ 17(3) Non-consolidated statements of changes in net assets ········································ 18* Financial results for the fiscal year ended March 31, 2017 supplementary information−1−

SURUGA bank, Ltd.

1. Overview of operating results, etc.
(1) Overview of operating results
In the fiscal year ended March 31, 2017, the Japanese economy witnessed signs of moderate recovery on theback of the improvement in labor market conditions, as reflected in the higher effective job-to-applicant ratio
and lower unemployment rate. In the first half of the fiscal year, the business sentiment among Japanesecompanies, particularly the exporters, deteriorated. This was primarily due to the appreciation of the yen led by
the volatility in the global financial markets, which was caused by the weakness in the Chinese economy andthe UK’s decision to exit the EU (Brexit). The economy then steadily recovered thanks to policy actions, suchas the US Federal Reserve’s decision to delay the increase in policy rates and the Japanese government’s
decision to postpone the consumption tax hike. Moreover, the business sentiment improved thanks to thedepreciation of the yen and the rise in stock prices, reflecting heightened expectations for a US economic
recovery following Donald Trump’s victory at the US presidential election in November. Meanwhile, pricemovements have lacked momentum and have been insufficient for the economy to overcome deflation, as
evidenced by the year-on-year decline in the consumer price index, which also remained negative
month-on-month in the first few months of the New Year.
Under such business conditions, consolidated ordinary income increased by ¥6.323 billion year-on-year to¥145.753 billion. This was mainly due to the growth in interest income reflecting the rise in interest on loans
and discounts. Meanwhile, Ordinary expenses increased by ¥4.495 billion year-on-year to ¥87.530 billion,
mainly due to an increase in general and administrative expenses. As a result, ordinary profit increased by¥1.827 billion year-on-year to ¥58.222 billion, and profit attributable to owners of parent increased by ¥5.910
billion year-on-year to ¥42.627 billion.
Operating results on a non-consolidated basis were as follows:(A) Gross operating profit
Gross operating profit increased by ¥5.520 billion year-on-year to ¥110.852 billion on the back of therise in net interest income of ¥5.372 billion.
(B) Expenses
Expenses increased by ¥1.311 billion year-on-year to ¥47.240 billion.
(C) Net operating profit
Core net operating profit increased by ¥4.680 billion year-on-year to ¥63.445 billion, mainly due to anincrease in net interest income of ¥5.372 billion.
Net operating profit increased by ¥4.208 billion year-on-year to ¥63.611 billion, mainly due to anincrease in core net operating profit.
(Note) Core net operating profit = Net operating profit + Provision for general allowance for loan losses- Gains (losses) on bonds(D) Ordinary profit
Ordinary profit increased by ¥2.728 billion year-on-year to ¥57.160 billion, mainly due to an increase in
net operating profit of ¥4.208 billion.
(E) Net income
Net income increased by ¥5.921 billion year-on-year to ¥41.728 billion, mainly due to an increase inprofit before income taxes of ¥5.043 billion and a decrease in total income taxes of ¥0.878 billion.
(F) Net credit costs
Disposal of non-performing loans increased by ¥3.452 billion year-on-year to ¥9.165 billion. Meanwhile,
reversal of allowance for loan losses increased by ¥1.906 billion year-on-year to ¥2.590 billion. As a result,net credit costs increased by ¥1.546 billion year-on-year to ¥6.575 billion.
Actual credit costs increased by ¥1.160 billion year-on-year to ¥5.571 billion.
(Note) Net credit costs = Provision for general allowance for loan losses+ Disposal of non-performing loans – Reversal of allowance for loan losses(Note) Actual credit costs = Net credit costs – Recoveries of written-off claims−2−

SURUGA bank, Ltd.

