August 14, 2019

SURUGA bank, Ltd.
Consolidated financial results for the three months ended June 30, 2019
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Michio Arikuni, President(Amounts and percentages are rounded down to the nearest million yen and first decimal place, respectively.)

1. Consolidated financial results for the three months ended June 30, 2019(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Three months ended
June 30, 2019
June 30, 2018

Millions of yen%

32,24135,268

Profit attributableto owners of parent

Ordinary profit
Millions of yen

(8.5)
(7.0)

%

6,223
4,727

Millions of yen

31.6(69.8)

%

3,847
3,160

21.7
(70.5)(Note) Comprehensive income: Three months ended June 30, 2019: ¥1,229 million [(74.5)%]
Three months ended June 30, 2018: ¥4,830 million [(62.8)%]

Earnings per share
Three months ended
June 30, 2019
June 30, 2018

Earnings per share (diluted)
yen

yen

16.60
13.64

―
13.64

(Note) Earnings per share (diluted) for the three months ended June 30, 2019 is not provided because there are no potentiallydilutive shares.

(2) Consolidated financial position
Total assets
As ofJune 30, 2019
March 31, 2019

Total net assets

Net assets ratio

Millions of yen

Millions of yen

3,404,406
3,428,327

243,537
242,308

%

7.1
7.0

(Reference) Shareholders’ equity: As of June 30, 2019: ¥242,196 million As of March 31, 2019: ¥241,015 million(Note) Net assets ratio = {(Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets} × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

2. Dividends on common stock
Dividends per share
1 quarter-end 2 quarter-end 3rd quarter-end Fiscal year-end
stFiscal year
ended March 31, 2019
ending March 31, 2020
Fiscal year
ending March 31, 2020 (forecast)

nd

yen

yen

yen

yen

Total
Yen

0.00

－

0.00

0.00

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

3. Consolidated earnings forecast for the fiscal year ending March 31, 2020(% represents the change from the same period in the previous fiscal year)

Profit attributableto owners of parent

Ordinary profit
Millions of yen

First half
Full year

8,000
16,000%－－(Note) Revision of earnings forecast from the latest announcement: No

Millions of yen

5,000
10,500Earnings per share
%

－
－

Yen

21.58
45.32

(Notes)(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of
consolidation): No(2) Adoption of any particular accounting methods for quarterly consolidated financial statements: Yes
Note: For details, please refer to page 6 of the appendix “2. Consolidated financial statements and notes, (3) Notes regarding
consolidated financial statements, (Adoption of any particular accounting methods for quarterly consolidated financial
statements)”.
(3) Changes in accounting policies, changes in accounting estimates and restatements(A) Changes in accounting policies due to revision of accounting standards: No(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: No(D) Restatements: No(4) Number of issued shares (common stock)(A) Number of issued shares
As of June 30, 2019
(including treasury shares):232,139,248 shares

As of March 31, 2019

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

As of June 30, 2019488,584 shares

As of March 31, 2019488,242 shares(C) Average number of shares:Three months ended
June 30, 2019

231,650,876 shares

Three months ended
June 30, 2018

231,640,874 shares(Note) This report is outside the scope of the external auditor’s quarterly review procedure.
(Note) Explanation on appropriate use of forecast and other special items
The performance forecasts and other forward-looking statements in this report are based on information currently available
to the company and on certain assumptions deemed to be reasonable, and are not intended to guarantee future performance.
Actual performance may differ materially depending on various factors.

SURUGA bank,Ltd.

(Appendix)

Table of contents
1. Qualitative information on financial results ...........................................................................................2(1) Details of operating results ............................................................................................................2(2) Details of financial position ...........................................................................................................2(3) Details of forecast information, including earnings forecast........................................................2
2. Consolidated financial statements and notes..........................................................................................3(1) Consolidated balance sheets ..........................................................................................................3(2) Consolidated statements of income and Consolidated statements of comprehensive income ................4(3) Notes regarding consolidated financial statements.......................................................................6(Notes on going-concern assumption).............................................................................................6(Notes for material changes in shareholders’ equity)......................................................................6(Adoption of any particular accounting methods for quarterly consolidated financial statements)...........6(Changes in accounting policies, changes in accounting estimates and restatements) .................6* Financial results for the three months ended June 30, 2019 supplementary information.....................7−1−

SURUGA bank,Ltd.

