November 9, 2016

SURUGA bank, Ltd.
Consolidated Financial Results for the six months ended September 30, 2016
<Under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
http://www.surugabank.co.jp
Representative:
Akihiro Yoneyama, President
Dividend payment date: December 12, 2016
(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, 2016
(1) Consolidated operating results(％ represents the change from the same period in the previous fiscal year)

Ordinary income

Profit attributableto owners of parent

Ordinary profit

Six months ended
Millions of yen％
Millions of yen％
Millions of yen％
September 30, 2016
70,501
1.5
28,000(3.3)
19,2191.2
September 30, 2015
69,4349.8
28,975
17.6
18,98923.5(Note) Comprehensive income:(a) Six months ended Sep. 30, 2016: ¥15,641 million [2.1%]; (b) Six months ended Sep. 30, 2015: ¥15,316 million [(12.5) %]Net income per share
Six months ended
September 30, 2016
September 30, 2015

Net income per share (diluted)
yen

yen

83.01
80.01

82.97
79.93

(2) Consolidated financial position
Net assets ratio
Total assets
Total net assets
As ofMillions of yen
Millions of yen％
September 30, 2016
4,438,104
315,499
7.0
March 31, 2016
4,390,146
302,237
6.8(Reference) Shareholders’ equity:(a) As of September 30, 2016: ¥313,198 million; (b) As of March 31, 2016: ¥300,031 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 stockst

Dividends per share
2 Quarter -end 3rd Quarter -end Fiscal year -endnd

1 Quarter -end
Fiscal year
yen
yen
ended March 31, 2016
9.50
ending March 31, 2017
10.00
ending March 31, 2017 (forecast)(Note) Revision of dividend forecasts from the latest announcement: No

yen

Total

yen

yen

-

10.50

20.00

-

10.00

20.00

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2017(％ represents the change from the previous fiscal year)

Ordinary income

Profit attributableto owners of parent

Ordinary profit

Fiscal year ending
Millions of yen％
Millions of yen
March 31, 2017
141,000
1.1
56,500(Note) Revision of earnings forecasts from the latest announcement: No

Net income
per share％

Millions of yen

％

yen

0.1

37,2001.3

160.66

(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, 2016
(including treasury shares):(B) Number of treasury shares:

As of Sep. 30, 2016

(C) Average number of shares:

Six months ended
Sep. 30, 2016

232,139,248 shares

As of Mar. 31, 2016

232,139,248 shares602,888 shares

As of Mar. 31, 2016

659,080 shares

Six months ended
Sep. 30, 2015

231,518,042 shares

237,332,016 shares(Summary of non-consolidated financial results)
1. Non-consolidated financial results for the six months ended September 30, 2016
(1) Non-consolidated operating results
Ordinary income
Six months ended
Millions of yen
September 30, 2016
64,114September 30, 2015
63,926(％ represents the change from the same period in the previous fiscal year)

Ordinary profit

Net income％

Millions of yen％

Millions of yen

％

0.2
9.2

27,46927,896(1.5)
16.9

19,113
18,5533.0
23.8

Net income per share
Six months ended
September 30, 2016
September 30, 2015

yen

82.55
78.17

(2) Non-consolidated financial position
Net assets ratio
Total assets
Total net assets
As ofMillions of yen
Millions of yen％
September 30, 2016
4,431,916
306,650
6.9
March 31, 2016
4,381,220
293,482
6.6(Reference) Shareholders’ equity:(a) As of September 30, 2016: ¥306,607 million; (b) As of March 31, 2016: ¥293,421 million(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 forecasts for the fiscal year ending March 31, 2017(％ represents the change from the previous fiscal year)