(2) Overview of financial position
As for major account balances on a consolidated basis, loans and bills discounted came in at ¥3,253.723
billion, up by ¥116.559 billion year-on-year. This was mainly due to the steady growth in consumer loans
through continuing to engage primarily in the retail banking business. Securities were ¥148.527 billion, downby ¥81.551 billion year-on-year. Deposits were ¥4,095.509 billion, up by ¥46.015 billion year-on-year.
Major account balances on a non-consolidated basis were as follows:(A) Loans and bills discounted
Loans and bills discounted came in at ¥3,253.790 billion, up by ¥116.176 billion year-on-year, mainly
due to the growth in consumer loans. Consumer loans were ¥2,907.349 billion, up by ¥135.051 billion
year-on-year. The average balance of loans and bills discounted in the year was ¥3,136.010 billion, up by¥132.002 billion year-on-year.
(B) Securities
Securities were ¥154.340 billion, down by ¥79.692 billion year-on-year.
(C) Deferred tax assets (liabilities)
Deferred tax liabilities came in at ¥0.018 billion, mainly due to a decrease in deferred tax assets
reflecting partial changes to the retirement benefit plan and an increase in deferred tax liabilities reflecting
an increase in unrealized gains on securities.
(D) Deposits
Deposits were ¥4,105.455 billion, up by ¥48.973 billion year-on-year. Individual deposits were
¥3,190.837 billion, up by ¥104.930 billion year-on-year. The average balance of deposits in the year was¥4,054.508 billion, up by ¥41.898 billion year-on-year.
As for cash flows on a consolidated basis, cash flows from operating activities were a net outflow of ¥43.542
billion (compared to a net inflow of ¥134.240 billion in the previous fiscal year), given that outflows mainly
arising from an increase in loans and bills discounted exceeded inflows mainly arising from an increase indeposits. Cash flows from investing activities were a net inflow of ¥78.403 billion (compared to a net outflow
of ¥13.029 billion in the previous fiscal year), mainly due to proceeds from redemption of securities. Cash flows
from financing activities were a net outflow of ¥4.635 billion (compared to a net outflow of ¥19.163 billion in
the previous fiscal year), mainly due to dividend payments. As a result, cash and cash equivalents as of March
31, 2017 were ¥924.300 billion, up by ¥30.225 billion year-on-year (compared to ¥894.075 billion as of March
31, 2016).

−3−

SURUGA bank, Ltd.

(3) Future outlook
Japan recently witnessed signs of economic recovery, including an improvement in the diffusion index ofbusiness sentiments among large manufacturers in the March 2017 “Short-term economic survey of enterprises
in Japan (Tankan)” for the second consecutive period. However, cautious views have persisted given theuncertainties around US policies and the global political situation. In this context, the Bank of Japan’s negativeinterest rate policy is expected to exert positive effects on the real economy, by stimulating housing and capital
investments. The Japanese government’s policies under its growth strategy should also generate positive effects.
In light of such business conditions, Suruga Bank, as a life and business navigator (“DREAM NAVIGATOR”),
will strive to offer further value-added products and services to customers. At the same time, we will makeefforts to improve on our profitability and sound financial position.
In consideration of the above, earnings forecast for the fiscal year ending March 31, 2018 is as follows:
Non-consolidated(Billions of yen)
FY3/2018
65.0
60.0
42.0

Net operating profit
Ordinary profit
Net income

1H, FY3/2018
31.5
29.0
20.0

Actual credit costs

2.3

4.5

12.75 %

13.46 %ROE (Net income basis)
Consolidated
Ordinary profit
Profit attributable toowners of parent

1H, FY3/2018
30.0(Billions of yen)
FY3/2018
61.5

20.5

43.0

(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 be reasonable,
and are not intended to guarantee future performance. Actual performance may differ materiallydepending on various factors.

2. Basic approach to the selection of accounting standards
The Suruga Bank group intends to apply Japanese accounting standards for the foreseeable future, taking into
consideration the comparability of consolidated financial statements across reporting periods and companies. As
for the adoption of International Financial Reporting Standards (IFRS), we will respond appropriately to thevarious developments in Japan and overseas.

−4−

SURUGA bank, Ltd.