1. Qualitative information on financial results(1) Details of operating results
As for the consolidated operating results for the three months ended June 30, 2019, ordinary
income decreased by ¥3.027 billion year-on-year to ¥32.241 billion. This was primarily due to thedecline in interest income reflecting the drop in interest on loans and bills discounted. Meanwhile,
ordinary expenses decreased by ¥4.523 billion year-on-year to ¥26.017 billion, mainly due to the fallin net credit costs, including disposal of non-performing loans.
As a result, ordinary profit increased by ¥1.496 billion year-on-year to ¥6.223 billion.
Profit attributable to owners of parent increased by ¥0.687 billion year-on-year to ¥3.847 billion.

(2) Details of financial position
As for the consolidated major account balances as of June 30, 2019, deposits amounted to¥3,135.937 billion, down by ¥23.667 billion from March 31, 2019, mainly due to a decrease of¥28.761 billion in individual deposits.
Loans and bills discounted came in at ¥2,731.990 billion, down by ¥172.397 billion from March
31, 2019, mainly due to a decrease of ¥156.130 billion in consumer loans (non-consolidated).
Securities amounted to ¥131.965 billion, down by ¥1.221 billion from March 31, 2019.

(3) Details of forecast information, including earnings forecast
The earnings forecast for the fiscal year ending March 31, 2020 remains unchanged from thatannounced on May 15, 2019.
Consolidated

Ordinary profit
Profit attributable toowners of parent
Non-consolidatedCore net operating profit
Net operating profit
Ordinary profit
Net income
Actual credit costs(Billions of yen)
Fiscal year ending
March 31, 2020
(Forecast)First half
Full year
8.0
16.0
5.0

10.5

(Billions of yen)
Fiscal year ending
March 31, 2020
(Forecast)First half
Full year
17.0
34.0
16.5
33.0
7.5
15.0
5.0
10.0

9.5

19.0

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

−2−

SURUGA bank,Ltd.

2. Consolidated financial statements and notes(1) Consolidated balance sheets
As ofMarch 31, 2019

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
Net defined benefit liability
Provision for directors' retirement benefits
Provision for reimbursement of deposits
Provision for contingent losses
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities
Deferred gains (losses) on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets−3−（Millions of yen）
As of
June 30, 2019

424,073
561
167
515
133,186
2,904,387
2,407
6,368
62,49348,311
24,601
15,376
13,4002,551(210,076)
3,428,327

577,850591
166
385
131,965
2,731,990
2,403
6,379
61,181
48,23923,852
15,65014,6292,552(213,430)
3,404,406

3,159,604
740
16
20,999
482
295
246
398
111
572
2,551
3,186,019

3,135,937
680
11
20,080
40
291
216
320
115
622
2,552
3,160,869

30,043
1,202
193,263(560)
223,948
13,352(35)
3,750
17,06712
1,280
242,308
3,428,327

30,043
1,202
197,110(560)
227,795
10,834(31)
3,597
14,401
12
1,328
243,537
3,404,406

SURUGA bank,Ltd.

(2) Consolidated statements of income andConsolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the three months For the three months
ended
ended
June 30, 2018
June 30, 201935,26832,24130,436
24,57829,466
24,070
750
409
3,105
2,693
1,041
2,864
684
2,103
30,54026,017
654
387
576
301
3,920
4,830
775
720
13,17812,557
12,011
7,521
4,727
6,223
0
0
0
0
88
78
88
78
4,639
6,144
1,467
2,268
3,171
3,876
10
29
3,160
3,847

Ordinary income
Interest income
Interest on loans and bills discounted
Interest and dividends on securities
Fees and commissions
Other operating income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary gains
Gains on disposal of non-current assets
Extraordinary losses
Losses on disposal of non-current assets
Income before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent−4−

SURUGA bank,Ltd.