Ordinary income
Fiscal year ending
March 31, 2017

Ordinary profit

Net income
per share

Net income

Millions of yen％

Millions of yen％

Millions of yen％

yen

130,000

2.1

55,0001.0

37,0003.3

159.80（Disclosure regarding the execution of the interim audit process）
This report is outside the scope of the external auditor’s interim audit procedure which is required by the “Financial Instruments
and Exchange Act”. The audit process of interim consolidated and non-consolidated financial statements has therefore not been
completed as of this disclosure in this report.
(Explanation on appropriate use of forecast and other special items)
1. The company falls under the “Specified business company” pursuant to Article 17-15-2 of the Cabinet Office Ordinanceregarding disclosure of company information. It has, accordingly, prepared its interim consolidated and non-consolidated
financial statements for the six months ended September 30, 2016.
2. The performance forecasts and other forward-looking statements in this report are based on information currently available tothe 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) Information on forecast information, including consolidated earnings forecasts ········· 2
2. Items regarding summary information (Notes) ···················································· 3(1) Changes in accounting policies, changes in accounting estimates and restatements ····· 3(2) Additional information ············································································ 3
3. Consolidated financial statements ··································································· 4(1) Consolidated balance sheets ······································································ 4(2) Consolidated statements of income and Consolidated statements of comprehensive income ··· 5(3) Consolidated statements of changes in net assets ············································· 7(4) Notes on going-concern assumption ···························································· 9(5) Significant subsequent events ···································································· 9
4. Non-consolidated financial statements ··························································· 10(1) Non-consolidated balance sheets ······························································ 10(2) Non-consolidated statements of income ······················································· 11(3) Non-consolidated statements of changes in net assets ······································ 12(4) Notes on going-concern assumption ·························································· 14
Supplementary Information: “Financial Results for the six months ended September 30, 2016”-1-

SURUGA bank, Ltd.

1. Qualitative information on financial results(1) Details of operating results
As for the consolidated operating results for the six months ended September 30, 2016, ordinary
income increased by ¥1.067 billion year-on-year to ¥70.501 billion. This was mainly due to anincrease in interest income, reflecting an increase in interest on loans and discounts. Meanwhile,
ordinary expenses increased by ¥2.042 billion year-on-year to ¥42.500 billion, mainly due to anincrease in general and administrative expenses. As a result, ordinary profit decreased by ¥0.975
billion year-on-year to ¥28.000 billion. Profit attributable to owners of parent increased by ¥0.230
billion year-on-year to ¥19.219 billion.

(2) Details of financial position
As for the major account balances as of September 30, 2016 on a consolidated basis, loans andbills discounted increased by ¥47.572 billion from March 31, 2016 to ¥3,184.736 billion, mainly due
to an increase in consumer loans (non-consolidated) of ¥63.408 billion.
Securities decreased by ¥5.066 billion from March 31, 2016 to ¥225.012 billion.
Deposits increased by ¥39.635 billion from March 31, 2016 to ¥4,089.129 billion, mainly due toan increase in individual deposits of ¥48.835 billion.

(3) Information on forecast information, including consolidated earnings forecasts
The earnings forecast for the fiscal year ending March 31, 2017 remains
unchanged from that announced on August 5, 2016.
Consolidated

Ordinary income
Ordinary profit
Profit attributable toowners of parent
Non-consolidated(Billions of yen)

For the fiscal year
ending March 31, 2017
(forecast)
141.0
56.5
37.2
(Billions of yen)

Ordinary income
Net operating profit
Ordinary profit
Net income

For the fiscal year
ending March 31, 2017
(forecast)
130.0
60.5
55.0
37.0

Actual credit costs

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

-2-

SURUGA bank, Ltd.

2. Items regarding summary information (Notes)(1) Changes in accounting policies, changes in accounting estimates and restatements
Not applicable.

(2) Additional information
Effective from the first half of the fiscal year ending March 31, 2017, thecompany has applied “Implementation Guidance on Recoverability of Deferred
Tax Assets” (Accounting Standards Board of Japan “ASBJ” Guidance No.26,
March 28, 2016).

-3-

SURUGA bank, Ltd.