3. Consolidated financial statements and notes(1) Consolidated balance sheets
As ofMarch 31, 2016
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
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Goodwill
Leased assets
Software in progress
Other 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 loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities−5−（Millions of yen）
As of
March 31, 2017

897,074
3,006
50
1,046
230,078
3,137,164
3,534
5,531
43,19650,84913,09725,4279
235
12,07930,00727,308
2,071
11
231
384
5,276
2,120
3,476
(22,265)
4,390,146

927,519
2,276
72
1,149
148,527
3,253,723
2,885
5,479
56,90951,906
13,98325,56412
012,34528,591
25,681
1,942
8
571
388
7,787
860
3,340
(19,305)
4,471,725

4,049,494
2,085
13
27,653
716
153
258
3,248
276
262
271
3,476
4,087,908

4,095,509
1,540
40
25,503
715
173
279
3,280
287
169
505
3,340
4,131,346

SURUGA bank, Ltd.

As of
March 31, 2016
Net assets
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets−6−

30,043―
253,182(750)
282,475
16,121(83)
1,517
17,55661
2,144
302,237
4,390,146（Millions of yen）
As of
March 31, 2017
30,043
4
291,063(606)
320,504
17,153(61)433
17,52524
2,325
340,379
4,471,725

SURUGA bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2016
March 31, 2017
Ordinary income
139,430
145,753
Interest income
118,650
124,718
Interest on loans and discounts
113,552
121,045
Interest and dividends on securities
3,989
2,578
Interest on call loans and bills bought
112
38Interest on deposits with banks
830
805
Other interest income
164
250
Fees and commissions
13,022
13,443
Other ordinary income
4,932
4,393
Gains on sales of bonds
39
2
Gains on redemption of bonds
797
473
Other
4,095
3,917
Other income
2,824
3,198
Reversal of allowance for loan losses―
927
Recoveries of written off claims
923
1,339
Gain on sales of stocks and other securities
187
129
Share of profit of entities accounted for using equity
18
1
Other
1,696
800
Ordinary expenses
83,03587,530Interest expenses
4,685
4,287
Interest on deposits
4,557
4,069
Interest on borrowings and rediscounts
21
14
Other interest expenses
106
203
Fees and commissions payments
14,915
14,326
Other ordinary expenses
3,703
3,647
Loss on redemption of bonds
199
310
Other
3,503
3,336
General and administrative expenses
48,94051,500
Other expenses
10,791
13,768Provision of allowance for loan losses
879―
Written-off of loans
4,744
9,381
Losses on sales of stocks and other securities―
7
Losses on devaluation of stocks and other securities
0
636
Other
5,167
3,744
Ordinary profit
56,39558,222Extraordinary income
26
2,170
Gain on disposal of non-current assets
26
36
Gain on revision of retirement benefit plan―
2,134
Extraordinary losses
509
335
Loss on disposal of non-current assets
489
335
Impairment loss
19―
Profit before income taxes
55,91260,057
Income taxes - current
19,426
15,781
Income taxes - deferred
(387)
1,488
Total income taxes
19,03917,270
Profit36,87342,787
Profit attributable to non-controlling interests
156
159
Profit attributable to owners of parent
36,71742,627−7−

SURUGA bank, Ltd.

Consolidated statements of comprehensive income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or 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−8−（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2017
March 31, 2016
36,87342,787(5,523)18(2,095)(7,600)29,272

1,052
21(1,084)(10)
42,77629,087
185

42,596180

SURUGA bank, Ltd.

(3) Consolidated statements of changes in net assets
For the fiscal year ended March 31, 2016
（Millions of yen）

Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043

CapitalsurplusRetainedearnings

21,013

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesRetirement of treasury
shares229,924

Treasuryshares(16,110)

Total
shareholders'equity264,870(4,983)(4,983)36,71736,71792(14,364)(14,364)

143

235(21,106)(8,474)29,581――(21,013)

23,25815,36017,60430,043―

253,182(750)

282,475

Accumulated other comprehensive income
Total
RemeasureValuation
accumulated
Deferred gains
ments ofdifference onotheror losses on
definedavailable-forcomprehenhedges
benefit planssale securities
sive income

Subscription
rights tosharesNet changes of items other thanshareholders' equity

Total changes of items during
periodBalance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
period21,673

(101)

3,613

25,185112

Noncontrollinginterests

1,959

Dividends of surplus

Total changes of items during
periodBalance at end of current
period292,128(4,983)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesRetirement of treasury
sharesNet changes of items other thanshareholders' equity

Total net
assets36,717(14,364)
235―(5,552)18(2,095)(7,629)(51)

185(7,495)(5,552)18(2,095)(7,629)(51)

185

10,10916,121

(83)

1,517

17,55661

2,144

302,237−9−

SURUGA bank, Ltd.

