February 12, 2021

SURUGA bank, Ltd.
Consolidated financial results for the nine months ended December 31, 2020
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Kosuke Saga, President(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the nine months ended December 31, 2020
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Nine months ended
December 31, 2020
December 31, 2019

Millions of yen

75,52091,472

Profit attributableto owners of parent

Ordinary profit%

Millions of yen%

Millions of yen%(17.4)(16.1)

16,04028,928(44.5)-

9,416
19,454(51.5)-(Note) Comprehensive income: (a) Nine months ended December 31, 2020: ¥ 11,489 million [ (24.1) %](b) Nine months ended December 31, 2019: ¥ 15,141 million [ - %]Earnings per share(diluted)

Earnings per share
Nine months ended
December 31, 2020
December 31, 2019

yen

yen

40.65
83.98

-

(Note) Earnings per share for the nine months ended December 31, 2019 and 2020 are not provided because there are no potentially shares.

(2) Consolidated financial position
Total assets
As ofDecember 31, 2020
March 31, 2020

Total net assets

Net assets ratio

Millions of yen

Millions of yen

3,504,801
3,481,579

267,223
256,892

%

7.6
7.3

(Reference) Shareholders’ equity: (a) As of December 31, 2020: ¥ 267,119 million; (b) As of March 31, 2020: ¥ 256,781 million(Note) Net assets ratio = (Total net assets - Non-controlling interests) / Total assets × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

2. Dividends on common stockst

Fiscal year
ended March 31, 2020
ending March 31, 2021
ending March 31, 2021 (forecast)

1 quarter-end
yen-

Dividends per share
2 quarter-end 3rd quarter-end Fiscal year-end
nd

yen

yen

0.00
0.00

yen

-

Total
yen

5.00

5.00

5.00

5.00

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

3. Consolidated earnings forecast for the fiscal year ending March 31, 2021(% represents the change from the previous fiscal year)

Ordinary income
Fiscal year ending
March 31, 2021

Millions of yen

98,000

Profit attributableto owners of parent

Ordinary profit%(16.9)

Millions of yen

13,000(Note) Revision of earnings forecast from the latest announcement: Yes%(68.8)

Millions of yen

11,000Earnings per
share%(56.5)

yen

47.48

*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(including treasury shares):December 31, 2020
As of(B) Number of treasury shares:
December 31, 2020
Nine months ended(C) Average number of shares:
December 31, 2020

232,139,248 shares

490,121 shares
231,649,630 shares

As ofMarch 31, 2020
As ofMarch 31, 2020
Nine months ended
December 31, 2019

232,139,248 shares
489,165 shares
231,650,669 shares(Note1) This report is outside the scope of the external auditor’s quarterly review procedure.
(Note2) 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 thecompany 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(Additional information) ................................................................................................................ 6* Financial results for the nine months ended December 31, 2020 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 nine months ended December 31, 2020, ordinary income
decreased by ¥15.952 billion year-on-year to ¥75.520 billion. This was primarily due to the decline in interest
income reflecting the drop in interest on loans and bills discounted. Meanwhile, ordinary expenses decreasedby ¥3.064 billion year-on-year to ¥59.480 billion, mainly due to the fall in general and administrative expenses.
As a result, ordinary profit decreased by ¥12,888 billion year-on-year to ¥16.040 billion. Profit attributableto owners of parent decreased by ¥10.038 billion year-on-year to ¥9.416 billion.

(2) Details of financial position
As for the consolidated major account balances as of December 31, 2020, loans and bills discounted camein at ¥2,386.613 billion, down by ¥116.225 billion from March 31, 2020. This was primarily due to thedecrease (¥140.983 billion) in consumer loans (non-consolidated).
Securities amounted to ¥239.292 billion, rose by ¥105.432 billion from March 31, 2020.
Deposits amounted to ¥3,211.169 billion, rose by ¥6.378 billion from March 31, 2020, mainly due to anincrease (¥106.551 billion) in individual deposits.