3. Consolidated financial statements(1) Consolidated balance sheets（Millions of yen）
As of
March 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
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
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

-4-

As of
Sep. 30, 2016

897,074
3,006
50
1,046
230,078
3,137,164
3,534
5,531
43,19650,84930,007
5,276
2,120
3,476
(22,265)
4,390,146

902,854
3,756
71
1,092
225,0123,184,736
2,723
5,472
41,80451,351
29,218
5,742
2,902
3,378
(22,011)4,438,104

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

4,089,129
1,295
18
23,888
726
266
3,191
240
194
275
3,378
4,122,604

30,043
253,182(750)
282,475
16,121(83)
1,517
17,55661
2,144
302,237
4,390,146

30,043
5269,971(687)
299,333
12,535(68)
1,399
13,86543
2,257
315,499
4,438,104

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, 2015
69,43458,912
55,372
2,983
6,427
2,909
1,184
40,458
2,234
2,179
7,476
1,816
24,544
4,387
28,97599321
32128,663
10,630(1,081)
9,549
19,113124
18,989Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-5-（Millions of yen）
For the six months
ended
Sep. 30, 2016
70,50160,61759,511
607
6,774
2,178
931
42,500
2,157
2,068
6,984
1,892
26,1945,271
28,0002
2147
147
27,856
7,698
826
8,525
19,331
111
19,219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
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-6-（Millions of yen）
For the six months For the six months
ended
ended
Sep. 30, 2015
Sep. 30, 2016
19,113
19,331(3,547)40(290)(3,797)
15,316(3,584)14(118)(3,689)15,641

15,180136

15,528112

SURUGA bank, Ltd.

(3) Consolidated statements of changes in net assets
For the six months ended September 30, 2015
（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
shares229,924

Total
shareholders'equityTreasuryshares(16,110)

264,870(2,728)(2,728)18,98918,989

68

(5)

(5)

53

122

Net changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
period-68

16,26048

16,37730,04321,082

246,184(16,062)281,247

Accumulated other comprehensive income
Total
Valuation
DeferredRemeasureaccumulated
gains orments ofdifference on
otheravailable-forlosses on
definedcomprehensale securities
hedgesbenefit plans
sive income

Subscription
rights toshares

Noncontrollinginterests

112

1,959

21,673

(101)

3,613

25,185

Dividends of surplus

Total changes of items
during period
Balance at end of current
period292,128(2,728)

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

Total net
assets

18,989(5)
122(3,558)40(290)(3,808)(23)

136(3,696)(3,558)40(290)(3,808)(23)

136

12,68018,114

(60)

3,323

21,377

88

2,095

304,809-7-

SURUGA bank, Ltd.

For the six months ended September 30, 2016
（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(2,430)(2,430)19,21919,219

5

(2)

(2)

65

70

Net changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period-5

16,78962

16,85730,043

5269,971(687)

299,333

Accumulated other comprehensive income
Total
Subscription
Valuation
DeferredRemeasureaccumulated
rights to
gains orments ofdifference onothersharesavailable-forlosses on
definedcomprehensale securities
hedgesbenefit plans
sive income
Balance at beginning ofcurrent period
Changes of items during
period16,121

(83)

1,517

17,55661

Noncontrollinginterests

2,144

Dividends of surplus

Total changes of items
during period
Balance at end of current
period302,237(2,430)

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

Total net
assets

19,219(2)
70(3,586)

14(118)(3,690)(17)

112(3,595)(3,586)

14(118)(3,690)(17)

112

13,261

12,535

(68)

1,399

13,86543

2,257

315,499-8-

SURUGA bank, Ltd.

(4) Notes on going-concern assumption
Not applicable.

(5) Significant subsequent events(Partial changes to the retirement benefit plan)
On October 1, 2016, the company partially shifted from a defined benefit corporate pension
plan to a 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) havebeen applied regarding these changes, and the financial impact is currently being reviewed.

-9-

SURUGA bank, Ltd.