Consolidated statements of comprehensive income（Millions of yen）
For the three months For the three months
ended
ended
June 30, 2018
June 30, 2019
3,171
3,876

ProfitOther comprehensive income
Net unrealized gains (losses) on available-for-sale securities

Deferred gains (losses) on hedges
Remeasurements of defined benefit plans, net of tax

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

−5−

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

(2,498)4(152)(2,646)
1,229

4,845
(15)

1,181
48

SURUGA bank,Ltd.

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

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

(Adoption of any particular accounting methods for quarterly consolidated financial
statements)(Calculation of income taxes)
Income taxes reported by the company and its subsidiaries are calculated by multiplying income
before income taxes for the three months ended June 30, 2019 with the reasonably estimatedeffective tax rate after applying tax effect accounting to income before income taxes for the fiscal
year ending March 31, 2020, including the current first quarter.

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

−6−

SURUGA bank,Ltd.

Financial Results for the three months ended June 30, 2019
- Supplementary Information (1) Operating results for the three months ended June 30, 2019 (Non-consolidated)(Millions of yen)

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

Three months ended
June 30, 2019 June 30, 2018(a)(b)
21,542
26,42922,252
27,635(2,713)(1,360)
2,003
154
6
141
21,536
26,287
11,572
12,087
3,684
4,320
6,680
6,686
9,964
14,200(a) - (b)FY3/2019(4,887)(5,383)(1,353)
1,849(135)(4,751)
(515)
(636)
(6)
(4,236)99,995
103,916(4,458)537
501
99,49446,877
15,945
27,162
52,616

9,964

13,959(3,995)52,312

9,970

14,342(4,372)

53,1183,041(1,478)4,519

26,7106,928(1,340)
1,815
5,588
(75)
5,512
2,067
3,445

15,820(11,319)
207
4,500
(88)
4,411
1,367
3,043

(8,892)
9,979
1,608
1,088
13
1,101
700
402

6,517

10,470(3,953)

26,408(101,393)
7,623(74,985)(703)(75,688)
21,328(97,016)(Millions of yen)
137,060

3,041(1,478)4,519

26,710

3,476
55
6,462

11,948266
10,203(8,472)(211)(3,741)

110,349702
136,358(Note1) Core gross operating profit = Gross operating profit - Gains (losses) on bonds(Note2) Core net operating profit = Net operating profit + Provision for general allowance for loan losses- Gains (losses) on bonds(Note3) Actual net operating profit = Net operating profit + Provision for general allowance for loan losses(Note4) The amount of Income taxes for the fiscal year ended March 31, 2019 is that of Total income taxes.
(Note5) Net credit costs = Provision for general allowance for loan losses + Disposal of non-performing loans(Note6) Actual credit costs = Net credit costs - Recoveries on written-off claims−7−

SURUGA bank,Ltd.

(A) Gross operating profit： ¥21.5 billion･Net interest income decreased by ¥5.3 billion year-on-year, mainly due to a decrease ininterest on loans and bills discounted.
･Yen loan-deposit income decreased by ¥4.9 billion year-on-year.
･Gross operating profit decreased by ¥4.8 billion year-on-year.
Net interest income(Billions of yen)

27.9

27.3

29.0

27.6

Loan-deposit income(Billions of yen)

22.2

24.9

26.6

27.7

26.7

21.8

1Q,
1Q,
1Q,
1Q,
1Q,
FY3/16 FY3/17 FY3/18 FY3/19 FY3/20

1Q,
FY3/161Q,
FY3/171Q,
FY3/181Q,
FY3/191Q,
FY3/20(B) Expenses; OHR: 53.7%･Expenses decreased by ¥0.5 billion year-on-year.
･OHR rose year-on-year to 53.7%, mainly due to a decrease in gross operating profit,
despite a decrease in expenses.
(OHR(%) = Expenses / Gross operating profit × 100)
Gross operating profit

Expenses

OHR(Billions of yen)

