May 12, 2023

SURUGA bank, Ltd.
Consolidated financial results for the fiscal year ended March 31, 2023
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Kosuke Saga, President
Dividend payment date: June 6, 2023
(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, 2023
(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, 2023
92,4030.3
13,266
25.1
March 31, 2022
92,072(7.7)
10,596(54.1)(Note) Comprehensive income: (a) Fiscal year ended March 31, 2023: ¥7,923 million [- %](b) Fiscal year ended March 31, 2022: ¥(2,673) million [- %]%10,5767,960

32.8(62.8)

Earnings per share

Earnings per share(diluted)

yen

yen

%

%

%

56.15
34.72

-

3.9
2.8

0.3
0.2

14.3
11.5

Fiscal year ended
March 31, 2023
March 31, 2022

Return on
net assets

Millions of yen

Ordinary profit
on total assets

Ordinary profit
on ordinary income(Note) Earnings per share for the fiscal year ended March 31, 2022 and 2023 are not provided because there are no potentially shares.

(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, 2023
3,639,910
271,040
7.4
1,438.33
March 31, 2022
3,589,982
264,229
7.3
1,402.54(Reference) Shareholders’ equity: (a) As of March 31, 2023: ¥270,939 million; (b) As of March 31, 2022: ¥264,129 million(Note) Nets assets ratio = (Total net assets - 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, 2023
March 31, 2022

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

24,492
142,156

142,311(210,780)(1,130)(18,828)

1,021,498
855,818

2. Dividends on common stock
1st
quarter-end
Fiscal year
ended March 31, 2022
ended March 31, 2023
ending March 31, 2024
(forecast)

Dividends per share
2nd
3rd
Fiscalquarterquarter
year
-end
-end
-end

Total

Total
dividends

Dividend
payout ratio(Consolidated)

Dividend on
net assets
ratio(Consolidated)

yen

yen

yen

yen

yen

Millions of yen

%

%

-

0.00
0.00

-

6.00
9.00

6.00
9.00

1,129
1,695

17.2
16.0

0.4
0.6

-

7.00

-

7.00

14.00

31.0

3. Consolidated earnings forecast for the fiscal year ending March 31, 2024(% represents the change from the same period in the previous fiscal year)
Profit attributable
Ordinary profit
Earnings per shareto owners of parent

Ordinary income
Millions of yen

1H, FY3/2024
FY3/2024

39,00077,500%(25.9)(16.1)

Millions of yen

4,500
12,000%(75.3)(9.5)

Millions of yen

2,500
8,500

%

Yen

(84.7)(19.6)

13.27
45.12

(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: Yes(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: Yes(D) Restatements: No(3) Number of issued shares (common stock)(A) Number of issued shares
As of Mar. 31, 2023
(including treasury shares):232,139,248 shares

As of Mar. 31, 2022

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

As of Mar. 31, 2023

43,768,676 shares

As of Mar. 31, 2022

43,818,103 shares(C) Average number of shares:

Fiscal year ended
Mar. 31, 2023

188,350,917 sharesFiscal year ended
Mar. 31, 2022

229,201,640 shares(Reference) Summary of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2023
(1) Non-consolidated operating results(% represents the change from the previous fiscal year)
Ordinary profit
Net income

Ordinary income
Fiscal year ended
March 31, 2023
March 31, 2022

Millions of yen%

Millions of yen%

Millions of yen%

82,794
83,658

(1.0)
(6.2)

11,267
10,093

11.6(49.4)

9,537
7,854

21.4
(58.5)

Earnings per share(diluted)

Earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

Yen

Yen

50.63
34.26

-

(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, 2023
3,620,806
255,1697.0
1,354.61
March 31, 2022
3,568,782
246,3566.9
1,308.17(Reference) Shareholders’ equity: (a) As of March 31, 2023: ¥255,169 million; (b) As of March 31, 2022: ¥246,356 million(Note) Net assets ratio = Total net assets / Total assets × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

2. Non-consolidated earnings forecast for the fiscal year ending March 31, 2024(% represents the change from the same period in the previous fiscal year)
Profit attributable
Ordinary profit
Earnings per shareto owners of parent

Ordinary income
Millions of yen

1H, FY3/2024
FY3/2024

35,00069,000%(26.4)(16.6)

Millions of yen

4,500
11,500%(73.5)
2.0

Millions of yen

2,500
8,500

%

Yen

(84.4)(10.8)

13.27
45.12

(Note) This report is outside the scope of audit procedures by certified public accountants or audit firms.
(Note) Explanation on appropriate use of forecast and other special items
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. 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 ·············································

10(4) Consolidated statements of cash flows ·························································

12(5) Notes to consolidated financial statements ·····················································

14(Notes on going-concern assumption) ····························································

14(Changes in accounting policies, changes in accounting estimates) ··························

14(Segment information)··············································································

15(Per share data) ······················································································

16(Significant subsequent events) ···································································

16

4. Non-consolidated financial statements ·····························································

17(1) Non-consolidated balance sheets ································································

17(2) Non-consolidated statements of income ························································

19(3) Non-consolidated statements of changes in net assets ········································

21* Financial results for the fiscal year ended March 31, 2023 supplementary information－1－

Suruga bank, Ltd.

1. Overview of operating results, etc.
(1) Overview of operating results
In the fiscal year ended March 31, 2023, consolidated ordinary income increased by ¥0.331 billion
year-on-year to ¥92.403 billion. This was primarily due to the recording of a reversal of allowance for loan
losses, despite a decline in interest income reflecting the drop in interest on loans and bills discounted.
Meanwhile, ordinary expenses decreased by ¥2.339 billion year-on-year to ¥79.137 billion, mainly due to adecrease in credit costs. As a result, ordinary profit increased by ¥2.670 billion year-on-year to ¥13.266 billion,
and profit attributable to owners of parent increased by ¥2.616 billion year-on-year to ¥10.576 billion.
Non-consolidated operating results were as follows:(A) Gross operating profit
Gross operating profit decreased by ¥21.880 billion year-on-year to ¥43.422 billion, mainly due to adecreased (¥17.367 billion) in gains (losses) on bonds.
(B) Expenses
Expenses decreased by ¥3.513 billion year-on-year to ¥36.209 billion.
(C) Net operating profit
Core net operating profit decreased by ¥1.001 billion year-on-year to ¥24.035 billion, mainly due to adrop in net interest income.
Net operating profit decreased by ¥28.937 billion year-on-year to ¥7.212 billion, mainly due to a change
in the accounting item for provision of allowance for loan losses.
(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 ¥1.174 billion year-on-year to ¥11.267 billion, mainly due to a decrease in
net credit costs.
(E) Net income
Net income increased by ¥1.683 billion year-on-year to ¥9.537 billion, mainly due to a decrease in net
credit costs.
(F) Net credit costs
Provision for general allowance for loan losses increased by ¥10.569 billion year-on-year. Disposal of
non-performing loans decreased by ¥25.606 billion year-on-year to ¥5.952 billion. As a result, net credit
costs decreased by ¥19.084 billion year-on-year to ¥1.905 billion.
Actual credit costs decreased by ¥17.210 billion year-on-year to ¥(1.178) billion.
(Note) Net credit costs = Provision for general allowance for loan losses+ Disposal of non-performing loans(Note) Actual credit costs = Net credit costs - Recoveries on written-off claims－2－Suruga bank, Ltd.

(2) Overview of financial position
As for consolidated major account balances, loans and bills discounted came in at ¥2,090.327 billion, downby ¥57.752 billion year-on-year. This was mainly due to the decrease (¥168.125 billion) in consumer loans(non-consolidated). Securities amounted to ¥297.883 billion, down by ¥165.549 billion year-on-year. Deposits
amounted to ¥3,349.631 billion, up by ¥42.324 billion year-on-year.
Non-consolidated major account balances were as follows:(A) Loans and bills discounted
Loans and bills discounted came in at ¥2,080.150 billion, down by ¥58.437 billion year-on-year.
Consumer loans amounted to ¥1,670.444 billion, down by ¥168.125 billion year-on-year. The averagebalance of loans and bills discounted in the fiscal year amounted to ¥2,085.528 billion, down by ¥158.870
billion year-on-year.
(B) Securities
Securities amounted to ¥303.504 billion, down by ¥162.739 billion year-on-year.
(C) Deferred tax assets (liabilities)
Deferred tax assets amounted to ¥15.277 billion, down by 0.362 billion year-on-year.
(D) Deposits
Deposits amounted to ¥3,355.740 billion, up by ¥43.559 billion year-on-year. Individual yen deposits
amounted to ¥2,676.056 billion, down by ¥8.580 billion year-on-year. The average balance of deposits inthe fiscal year amounted to ¥3,339.477 billion, up by ¥47.905 billion year-on-year.
As for consolidated cash flows, cash flow from operating activities was a net inflow of ¥24.492 billion(compared to a net inflow of ¥142.156 billion in the previous fiscal year), this was mainly due to an increase indeposits and interest received. Cash flow from investing activities was a net inflow of ¥142.311 billion(compared to a net outflow of ¥210.780 billion in the previous fiscal year), mainly due to proceeds fromredemption of securities. Cash flow from financing activities was a net outflow of ¥1.130 billion (compared to a
net outflow of ¥18.828 billion in the previous fiscal year), mainly due to cash dividends paid.
As a result, cash and cash equivalents as of March 31, 2023 amounted to ¥1.021.498 billion, up by ¥165.680
billion year-on-year (compared to ¥855.818 billion as of March 31, 2022).