For the fiscal year ended March 31, 2017
（Millions of yen）

Shareholders' equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043

CapitalsurplusRetainedearnings―

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

253,182

Total
shareholders'equityTreasuryshares(750)

282,475(4,745)(4,745)42,62742,627

4

(4)

(4)

148

152

Net changes of items other thanshareholders' equity

Total changes of items during
periodBalance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
period―4

37,881

143

38,02930,043

4

291,063(606)

320,504

Accumulated other comprehensive income
Total
RemeasureValuation
accumulated
Deferred gains
ments ofdifference onotheror losses on
definedavailable-forcomprehenhedges
benefit planssale securities
sive income

Subscription
rights toshares16,121

(83)

1,517

17,55661

Noncontrollinginterests

2,144

Dividends of surplus

Total changes of items during
periodBalance at end of current
period302,237(4,745)

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items other thanshareholders' equity

Total net
assets42,627
(4)
152
1,031

21

(1,084)

(31)

(36)

180

112

1,031

21

(1,084)

(31)

(36)

180

38,141

17,153(61)433

17,52524

2,325

340,379− 10 −SURUGA bank, Ltd.

(4) Consolidated statements of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses

Increase (decrease) in provision for directors' bonuses

Increase (decrease) in net defined benefit liability

Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for reimbursement of deposits

Increase (decrease) in provision for contingent loss
Gain on fund management
Financing expenses
Loss (gain) related to securities
Loss (gain) on money held in trust
Loss (gain) on disposal of non-current assets
Net decrease (increase) in trading account securities
Net decrease (increase) in loans and bills discounted
Net increase (decrease) in deposit
Net increase (decrease) in borrowed money (excluding subordinated borrowings)

Net decrease (increase) in deposit (excluding deposit paid to Bank of Japan)

Net decrease (increase) in call loans
Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities

Net decrease (increase) in lease receivables and investment assets
Net decrease (increase) in cash collateral paid for financial instruments assets

Proceeds from fund management
Payments for financeGain on revision of retirement benefit plan
Compensation for damage income
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Increase in money held in trust
Decrease in money held in trust
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Purchase of intangible assets

Purchase of shares of subsidiaries resulting in change in scope of consolidation

Net cash provided by (used in) investing activities
Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Net cash provided by (used in) financing activities

Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period− 11 −（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2016
March 31, 2017
55,912
6,261
19
129
(407)
9
13
(2,959)
149
(51)
(79)
(118,650)
4,685
(824)
182
463
57
(126,416)
96,647(450)(439)
124,095
(970)
10
(72)
―
118,078(3,426)―
4,172(3,079)153,058(18,818)
134,240

60,0576,819―
129(2,959)0
20(5,260)31
11(92)(124,718)
4,287
348
(150)
298
(22)
(116,558)
46,015
(545)
(219)
729
648
27
51
(10,057)
124,157(3,373)(2,134)―(2,235)(24,694)(18,848)(43,542)(60,579)
33,49920,833(114)―(3,806)26(2,880)(8)(13,029)(44,964)
2,041
127,912―49(4,193)37(2,479)―78,403(4,983)(14,364)
184(19,163)(6)
102,041
792,033
894,075(4,745)(4)
115(4,635)(0)30,225894,075
924,300

SURUGA bank, Ltd.

(5) Notes to consolidated financial statements(Notes on going-concern assumption)
Not applicable.

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

(Additional information)(A) Application of “Implementation Guidance on Recoverability of Deferred Tax Assets”
Effective from the fiscal year ended March 31, 2017, the company has applied “Implementation
Guidance on Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan “ASBJ”
Guidance No. 26, March 28, 2016).
(B) Partial changes to the retirement benefit plan
On October 1, 2016, the company partially shifted from a defined benefit corporate pension plan toa defined contribution pension plan, and lowered the benefit interest rate assumption. The accounting
treatments set forth in “Guidance for Accounting Standard for Transfer between Retirement Benefit
Plans” (Accounting Standards Board of Japan (“ASBJ”) Guidance No. 1, January 31, 2002) and“Practical Solution on Accounting for Transfer between Retirement Benefit Plans” (ASBJ Practical
Issue Task Force (“PITF”) No. 2, revised February 7, 2007) have been applied regarding these changes.
The financial impact resulted in the booking of an extraordinary income of ¥2.134 billion for the fiscal
year ended March 31, 2017.