46.6%

43.2%
27.1
11.7
1Q, FY3/16

28.2

26.5

12.3

12.2

1Q, FY3/17

1Q, FY3/18

53.7%

45.7%

43.4%
26.4

12.0

1Q, FY3/19

21.5

11.5

1Q, FY3/20(C) Core net operating profit: ¥9.9billion, Net operating profit: ¥6.9 billion･Core net operating profit decreased by ¥4.2 billion year-on-year, mainly due to a decrease in
net interest income.
･Net operating profit decreased by ¥8.8 billion year-on-year, mainly due to an increase inprovision for general allowance for loan losses, and a decrease in gross operating profit.
(Billions of yen)

15.1

15.4

1Q, FY3/16

Core net operating profit

14.3

14.2

1Q, FY3/17

15.9

Net operating profit

15.9

1Q, FY3/18

14.2

15.8

1Q, FY3/19

6.9
9.9
1Q, FY3/20(D) Ordinary profit: ¥5.5 billion, Net income: ¥3.4 billion･Ordinary profit increased by ¥1.0 billion year-on-year, mainly due to a decrease in
net credit costs.
･Net income increased by ¥0.4 billion year-on-year, mainly due to an increase in ordinary profit.
(E) Actual credit costs: ¥6.4 billion･Net credit costs decreased by ¥3.9 billion year-on-year, mainly due to a decrease of ¥8.4 billion
in disposal of non-performing loans, despite an increase of ¥4.5 billion in provision forgeneral allowance for loan losses.
･Actual credit costs, calculated as net credit costs (¥6.5 billion) minus the amount ofrecoveries on written-off claims amounted to ¥6.4 billion.
−8−

SURUGA bank,Ltd.

(2) Loans and deposits (Non-consolidated)(A) Loans and bills discounted･Loans and bills discounted (period-end balance) decreased by ¥172.6 billion from March 31, 2019.
･Yield on loans and bills discounted (overall) dropped by 13 basis points from March 31, 2019 to
3.19%.
(Billions of yen）
Jun. 30,

Mar. 31,

Dec 31,

Sep 30,Jun. 30,2019(a)(a)-(b)2019(b)(b)-(c)2018(c)(c)-(d)2018(d)(d)-(e)2018(e)2,726.2(172.6)2,898.8(69.9)

2,968.7(117.1)

3,085.8(64.6)

3,150.4

Consumer loans

2,508.7(156.1)2,664.8(61.3)

2,726.1(64.7)

2,790.8(66.5)

2,857.3

Secured loans

2,276.8(147.6)2,424.4(53.5)

2,477.9(55.4)

2,533.3(60.0)

2,593.3

Unsecured loans

231.8

(8.5)

240.3

(7.8)

248.1

(9.4)

257.5

(6.5)

264.0

Loans and bills discounted(period-end balance)(Billions of yen)Three months ended
June 30, 2019 (a)1.6

New consumer loans(a) - (b)(14.6)

Three months ended
June 30, 2018 (b)16.2

Yield on loans and bills discounted(overall)Loans and bills discounted (period-end balance)
Consumer loans (period-end balance)(Billions of yen)
3,085.8
3,150.4
2,968.7
2,898.8
2,857.3
2,726.2
2,790.8
2,726.1
2,664.8
2,508.7

Jun.18

Sep.18

Dec.18Mar.19Jun.19

3.45%

3.36%

3.35%

3.32%

Jun.18 Sep.18 Dec.18 Mar.19 Jun.19(Note)Based on cumulative period.

−9−

3.19%

SURUGA bank,Ltd.