－3－

Suruga bank, Ltd.

(3) Future outlook
Earnings forecast for the fiscal year ending March 31, 2024 is as follows:
Consolidated

Ordinary income
Ordinary profit
Profit attributable toowners of parent

Non-consolidated

Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income
Actual credit costs
ROE (Net income basis)(Billions of yen)
FY3/2024 (Forecast)First half
Full year
39.0
77.5
4.5
12.0
2.5

8.5

(Billions of yen)
FY3/2024 (Forecast)First half
Full year
35.0
69.0
9.0
18.0
13.0
24.5
4.5
11.5
2.5
8.5
4.5

6.5

1.96%

3.35%

(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. 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（Millions of yen）
As of
Mar. 31, 2022
AssetsCash and due from banks
Call loans and bills bought
Monetary claims bought
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Lease receivables and investment assets
Other assets
Property, plant and equipment
Buildings, net
Land
Leased assets, net
Construction in progress
Other, net
Intangible assets
Software
Goodwill
Leased assets
Software in progress
Other
Retirement benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Retirement benefit liability
Provision for share-based compensation
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities

－5－

As of
Mar. 31, 2023

874,184
40,24459,73982
99463,432
2,148,079
2,292
5,066
45,24135,227
10,741
20,73846
806
2,893
18,474
16,380
1,294
132
301
365
20,50914,751
1,474(138,917)
3,589,982

1,044,263
60,293
131,51785
99
297,883
2,090,327
4,805
4,698
44,17233,33910,70020,31355
321
1,950
16,00913,771
1,165
101
610
360
20,12615,311
1,271(124,295)
3,639,910

3,307,307
41
14,479
486
41
292
205
247
75
1,102
1,474
3,325,753

3,349,631
41
16,340
461
38
293
303
223
51
211
1,271
3,368,869

Suruga bank, Ltd.

（Millions of yen）
As of
Mar. 31, 2022
Net assets
Share capital
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
Non-controlling interests
Total net assets
Total liabilities and net assets

30,043
1,976
245,595(18,131)259,484
1,324
(3)
3,324
4,645
100
264,2293,589,982

－6－

As of
Mar. 31, 2023

30,043
1,974
255,042(18,111)
268,949
167
(0)
1,823
1,990
101
271,040
3,639,910

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
ended
Mar. 31, 2022
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans and bills boughtInterest on deposits with banks
Other interest income
Fees and commissions
Other ordinary income
Gain on redemption of bonds
Other
Other income
Reversal of allowance for loan losses
Recoveries of written off receivables
Gain on sale of equity securities
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest expenses on cash collateral received for securities lent
Other interest expenses
Fees and commissions payments
Other ordinary expenses
Loss on sale of bonds
Loss on redemption of bonds
Other
General and administrative expenses
Other expenses
Provision of allowance for loan losses
Written-off of loans
Loss on devaluation of equity securities
Other
Ordinary profit－7－

92,07275,03071,906
2,038
1
820
263
7,683
3,741
616
3,124
5,617
―
5,035
5
576
81,476
1,489
1,461
―
27
11,620
2,922
―
72
2,850
41,18624,25814,250
5,654
27
4,325
10,596

For the fiscal year
ended
Mar. 31, 2023
92,40368,562
65,145
864
13
819
1,719
7,306
3,461
304
3,157
13,072
4,116
3,143
5,100
712
79,137
1,383
1,298
0
84
10,827
20,037
1,740
15,387
2,909
38,348
8,540
―
4,693
120
3,726
13,266

Suruga bank, Ltd.

（Millions of yen）
For the fiscal year
ended
Mar. 31, 2022
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

76
76
1,611
957
653
9,061
161
943
1,105
7,955
(4)
7,960

－8－

For the fiscal year
ended
Mar. 31, 2023
51
51
1,282
422
859
12,036
1,371
86
1,457
10,5781
10,576

Suruga bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）

ProfitOther comprehensive income
Net unrealized gains(losses) on available-for-salesecurities
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－9－

For the fiscal year
ended
Mar. 31, 2022
7,955

For the fiscal year
ended
Mar. 31, 2023
10,578(7,629)16(3,016)(10,629)(2,673)(1,156)
3(1,501)(2,655)
7,923(2,669)
(4)

7,921
1

Suruga bank, Ltd.

(3)Consolidated statements of changes in net assets
For the fiscal year ended Mar.31, 2022
（Millions of yen）
Shareholders' equity

Balance at beginning of current period

Capital stock

Capital surplus

30,0432,045

Retained earnings Treasury shares

Cumulative effects of changes inaccounting policies
Restated balance

238,863

(561)

(69)
30,043

2,045

238,794

Total
shareholders'equity270,391
(69)

(561)

270,321

Changes of items during period
Dividends of surplus(1,158)(1,158)Net income

7,960

7,960

Purchase of treasury shares
Disposal of treasury shares(69)(17,669)(17,669)

99

30

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

-

(69)

6,801

(17,570)(10,837)

30,043

1,976

245,595(18,131)259,484

Accumulated other comprehensive income
Net unrealized
gains(losses) on
available-forsalesecurities
Balance at beginning of current period

8,954

Total
Non-controlling
RemeasureDeferred
accumulated
interests
gains(losses) on ments of definedother comprehenhedges
benefit plans
sive income
(20)

6,341

15,274

104

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

285,770
(69)

8,954

(20)

6,341

15,274

104285,700

Changes of items during period
Dividends of surplus(1,158)Net income

7,960

Purchase of treasury shares(17,669)

Disposal of treasury shares

30

Net changes of items other thanshareholders' equity(7,629)16(3,016)(10,629)(4)(10,633)

Total changes of items during period(7,629)16(3,016)(10,629)(4)(21,471)

Balance at end of current period

1,324

(3)

3,324

4,645

100

264,229－10－

Suruga bank, Ltd.

For the fiscal year ended Mar.31, 2023
（Millions of yen）
Shareholders' equity

Balance at beginning of current period

Capital stock

Capital surplus

30,043

1,976

Retained earnings Treasury shares

Total
shareholders'equity(18,131)259,484

245,595

Changes of items during period
Dividends of surplus(1,129)(1,129)Net income

10,576

10,576

Purchase of treasury shares
Disposal of treasury shares

(2)

(0)

(0)

20

18

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

-

(2)

9,446

20

9,464

30,043

1,974

255,042(18,111)

268,949

Accumulated other comprehensive income
Net unrealized
gains(losses) on
available-forsalesecurities
Balance at beginning of current period

1,324

Total
Non-controlling
DeferredRemeasureaccumulated
interests
gains(losses) on ments of definedother comprehenhedges
benefit plans
sive income
(3)

3,324

4,645

100

Total net assets

264,229

Changes of items during period
Dividends of surplus(1,129)Net income

10,576

Purchase of treasury shares(0)

Disposal of treasury shares

18

Net changes of items other thanshareholders' equity(1,156)

3(1,501)(2,655)

1(2,653)

Total changes of items during period(1,156)

3(1,501)(2,655)

1

6,811

167

(0)

1,823

1,990

101

271,040

Balance at end of current period－11－Suruga bank, Ltd.

(4) Consolidated statements of cash flows

For the fiscal year
ended
Mar. 31, 2022
Cash flows from operating activities
Income 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 net defined benefit asset
Increase (decrease) in provision for share-based compensation
Increase (decrease) in provision for reimbursement of deposits
Increase (decrease) in provision for contingent losses
Interest income
Interest expenses
Losses (gains) on securities
Losses (gains) on money held in trust
Losses (gains) 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 decrease (increase) in deposit (excluding deposit paid to Bank of Japan)
Net decrease (increase) in call loans
Net decrease (increase) in monetary claims bought
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
Interest received
Interest paid
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities

－12－

9,061
5,638
653
129
(19,093)
(6)
―
19
(798)
22
(57)
(14)
(75,030)
1,489
(521)
(0)
880
20
171,480
61,367(7,697)(21,244)(59,739)
1,031
35
441
54
75,771(1,599)(1,621)
140,673
1,483
142,156（Millions of yen）
For the fiscal year
ended
Mar. 31, 2023
12,036
5,434
859
129
(14,622)
(25)
(2)
1
(786)
98
(23)
(23)
(68,562)
1,383
11,843(0)370(3)
57,75242,324(4,398)(20,048)(71,778)(2,512)0367(20)68,950(1,694)
7,734
24,782(289)
24,492

Suruga bank, Ltd.

（Millions of yen）
For the fiscal year
ended
Mar. 31, 2022
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Decrease in money held in trust
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
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 year-end－13－

For the fiscal year
ended
Mar. 31, 2023

(211,860)
10
5,972
0
(3,442)258(1,719)(210,780)(53,290)
42,912
154,816
0(1,148)192(1,171)
142,311(1,158)(17,669)
0(18,828)6(87,445)943,263
855,818(1,129)(0)0(1,130)6
165,680
855,818
1,021,498

Suruga bank, Ltd.