(3) Details of forecast information, including earnings forecast
The Bank has revised its earnings forecast for the fiscal year ending March 31, 2021 from that announced on
November 13, 2020. For details please refer to the document disclosed separately today (February 12, 2021)
titled “Announcement Regarding the Revision to the Earnings Forecast for the Fiscal year ending March 31,2021”.
Consolidated
Ordinary income
Ordinary profit
Profit attributable toowners of parent

Current forecast (A)
98.0
13.0

Previous forecast (B)
96.0
8.0

(Billions of yen)
Change (A) - (B)
2.0
5.0

11.0

6.0

5.0

Current forecast (A)
87.0
30.0
40.0
11.0
9.0

Previous forecast (B)
85.0
27.0
42.0
7.0
5.0

(Billions of yen)
Change (A) - (B)
2.0
3.0
(2.0)
4.0
4.0

20.0

20.0

-

Non-consolidated
Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income
Actual credit costs(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 notintended 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 ofMar. 31, 2020
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 share-based compensation
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
Non-controlling interests
Total net assets
Total liabilities and net assets−3−（Millions of yen）
As of
Dec. 31, 2020

876,30165
180
978133,860
2,502,838
2,215
6,439
52,98037,507
21,56912,66015,8972,062(183,979)
3,481,579

917,194186
139
99
239,292
2,386,613
2,342
5,646
51,12637,31020,314
13,551
15,265
1,809(186,091)
3,504,801

3,204,791
3
15,663
491
35
275
270
245
139
707
2,062
3,224,686

3,211,169
022,935
9
265
158
162
117
951
1,809
3,237,578

30,043
2,045
218,587(561)
250,115
6,276
(23)
412
6,665
111
256,892
3,481,579

30,0432,045
226,846(561)
258,374
8,418
(34)
362
8,745
103
267,223
3,504,801

Suruga bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income
For the nine months
ended
Dec. 31, 201991,472
71,91570,738
778
7,852
4,861
6,842
62,544
1,171
940
11,2762,312
35,744
12,03928,928
47
35
12
367
364
2
28,608
9,078
19,52974
19,454

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
Gain on reversal of subscription rights to shares
Extraordinary losses
Losses on disposal of non-current assets
Impairment loss
Income before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent−4−（Millions of yen）
For the nine months
ended
Dec. 31, 2020
75,52063,221
61,849
752
6,497
3,133
2,667
59,480
1,181
1,117
8,889
2,468
32,975
13,965
16,040
364
364
691
390
300
15,713
6,303
9,409
(7)
9,416

Suruga bank, Ltd.

Consolidated statements of comprehensive income

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−

For the nine months
ended
Dec. 31, 201919,529（Millions of yen）
For the nine months
ended
Dec. 31, 2020
9,409

(3,934)4(458)(4,387)
15,141

2,141
(10)
(50)
2,080
11,48915,009131

11,497(7)

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 nine months ended December 31, 2020 with the reasonably estimated effective tax rate
after applying tax effect accounting to income before income taxes for the fiscal year ending March 31, 2021,
including the current third quarter.
In addition, in the case that calculating income taxes using the estimated effective tax rate significantly lackrationality, income taxes are calculated by using the statutory effective tax rate.

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

(Additional information)(Key Assumptions on Estimated Impact from Further Spread of the Coronavirus (COVID-19) Pandemic)
With regard to financial estimates that relate to impact from the coronavirus (COVID-19) pandemic in thethird quarter of the current consolidated fiscal year, and assumptions that were used for these estimates, there
have been no material changes from the information listed in the (Additional information) section of the
securities report of the previous consolidated fiscal year.
As such assumptions have a high level of uncertainty, if circumstances concerning the spread of thecoronavirus (COVID-19) pandemic and its impact on the economy vary from the original assumptions,financial results could be impacted from the fourth quarter of the current consolidated fiscal year (fourth
quarter of the fiscal year ending March, 2021).

−6−

Suruga bank, Ltd.

Financial Results for the nine months ended December 31, 2020
- Supplementary Information (1) Operating results for the nine months ended December 31, 2020 (Non-consolidated)(Millions of yen)
Nine months ended
Dec. 31, 2020

Nine months ended
Dec. 31, 2019

(a)

(b)

ChangeFY3/2020

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

54,80957,475(3,176)509(
485
54,32430,598
11,167
17,002

62,20765,093(5,051)2,165
154
62,05332,995
11,18819,003(a) - (b)(7,398)(7,618)
1,875(1,656)331(7,729)(2,397)(21)(2,001)

Core net operating profit (Note2)
Excluding gains (losses) on
Cancellation of investment trusts