Consumer loans
Outstanding balance, yield, delinquency rate by loan category(Billions of yen)Mar. 31, 2019

Jun. 30, 2019
Loan category

Period-end
balance

Yield

Secured loans

2,276.8
600.7

Housing loans
Studio apartment loans
Single building apartment
loans
Share house loans
Other secured loans
Unsecured loans
Card loans
Unsecured certificate
loans
Consumer loans

3.21%
2.88%

Delinquency
rate
4.55%
0.32%

Period-end
balance
2,424.4

Yield
3.24%

Delinquency
rate
4.31%

618.6

2.89%

0.27%

220.0

3.43%

1.03%

329.4

3.44%

0.85%

1,209.5

3.45%

1.85%

1,226.9

3.51%

1.58%

200.5
46.0

1.89%
4.87%

39.93%
0.61%

201.9

1.99%

39.76%

231.8
152.2

10.12%
11.40%

1.64%
0.71%

47.6
240.3
157.2

4.88%
10.09%
11.37%

0.62%
1.50%
0.59%

79.5

7.66%

3.41%

83.1

7.68%

3.21%

2,508.7

3.82%

4.29%

2,664.8

3.86%

4.05%

(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) The decrease in the balance of Studio apartment loans is mainly due to securitization of part of the loans
worth 108.0 billion yen.
(Note4) Yield and delinquency rate of Studio apartment loans, secured loans and consumer loans are calculated
based on original claims before securitization.

Share house loans (Non-performing loans based on the Financial Reconstruction Law)
(Billions of yen)Total
creditbalanceSep. 30, 2018
Dec. 31, 2018
Mar. 31, 2019

253.7
251.5
250.3

Claims against
bankrupt andsubstantiallybankrupt obligors
31.8
69.5
86.5

Jun. 30, 2019

248.0

88.3

Total credit balance

Sep. 30, 2018
Dec. 31, 2018
Mar. 31, 2019

253.7
251.5
250.3

Share houseclaims
203.4
202.2
201.9

Jun. 30, 2019

248.0

200.6

A

Subtotal
Normal(Non-perform
assetsing loans)

Claims withcollection
riskClaims for
specialattention

101.6
65.0
51.0

56.8
76.2
88.0

190.3
210.9
225.6

63.4
40.5
24.6

45.0

93.4

226.8

21.2

(Billions of yen)
Coverage
Allowance
ratio

Collateral or
guarantees, etc.

Unsecuredportion

B

C

D

95.2
94.9
91.4

158.4
156.5
158.8

136.2
136.9
139.3

91.25%
92.21%
92.20%

91.0

157.0

137.3

92.05%(B + D) / A(Note1) Based on obligors of share house loans(Note2) Covered amount: Estimated amount, calculated by multiplying the covered amount including collateral, etc.
with a certain ratio.
(Note3) Total credit balance, share house loan receivables: Loans and bills discounted ,suspense payments
equivalent to loans and bills discounted, and accrued interest on loans and bills discounted.
−10−

SURUGA bank,Ltd.

Actual credit costs and Allowance for loan losses(Billions of yen)June. 30, 2019
Actual credit costs
Allowance
(1.1)
137.3

Item
Share house-related loans
Investment property loans ※1

6.8

46.7

Housing loans

0.3

2.1

Unsecured loans

0.1

0.9

Loans to founder-affiliated companies
Business financing other than loans tofounder-affiliated companies, etc.

0.1

13.5

0

3.3

Total

6.4

204.0

(Note) Investment property loans: Studio apartment loans, Single building apartment loans, Other secured loans(B) Deposits･Deposits decreased by ¥23.8 billion from March 31, 2019.
･Yield on deposits (overall) dropped by 1 bases points from March 31, 2019 to 0.03%.
（Millions of yen）
Jun.30,Loans and bills discounted(period-end balance)
Consumer loans

Mar.31,

Dec.31,

Sep.30,Jun.30,2019(a)(a) - (b)2019(b)(b) - (c)2018(c)(c) - (d)2018(d)(d) - (e)2018(e)3,141.8(23.8)

3,165.6(63.0)

3,228.6(187.3)

3,415.9(455.6)

3,871.5

2,476.9(28.8)

2,505.7(83.0)

2,588.7(154.6)

2,743.3(299.8)3,043.1

Deposits (period-end balance)
Yield on deposits (overall)

Individual deposits (period-end balance)(Billions of yen)
3,871.5
3,415.9
3,228.6
3,165.6
3,141.8
3,043.1
2,743.3
2,588.7
2,505.7
2,476.9

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Jun. 19

0.05%

0.05%

0.05%

0.04% 0.03%

Jun.18 Sep.18 Dec.18 Mar.19 Jun.19(Note)Based on cumulative period.