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

(Change in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Statement
No.31, June 17, 2021) was adopted from the beginning of the current fiscal year. In addition, in accordancewith the transitional treatment stipulated in Paragraph 27-2 of the Implementation Guidance on AccountingStandard for Fair Value Measurement, the Bank decided to adopt a new accounting standard stipulated by
the Implementation Guidance on Accounting Standard for Fair Value Measurement in the future. There was
no impact on the consolidated financial statements.

(Changes in accounting estimates)
Previously, the bank had set the amortization period of actuarial gains and losses in accounting for retirement
benefits to 12 years. However, because the average remaining service life of employees was reduced, theamortization period has been revised to 10 years since the current fiscal year. There was minimal impact on the
consolidated financial statements.

－14－

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 review regularly 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. “Banking” includes businesses such as deposits, loans, exchange and credit
card services. “Credit card services” includes credit card services business.
The reportable segment of the Suruga Bank group was “banking” and “credit guarantee”, but from thecurrent consolidated accounting period, “credit guarantee” was not increasing quantitative importance. And“credit card services”, which has been included in “others”, is reclassified to the reportable segment due toits increasing quantitative importance.
2. Method of calculating ordinary income, profit or loss, assets and other items by reportable segment
Segment profit is based 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, 2023
Reportable segment
Creditcard
Banking
services
Ordinary income
Ordinary income toexternal customers
Inter-segment internal
ordinary income
Total
Segment profit
Segment assets
Other items
Depreciation
Impairment losses
Increase in tangible
fixed assets andintangible fixed assets(Millions of yen)
Others

Total

Adjustments

Amount recordedin the consolidated
financial statements

80,966

3,630

7,737

92,33468

92,403

1,828

665

2,538

5,032

(5,032)-

82,794
11,2673,620,806

4,296
3,435
11,622

10,2762,443
29,39097,367
17,146
3,661,818(4,963)(3,880)(21,908)

92,403
13,266
3,639,910

5,221

11

200

5,434

-

5,434

857

-

2

859

-

859

2,122

-

198

2,321

-

2,321

(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 and credit guarantee) which are not included in the reportable segments.
(Note3) “Adjustments” are as follows:(1) The positive adjustment of ¥68 million in segment profit consists of the following: reversal of
allowance for loan losses (¥68 million).
(2) The negative adjustment of ¥3,880 million in segment profit consists of the following: amortizationof goodwill (¥(129) million) and deduction of inter-segment transactions (¥(3,750) million).
(3) The negative adjustment of ¥21,908 million in segment assets consists of the following: deductionof inter-segment transactions (¥(24,520) million) and adjustment of net defined benefit assets(¥2,611 million).
(Note4) Segment profit is adjusted to ordinary profit as reported in the consolidated statements of income.

－15－

Suruga bank, Ltd.

(Per share data)

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

For the fiscal year ended
March 31, 2023
1,438.33
56.15-

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, 2023
271,040
101
101

Millions of yen

270,939

Thousands ofshares188,370

2. Earnings per share
For the fiscal year ended
March 31, 2023
Earnings 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

Millions of yen

10,576

Millions of yen-

Millions of yen

10,576

Thousands ofshares188,350

3. Earnings per share (diluted) for the fiscal year ended March 31, 2023 is not provided because there are no
potentially shares.

(Significant subsequent events)
Not applicable.

－16－Suruga bank, Ltd.

4.Non-consolidated financial statements(1)Non-consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2022
AssetsCash and due from banks
Cash
Due from banks
Call loans
Monetary claims bought
Trading 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)
Due from foreign banks (their accounts)
Other assets
Prepaid expenses
Accrued revenue
Financial derivatives
Other
Property, plant and equipment
Buildings, net
Land
Leased assets, net
Construction in progress
Other, net
Intangible assets
Software
Software in progress
Other
Prepaid pension costs
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets

873,583
27,216846,366
40,24459,73982
1468
99
466,243―
138,991
4,565
23,981
298,705
2,138,587
1,633
8,604
1,954,674
173,674
2,292
1,129
1,162
36,971
1,218
5,600
2
30,151
34,418
10,275
20,522
134
806
2,678
16,782
16,151
270
359
15,746
15,6391,474(133,124)
3,568,782

－17－

As of
Mar. 31, 2023

1,043,476
26,276
1,017,200
60,293
131,51785
16
69
99
303,504
29,763
120,407
4,531
23,694125,1082,080,150
1,158
3,949
1,895,490
179,552
4,805
3,983
822
34,699
1,611
5,219
74
27,79332,52010,19620,099
109
321
1,793
14,512
13,548608
354
17,514
15,277
1,271(118,920)
3,620,806

Suruga bank, Ltd.

（Millions of yen）
As of
Mar. 31, 2022
Liabilities
Deposits
Current deposits
Ordinary deposits
Savings deposits
Deposits at noticeTime deposits
Other deposits
Foreign exchanges
Foreign bills sold
Foreign bills payable
Other liabilities
Accrued expenses
Unearned revenue
Deposits received from employees
Lease liabilities
Financial derivatives
Other
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share-based compensation
Provision for reimbursement of deposits
Provision for contingent loss
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Legal capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry 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
Valuation and translation adjustments
Total net assets
Total liabilities and net assets

－18－

As of
Mar. 31, 2023

3,312,181
67,268
1,381,613
13,513219
1,794,306
55,259
41
9
31
7,725
2,767
57
745
150
389
3,613
433
41
205
247
75
1,474
3,322,425

3,355,740
68,617
1,480,251
13,336147
1,726,238
67,147
41
24
17
7,561
2,498
59
734
115
9
4,143
404
38
303
223
51
1,271
3,365,637

30,043
18,585
18,585
216,461
30,043
186,41859
103,032
83,326(18,131)
246,958
(598)
(3)
(602)
246,3563,568,782

30,043
18,585
18,585
224,866
30,043
194,823
59
103,032
91,731(18,111)
255,384
(214)
(0)
(215)
255,169
3,620,806

Suruga bank, Ltd.

(2)Non-consolidated statements of income（Millions of yen）
For the fiscal year
ended
Mar. 31, 2022
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans
Interest on deposits with banks
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other ordinary income
Gain on foreign exchange transactions
Net gain on trading securities transactions
Gain on redemption of bonds
Other income
Reversal of allowance for loan losses
Recoveries of written off receivables
Gain on sale of equity securities
Gain on money held in trust
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest expenses on cash collateral received for securities lentInterest expenses on interest rate 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 foreign exchange transactions
Net loss on trading securities transactions
Loss on sale of bonds
Loss on redemption of bonds
General and administrative expenses
Other expenses
Provision of allowance for loan losses
Written-off of loans
Loss on devaluation of equity securities
Other
Ordinary profit－19－

83,65870,90467,825
1,993
1
820
263
0
6,734
1,683
5,050
663
46
―
616
5,356
―
4,957
5
0
394
73,564
1,487
1,461
―
3
22
11,438644
10,79473―
0―
72
38,24722,317
14,223
5,502
27
2,563
10,093For the fiscal year
ended
Mar. 31, 2023
82,794
66,05360,989
2,511
13
819
1,719
0
6,265
1,426
4,838
304
―
0
304
10,170
4,047
3,084
2,541
0
497
71,526
1,380
1,299
0
3
78
10,683538
10,145
17,1389―
1,740
15,38735,405
6,918
―
4,538
120
2,260
11,267

Suruga bank, Ltd.

For the fiscal year
ended
Mar. 31, 2022
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Income taxes
Profit

20
20
1,502
848
653
8,612
60
697
757
7,854

－20－

（Millions of yen）
For the fiscal year
ended
Mar. 31, 2023
51
51
1,277
419
857
10,042
51
453
504
9,537

Suruga bank, Ltd.

(3)Non-consolidated statements of changes in net assets
For the fiscal year ended Mar.31, 2022
（Millions of yen）
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Capital stock

Balance at beginning of current period

Legal capitalsurplus30,043

Other capitalsurplus18,585

Total capitalsurplus3

18,589Legal retained
earnings

Reserve foradvanceddepreciation of
non-current
assetsGeneral reserve

Retained earnings
brought forward

59

103,032

76,76430,043Cumulative effects of changes inaccounting policies
Restated balance(69)
30,043

18,585

3

18,58930,043

59

103,032

76,695

Changes of items during period
Dividends of surplus(1,158)Net income

7,854

Purchase of treasury shares
Disposal of treasury shares

(3)

(3)

(65)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

-

-

(3)

(3)

-

-

-

6,631

30,043

18,585-

18,58530,043

59

103,032

83,326

Shareholders' equity

Valuation and translation adjustments

Retained earnings

Balance at beginning of current period
Cumulative effects of changes inaccounting policies
Restated balance

Totalshareholders'equityNet unrealized
gains(losses) on
available-forsalesecurities

Deferred
gains(losses) onhedgesTotal valuationand translation
adjustments

Total net assets

Total retained
earnings

Treasury shares

209,899(561)

257,970

7,211

(20)

7,191

265,162(69)
209,830

(69)
(561)

257,901

(69)
7,211

(20)

7,191

265,092

Changes of items during period
Dividends of surplus(1,158)(1,158)(1,158)Net income

7,854

7,854

7,854

(17,669)(17,669)(17,669)

99

30

30

Purchase of treasury shares
Disposal of treasury shares(65)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period(7,809)16(7,793)(7,793)

6,631(17,570)(10,942)(7,809)16(7,793)(18,736)

216,461(18,131)

246,958

(598)

(3)

(602)

246,356－21－

Suruga bank, Ltd.