23,72529,058(5,333)36,33423,72529,058(5,333)36,334

24,21029,212(5,002)

36,564(26,544)

4,586(31,130)-

Net operating profit

50,755

24,626

26,12936,564

Non-recurring gains (losses)
Gains (losses) on stocks(37,097)
(0)

2,818
5,303

(39,915)(5,303)

3,427
5,303

Ordinary profit

13,65827,444(13,786)

39,991

Extraordinary gains (losses)
Income before income taxes
Income taxes (Note5)(292)
13,366
5,774(327)
27,116
8,568

35(13,750)(2,794)(9,908)30,083
5,609

Net income

7,592

18,547(10,955)

24,474

Actual net operating profit (Note3)
Provision for general allowance forloan losses (Note4)

80,34584,965(6,876)2,255
230)
80,11543,78014,87525,603(Millions of yen)
Net credit costs (Note6)
Provision for general allowance forloan losses (Note4)
Disposal of non-performing loans
Reversal allowance for loan losses(Note4)
Recoveries of written-off claims
Actual credit costs (Note7)

12,424

8,604

3,820

3,809

(26,544)

4,586(31,130)-

38,9694,018

34,951

4,039

-

-

-

229

1,508

763

745

1,351

10,916

7,841

3,075

2,457

(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) For the fiscal year ended March 31, 2020, the net amount of reversal of specific allowance for loan losses and provision
for general allowance for loan losses is recorded in reversal of allowance for loan losses, given that the former exceeded
the latter during period.
(Note5) The amount of Income taxes for the fiscal year ended March 31, 2020 is that of Total income taxes.
(Note6) Net credit costs = Provision for general allowance for loan losses + Disposal of non-performing loans- Reversal of allowance for loan losses(Note7) Actual credit costs = Net credit costs - Recoveries of written-off claims.

−7−Suruga bank, Ltd.

(A) Gross operating profit： ¥54.8 billion･Net interest income decreased by ¥7.6 billion year-on-year, mainly due to a decrease in interest on loans and bills
discounted.
･Loan-deposit income decreased by ¥8.0 billion year-on-year.
･Gross operating profit decreased by ¥7.3 billion year-on-year.

Loan-deposit income

Net interest income(Billions of yen)

84.5

1-3Q,
FY3/17(Billions of yen)

89.6

80.8

1-3Q,
FY3/181-3Q,
FY3/19

65.0

57.4

1-3Q,
FY3/201-3Q,
FY3/21

84.8

81.7
1-3Q,
FY3/17

1-3Q,
FY3/18

76.7

64.2

56.2

1-3Q,
FY3/19

1-3Q,
FY3/201-3Q,
FY3/21(B) Expenses; OHR: 55.8%･Expenses decreased by ¥2.3 billion year-on-year.
･OHR rose year-on-year to 55.8%.
(OHR (%) = Expenses / Gross operating profit × 100)

Gross operating profit

Expenses

OHR(Billions of yen)
43.2%

40.7%
87.2

83.4

78.2

36.1

35.5

35.4

1-3Q, FY3/17

1-3Q, FY3/18

1-3Q, FY3/19

55.8%

53.0%

45.2%

62.2

32.9

1-3Q, FY3/20

54.8

30.5

1-3Q, FY3/21(C) Core net operating profit: ¥23.7 billion, Net operating profit: ¥50.7 billion･Core net operating profit decreased by ¥5.3 billion year-on-year, mainly due to a decrease in net interest income.
･Net operating profit increased by ¥26.1 billion year-on-year, mainly due to a decrease in provision for generalallowance for loan losses.

Core net operating profit

Net operating profit(Billions of yen)
47.1

47.3

1-3Q, FY3/17

51.5

51.2
42.3

1-3Q, FY3/18

50.7

13.1
29.0

1-3Q, FY3/19

24.6

1-3Q, FY3/20

23.7
1-3Q, FY3/21(D) Ordinary profit: ¥13.6 billion, Net income: ¥7.5 billion･Ordinary profit decreased by ¥13.7 billion year-on-year, mainly due to an increase in disposal of non-performing
loans.
･Net income decreased by ¥10.9 billion year-on-year, mainly due to a decrease in ordinary profit.

