March 25, 2022
To whom it may concern:
Name of Company: Suruga Bank, Ltd.
Name of Representative: Director and President: Kosuke Saga
(Code No. 8358 First Section of Tokyo Stock Exchange)
Contact Person: Senior Executive Officer
Tatsuya Akita, General Manager, General Management Planning Headquarters(TEL: 03-3279-5535)

Announcement Regarding Transfer of Share House-related Loan Receivables

Suruga Bank, Ltd. is subject to a petition for civil conciliation from 404 obligors (including joint andseveral obligors, hereinafter simply referred to as “Claimants”) of the share house-related financing.
This is to inform you that 60.5 billion yen of share house-related loan receivables have beentransferred to a third party (hereinafter the "Transfer") based on the conciliation recommendationof the Tokyo District Court's Conciliation Committee.
Note
１． Circumstances of the Transfer
On October 5, 2018, the Company received an order for business improvement including
partial suspension of business from the Financial Services Agency based on Article 26 of theBanking Act. In response to this, the Company has considered and implemented all measurespossible as a financial institution to assist customers who have had difficulty repaying sharehouse-related loans and other loans for investment real estate, under the business
improvement plan submitted to the Financial Services Agency on November 30, 2018.
As part of these measures, we transferred share house-related loan receivables to a third
party on March 25, 2020 and March 1, 2021 in an effort to quickly resolve issues with customers
who are using share house-related loans (hereafter referred to as the "bulk transfer ofpreviously executed loans").
This transfer was executed under the same scheme as the bulk transfer of previouslyexecuted loans. As with the bulk transfer of previously executed loans, this transfer only
covered the shared housing-related loans and did not cover any other investment realestate-related loans.

２．Regarding the Transfer
This transfer was made based on the conciliation recommendation of the Tokyo District
Court's Conciliation Committee. The outline is as follows.
・Acknowledging its liability for payment of a certain amount of settlement money to each of
the Claimants with regard to the share house-related loans, the Company offset its liabilities
with the share house-related loan liabilities of each of the Claimants at an equivalent amount,and transferred the post-offset loan receivables to a third party.
・After the above-mentioned offset and the transfer, each of the Claimants provided substituteperformance of their loan obligations using the collateral property owned by each of them.
The Company's share house-related financing was executed for newly built properties
without a track record of operation based on unrealistic business plans under conditions
different from general investment real estate-related financing in that the market was immatureand there were few similar properties to compare. As a result, the customers purchased sharehouse properties at prices higher than the prevailing market prices, suffering losses from theso-called high price grabbing. When executing the share house-related financing, there werecases in which the Company took inappropriate measures, for instance, failing to conduct
sufficient analysis of the risks inherent in share houses that are not found in general investment
real estate-related financing and overlooking the unrealistic nature of the business plans.
Based on the court's conciliation committee's determination that the Company is typically liablefor damages based on tort regarding the share house-related loans, the Company acceptedthat it is liable to pay the Claimants settlement money based on the conciliation
recommendation.
The Tokyo District Court is scheduled to approve mediation as stipulated in Article 16 of theCivil Conciliation Act, and as a result, the issues surrounding the share house-related loan
between the Petitioners and the Company will be resolved.
３． Future Prospects
As a result of this bulk transfer of receivables, the Company expects a gain on reversal ofallowance for doubtful receivables of approximately 14.6 billion yen (the "Gain on Reversal"),including related loans. The Gain on Reversal will exceed the forecast (10 billion yen) for thebulk transfer of share house loan receivables in the breakdown of Forecast of Actual Credit
Expenses for the Fiscal Year Ending March 31, 2022 on page 2 of the Interim Financial Resultsfor the Fiscal Year Ending March 31, 20221 dated November 26, 2021, which is available on theCompany's website, since the precautionary allowance mentioned in the same breakdown isexpected to be higher than the forecast, the full-year consolidated and non-consolidated
forecasts for the fiscal year ending March 31, 2022, which were announced on February 10,2022, remain unchanged. If revisions are deemed necessary in the future, they will beannounced promptly. The Company will continue to provide sincere support according to thesituation of each customer at its "Share House-Related & Other Loan Customer ServiceOffice" and to work to resolve the share house-related financing issues and to establish acustomer-oriented business structure.

Contact number for the "Share House-Related & Other Loan Customer Service Office"：0120-010-636
Address：Suruga Bank, Ltd., 1-7-1 Nihonbashi Muromachi, Chuo-ku, Tokyo.
Business Hours：9：00 - 18：00（except Saturday, Sunday, national holidays and New Year'sseason）
1）https://www.surugabank.co.jp/surugabank/investors/irinfo/2021/pdf/211126.pdf(English) https://www.surugabank.co.jp/apa/2021nov_e/SurugaBank2111_E.pdf