− 12 −SURUGA bank, Ltd.

(Segment information)
1. Summary of reportable segment
The reportable segments of the Suruga Bank group are components for which discrete financial
information is available, and that are subject to regular review to allocate management resources and toevaluate their results.
The group consists of Suruga Bank, which mainly engages in the banking business, and its consolidated
subsidiaries that engage in businesses such as money lending, leasing, clerical agency services, credit card
services and credit guarantee. Of the reportable segments, Suruga Bank represents the “banking” segment,
which includes businesses such as deposits, loans, exchange and credit card services.
2. Method of calculating ordinary income, profit or loss, assets and other items by reportable segment
Segment profit is reported on an ordinary profit-basis.
Inter-segment internal ordinary income is based on arm’s length prices.
3. Information on ordinary income, profit or loss, assets and other items by reportable segment
For the fiscal year ended March 31, 2017
Reportablesegment
Others

Total

Banking
Ordinary income
Ordinary income toexternal customers
Inter-segment internal
ordinary income
Total
Segment profit
Segment assets
Other items
Depreciation
Increase in tangible
fixed assets andintangible fixed assets(Millions of yen)Amountrecorded in the
consolidated
Adjustments
financialstatements

134,002

13,412

147,414(1,661)

145,753

283

1,818

2,102

(2,102)-

134,286
57,1604,465,807

15,231
1,322
48,053

149,51758,482
4,513,861(3,764)(260)(42,135)

145,753
58,222
4,471,725

6,591

228

6,819

-

6,819

6,368

305

6,673

-

6,673

(Note1) Ordinary income is equivalent to net sales reported by companies in other industries.
(Note2) “Others” consists of businesses operated by consolidated subsidiaries (such as money lending, leasing,clerical agency services, credit card services and credit guarantee) which are not included in thereportable segments.
(Note3) “Adjustments” are as follows:(1) The negative adjustment of ¥1,661 million in ordinary income to external customers consists of thefollowing: adjustment of provision for allowance for loan losses in “Others” (- ¥1,663 million) andequity in gains of affiliates (¥1 million).
(2) The negative adjustment of ¥260 million in segment profit consists of the following: amortizationof goodwill (- ¥129 million), equity in gains of affiliates (¥1 million) and deduction ofinter-segment transactions (- ¥132 million).
(3) The negative adjustment of ¥42,135 million in segment assets consists of the following: deductionof inter-segment transactions (- ¥42,804 million), adjustment of net defined benefit assets (¥622
million) and adjustment of shares in equity-method affiliates (¥46 million).
(Note4) Segment profit is adjusted to ordinary profit as reported in the consolidated statements of income.

− 13 −SURUGA bank, Ltd.

(Per share data)

Net assets per shareyen
Net income per shareyen
Net income per share (diluted)
yen(Note) The basis for calculation is as shown in the tables below.

For the fiscal year ended
March 31, 2017
1,459.48
184.10184.02

1. Net assets per share
Total net assets
Amount deducted from total net assetsof which, Subscription rights to sharesof which, Non-controlling interests
Net assets attributable to common stock at
the fiscal year-end
Number of common stock at the fiscal
year-end used for the calculation of net
assets per share

Millions of yen
Millions of yen
Millions of yen
Millions of yen

As of March 31, 2017
340,379
2,349
24
2,325

Millions of yen

338,029

Thousands ofshares

231,608

2. Net income per share and Net income per share (diluted)
For the fiscal year ended
March 31, 2017
Net income per share
Profit attributable to owners of parent
Amount not attributable to commonshareholders
Profit attributable to commonshareholders of parent
Average number of common stock forthe fiscal year
Net income per share (diluted)
Adjustment for profit attributable toowners of parent
Increase in number of common stockof which, Subscription rights to shares

Millions of yen

42,627

Millions of yen-

Millions of yen

42,627

Thousands ofshares

231,538

Millions of yen-

Thousands ofsharesThousands ofsharesAntidilutive securities which were notincluded in the calculation of net income
per share (diluted)

103
103
-

(Significant subsequent events)
Not applicable.