For the fiscal year ended Mar.31, 2023
（Millions of yen）
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Capital stock

Balance at beginning of current period

Legal capitalsurplus30,043

Other capitalsurplus18,585

Total capitalsurplus-

Legal retained
earnings

18,585Reserve foradvanceddepreciation of
non-current
assetsGeneral reserve

Retained earnings
brought forward

59

103,032

83,32630,043

Changes of items during period
Dividends of surplus(1,129)Net income

9,537

Purchase of treasury shares
Disposal of treasury shares(2)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

-

-

-

-

-

-

-

8,405

30,043

18,585-

18,58530,043

59

103,032

91,731

Shareholders' equity

Valuation and translation adjustments

Retained earnings

Balance at beginning of current period

Totalshareholders'equityNet unrealized
gains(losses) on
available-forsalesecurities

Deferred
gains(losses) onhedgesTotal valuationand translation
adjustments

Total net assets

Total retained
earnings

Treasury shares

216,461(18,131)

246,958

(598)

(3)

(602)

246,356

Changes of items during period
Dividends of surplus(1,129)(1,129)(1,129)Net income

9,537

9,537

9,537

(0)

(0)

(0)

20

18

18

Purchase of treasury shares
Disposal of treasury shares(2)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

384

3

387

387

8,405

20

8,425

384

3

387

8,813

224,866(18,111)

255,384

(214)

(0)

(215)

255,169－22－

Financial Results
For the fiscal year ended March 31, 2023

- Supplementary Information -SURUGA bank, Ltd.

Table of contents
Ⅰ. Financial highlights for the fiscal year ended March 31, 2023
1. Financial results

Non-consolidated

・・・・・・・・

2. Major accounts

Non-consolidated

・・・・・・・・

3. Management indicesNon-consolidated

・・・・・・・・

4. Own capital

Non-consolidated

・・・・・・・・

5. Unrealized gains (losses) on securities

Non-consolidated

・・・・・・・・

6. Earnings forecast for the fiscal year ending March 31, 2024

1
3
6
7
8

Non-consolidated, Consolidated

7. Asset quality

Non-consolidated

・・・・・・・・

8. Credit costs

Non-consolidated

・・・・・・・・

9
10

9. Dividends

Non-consolidated

・・・・・・・・・・・・・・・・

11
12

・・・・・・・・

13

Ⅱ. Financial data for the fiscal year ended March 31, 2023
1. Details of financial results

Non-consolidated
Consolidated

2. Net operating profit

Non-consolidated

3. Interest margins

Non-consolidated

4. ROA and ROE

Non-consolidated

5. Gains (losses) on securities

Non-consolidated

6. Capital adequacy ratio (domestic standard)

Non-consolidated, Consolidated

・・・・・・・・

7. Composition of own capital (domestic standard)

Non-consolidated, Consolidated

・・・・・・・・

14
15

Non-consolidated

・・・・・・・・

16

1. Risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

2. Allowance ratio for risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

17
18

3. Allowance for loan losses

Non-consolidated, Consolidated

・・・・・・・・

19

・・・・・・・・

20

Non-consolidated, Consolidated

・・・・・・・・

21

Non-consolidated, Consolidated

・・・・・・・・

21

Ⅲ. Status of Loans, etc.
Status of self-assessment, non-performing loans based on the financial
Reconstruction Law and Risk-monitored loans.

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

Non-consolidated
Non-consolidated

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry

Non-consolidated(2) Breakdown of risk-monitored loans by industry

Non-consolidated(3) Consumer loans

Non-consolidated(4) The ratio of loans to small- and medium-sized enterprises, etc.

Non-consolidated

7. Loan breakdown by country(1) Loans to specific foreign countries

Non-consolidated(2) Loans to Asian countries

Non-consolidated

8. Deposits and loans

Non-consolidated

9. Number of branches

Non-consolidated

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Ⅴ. Retirement benefits
1. Retirement benefit expenses

Suruga bank, Ltd.

Ⅰ. Financial highlights for the fiscal year ended March 31, 2023
1. Financial results (Non-consolidated)
FY3/2023(a)
43,42264,673(4,417)(9)60,24536,20924,03524,035(16,823)
7,212
7,212
5,952
4,047
3,084
2,421
11,267
(367)
857
9,537

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income (Note1)
Core gross operating profit
Expenses (-)
Core net operating profit (Note2)
Excluding gains (loss) on cancellation of investment trusts
Gains (losses) on bonds
Actual net operating profit (Note3)
Provision for general allowance for loan losses (-) (Note4)
Net operating profit
Disposal of non-performing loans (-)
Reversal of allowance for loan losses (Note4)
Recoveries on written-off claims
Gains (losses) on stocks
Ordinary profit
Gains (losses) on disposal of non-current assets
Impairment loss (-)
Net income(a) - (b)(21,880)(4,744)287(54)(4,513)(3,513)(1,001)(1,001)(17,367)(18,368)
10,569(28,937)(25,606)
4,047(1,873)
2,443
1,174
461
204
1,683

(Millions of yen)
FY3/2022(b)
65,302
69,417(4,704)45
64,75839,72225,03625,036544
25,580(10,569)
36,14931,5584,957(22)
10,093
(828)
653
7,854

1,905
Net credit costs(19,084)
20,989(1,178)Actual credit costs (Note5)(17,210)
16,032(Note1) Excludes Gains (losses) on bonds.
(Note2) Core net operating profit = Net operating profit + Provision for general allowance for loan losses- Gains (losses) on bonds(Note3) Actual net operating profit = Net operating profit + Provision for general allowance for loan losses(Note4) For the fiscal year ended Mar. 31, 2023, the net amount of reversal of general allowance for loan losses and provision for
specific allowance for loan losses is recorded in reversal of allowance for loan losses, given that the former exceeded thelatter during period.
(Note5) Actual credit costs = Net credit costs (Provision for general allowance for loan losses + Disposal of non-performing loans)- Recoveries on written-off claims(1) Gross operating profit: ¥43.4 billion
・Net interest income decreased by ¥4.7 billion year-on-year, mainly due to a decrease in interest on loans and bills discounted.
・Loan-deposit income decreased by ¥6.7 billion year-on-year.
・Core gross operating profit decreased by ¥4.5 billion year-on-year, mainly due to a decrease in net interest income.
・Gross operating profit decreased by ¥21.8 billion year-on-year, mainly due to the recording of losses on redemption of bonds.

(Billions of yen)

Net interest income

Loan-deposit income(Billions of yen)

103.9
84.9

99.7
75.8

69.4

64.6

FY3/19 FY3/20 FY3/21 FY3/22 FY3/23

83.9

73.9

66.3

59.6

FY3/19 FY3/20 FY3/21 FY3/22 FY3/23－1－

Suruga bank, Ltd.

(2) Expenses; OHR: 83.3%
・Expenses decreased by ¥3.5 billion year-on-year, mainly due to a decrease in Non-personnel expenses.
・OHR rose year-on-year to 83.3%.
(OHR(%) = Expenses / Gross operating profit × 100)

(Billions of yen)

Gross operating profit

Expenses

OHR

83.3%
60.8%

99.9

80.3
46.8
FY3/19

55.6%

54.4%

46.8%

72.5
43.7

FY3/2065.3
40.3

FY3/21

39.7
FY3/2243.4 36.2
FY3/23(3) Core net operating profit: ¥24.0 billion, Net operating profit: ¥7.2 billion
・Core net operating profit decreased by ¥1.0 billion year-on-year, mainly due to a decrease in net interest income exceeded a
decrease in expenses.
・Net operating profit decreased by ¥28.9 billion year-on-year, mainly due to the recording of losses on redemption of bonds.

(Billions of yen)Core net operating profit

52.6

26.4

FY3/1950.1

Net operating profit

7.2

36.3 36.5

31.1

25.0 36.1

24.0

FY3/20FY3/21

FY3/22

FY3/23(4) Ordinary profit: ¥11.2 billion
・Ordinary profit increased by ¥1.1 billion year-on-year.

(5) Net income: ¥9.5 billion
・Net income increased by ¥1.6 billion year-on-year, mainly due to an increase in ordinary profit.

(6) Actual credit costs: ¥(1.1) billion･Net credit costs decreased by ¥19.0 billion year-on-year, mainly due to a decrease in disposal of non-performing loans (¥25.6
billion) and an increase in reversal of allowance for loan losses (¥4.0 billion).
･Actual credit costs, calculated as net credit costs (¥1.9 billion) minus the amount of recoveries of written-off claims (¥3.0
billion) amounted to ¥(1.1) billion.

－2－

Suruga bank, Ltd.