−11−

SURUGA bank,Ltd.

(3) Interest margins (Non-consolidated)･Loan-deposit margin (after deduction of expenses, overall) dropped by 29 basis points from March
31, 2019 to 1.64%, mainly due to the decline in yield on loans and bills discounted.
･Net interest margin (overall) dropped by 24 basis points from March 31, 2019 to 1.21%.

Overall(a) - (b)FY3/2019(b)(%)
Three months ended
June 30, 2018

3.19

(0.13)

3.32

3.45

0.03

(0.01)

0.04

0.05

1.64

(0.29)

1.93

2.16

1.21

(0.24)

1.45

1.46

Three months ended
June 30, 2019 (a)(a) - (b)FY3/2019(b)(%)
Three months ended
June 30, 2018

3.19

(0.13)

3.32

3.45

0.03

(0.01)

0.04

0.05

1.68

(0.29)

1.97

2.20

1.25

(0.24)

1.49

1.49

Three months ended
June 30, 2019 (a)Yield on loans and bills
discounted
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin
Domestic

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

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

3.39%

3.31%

3.30%

3.27%

2.16%

2.06%

1.99%

1.93%

1.46%

1.51%

1.49%

1.45%

Jun.18

Sep.18

Dec.18Mar.19(Note)Based on cumulative period.

−12−

3.15%

1.64%

1.21%
Jun.19SURUGA bank,Ltd.

(4) Non-performing loans based on the Financial Reconstruction Law (Non-consolidated)･Non-performing loans based on the Financial Reconstruction Law increased by ¥14.2 billion fromMarch 31, 2019.
･Non-performing loan ratio rose by 132 basis points from March 31, 2019 to 14.00%.

June 30, 2019

March 31, 2019

(Millions of yen)
June 31, 2018

Claims against bankrupt andsubstantially bankrupt obligors

116,262

108,391

13,213Claims with collection risk

125,582

136,477

72,907

Claims for special attention

142,421125,099

49,496

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

384,266

369,968

135,616

Non-performing loan ratio

14.00%

12.68%

4.27%(Note1) Total claims = Loans and bills discounted + Foreign exchanges + Accrued interest + Customers’ liabilities
for acceptances and guarantees + Securities lent + Suspense payment (”Claims for special attention” include
only “Loans and bills discounted”)(Note2) The above figures are based on the category of claims as defined in the Article 4 of the “Ordinance for
Enforcement of the Act on Emergency Measures for the Revitalization of Financial Functions”.
(Note3) The relationship between categories of obligors, etc.
(a) ”Claims against bankrupt and substantially bankrupt obligors” correspond to the claims against“Effectively bankrupt obligors” or “Bankrupt obligors” under self-assessment.
(b) ”Claims with collection risk” correspond to the claims against “Potentially bankrupt obligors” underself-assessment.
(c) ”Claims for special attention” correspond to the claims against “Obligors requiring caution” underself-assessment which are classified by category of claims as “Loans past due 3 months or more” or“Restructured loans”.

Non-performing loan ratio

8.86%

10.60%

12.68%

14.00%

Mar.19Jun.194.27%

Jun.18

Sep.18

Dec.18−13−

SURUGA bank,Ltd.

(5) Capital adequacy ratio (domestic standard)･Capital adequacy ratio (non-consolidated) dropped by 15 basis points from March 31, 2019 to 8.65%.

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

March 31, 2019
June 30, 2019
8.65%
8.80%
219,081
213,796
248,110
243,358
29,02929,561
2,531,616
2,427,051
98,06497,082(Millions of yen)
June 30,201812.14%
328,260
346,814
18,5532,701,826
108,073

June 30, 2019
March 31, 2019
8.76%
8.90%
225,803
220,001
261,152
256,130
35,34936,1292,575,073
2,470,880
99,802
98,835(Millions of yen)
June 30,201812.21%
334,780
357,010
22,2292,741,213
109,648

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

Capital adequacy ratio （non-consolidated）
Own capital (non-consolidated)(Billions of yen)

12.14%
8.65%

9.05%

8.80%

8.65%

219.7

223.6

213.7

219.0

Sep.18

Dec.18Mar.19Jun.19328.2

Jun.18−14−

SURUGA bank,Ltd.