4. Non-consolidated financial statements(1) Non-consolidated balance sheets（Millions of yen）
As of
March 31, 2016
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 retirement benefits
Provision for directors' retirement benefits
Provision for reimbursement of deposits
Provision for contingent loss
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 assets
General reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets- 10 -

As of
Sep. 30, 2016

896,454
3,006
50
1,046
234,032
3,137,614
3,534
34,412
34,412
49,463
27,462
3,177
2,477
4,096
(15,607)
4,381,220

902,200
3,756
71
1,092
230,970
3,184,679
2,723
33,833
33,83349,98526,754
3,735
3,242
3,997
(15,126)
4,431,916

4,056,482
13
22,452
10,744539
11,169
674
153
78
3,246
276
262
4,096
4,087,737

4,097,611
18
19,334
7,885
522
10,925
679
3,189
240
194
3,997
4,125,266

30,043
18,585
18,585230,096
30,043200,05259
103,032
96,961(750)
277,974
15,525(78)
15,446
61
293,482
4,381,220

30,043
18,591
18,585
5
246,779
30,043
216,73659
103,032
113,644(687)
294,726
11,944(63)
11,88043
306,650
4,431,916

SURUGA bank, Ltd.

(2) Non-consolidated statements of income
For the six months
ended
Sep. 30, 2015
63,92655,98652,459
2,970
5,954
849
1,136
36,029
2,228
2,179
7,487
32
22,9003,379
27,8969317
27,588
10,278(1,243)
9,035
18,553

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
Extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit- 11 -（Millions of yen）
For the six months
ended
Sep. 30, 2016
64,11457,03355,940
596
6,130
224
725
36,644
2,161
2,068
7,019
184
24,186
3,091
27,4691
141
27,330
7,431
785
8,216
19,113

SURUGA bank, Ltd.

(3) Non-consolidated statements of changes in net assets
For the six months ended September 30, 2015
（Millions of yen）
Shareholders' equity
Retained earnings
Other retained earnings

Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

1,511

Reserve for
Total capital Legal retainedadvancedearnings
surplusdepreciationof non-current
assets
20,09730,04357

Retainedearnings
brought
forwardGeneralreserve

103,032

94,115

Dividends of surplus(2,728)

Profit18,553Purchase of treasury
shares
Disposal of treasury
shares68

68

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period

-

-

68

68

-

-

-

15,82430,043

18,585

1,580

20,16630,04357

103,032

109,939

Valuation
Total
Total
Deferred gains
difference on
valuation andshareholders'or losses onavailable-fortranslation
equityhedgessale securities
adjustments

Subscription
rights tosharesValuation and translation adjustments

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning ofcurrent period
Changes of items during
period227,248

Treasuryshares(16,110)261,279

21,157(99)

21,058112

Total net
assets282,450Dividends of surplus(2,728)(2,728)(2,728)

Profit18,553

18,553

18,553

(5)

(5)

(5)

53

122

122

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

Total changes of items during
periodBalance at end of current
period(3,592)41(3,551)(23)(3,575)

15,82448

15,941(3,592)41(3,551)(23)

12,366

243,073(16,062)

277,220

17,565(57)

17,507

88294,816- 12 -SURUGA bank, Ltd.

For the six months ended September 30, 2016
（Millions of yen）
Shareholders' equity
Retained earnings
Other retained earnings

Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus30,043

18,585Reserve for
Total capital Legal retainedadvancedsurplusearnings
depreciationof non-current
assetsOther capitalsurplus-18,58530,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

96,961Dividends of surplus(2,430)

Profit19,113Purchase of treasury
shares
Disposal of treasury
shares55Net changes of items otherthan shareholders' equity

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

-

-

5

5

-

-

-

16,68330,043

18,585

5

18,591

30,043

59

103,032

113,644

Total
Valuation
Total
Deferred gains
valuation anddifference onshareholders'or losses ontranslation
available-forequity
hedgesadjustments
sale securities

Subscription
rights tosharesShareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning ofcurrent period
Changes of items during
period230,096

Treasuryshares(750)

Valuation and translation adjustments

277,974

15,525(78)

15,44661

Total net
assets293,482

Dividends of surplus(2,430)(2,430)(2,430)

Profit19,113

19,113

19,113

(2)

(2)

(2)

65

70

70

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

Total changes of items during
periodBalance at end of current
period(3,581)

14(3,566)(17)(3,584)

16,68362

16,751(3,581)

14(3,566)(17)

13,167

246,779(687)

294,726

11,944(63)

11,88043

306,650- 13 -SURUGA bank, Ltd.

(4) Notes on going-concern assumption
Not applicable.

- 14 -