2. Major accounts (Non-consolidated)(1) Loans and bills discounted
・Loans and bills discounted decreased by ¥58.4 billion, or 2.7% year-on-year.
・Yield on loans and bills discounted dropped by 10 basis point year-on-year to 2.92%.

Mar. 31, 2023
(a)(Billions of yen)Mar. 31, 2022(b)(a) – (b)Loans and bills discounted(period-end balance)

2,080.1(58.4)

2,138.5

Consumer loans

1,670.4(168.1)

1,838.5

Asset management company
loans for property investment

57.4

23.8

33.5

Structured finance

126.4

57.4

68.9

Loans and bills discounted(average balance)

2,085.5(158.8)2,244.3

Mar. 31, 2023
(a)(Billions of yen)Mar. 31, 2022(b)(a) – (b)New consumer loans

58.2

22.7

35.5

New asset management company loans for property investment

25.9

6.9

19.0

Subtotal

84.1

29.6

54.5

New structured finance

72.1

22.9

49.2

Total

156.2

52.4

103.8

New monetary claims bought

79.9

20.0

59.9

Grand total

236.2

72.4

163.8

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

Yield on loans and bills discounted(Billions of yen)
2,898.8
2,664.8 2,496.1
2,307.0 2,310.92,075.5 2,138.5
2,080.1
1,838.5
1,670.4

Mar. 19

Mar. 20

Mar. 21Mar. 22Mar. 23

－3－

3.32%

3.19%

3.12%

3.02%

2.92%

Mar. 19

Mar. 20

Mar. 21Mar. 22Mar. 23

Suruga bank, Ltd.

Outstanding balance, yield, delinquency rate by loan category
Loan category
Secured loans
Housing loans
Studio apartment loans
Single building apartment loans(including share house loans)
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans
Consumer loans(A)

Period-end
balance
1,542.6
430.5
120.5

Mar. 31, 2023
Yield
Delinquency
rate
3.05%
7.02%
2.69%
0.27%
3.33%
2.97%

Period-end
balance
1,571.5
435.0
124.5

(Billions of yen)Dec. 31, 2022
Yield
Delinquency
rate
3.06%
6.82%
2.73%
0.32%
2.91%
3.35%

959.0

3.14%

10.79%

979.3

3.14%

10.44%

32.4
127.8
89.0
38.7
1,670.4

4.26%
10.47%
11.74%
7.54%
3.62%

0.34%
2.36%
0.88%
5.77%
6.66%

32.5
131.0
90.2
40.7
1,702.5

4.33%
10.46%
11.77%
7.56%
3.63%

0.21%
2.45%
0.84%
6.02%
6.49%

Consumer loans(excluding organizational negotiation
partners)

1,569.3-

1.60%

1,598.6-

1.52%

Asset management company loans
for property investment
(B)

57.4

1.77%

-

45.0

1.81%

-

Structured finance

(C)

126.4

2.37%

-

97.3

2.24%

-

Monetary claims bought

(D)

131.5

2.08%

-

94.3

2.06%

-

Total
(A) + (B) + (C) + (D)1,985.8
3.38%
5.60%
1,939.2
3.44%
5.69%(Note1) Delinquency rate = Loans past due 3 months or more / Loans(Note2) Yield: Yield for customers (excluding guarantee fee, accrued interest), period-end balance basis(Note3) Yield and delinquency rate of Studio apartment loans, secured loans and consumer loans are calculated based on original
claims before securitization.
(Note4) Organizational negotiation partners are customers who have suspended repayment as a result of structured negotiations(excluding share house loans).

Actual credit costs and Allowance for loan losses(Billions of yen)
ItemMar. 31, 2023
Actual credit costs

Allowance

Share house-related loans

(3.8)

13.6

Investment property loans

2.5

91.0

Housing loans

(0.1)

2.3

Unsecured loans

0.0

2.8

Monetary claims bought

0.0

0.3

Business financing loans, etc.

0.2

8.6

Total

(1.1)

118.9

(Note) Investment property loans: Studio apartment loans, Single building apartment loans and other secured loans－4－Suruga bank, Ltd.

(2) Deposits
・Deposits increased by ¥43.5 billion, or 1.3% year-on-year.
・Yield on deposits dropped by 1 basis points year-on-year to 0.03%.

Mar. 31, 2023(a)
Deposits (period-end balance)(Billions of yen)Mar. 31, 2022(b)(a) - (b)3,355.7

43.5

3,312.1

Individual deposits

2,678.5(9.6)

2,688.1

Deposits (average balance)

3,339.4

47.9

3,291.5

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

Yield on deposits(Billions of yen)
3,210.8
3,355.7
3,312.1
3,165.6
3,250.4
2,688.1
2,678.5
2,505.7
2,637.4
2,515.1

Mar. 19

Mar. 20

Mar. 21Mar. 22Mar. 23

0.04%

0.04%

0.04%

0.04%

Mar. 19

Mar. 20

Mar. 21Mar. 220.03%

Mar. 23(3) Net fees and commissions
・Net fees and commissions increased by ¥0.2 billion year-on-year, mainly due to a decrease (¥0.4 billion) in fees andcommissions, a decrease (¥0.7 billion) in fees and commissions payments.

Net fees and commissions

Fees and commissions

Fees and commissions payments(Millions of yen)
14,994

13,96911,8609,510(4,458)

FY3/198,118(6,876)

FY3/20

7,492(4,367)

11,4386,734(4,704)

FY3/21－5－

FY3/22

10,683
6,265(4,417)

FY3/23

Suruga bank, Ltd.

(4) Individual deposit assets
・Individual deposit assets decreased by ¥11.5 billion year-on-year.
・The ratio of investment products to total individual deposit assets declined by 10 basis points year-on-year to 3.6%

(11,548)

2,789,587(Millions of yen)Sep. 30, 2022(c)
2,793,207

2,676,056(8,580)2,684,636

2,694,493

Mar. 31, 2023
(a)2,778,039

Individual deposit assets
Yen deposits
Investment products

Mar. 31, 2022(b)(a) - (b)101,982(2,969)104,951

98,714Foreign currency deposits

2,462(1,054)

3,516

2,862

Public bonds

3,891

(465)

4,356

3,855

Mutual funds

62,828(5,647)

68,47562,277

Personal pension plans

14,219(437)

14,656

14,19818,581

4,636

13,945

15,5203.6%(0.1)%

3.7%

3.5%

Single premium life insurance
The ratio of investment products tototal individual deposit assets

3. Management indices (Non-consolidated)(1) Interest margins
・Loan-deposit margin (after deduction of expenses) expanded by 3 basis points year-on-year to 1.80%.
・Net interest margin shrunk by 1 basis points year-on-year to 0.77%, mainly due to the decline in yield on interest earning
assets.
(%)
FY3/2023(a)
Loan-deposit margin
Loan-deposit margin(after deduction of expenses)
Net interest margin

FY3/2022(b)(a) - (b)2.88

(0.09)

2.97

1.80

0.03

1.77

0.77

(0.01)

0.78

Loan-deposit margin
Loan-deposit margin (after deduction of expenses)
Net interest margin
3.27%
1.93%
1.45%
FY3/19

3.15%

3.07%

2.97%

2.88%

1.74%

1.81%

1.77%

1.80%

1.14%

0.94%

0.78%

0.77%

FY3/21

FY3/22

FY3/23

FY3/20－6－

Suruga bank, Ltd.

4. Own capital・Capital adequacy ratio (Non-consolidated) rose by 69 basis points year-on-year to 13.04 %.

Non-consolidated(Millions of yen)Mar. 31, 2022

Mar. 31, 2023
Capital adequacy ratio

13.04%

12.35%

Own capital (Core capital)

251,896245,238

Core capital: instruments and reserves

276,161

268,795

Core capital: regulatory adjustments (-)

24,26423,557

Risk-weighted assets

1,930,471

1,984,271

Total required capital

75,75976,858

Consolidated(Millions of yen)Mar. 31, 2022

Mar. 31, 2023
Capital adequacy ratio

13.43%

12.68%

Own capital (Core capital)

264,173

256,800

Core capital: instruments and reserves

291,739

284,838

Core capital: regulatory adjustments (-)

27,56628,038Risk-weighted assets

1,966,465

2,024,556

Total required capital

77,19978,470Capital adequacy ratio （non-consolidated）
Own capital (non-consolidated)(Billions of yen)

8.80%

10.28%

241.4

12.13%

12.35%

13.04%

258.8

245.2

251.8

Mar. 21Mar. 22Mar. 23

213.7

Mar. 19

Mar. 20－7－

Suruga bank, Ltd.

5. Unrealized gains (losses) on securities (Non-consolidated)
・Net unrealized gains on securities increased by ¥0.2 billion year-on-year.

(Millions of yen)Mar. 31, 2023
(a)
Available-for-sale securities

Mar. 31, 2022(b)(a) – (b)(1,270)212(1,482)

Stocks

7,741

154

7,587

Bonds

(324)

29

(353)

Others(8,687)28(8,715)

6. Earnings forecast for the fiscal year ending March 31, 2024
Consolidated(Billions of yen)
FY3/2024 (forecast)First half

Full year

Ordinary income

39.0

77.5

Ordinary profit

4.5

12.0

Profit attributable to owners of parent

2.5

8.5

Non-consolidated(Billions of yen)
FY3/2024 (forecast)First half

Full year

Ordinary income

35.0

69.0

Core net operating profit

9.0

18.0

Net operating profit

13.0

24.5

Ordinary profit

4.5

11.5

Net income

2.5

8.5

Actual credit costs

4.5

6.5

(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 materially depending on various factors.