(6) Composition of own capital (domestic standard)Core 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 stock
Adjusted 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 and reserves
Capital instrument issued through the measures for strengthening capital by public
institutions included in Core capital: instruments and reserves
45% of revaluation reserve for land included in Core capital: instruments and reserves
Non-controlling interests included in Core capital subject to transitional arrangementsCore capital: instruments and reserves(A)Core capital: regulatory adjustments(2)
Total intangible fixed assets (net of related tax liability, excluding those relating tomortgage 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 bank does not own more than 10% of the issued sharecapital (amount above the 10% threshold)Amount exceeding the 10% threshold on specified items
Significant investments in the common stock of Other financial institutions, net of
eligible short positions
Mortgage servicing rights
Deferred tax assets arising from temporary differences (net of related tax liability)
Amount exceeding the 15% threshold on specified items
Core capital: regulatory adjustments(B)
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−

(Millions of yen)
June 30, 2019Non-consolidated
Consolidated
219,159

227,795

48,632
171,087560-

31,245
197,110
560
3,597
3,597

12

12

28,93928,93929,081
29,081

-

-

-

-

-

-

248,110664
261,152

15,255

17,147

15,255

1,650
15,496

-

186

129
7,326
-

129
10,924
-

-

-

-

-

6,317

6,960

-

-

6,317
29,0296,960
35,349219,081

225,8032,315,134
216,481
2,531,616

2,326,554
248,519
2,575,073

8.65%

-

-

8.76%

SURUGA bank,Ltd.

(7) Unrealized gains (losses) on securities (Non-consolidated)･Net unrealized gains (losses) on securities decreased by ¥3.8 billion from March 31, 2019, mainly
due to a decrease in unrealized gains on stocks.

June 30, 2019
March 31, 2019
Net unrealized gains
Net unrealized gains
Fair
Fair
(losses)(losses)
Value
value
Gains Losses
Gains Losses
Other
securities 116,032 13,436
Stocks 21,658 11,970
Bonds 89,856
719
Others
4,517
747(Millions of yen)
June 30, 2018
Net unrealized gains
Fair(losses)value
Gains Losses

13,948511 117,364 17,254

17,625371

138,254

27,254

27,592338

12,356386

16,160249

43,25926,685

26,791

106

26,170 15,911

719

086,734

658

662

3

85,101

67

130

62

872

125

4,459

683

802

118

9,893

501

670

169

(Note1) The stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note2) Unrealized gains (losses) represent the difference between the fair value as of the period-end and theacquisition cost.

(8) Individual deposit assets (Non-consolidated)･Individual deposit assets decreased by ¥33.0 billion from March 31, 2019.
･The ratio of investment products to total individual deposit assets dropped by 10 basis points
from March 31, 2019 to 4.9%.
(Millions of yen)

Individual deposit assets
Yen deposits
Investment products
Foreign currency
deposits
Public bonds
Mutual funds
Personal pension
plansSingle premium life
insurance
The ratio ofinvestment products tototal individual deposit
assetsJune 30, 2019(a)2,602,225
2,473,051
129,174(a) - (b)(a - b) / (b)(33,047)(28,591)(4,456)(1.2)%(1.1)%(3.3)%March 31, 2019(b)
2,635,272
2,501,642
133,630

3,938

(170)

(4.1)%

4,108

5,662

8,170
77,103(133)(3,334)(1.6)%(4.1)%

8,303
80,437

8,560
91,681

24,602(800)(3.1)%

25,402

34,484

15,358(18)(0.1)%

15,376

15,347(0.1)%

5.0%

4.8%

4.9%

−16−

June 30, 2018

3,193,263
3,037,527
155,736