(E) Actual credit costs: ¥10.9 billion･Net credit costs increased by ¥3.8 billion year-on-year, mainly due to an increase (¥34.9 billion) in disposal of
non-performing loans and a decrease (¥31.1 billion) in provision for general allowance for loan losses.
･Actual credit costs, calculated as net credit costs (¥12.4 billion) minus the amount of recoveries of written-off claims(¥1.5 billion) amounted to ¥10.9 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 ¥199.7 billion year-on-year.
･Yield on loans and bills discounted dropped by 8 basis points year-on-year to 3.12%.
(Billions of yen）
Dec. 31, 2020(a)(a) – (b)Dec. 31, 2019(b)Mar. 31, 2020

Loans and bills discounted(period-end balance)

2,379.3(199.7)2,579.0

2,496.1

Consumer loans

2,166.0(235.9)2,401.9

2,307.0

Secured loans

1,989.2(197.7)2,186.9

2,099.0

Unsecured loans

176.7(38.2)

214.9

207.9

2,436.2(264.5)2,700.7

2,664.7

Loans and bills discounted(average balance)

Dec. 31, 2020(a)(Billions of yen)Dec. 31, 2019(b)(a) – (b)New consumer loans

15.0

11.6

3.4

New asset management company loans for property investment

9.3

9.3

-

Subtotal

24.3

20.9

3.4

New asset finance

14.3

10.1

4.2

Total

38.7

31.1

7.6

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

Yield on loans and bills discounted(Billions of yen)
3,278.9
3,201.3
2,969.2 2,968.7
2,867.5
2,726.1 2,579.0
2,401.9 2,379.3
2,166.0

Dec. 16

Dec. 17

Dec. 18

Dec. 19

Dec. 20

−9−

3.61%

3.60%

3.35%

3.20%

3.12%

Dec. 16

Dec. 17

Dec. 18

Dec. 19

Dec. 20

Suruga bank, Ltd.

Consumer loans
Outstanding balance, yield, delinquency rate by loan category(Billions of yen)
Loan category

Period-end
balance
1,989.2
509.9
173.7
1,115.8
152.4
37.2
176.7
116.9
59.8
2,166.0

Secured loans
Housing loans
Studio apartment loans
Single building apartment loans
Share house loans
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans
Consumer loans (A)Consumer loans(excluding share house-related loans)
Corporate loans for property investment(B)

Dec. 31, 2020
Sep. 30, 2020
Yield
Yield
Delinquency Period-end
Delinquency
ratebalance
rate
3.05%
6.69%
2,025.4
3.07%
5.81%
2.84%
0.31%
522.7
2.85%
0.51%
3.39%
1.71%
180.8
3.40%
1.79%
3.24%
3.69%
1,129.8
3.26%
3.80%
1.45%
58.52%
153.4
1.46%
45.87%
4.80%
1.16%
38.5
4.81%
1.15%
10.29%
2.15%
185.4
10.26%
2.13%
11.65%
0.84%
122.4
11.61%
0.83%
7.64%
4.71%
63.0
7.64%
4.66%
3.63%
6.33%
2,210.8
3.66%
5.51%

1,978.7-

2.19%

2,021.8

-

2.32%

27.2

2.29%

-

17.8

2.25%

-

Total (A) + (B)2,193.3
3.59%
6.25%
2,228.7
3.63%
5.46%(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
originals claims before securitization.
(Note4)Corporate loans for property investment : Asset management company loans for property investment and asset financethat are defined as new business fields in the mid-term management plan.

Share house loans (Non-performing loans based on the Financial Reconstruction Law)
(Billions of yen)

Total credit
balanceDec. 31, 2019
Mar. 31, 2020
Jun. 30, 2020
Sep. 30, 2020
Dec. 31, 2020

244.4
192.1
190.4
189.1
187.3

Claims against
bankrupt andsubstantiallybankrupt obligors
91.3
45.9
50.2
56.1
80.6

Claims withcollection
riskClaims for
specialattention

36.2
28.9
38.3
58.3
43.6

99.8
100.7
87.4
62.4
52.2

Collateral or Unsecured
guarantees, etc.
portionShare house claims
B
C
198.4
91.1
153.2
154.7
72.7
119.3
154.0
72.1
118.2
153.5
71.8
117.3
152.5
72.2
115.1

Total credit balanceA

Subtotal(Non-perfor
ming loans)