－8－Suruga bank, Ltd.

7. Asset quality (Non-consolidated)(1) Non-performing loans based on the Financial Reconstruction Law
・Non-performing loans based on the Financial Reconstruction Law decreased by ¥52.5 billion year-on-year.
Non-performing loan ratio declined by 215 basis points year-on-year to 10.48 %.

Outstanding balance(Millions of yen, %)Mar. 31, 2023(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk

Claims for special attention(a) - (b)(a) - (c)Sep. 30, 2022(b)Mar. 31, 2022(c)

118,845

3,503(15,322)

115,342

134,167

47,205543(18,656)

46,662

65,861

53,255(10,052)(18,596)

63,307

71,851

Total(A)

219,307(6,005)(52,573)

225,312271,880

Total claims(B)

2,090,781

374(60,585)

2,090,407

2,151,366

(A/B)

10.48

(0.29)(2.15)

10.77

12.63

Non-performing loans(A)

Claims against
bankrupt andsubstantiallybankrupt
obligors
118,845

Covered amount (C+D)
Portion secured by collateralor guarantees, etc.
Allowance for loan losses(B)

Non-performing loan ratio
Status of coverage(Millions of yen, %)Claims withcollection risk

Claims for
specialattention

Total

Change from
Mar. 31, 2022

47,20553,255219,307(52,573)

118,845

31,90729,284

180,037(35,163)(C)

44,881

20,838

17,10682,826(21,485)(D)

73,964

11,068

12,17897,211(13,677)

Coverage ratio (B/A)

100.00

67.59

54.98

82.09

2.94

Unsecured portion (A-C)(E)
Allowance ratio for unsecured portion(D/E)

73,96426,36736,148

136,480(31,088)

100.00

41.97

33.68

71.22

5.05

80,30737,32949,931

167,568

100.00

37.09

33.51

66.17

(Reference) As of Mar. 31, 2022
Unsecured portion
Allowance ratio for unsecured portion(2) Risk-monitored loans(Millions of yen, %)Mar. 31, 2023(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk(a) - (b)(a) - (c)Sep. 30, 2022(b)Mar. 31, 2022(c)

118,845

3,503(15,322)

115,342

134,167

47,205543(18,656)

46,662

65,861Loans past due 3 months or more

2,049

(1,624)(1,702)

3,673

3,751

Restructured loans

51,206(8,427)(16,894)

59,633

68,100219,307(6,005)(52,573)

225,312271,880

82.09

1.20

2.94

80.89

79.15

Total
Coverage ratio－9－Suruga bank, Ltd.

8. Credit costs (Non-consolidated)(Millions of yen, %)FY3/2023(a)

FY3/2022(b)(a) - (b)Provision for general allowance for loan losses(1)-

10,569(10,569)

Disposal of non-performing loans

(2)

5,952

(25,606)

31,558

4,538

(964)

5,502

-

(24,793)

24,793

1,402

144

1,258

Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses

11

7

4

Reversal of allowance for loan losses

(3)

4,047

4,047

-

Recoveries on written-off claims

A

3,084

(1,873)4,957(4) (= (1) + (2) －(3) )1,905(19,084)

20,989(4)－A(1,178)(17,210)

16,032

2,085,528(158,870)

2,244,398

0.09(0.84)

0.93

Net credit costs
Actual credit costs

Loans and bills discounted (average balance)
Net credit costs ratio

Actual credit costs ratio(0.05)(0.76)
0.71(Note1) Net credit costs ratio = Net credit costs / Loans and bills discounted (average balance)(Note2) Actual credit costs ratio = Actual credit costs / Loans and bills discounted (average balance)(Note3) For the fiscal year ended Mar. 31, 2023, the net amount of reversal of general allowance for loan losses and provision for
specific allowance for loan losses is recorded in reversal of allowance for loan losses, given that the former exceeded thelatter during period.

9. Dividends(yen comprehensively taking into account business performance trends for the fiscal year ended March 31, 2023, the・Aftersoundness of the capital base, and future financial condition, the Company decided to increase the year-end dividend by 3 yen
to 9 yen per share.

(yen)
FY3/2022(result)

FY3/2023
Annual dividend per share

9.00

6.00

Interim dividend

0.00

0.00

Year-end dividend

9.00

6.00

－10－

Suruga bank, Ltd.

Ⅱ. Financial data for the fiscal year ended March 31, 2023
1. Details of financial results (Non-consolidated)

Gross operating profit(excluding gains (losses) on bonds)
Domestic gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
International gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
Expenses (excluding non-recurring losses)
Personnel expenses
Non-personnel expenses
Taxes
Actual net operating profit
Core net operating profit
Excluding gains (loss) on cancellation of
investment trust
Provision for general allowance for loan losses
Net operating profit
Gains (losses) on bonds
Non-recurring gains (losses)
Reversal of allowance for loan losses
Recoveries on written-off claims
Gains (losses) on stocks
Ordinary profit
Extraordinary gains (losses)
Gains (losses) on disposal of non-current assets
Impairment loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income

（
（

（
（

（

(1)Provision for general allowance for loan losses(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3) Reversal of allowance for loan losses
Provision for general allowance for loan losses
Provision for specific allowance for loan losses(4)Net credit costs (1)+(2)-(3)(5)Recoveries on written-off claims(6)Actual credit costs (4)-(5)－11－(Millions of yen)
FY3/2022(b)
65,30264,758 ）64,86064,316 ）69,048(4,731)
543
544 ）
442
442 ）
368
26
46
- ）
39,722
14,224
22,522
2,975
25,58025,036

FY3/2023(a)
43,42260,24548,54260,21164,650(4,439)(11,669)(11,669)(5,120)34
22
21(5,164)(5,154)36,20913,657
19,9102,641
7,212
24,035(a) - (b)(21,880)(4,513)(16,318)(4,105)(4,398)292(12,212)(12,213)(5,562)
(408)
(346)
(5)
(5,210)(5,154)(3,513)(567)(2,612)(334)(18,368)(1,001)

24,035(1,001)

25,036

7,212(16,823)
4,055
4,047
3,084
2,421
11,267(1,225)(367)
857
10,042
51
453
504
9,537

10,569(28,937)(17,367)
30,1104,047(1,873)
2,443
1,174
256
461
204
1,430
(9)
(244)
(253)
1,683

(10,569)
36,149544(26,055)
4,957(22)
10,093(1,481)
(828)
653
8,612
60
697
757
7,854

5,952
4,538
1,402
11
4,047
4,884
(837)
1,905
3,084
(1,178)

10,569(25,606)(964)(24,793)
144
7
4,047
4,884
(837)
(19,084)(1,873)(17,210)(10,569)
31,558
5,502
24,793
1,258
420,9894,957
16,032

Suruga bank, Ltd.

Details of financial results (Consolidated)(Millions of yen)

Consolidated gross profit
Net interest income
Net fees and commissions
Net other operating income
Expenses (excluding non-recurring losses)
Actual credit costs
Gains (losses) on stocks
OthersOrdinary profit
Extraordinary gains (losses)
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent(1)Provision for general allowance for loan losses(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3) Reversal of allowance for loan losses
Provision for general allowance for loan losses
Provision for specific allowance for loan losses(4)Net credit costs (1)+(2)-(3)(5)Recoveries on written-off claims(6)Actual credit costs (4)-(5)FY3/2023(a)
47,08367,179(3,521)(16,575)
39,153
310
4,979
667
13,266(1,230)12,036
1,371
86
1,457
1
10,576(a) - (b)(23,340)(6,362)415(17,393)(3,507)(17,576)
5,001
(75)
2,670
304
2,975
1,210
(857)
352
5
2,616

FY3/2022(b)
70,42373,541(3,936)818
42,66017,886(22)742
10,596(1,534)
9,061
161
943
1,105
(4)
7,960

7,570
4,693
2,865
11
4,116
5,261
(1,144)
3,454
3,143
310

11,318(26,670)(961)(25,568)
(147)
7
4,116
5,261
(1,144)(19,467)(1,892)(17,576)(11,318)
34,2405,654
25,5683,012
422,921
5,035
17,886(Note) Consolidated gross profit = (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions
payments) + (Other operating income - Other operating expenses)(Reference)
Consolidated net operating profit

7,930(31,151)(Millions of yen)
39,081(Note) Consolidated net operating profit = Consolidated gross profit - Consolidated expenses - Consolidated provision for generalallowance for loan losses(Number of consolidated subsidiaries and affiliates)
Consolidated subsidiaries

6-(Companies)6

2. Net operating profit (Non-consolidated)(Millions of yen)
FY3/2023
(a)
7,212
5,439

Net operating profit
Per employee (Thousands of yen)

－12－(a) - (b)(28,937)(20,567)

FY3/2022(b)
36,14926,006

Suruga bank, Ltd.