− 14 −SURUGA bank, Ltd.

4. Non-consolidated financial statements(1) Non-consolidated balance sheets
As ofMarch 31, 2016
AssetsCash and due from banks
Cash
Due from banks
Call loans
Trading account securities
Trading government bonds
Trading local government bonds
Money held in trust
Securities
Government bonds
Local government bonds
Corporate bonds
StocksOther securities
Loans and bills discounted
Bills discounted
Loans on bills
Loans on deeds
Overdrafts
Foreign exchanges
Due from foreign banks (our accounts)
Foreign bills bought
Foreign bills receivable
Other assets
Prepaid expenses
Accrued income
Initial margins of futures markets
Derivatives other than for trading - assets
Other
Tangible fixed assets
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Software in progress
Other intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets− 15 −

896,454
26,515869,939
3,006
50
2
48
1,046
234,032
145,059
4,159
2,003
56,282
26,526
3,137,614
1,557
27,8852,741,061
367,109
3,534
2,018
0
1,515
34,412
1,777
9,169
200
286
22,97949,463
12,43024,855538
235
11,403
27,462
26,886
201
375
3,177
2,477
4,096
(15,607)
4,381,220（Millions of yen）
As of
March 31, 2017926,783
26,917
899,866
2,276
72
2
70
1,149
154,340
45,001
28,243
2,666
57,42621,002
3,253,790
1,676
22,0472,844,173
385,892
2,885
1,834
0
1,050
48,611
2,779
9,723
200
846
35,06250,56913,33524,991496
011,744
26,21225,309
523
379
7,165
―
3,951
(11,983)
4,465,825

SURUGA bank, Ltd.

As of
March 31, 2016
Liabilities
Deposits
Current deposits
Ordinary deposits
Saving deposits
Deposits at noticeTime deposits
Other deposits
Foreign exchanges
Foreign bills sold
Other liabilities
Income taxes payable
Accrued expenses
Unearned revenue
Deposits received from employees
Lease obligations
Derivatives other than for trading - liabilities
Other
Provision for bonuses
Provision for directors' bonuses
Provision for retirement benefits
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
Legal capital surplus
Other capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for advanced depreciation of non-current as
General reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets− 16 −（Millions of yen）
As of
March 31, 2017

4,056,482
59,595
1,190,612
17,626
92,7002,540,483
155,46313
13
22,452
10,744
5,775
114
795
539
1,958
2,525
674
153
78
3,246
276
262
―
4,096
4,087,737

4,105,455
63,1471,265,642
17,297
76,2392,557,174
125,95440
40
20,232
8,000
6,730
104
798
497
867
3,233
667
173
―
3,277
287
169
18
3,951
4,134,274

30,043
18,585
18,585―230,096
30,043200,05259
103,032
96,961(750)
277,974
15,525(78)
15,446
61
293,482
4,381,220

30,043
18,59018,585
4
267,078
30,043
237,034
59
103,032
133,943(606)
315,104
16,480(58)
16,422
24
331,551
4,465,825

SURUGA bank, Ltd.

(2) Non-consolidated statements of income

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans
Interest on deposits with banks
Interest on interest swaps
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchanges

Other fees and commissions
Other ordinary income
Gains on foreign exchange transactions
Gain on trading account securities transactions
Gains on sales of bonds
Gains on redemption of bonds
Other income
Reversal of allowance for loan losses
Recoveries of written off claims
Gain on sales of stocks and other securities
Gain on money held in trust
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest on interest swaps
Other interest expenses
Fees and commissions payments
Fees and commissions on domestic and foreign exchanges

Other fees and commissions
Other ordinary expenses
Loss on trading account securities transactions
Loss on redemption of bonds
General and administrative expenses
Other expenses
Written-off of loans
Losses on devaluation of stocks and other securities

