November 9, 2017

SURUGA bank, Ltd.
Consolidated financial results for the six months ended September 30, 2017
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
http://www.surugabank.co.jp
Representative:
Akihiro Yoneyama, President
Dividend payment date: December 11, 2017
(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the six months ended September 30, 2017
(1) Consolidated operating results(％ represents the change from the same period in the previous fiscal year)

Ordinary income

Profit attributableto owners of parent

Ordinary profit

Six months ended
Millions of yen％
Millions of yen％
Millions of yen％
September 30, 201775,775
7.4
31,162
11.2
21,16810.1
September 30, 2016
70,501
1.5
28,000(3.3)
19,2191.2(Note) Comprehensive income:(a) Six months ended Sep. 30, 2017: ¥24,980 million [59.7%]; (b) Six months ended Sep. 30, 2016: ¥15,641 million [2.1 %]Earnings per share
Six months ended
September 30, 2017
September 30, 2016

Earnings per share(diluted)

yen

yen

91.39
83.01

91.37
82.97

(2) Consolidated financial position
Net assets ratio
Total assets
Total net assets
As ofMillions of yen
Millions of yen％
September 30, 2017
4,465,475
362,589
8.0
March 31, 2017
4,471,725
340,379
7.5(Reference) Shareholders’ equity:(a) As of September 30, 2017: ¥360,042 million; (b) As of March 31, 2017: ¥338,029 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
1st quarter -end

2nd quarter -end

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

Fiscal year
yen
yen
yen
ended March 31, 2017
10.00
ending March 31, 201810.50
ending March 31, 2018 (forecast)(Note) Revision of dividend forecast from the latest announcement: No
Breakdown of fiscal year-end dividend for the fiscal year ended March 31, 2017:(a) Ordinary dividend: ¥11.00; (b) Special dividend: ¥1.00

Total

yen

yen

12.00

22.00

10.50

21.00

3. Consolidated earnings forecast for the fiscal year ending March 31, 2018(％ represents the change from the previous fiscal year)

Ordinary profit

Profit attributableto owners of parent

Fiscal year ending
Millions of yen％
Millions of yen
March 31, 2018
61,5005.6
43,000(Note) Revision of earnings forecast from the latest announcement: No

Earnings per share
％

yen

0.8

185.64

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of
consolidation): No(2) Changes in accounting policies, changes in accounting estimates and restatements(A) Changes in accounting policies due to revision of accounting standards: No(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: No(D) Restatements: No(3) Number of issued shares (common stock)(A) Number of issued shares
As of Sep. 30, 2017
(including treasury shares):(B) Number of treasury shares:

As of Sep. 30, 2017

(C) Average number of shares:

Six months ended
Sep. 30, 2017

232,139,248 shares

As of Mar. 31, 2017

232,139,248 shares

518,344 shares

As of Mar. 31, 2017

530,965 shares

231,615,477 shares

Six months ended
Sep. 30, 2016

231,518,042 shares(Summary of non-consolidated financial results)
1. Non-consolidated financial results for the six months ended September 30, 2017
(1) Non-consolidated operating results
Ordinary income
Six months ended
Millions of yen
September 30, 2017
68,357
September 30, 2016
64,114(％ represents the change from the same period in the previous fiscal year)

Ordinary profit

Net income％

Millions of yen％

Millions of yen

％

6.6
0.2

29,941
27,4698.9(1.5)

20,47919,1137.1
3.0

Earnings per share
Six months ended
September 30, 2017
September 30, 2016

yen

88.41
82.55

(2) Non-consolidated financial position
Net assets ratio
Total assets
Total net assets
As ofMillions of yen
Millions of yen％
September 30, 2017
4,458,850
352,482
7.9
March 31, 2017
4,465,825
331,551
7.4(Reference) Shareholders’ equity:(a) As of September 30, 2017: ¥352,461 million; (b) As of March 31, 2017: ¥331,527 million(Note) Net assets ratio = {(Total net assets - Subscription rights to shares) / Total assets} × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

2. Non-consolidated earnings forecast for the fiscal year ending March 31, 2018(％ represents the change from the previous fiscal year)

Ordinary profit
Fiscal year ending
March 31, 2018

Net income

Earnings per share

Millions of yen％

Millions of yen％

yen

60,0004.9

42,0000.6

181.33(Note) This report is outside the scope of the external auditor’s interim audit procedure.
(Note) Explanation on appropriate use of forecast and other special items
1. The company is a “Specified business company” under the Article 17-15-2 of the “Cabinet Office Ordinance regarding Disclosure of
Corporate Information, etc.” and prepares its interim consolidated and interim non-consolidated financial statements for the six months
ended September 30, 2017.
2. 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 consolidated 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) Consolidated statements of changes in net assets ··············································· 6(4) Notes regarding consolidated financial statements ·············································· 8(Notes on going-concern assumption)····························································· 8(Changes in accounting policies, changes in accounting estimates and restatements) ······ 8
3. Non-consolidated financial statements ······························································· 9(1) Non-consolidated balance sheets ·································································· 9(2) Non-consolidated statements of income ························································ 10(3) Non-consolidated statements of changes in net assets ········································· 11* Financial results for the six months ended September 30, 2017 supplementary information-1-

SURUGA bank, Ltd.