3. Interest margins (Non-consolidated)
Overall(%)
FY3/2023(a)
Return on investments(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)FY3/2022(b)(a) - (b)
1.89
2.92
0.55
1.12
0.03

(0.14)(0.10)
0.04(0.13)(0.01)

2.03
3.02
0.51
1.25
0.04

1.80

0.03

1.77

0.77

(0.01)

0.78

Domestic(%)
FY3/2023(a)
Return on investments(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)FY3/2022(b)(a) - (b)
1.89
2.92
0.72
1.10
0.03

(0.13)(0.10)
0.23(0.11)(0.01)

2.02
3.02
0.49
1.21
0.04

1.81

0.01

1.80

0.79

(0.02)

0.81

4. ROA and ROE (Non-consolidated)(%)
FY3/2023
(a)
ROA
ROE

Net operating profit basis
Net income basis
Net operating profit basis
Net income basis

FY3/2022(b)(a) - (b)
0.19
0.26
2.93
3.87

(0.82)
0.04(11.18)
0.81

1.01
0.22
14.11
3.06

5. Gains (losses) on securities (Non-consolidated)(Millions of yen)

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

FY3/2023(a)(16,823)304
1,740
15,387-(a) - (b)(17,367)
(312)
1,740
15,315-

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

2,421
2,541
120

2,443
2,536
93

－13－

FY3/2022
(b)
544
616
72
(22)
5
27

Suruga bank, Ltd.

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

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

Total required capitalMar. 31, 2023
(a)13.04%
251,896
276,161
24,264
1,930,471
75,759(a) - (b)
0.69%
6,658
7,366
707
(53,800)(1,099)Mar. 31, 2022(b)
12.35%
245,238
268,795
23,557
1,984,271
76,858

Consolidated(Millions of yen)

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

Total required capitalMar. 31, 2023
(a)13.43%
264,173
291,739
27,566
1,966,465
77,199－14－(a) - (b)
0.75%
7,373
6,901
(472)
(58,091)(1,271)Mar. 31, 2022(b)
12.68%
256,800
284,838
28,0382,024,556
78,470Suruga bank, Ltd.

7. Composition of own capital (domestic standard)(Millions of yen）
Mar. 31, 2023
Non-consolidated
ConsolidatedCore capital: instruments and reserves(1)
Directly issued qualifying common stock or preferred stock mandatorily convertible into common stock
capital plus related capital surplus and retained earnings
Capital and capital surplus
Retained earnings
Treasury shares (-)
Earnings to be distributed (-)
Accumulated other comprehensive income included in Core capital
Remeasurements of defined benefit plans
Subscription rights to acquire common stock or preferred stock mandatorily convertible into common
stockAdjusted non-controlling interests (amount allowed to be included in Core capital)
Reserves included in Core capital: instruments and reserves
General allowance for loan losses
Eligible non-cumulative perpetual preferred stock subject to transitional arrangement included in Core
capital: instruments and reserves
Eligible capital instrument subject to transitional arrangement included in Core capital: instruments andreserves
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)Core capital: regulatory adjustments(2)
Total intangible fixed assets (net of related tax liability, excluding those relating to mortgage servicing
rights)Goodwill (including those equivalent)
Other intangible fixed assets other than goodwill and mortgage servicing rights
Deferred tax assets that rely on future profitability excluding those arising from temporary differences(net of related tax liability)
Shortfall of eligible provisions to expected losses
Gains on sale related to securitization transactions
Gains (losses) due to changes in own credit risk on fair valued liabilities
Prepaid pension cost
Net defined benefit asset
Investments in own shares (excluding those reported in the net assets)
Reciprocal cross-holdings in relevant capital instruments issued by other financial institutions
Investments in the capital of banking, financial and insurance entities that are outside the scope of
regulatory consolidation (“Other financial institutions”), net of eligible short positions, where the bankdoes not own more than 10% of the issued share capital (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 shortpositions
Mortgage servicing rights
Deferred tax assets arising from temporary differences (net of related tax liability)
Amount exceeding the 15% threshold on specified items
Core capital: regulatory adjustments(B)
Total capital
Total capital
(A-B)
(C)
Risk-weighted assets(3)
Credit risk-weighted assets
Total of items included in risk-weighted assets subject to transitional arrangements
Amount equivalent to market risk × 12.5
Amount equivalent to operational risk × 12.5
Credit risk-weighted assets adjustments
Amount equivalent to operational risk adjustments
Total amount of risk-weighted assets(D)
Capital adequacy ratio (non-consolidated)
Capital adequacy ratio (non-consolidated)(C/D)
Capital adequacy ratio (consolidated)
Capital adequacy ratio (consolidated)
(C/D)

－15－

253,689

267,253

48,629224,866
18,111
1,695-

32,017
255,042
18,111
1,695
1,823
1,823

-

-

22,472
22,472

22,652
22,652

-

-

-

-

-

-

276,16110
291,739

10,12911,526

10,1291,165
10,361

1,910

1,991

12,224-

14,047
-

-

-

-

-

-

-

24,26427,566

251,896

264,173

1,797,771
132,700
1,930,471

1,812,285
154,180
1,966,465

13.04%--

13.43%

Suruga bank, Ltd.

Ⅲ. Status of loans, etc.
Status of self-assessment, non-performing loans based on the financial Reconstruction Law and Risk-monitored loans.
Non-consolidated (As of March 31, 2023)(Millions of yen)
Non-performing loans based on the
Financial Reconstruction Law and Risk-monitored loans

Self-assessment result(by obligor classification)* Includes total claims (“Claims for special attention” includes only loans
and bills discounted).

* Includes total claims.

Classification

Category
Creditbalance

Nonclassification

Classification
Ⅱ

Classification
Ⅲ

Category

ClassificationⅣ

Credit balance

Collateral or
guarantees,etc.

Allowance

44,88173,964100.00%20,838

11,06867.59%

17,106

12,17854.98%

82,826

97,21182.09%

Coverage
ratio

Bankrupt obligors
1,139
[655]
Effectively bankrupt
obligors

708

431

-

73,44744,258-[73,309]

14,88917,017

15,298[11,068]-

117,706[73,309]
Potentiallybankrupt obligors[655]

47,205[11,068]

Claims against bankrupt
and substantially bankrupt
obligors
118,845

Claims with collection risk
47,205Loans past

Substandard
obligors
Obligors
requiring
caution144

65,276--Claimsfor
specialattentiondue 3 months or more
2,049
Restructured loans
51,20665,420Subtotal
219,307

Other
obligors
requiring
caution

11,371

597,429-

Normal assets

608,801

1,871,474
Normal obligors

1,250,508---

1,351,069

724,413

15,298[11,068][73,964]

1,250,508

Total
2,090,781[85,033]

Total
2,090,781(Note1) “Total claims” includes “Loans and bills discounted”, “Customers’ liabilities for acceptances and guarantees”, “Foreignexchanges”, “Suspense payment” and “Accrued interest”.
(Note2) Numbers shown in brackets under “Self-assessment result” represent the reserved amount for each category.

－16－

Suruga bank, Ltd.

1. Risk-monitored loans
The following table shows figures after deduction of partial direct write-off of loans.
The amounts of partial direct write-off of loans for the fiscal year ended March 31, 2023 were as follows:(a) Non-consolidated: ¥6,069 million; (b) Consolidated: ¥6,069 million
Loans to “Potentially bankrupt obligors”, “Effectively bankrupt obligors” and “Bankrupt obligors” under self-assessment areplaced on non-accrual status.
Non-consolidated(Millions of yen, %)Mar. 31, 2023(a)

Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk

Riskmonitored
Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)

Claims against bankrupt andsubstantially bankrupt obligors％ to loans
Claims with collection risk
and bills
Loans past due 3 months or morediscounted
Restructured loans
Total(a) - (b)(a) - (c)Sep. 30, 2022(b)Mar. 31, 2022(c)

118,845

3,503(15,322)

115,342

134,167

47,2052,049
51,206219,307543(1,624)(8,427)(6,005)(18,656)(1,702)(16,894)(52,573)

46,662
3,673
59,633
225,31265,861
3,751
68,100271,880

2,090,781

374(60,585)

2,090,407

2,151,366

5.68

0.17

(0.55)

5.51

6.23

2.25
0.09
2.44
10.48

0.02
(0.08)(0.41)(0.29)(0.81)(0.08)(0.72)(2.15)

2.23
0.17
2.85
10.77

3.06
0.17
3.16
12.63

Consolidated(Millions of yen, %)Mar. 31, 2023(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk

Riskmonitored
Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)

Claims against bankrupt andsubstantially bankrupt obligors％ to loans
Claims with collection risk
and bills
Loans past due 3 months or morediscounted
Restructured loans
Total(a) - (b)(a) - (c)Sep. 30, 2022(b)Mar. 31, 2022(c)

119,468

3,480(15,387)

115,988

134,855

51,8602,049
51,206
224,584645(1,624)(8,427)(5,927)(18,418)(1,702)(16,894)(52,401)

51,215
3,673
59,633
230,51170,278
3,751
68,100276,985

2,109,907

1,098(59,630)

2,108,809

2,169,537

5.66

0.16

(0.55)

5.50

6.21

2.45
0.09
2.42
10.64

0.03
(0.08)(0.40)(0.29)(0.78)(0.08)(0.71)(2.12)

2.42
0.17
2.82
10.93

3.23
0.17
3.13
12.76

－17－

Suruga bank, Ltd.