Loss on money held in trust
Other
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on revision of retirement benefit plan
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit− 17 −（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2016
March 31, 2017
127,267
134,286
112,248
117,238
107,171
113,588
3,968
2,558
112
38
830
804
0
―
164
248
0
1
12,00412,001
2,387
2,441
9,616
9,559
911
546
73
70
0
―
39
2
797
473
2,103
4,497
684
2,590
618
1,004
183
129
―
150
617
622
72,835
77,125
4,681
4,299
4,558
4,069
5
8
117
221
14,952
14,327873
885
14,07813,441
199
310
―
0
199
310
45,48247,436
7,519
10,752
2,916
7,160
0
636
182
―
4,419
2,955
54,432
57,160
26
2,170
26
36
―
2,134
488
316
468
316
19
―
53,97059,013
18,672
15,214(508)
2,071
18,163
17,28535,807
41,728SURUGA bank, Ltd.

(3) Non-consolidated statements of changes in net assets
For the fiscal Year ended March 31, 2016
Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

1,511（Millions of yen）

Shareholders' equity

Retained earnings
Other retained earnings
Reserve for
Retained
advanced
Total capital Legal retained
Generalearnings
depreciation
surplusearnings
reservebroughtof non-current
forwardassets
20,09730,04357

103,032

94,115

Dividends of surplus(4,983)

Profit35,807Purchase of treasury
shares
Disposal of treasury
sharesRetirement of treasury
sharesProvision of reserve for
reduction entry

92

92(1,604)(1,604)(27,976)
1(1)

Net changes of items other thanshareholders' equity

Total changes of items
during period
Balance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
period――(1,511)(1,511)

―

1

―

2,846

30,043

18,585―

18,58530,043

59

103,032

96,961

Shareholders' equity
Valuation and translation adjustments
Retained
Total
Valuation
Deferred gains
Total
earnings
valuation anddifference on
Treasuryor losses onshareholders'translation
available-forshares
Total retained
hedgesequityadjustments
sale securities
earnings

Subscription
rights toshares227,248(16,110)261,279

21,157(99)

21,058112

Total net
assets282,450Dividends of surplus(4,983)(4,983)(4,983)

Profit35,80735,80735,807(14,364)(14,364)(14,364)

143

235

235

29,581――――

Purchase of treasury
shares
Disposal of treasury
sharesRetirement of treasury
sharesProvision of reserve for
reduction entry(27,976)―

Net changes of items other thanshareholders' equity

Total changes of items
during period
Balance at end of current
period(5,632)20(5,611)(51)(5,663)

2,847

15,36016,695(5,632)20(5,611)(51)

11,032230,096(750)

277,974

15,525(78)

15,446

61

293,482− 18 −SURUGA bank, Ltd.

For the fiscal year ended March 31, 2017
Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585―（Millions of yen）

Shareholders' equity

Retained earnings
Other retained earnings
Reserve for
Retained
advanced
Total capital Legal retained
Generalearnings
depreciation
surplusearnings
reservebroughtof non-current
forwardassets
18,58530,043

59

103,032

96,961Dividends of surplus(4,745)

Profit41,728Purchase of treasury
shares
Disposal of treasury
shares44

Net changes of items other thanshareholders' equity

Total changes of items
during period
Balance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
period

―

―

4

4

―

―

―

36,98230,043

18,585

4

18,59030,043

59

103,032

133,943

Shareholders' equity
Valuation and translation adjustments
Retained
Total
Valuation
Deferred gains
Total
earnings
valuation anddifference on
Treasuryor losses onshareholders'translation
available-forshares
Total retained
hedgesequityadjustments
sale securities
earnings

Subscription
rights toshares230,096(750)

277,974

15,525(78)

15,44661

Total net
assets293,482

Dividends of surplus(4,745)(4,745)(4,745)

Profit41,72841,72841,728

(4)

(4)

(4)

148

152

152

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items other thanshareholders' equity

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

954

20

975

(36)

938

36,982

143

37,129

954

20

975

(36)

38,068267,078(606)

315,104

16,480(58)

16,422

24

331,551− 19 −