1. Qualitative information on financial results(1) Details of operating results
As for the consolidated operating results for the six months ended September 30, 2017, ordinary
income increased by ¥5.274 billion year-on-year to ¥75.775 billion. This was primarily due to thegrowth in interest income on the back of the rise in interest on loans and bills discounted.
Meanwhile, ordinary expenses increased by ¥2.112 billion year-on-year to ¥44.612 billion, mainly
due to the rise in other expenses. As a result, ordinary profit increased by ¥3.162 billion
year-on-year to ¥31.162 billion. Profit attributable to owners of parent increased by ¥1.949 billion
year-on-year to ¥21.168 billion.

(2) Details of financial position
As for the major account balances as of September 30, 2017 on a consolidated basis, loans andbills discounted came in at ¥3,286.902 billion, up by ¥33.179 billion from March 31, 2017,
primarily due to an increase in consumer loans (non-consolidated) of ¥56.096 billion.
Securities amounted to ¥125.526 billion, down by ¥23.001 billion from March 31, 2017.
Deposits amounted to ¥4,065.829 billion, down by ¥29.680 billion from March 31, 2017, despite
an increase in individual deposits of ¥17.432 billion.

(3) Details of forecast information, including consolidated earnings forecast
The earnings forecast for the fiscal year ending March 31, 2018 remains
unchanged from that announced on August 4, 2017.
Consolidated

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

Fiscal year ending
March 31, 2018
61.5
43.0
(Billions of yen)

Net operating profit
Ordinary profit
Net income

Fiscal year ending
March 31, 2018
65.0
60.0
42.0

Actual credit costs

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

-2-

SURUGA bank, Ltd.

2. Consolidated financial statements and notes(1) Consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2017
AssetsCash and due from banks
Call loans and bills bought
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Lease receivables and investment assets
Other assets
Tangible fixed assets
Intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Borrowed money
Foreign exchanges
Other liabilities
Provision for bonuses
Provision for directors' bonuses
Net defined benefit liability
Provision for directors' retirement benefits
Provision for reimbursement of deposits
Provision for contingent 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-

As of
Sep. 30, 2017927,519
2,276
72
1,149
148,527
3,253,723
2,885
5,479
56,90951,90628,591
7,787
860
3,340
(19,305)
4,471,725

901,786
2,238
89
1,246
125,526
3,286,902
3,004
5,559
66,411
52,12827,885
8,692
736
2,975
(19,708)
4,465,475

4,095,509
1,540
40
25,503
715
173
279
3,280
287
169
505
3,340
4,131,346

4,065,829
1,345
34
26,402
722
259
2,444
227
150
2,495
2,975
4,102,886

30,043
4
291,063(606)
320,504
17,153(61)433
17,52524
2,325
340,379
4,471,725

30,043
4
309,452(594)
338,906
20,680(170)
626
21,136
20
2,526
362,589
4,465,475

SURUGA bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income(2) Consolidated statements of income
For the six months
ended
Sep. 30, 2016
70,50160,61759,511
607
6,774
2,178
931
42,500
2,157
2,068
6,984
1,892
26,1945,271
28,0002
2147
147
27,856
7,698
826
8,525
19,331
111
19,219Ordinary 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 - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-4-（Millions of yen）
For the six months
ended
Sep. 30, 201775,77564,82062,285
1,813
6,746
2,090
2,117
44,612
2,013
1,907
7,426
1,680
26,5506,941
31,16299249
249
30,922
9,134
498
9,633
21,289120
21,168SURUGA bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）
For the six months
For the six months
ended
ended
Sep. 30, 2017
Sep. 30, 2016
19,331
21,289ProfitOther 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-(3,584)14(118)(3,689)15,641

3,607
(109)
192
3,690
24,98015,528112

24,779200

SURUGA bank, Ltd.

(3) Consolidated statements of changes in net assets
For the six months ended September 30, 2016
（Millions of yen）
Shareholders' equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043Retainedearnings-

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares

253,182

Total
shareholders'equityTreasuryshares(750)

282,475(2,430)(2,430)19,21919,219

5

(2)

(2)

65

70

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
period-5

16,78962

16,85730,043

5269,971(687)

299,333

Accumulated other comprehensive income
Total
Net unrealized
Remeasureaccumulated
gains (losses) Deferred gains
ments ofon availableother(losses) on
definedfor-salecomprehenhedges
benefit planssecurities
sive income

Subscription
rights toshares16,121

(83)

1,517

17,55661

Noncontrollinginterests

2,144

Dividends of surplus

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

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

Total net
assets

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

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

112(3,595)(3,586)

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

112

13,261

12,535

(68)

1,399

13,86543

2,257

315,499-6-

SURUGA bank, Ltd.
For the six months ended September 30, 2017
（Millions of yen）
Shareholders' equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043Retainedearnings
4

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares291,063

Total
shareholders'equityTreasuryshares(606)

320,504(2,779)(2,779)21,16821,168

0

(3)

(3)