2. Allowance ratio for risk-monitored loans
Non-Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Mar. 31, 2023
(a)219,30782,826
97,211
44.32
82.09(a) - (b)(6,005)(2,628)
388
1.35
1.20

(a) - (c)(52,573)(21,485)(13,677)
3.54
2.94(Millions of yen, %)Sep. 30, 2022
Mar. 31, 2022(b)(c)
225,312271,880
85,454
104,31196,823110,888
42.97
40.78
80.89
79.15

(a) - (c)(52,401)(21,398)(13,720)
3.56
2.74(Millions of yen, %)Sep. 30, 2022
Mar. 31, 2022(b)(c)
230,511
276,985
84,565
103,440
100,699
114,698
43.68
41.40
80.37
78.75

(a) - (c)(14,204)(5,082)(9,121)(Millions of yen)Sep. 30, 2022
Mar. 31, 2022(b)(c)
117,032
133,124
38,96936,387
94,15480,645(a) - (c)(14,622)(5,458)(9,164)

Sep. 30, 2022(b)
122,70738,18584,521(Millions of yen)Mar. 31, 2022(c)
138,917
40,953
97,964(a) - (c)Sep. 30, 2022(b)(Millions of yen)Mar. 31, 2022(c)

Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Mar. 31, 2023(a)
224,584
82,042
100,978
44.96
81.49

(a) - (b)(5,927)(2,523)
279
1.28
1.12

3. Allowance for loan losses
Non-consolidated

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

Mar. 31, 2023
(a)
118,92033,88785,033(a) - (b)1,888
(2,500)4,388

Consolidated

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

Mar. 31, 2023(a)124,295
35,49588,800(a) - (b)1,588
(2,690)4,279

4. Non-performing loans based on the Financial Reconstruction Law
Non-consolidated
Mar. 31, 2023(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total

(A)

(a) - (b)118,845

3,503(15,322)

115,342

134,167

47,20553,255219,307543(10,052)(6,005)(18,656)(18,596)(52,573)

46,662
63,307225,31265,861
71,851
271,880

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

Total coverage
Allowance for loan losses
Collateral or guarantees, etc.
Coverage ratio(B)Mar. 31, 2023(a)
180,037
97,211
82,826(a) - (b)(2,241)388(2,628)(a) - (c)(35,163)(13,677)(21,485)

(B/A)

82.09

1.20

2.94

－18－

(Millions of yen, %)Sep. 30, 2022
Mar. 31, 2022(b)(c)
182,278
215,200
96,823110,888
85,454
104,311
80.89

79.15

Suruga bank, Ltd.

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry (Non-consolidated)
Mar. 31, 2023
(a)
Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others(Millions of yen)(a) - (b)(a) - (c)Sep. 30, 2022(b)Mar. 31, 2022(c)

2,080,150

2,068(58,437)

2,078,082

2,138,587

36,8633,854
35
50
16,167836
3,603
14,59733,76133,288159,357
75,171
26,424
1,676,137(1,033)
(88)
(12)
(50)
2,052
592
169
(115)
1,231
10,39537,762
22,708(269)(71,274)

1,847
(189)
(24)
(150)
2,157
598
1,765
1,714
1,610
18,82751,72823,9605,909(168,185)

37,8963,942
47
100
14,115244
3,434
14,71232,53022,893
121,595
52,463
26,693
1,747,411

35,0164,043
59
200
14,010238
1,838
12,88332,151
14,461
107,629
51,211
20,515
1,844,322(2) Breakdown of risk-monitored loans by industry (Non-consolidated)
Mar. 31, 2023
(a)
Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others (Note)(a) - (b)(Millions of yen)(a) - (c)Sep. 30, 2022(b)Mar. 31, 2022(c)

219,307(6,005)(52,573)

225,312271,880

7,750
589
3
112
219
5,891
305
716
203,718(1,495)
0
0
(2)
(109)
(139)
197
15
(4,472)(1,766)
(64)
(1)
(4)
20
(139)
196
17
(50,833)

9,245
589
3
114
328
6,030
108
701
208,190

9,516
653
4
116
199
6,030
109
699
254,551(Note) “Others” includes real estate financing for rent to individuals.

－19－Suruga bank, Ltd.

(3) Consumer loans (Non-consolidated)

Consumer loans
Secured loans
Housing loans
Unsecured loans
Asset management company loans forproperty investment
Structured finance
Total(Millions of yen)(a) - (c)(168,125)(150,462)(27,072)(17,663)

Sep. 30, 2022(b)
1,741,561
1,606,027
441,815
135,534

Mar. 31, 2022(c)
1,838,569
1,693,106457,665
145,463

17,161

23,87740,31333,59743,733(10,223)

57,490(86,758)

82,725
1,864,599

68,968
1,941,134

Sep. 30, 2022(b)Mar. 31, 2022
(c)

95.50

96.43

Mar. 31, 2023
(a)1,670,444
1,542,644
430,593
127,800(a) - (b)(71,117)(63,383)(11,222)(7,734)57,474
126,458
1,854,376(4) The ratio of loans to small- and medium-sized enterprises, etc. (Non-consolidated)
Mar. 31, 2023
(a)
The ratio of loans to small- andmedium-sized enterprises, etc.

94.71(a) - (b)(%)(a) - (c)(0.79)(1.72)(Note) “Loans to small- and medium-sized enterprises” includes consumer loans which comprise 80.30% of this total.

7. Loan breakdown by country(1) Loans to specific foreign countries (Non-consolidated)
Not applicable.
(2) Loans to Asian countries (Non-consolidated)
Not applicable.

8. Deposits and loans (Non-consolidated)(Millions of yen)

Deposits
Loans

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

Mar. 31, 2023
(a)3,355,740
3,339,477
2,080,150
2,085,528(a) - (b)44,565(7,213)
2,068(27,430)(a) - (c)43,55947,905(58,437)(158,870)

Sep. 30, 2022(b)
3,311,175
3,346,690
2,078,082
2,112,958

Mar. 31, 2022(c)
3,312,181
3,291,572
2,138,587
2,244,398

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

Number of branches

Mar. 31, 2023
(a)
113

－20－

(a) - (b)(a) - (c)(4)(5)

Sep. 30, 2022(b)
117

Mar. 31, 2022(c)118

Suruga bank, Ltd.

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Non-consolidated
Fair
value

(Millions of yen)Mar. 31, 2022

Mar. 31, 2023

Sep. 30, 2022

Net unrealized gains (losses)

Net unrealized gains (losses)

Fair
value

Fair Net unrealized gains (losses)
value
Gains Losses

Gains Losses
Gains Losses
Available-for-sale292,026 (1,270)
8,239
9,509 432,636 (15,832)
8,713
24,546 454,234 (1,482)
9,332 10,814
securities
15,598Stocks
7,741
7,841
100
16,678
8,403
8,666
263
15,862
7,587
7,901
314
Bonds
154,701(324)
397
721 171,353 (1,241)
47
1,288 143,556
(353)
140
494
Others121,726 (8,687)
8,687 244,603 (22,995)
22,995 294,816 (8,715)
1,290 10,005(Note1) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note2) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.
Consolidated
Fair
Value

(Millions of yen)Mar. 31, 2022

Mar. 31, 2023

Sep. 30, 2022

Net unrealized gains (losses)

Net unrealized gains (losses)

Fair
Value

Fair Net unrealized gains (losses)
value
Gains Losses

Gains Losses
Gains Losses
Available-for-sale292,880(511)
8,997
9,509 433,442 (15,123)
9,423
24,546 457,899
1,961 12,775 10,814
securities
16,453
Stocks
8,499
8,600
100
17,484
9,113
9,376
263
16,605
8,233
8,548
314
154,701
Bonds
(324)
397
721 171,353 (1,241)
47
1,288 143,556
(353)
140
494
Others121,726 (8,687)
8,687 244,603 (22,995)
22,995 297,737 (5,918)
4,087 10,005(Note1) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note2) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.

Ⅴ. Retirement benefits
1. Retirement benefit expenses
Non-consolidated
FY3/2023
Service cost
Interest cost
Expected returns on plan assets
Amortization of unrecognized net actuarial gains (losses)
Others (non-recurring extra retirement payments, etc.) (Note1)
Retirement benefit expenses

406
97
(966)
(981)
216
(1,227)(Millions of yen)
FY3/2022
470
101(1,034)(1,589)218(1,833)(Note1) “Others” includes contribution to a defined contribution pension plan.
Consolidated
FY3/2023
Service cost (Note1)
Interest cost
Expected returns on plan assets
Amortization of unrecognized net actuarial gains (losses)
Others (non-recurring extra retirement payments, etc.) (Note2)
Retirement benefit expenses

429
97
(966)
(981)
242
(1,179)(Millions of yen)
FY3/2022
505
101(1,034)(1,589)240(1,775)(Note1) Retirement benefit expenses of consolidated subsidiaries adopting a simplified method are included in “Service cost”.
(Note2) “Others” includes contribution to a defined contribution pension plan.

－21－