Normalassets

227.4
175.5
176.0
177.0
176.4

17.0
16.5
14.4
12.1
10.8
(Billions of yen)
Coverage
Allowance
ratio
D(B + D) / A
133.1
91.79%
102.5
91.29%
103.7
92.36%
106.5
94.31%
106.1
95.20%

Dec. 31, 2019
244.4
Mar. 31, 2020
192.1
Jun. 30, 2020
190.4
Sep. 30, 2020
189.1
Dec. 31, 2020
187.3
(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)
Item

Actual credit costs

Allowance

Share house-related loans

4.0

106.1

Investment property loans

6.1

58.0

Housing loans

0.4

4.6

Unsecured loans

0.2

2.3

Business financing loans, etc.

0.0

8.2

Total

10.9

179.3

(Note) Investment property loans: Studio apartment loans, Single building apartment loans, Other secured loans(B) Deposits･Deposits increased (period-end balance) by ¥68.2 billion year-on-year.
･Yield on deposits is 4 bases points.
（Billions of yen）
Dec. 31, 2020(a)Dec. 31, 2019(b)(a) – (b)Mar. 31, 2020

Deposits (period-end balance)

3,217.1

68.2

3,148.9

3,210.8

Individual deposits

2,621.6

117.9

2,503.7

2,515.1

Deposits (average balance)

3,186.2

99.5

3,086.7

3,099.2

Deposits (period-end balance)

Yield on deposits

Individual deposits (period-end balance)(Billions of yen)
4,134.3

4,072.4
3,235.8
3,217.1
3,228.6
3,148.9
2,621.6
2,588.7
2,503.7

0.10%

3,190.3

Dec. 16

Dec. 17

Dec. 18

Dec. 19

Dec. 20

0.09%
0.05%

Dec. 16−11−

Dec. 17

Dec. 18

0.04%

0.04%

Dec. 19

Dec. 20

Suruga bank, Ltd.

(3) Interest margins (Non-consolidated)･Loan-deposit margin (after deduction of expenses, overall) expanded by 6 basis points year-on-year to 1.80%.
･Net interest margin (overall) shrunk by 24 basis points year-on-year to 0.95%.

Overall(%)
Nine months ended
Dec. 31, 2020(a)Nine months ended
Dec. 31, 2019(b)(a) - (b)FY3/2020

Yield on loans and bills discounted

3.12(0.08)

3.20

3.19

Yield on deposits

0.04

0.00

0.04

0.04

Loan-deposit margin(after deduction of expenses)

1.80

0.06

1.74

1.74

Net interest margin

0.95(0.24)

1.19

1.14

Domestic(%)
Nine months ended
Dec. 31, 2020(a)Nine months ended
Dec. 31, 2019(b)(a) - (b)FY3/2020

Yield on loans and bills discounted

3.12(0.07)

3.19

3.19

Yield on deposits

0.04

0.00

0.04

0.04

Loan-deposit margin(after deduction of expenses)

1.84

0.06

1.78

1.78

Net interest margin

0.98(0.25)

1.23

1.18

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

3.50%

2.32%

3.51%

3.30%

3.07%

1.74%

1.80%

2.34%
1.99%

1.50%

3.16%

1.68%

1.49%

1.19%

0.95%

1-3Q, FY3/17 1-3Q, FY3/18 1-3Q, FY3/19 1-3Q, FY3/20 1-3Q, FY3/21−12−

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 ¥3.5 billion from March 31, 2020.
･Non-performing loan ratio rose by 137 basis points from March 31, 2020 to 15.78%.

Dec. 31, 2020

Dec. 31, 2019

(Millions of yen)Mar. 31, 2020

Claims against bankrupt andsubstantially bankrupt obligors

124,426

140,250

92,639Claims with collection risk

104,657

74,11380,676Claims for special attention

148,787

159,917

175,923

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

377,871374,281349,238

Non-performing loan ratio

15.78%

14.41%

13.90%

Total coverage

279,768

301,026

265,201

Coverage ratio

74.03%

80.42%

75.93%(Note1) Total claims = Loans and bills discounted + Foreign exchanges + Accrued interest + Customers’ liabilities for acceptancesand guarantees + Securities lent + Suspense payment (”Claims for special attention” include only “Loans and bills
discounted”)(Note2) The figures above are based on the claim classification 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 correspondence between classifications 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” under self-assessment.
(c) ”Claims for special attention” correspond to the claims which are against “Obligors requiring caution” underself-assessment and classified as “Loans past due 3 months or more” or “Restructured loans”.