16

16

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period-0

18,38812

18,401

30,043

4

309,452(594)

338,906

Accumulated other comprehensive income
Total
accumulated
othercomprehensive income

Subscription
rights tosharesNet unrealized
Remeasuregains (losses) Deferred gains
ments ofon available(losses) on
definedfor-salehedgesbenefit planssecurities

Balance at beginning ofcurrent period
Changes of items during
period17,153(61)433

17,52524

Noncontrollinginterests

2,325

Dividends of surplus

Total changes of items during
periodBalance at end of current
period340,379(2,779)Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders' equity

Total net
assets21,168
(3)
16
3,527

(109)

192

3,610

(3)

200

3,808

3,527

(109)

192

3,610

(3)

200

22,21020,680(170)

626

21,136

20

2,526

362,589-7-

SURUGA bank, Ltd.

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

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

-8-

SURUGA bank, Ltd.

3. Non-consolidated financial statements(1) Non-consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2017
AssetsCash and due from banks
Call loans
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Other
Tangible fixed assets
Intangible fixed assets
Prepaid pension cost
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Income taxes payable
Lease obligations
Other
Provision for bonuses
Provision for directors' bonuses
Provision for 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
Legal capital surplus
Other capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for advanced depreciation of non-current assets

General reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities

Deferred gains (losses) on hedges
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets
-9-

As of
Sep. 30, 2017926,783
2,276
72
1,149
154,340
3,253,790
2,885
48,611
48,611
50,56926,212
7,165
3,951(11,983)
4,465,825

900,761
2,238
89
1,246
130,9143,286,047
3,004
58,91058,91050,84225,605
7,794
3,585(12,191)
4,458,850

4,105,455
40
20,232
8,000
497
11,734
667
173
3,277
287
169
18
3,951
4,134,274

4,076,076
34
21,3199,159
463
11,695
671
2,442
227
150
1,860
3,585
4,106,367

30,043
18,59018,585
4
267,078
30,043
237,034
59
103,032
133,943(606)
315,104
16,480(58)
16,422
24
331,551
4,465,825

30,043
18,59018,585
4284,778
30,043
254,734
59
103,032
151,643(594)
332,817
19,810(167)
19,643
20
352,482
4,458,850

SURUGA bank, Ltd.

(2) Non-consolidated statements of income
For the six months
ended
Sep. 30, 2016
64,11457,03355,940
596
6,130
224
725
36,644
2,161
2,068
7,019
184
24,186
3,091
27,4691
141
27,330
7,431
785
8,216
19,113

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
Extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income- 10 -（Millions of yen）
For the six months
ended
Sep. 30, 2017
68,35760,382
57,864
1,796
5,871
243
1,860
38,415
2,019
1,907
7,392
59
24,456
4,487
29,941
7239
29,709
8,788
442
9,230
20,479SURUGA bank, Ltd.

(3) Non-consolidated statements of changes in net assets
For the six months ended September 30, 2016
（Millions of yen）
Shareholders' equity
Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus30,043

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

Retainedearnings
brought
forwardGeneralreserve

103,032

96,961Dividends of surplus(2,430)Net income

19,113Purchase of treasury
shares
Disposal of treasury
shares55Net changes of items otherthan shareholders' equity

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

-

-

5

5

-

-

-

16,68330,043

18,585

5

18,591

30,043

59

103,032

113,644

Net unrealized
Total
Total
gains (losses) Deferred gains
valuation and(losses) on
shareholders' on availabletranslation
for-salehedgesequityadjustments
securities

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

Treasuryshares(750)

Valuation and translation adjustments

277,974

15,525(78)

15,44661

Total net
assets293,482

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

19,113

19,113

19,113

(2)

(2)

(2)

65

70

70

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

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

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

16,68362

16,751(3,581)

14(3,566)(17)

13,167

246,779(687)

294,726

11,944(63)

11,88043

306,650- 11 -SURUGA bank, Ltd.

For the six months ended September 30, 2017
（Millions of yen）
Shareholders' equity
Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

4

Retained earnings
Other retained earnings
Reserve for
Total capital Legal retainedadvancedsurplusearnings
depreciationof non-current
assets
18,59030,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

Dividends of surplus

133,943(2,779)Net income

20,479Purchase of treasury
shares
Disposal of treasury
shares00

Net changes of items otherthan shareholders' equity

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

-

-

0

0

-

-

-

17,70030,043

18,585

4

18,59030,043

59

103,032

151,643

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Net income

267,078

Valuation and translation adjustments

Net unrealized
Total
gains (losses) Deferred gains
Totalvaluation and(losses) on
shareholders' on availabletranslation
hedgesfor-saleequityadjustments
securities

Treasuryshares(606)

315,104(58)

16,422

24

Total net
assets331,551(2,779)(2,779)(2,779)20,47920,47920,479

(3)

(3)

(3)

16

16

16

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

Total changes of items
during period
Balance at end of current
period16,480

Subscription
rights toshares

3,330

(109)

3,221

(3)

3,218

17,70012

17,713

3,330

(109)

3,221

(3)

20,931

284,778(594)

332,817

19,810(167)

19,643

20

352,482- 12 -