Non-performing loan ratio

14.41%

15.78%

Dec.19Dec.2010.60%

1.05%

0.84%

Dec.16

Dec.17

Dec.18−13−

Suruga bank, Ltd.

(5) Capital adequacy ratio (domestic standard)･Capital adequacy ratio (non-consolidated) rose by 157 basis points year-on-year to 11.40%.

Non-consolidated(Millions of yen)Dec. 31, 2020

Dec. 31, 2019

Mar. 31, 2020

Capital adequacy ratio

11.40%

9.83%

10.28%

Own capital (Core capital)

247,776

234,256

241,438

Core capital: instruments and reserves

271,462

261,395

265,899

Core capital: regulatory adjustments (-)

23,68627,13924,461

Risk-weighted assets

2,172,160

2,380,704

2,347,582

Total required capital

83,317

91,797

90,574

Consolidated
Dec. 31, 2020

Dec. 31, 2019

(Millions of yen)Mar. 31, 2020

Capital adequacy ratio

11.60%

9.96%

10.42%

Own capital (Core capital)

257,299

241,762

249,228Core capital: instruments and reserves

283,784

274,680

276,418

Core capital: regulatory adjustments (-)

26,48532,917

27,189Risk-weighted assets

2,216,332

2,425,431

2,390,570

Total required capital

85,084

93,58692,293

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

12.76%

307.6

Dec. 16

13.35%

11.40%

9.05%

9.83%

223.6

234.2

247.7

Dec. 18

Dec. 19

Dec. 20339.1

Dec. 17−14−

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 inCore 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 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 scopeof regulatory consolidation (“Other financial institutions”), net of eligible short positions, where
the bank does 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
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)
December 31, 2020
Non-consolidated
Consolidated
246,621258,374

48,632
198,549
561-

32,089226,846
561
362
362

-

-

24,841
24,841

25,00625,006

-

-

-

-

-

-

271,46241
283,784

12,95014,61912,9501,456
13,162

-

310

9,096
-

9,458
-

-

-

1,639

2,096

-

-

1,639
23,686

2,096
26,485

247,776

257,299

1,987,551
184,6092,172,160

2,000,753
215,578
2,216,332

11.40%--

11.60%

Suruga bank, Ltd.

(7) Unrealized gains (losses) on securities (Non-consolidated)･Net unrealized gains (losses) on securities decreased by ¥1.6 billion year-on-year.
(Millions of yen)Dec. 31, 2020
Fair Net unrealized gains (losses)
Value
Gains Losses
Available-for-saleMar. 31, 2020

Dec. 31, 2019
Fair
value

Net unrealized gains (losses)
Gains

LossesFairvalue

Net unrealized gains (losses)
Gains

Losses226,729

9,278

9,588

310 120,086

10,921

11,283361

118,691

6,785

7,386

600

Stocks15,242

6,967

7,232

264

17,848

9,572

9,782

210

14,125

5,850

6,193

343

Bonds

118,484399

434

34 100,627

501

535

34

103,146

276

368

92

Others93,002

1,910

1,922

11

847

964

117

1,419

659

824

165

securities

1,611(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.

(8) Individual deposit assets (Non-consolidated)･Individual deposit assets increased by ¥101.9 billion year-on-year.
･The ratio of investment products to total individual deposit assets declined by 8 basis points year-on-year to 3.9%.
(Millions of yen)

Individual deposit assets
Yen deposits
Investment products
Foreign currency deposits
Public bonds
Mutual funds
Personal pension plans
Single premium life insurance
The ratio of investment products
to total individual deposit assets

Dec. 31, 2020(a)2,726,503
2,617,756
108,746
3,935
6,344
65,181
19,087
14,1973.9%−16−

101,936
117,978(16,043)(48)(1,112)(10,707)(3,413)(764)

Dec. 31, 2019(b)
2,624,567
2,499,778
124,789
3,983
7,456
75,88822,50014,961(0.8%)

4.7%(a) - (b)Mar. 31, 2020
2,618,226
2,511,282
106,9433,857
7,195
59,88521,312
14,6934.0%