August 5, 2015

SURUGA bank, Ltd.
Consolidated Financial Results for First Quarter of Fiscal Year Ending March 31, 2016
<under Japanese GAAP>
Stock Exchange:
Tokyo (code: 8358)
URL:
http://www.surugabank.co.jp
Representative:
President Mitsuyoshi Okano(Japanese yen amounts of less than one million and the first decimal place have been rounded down.)

1. Consolidated Financial Results for the first quarter (from April 1, 2015 to June 30, 2015)(1) Operating Results(Unit: Millions of Yen, %: Changes from the same period of the previous fiscal year)

Ordinary Income

Profit Attributable toOwners of Parent

Ordinary ProfitFirst Quarter
Ended June 30, 2015

35,21415.3%

14,723

28.7%

9,721

40.1%

Ended June 30, 2014

30,536

5.6%

11,435

13.4%

6,936

12.8%

(Note1) Comprehensive Income: First quarter ended June 30, 2015:\10,050 million (19.1%); First quarter ended June 30, 2014: \8,433 million (22.0%)(Note2) Percentages shown in Ordinary Income, Ordinary Profit and Profit Attributable to Owners of Parent and Comprehensive Income are the increase(decrease) from the same period of the previous fiscal year.

Net income per Share

Net income per Share(Diluted)

First Quarter
Ended June 30, 2015\40.96\40.92Ended June 30, 2014\29.31\29.27(2) Financial Position(Unit: Millions of Yen, except percentages)
Total Assets

Total Net Assets

Own Capital Ratio

June 30, 2015

4,316,081

299,517

6.8%

March 31, 2015

4,284,990

292,128

6.7%(Reference) Own Capital: June 30, 2015: \297,427 million; March 31, 2015: \290,056 million(Note) Own Capital Ratio = (Total Net Assets – Subscription Rights to Shares – Non-controlling Interests) / Total Assets * 100

2. Dividends on Common Stock
Annual Cash Dividends per Sharestnd

1 Quarter-End

2 Quarter-End

3rd Quarter-End

Fiscal Year-End

Fiscal year ended March 31, 2015―\8.50―\11.50\20.00Fiscal year ending March 31, 2016
Fiscal year ending March 31, 2016
(Forecasts)―\9.50―\9.50\19.00Total(Note1) Revision of forecasts for dividends for quarter in review: No(Note2) Details of dividends for the fiscal year-end of the fiscal year ended March 31 2015:(a)Ordinary dividends: \10.50 (b)Commemorative dividends: \1.00

3. Consolidated Earnings Forecasts (for the fiscal year ending March 31, 2016) (Unit: Millions of Yen, except per share data)

Six months
Ending September 30, 2015
Fiscal year
Ending March 31, 2016

Profit Attributableto Owners of Parent

Net income
per Share

Ordinary Income

Ordinary Profit

67,5006.8%

26,9009.2%

17,60014.5%\74.15

134,500

2.5%

53,400△0.0%35,3007.3%\148.73(Note1) Percentages shown in Ordinary Income, Ordinary Profit and Profit Attributable to Owners of Parent are the increase (decrease) from the same periodof the previous fiscal year.
(Note2) Revision of earnings forecasts for quarter in review: No※Note(1) Changes in the scope of consolidated significant subsidiaries during the three months ended June 30, 2015: No(2) Adoption of simplified accounting methods for the preparation of quarterly consolidated financial statements: Yes
Note: For details, please refer to the “Adoption of particular accounting methods for quarterly consolidated financial statements” in thesection 2. Items regarding summary information (notes) on page 3.
(3) Changes in accounting policies, accounting estimates and restatements.
(A) Changes due to revision of accounting standards:
Yes(B) Changes due to reasons other than (A):No
(C) Changes in accounting estimates:
No(D) Restatements:
No
Note: For details, please refer to the “Changes in accounting policies, accounting estimates and restatements” in the section 2 “Items
regarding summary information (notes)” on page 3.
(4) Number of common shares issued at the end of period(A) Number of shares issued (including treasury shares):

June 30, 2015

258,139,248 shares

March 31, 2015

(B) Number of treasury shares:June 30, 2015

20,805,693 shares

March 31, 2015

258,139,248 shares
20,855,687 shares(C) Average outstanding shares for the three months ended:

June 30, 2015

237,317,877 shares

June 30, 2014

236,621,683 shares（Statement relating to the status of the quarterly review procedures）
This quarterly report is not subject to the quarterly review procedures, which are based on the Financial Instruments and Exchange Law.
The audit procedures are not finished at the time of release of these financial statements.

(Notes for using forecasts information etc,)
The description of future performance of this report is based on information, which is presently available and certain assumptions which are considered to bereasonable, and it does not guarantee future performance. Please take note that future performance may differ from forecasts.

SURUGA bank, Ltd.

[Appendix]○ Contents of the appendix

１．Qualitative information on the first quarter financial statement(1) Description of business performance ................................................................................................................2(2) Description of financial position............................................................................................................................2(3) Description of forward-looking information such as consolidated earnings forecast .................2
２． Items regarding summary information (notes)(1) Adoption of particular accounting methods for quarterly consolidated financialstatements....................................................................................................................................................................3(2) Changes in accounting policies, accounting estimates and restatements........................................3
３． Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets.............................................................................................................4(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income ........................................................................................................................................5(3) Note for the assumption of going concern ......................................................................................................7(4) Note for material changes in shareholders’ equity.....................................................................................7(5) Significant subsequent event.................................................................................................................................7Reference Data ........................................................................................................................................................................81SURUGA bank, Ltd.

１．Qualitative information on the first quarter financial statement(1) Description of business performanceWith regard to the profit and loss situation on a consolidated basis ordinary income
increased by ¥4.678 billion from the same period of the previous fiscal year to ¥35.214 billion
owing to factors such as gains from increase in interest on loans and discounts and fromincrease in interest and dividends on securities.
Ordinary expenses totaled ¥20.491 billion, increased by ¥1.390 billion year-on-year due tofactors such as increase in fees and commissions payments and other expenses.
As a result, ordinary profit increased by ¥3.288 billion compared with the same period of
the previous fiscal year to ¥14.723 billion.
Profit attributable to owners of parent during the period increased by ¥2.785 billion
year-on-year, to ¥9.721 billion.
(2) Description of financial position
With regard to our main accounts on a consolidated basis at the end of the period, balanceof deposits increased by ¥29.492 billion to ¥3.982338 trillion from the end of the previous
fiscal year, as the balance of individual deposits grew ¥41.963 billion.
Balance of loans and bills discounted totaled ¥2.989055 trillion, decreased by ¥21.693
billion from the end of the previous fiscal year, although the personal loan balance(non-consolidated) increased by ¥12.468 billion.
Balance of securities totaled ¥229.910 billion, increased by ¥1.158 billion from the end of
the previous fiscal year.
(3) Description of forward-looking information such as consolidated earnings forecast
There is no change in forecasts for the year ending March 31, 2016 from the figures published on May 12, 2015.
Consolidated(Millions of Yen)
Six months ending
September 30, 2015

Fiscal year ending
March 31, 2016

Ordinary income

67,500134,500

Ordinary profit

26,90053,400

Profit attributable to owners of parent

17,60035,300Non-consolidated
Six months ending
September 30, 2015

Fiscal year ending
March 31, 2016

Ordinary income

62,500123,500

Net business profit

28,00056,500Ordinary profit

26,50052,500Net income

17,50035,000Credit-related expenses in real terms

1,500

3,000(Note) The description of future performance of this report is based on information, which is presently available
and certain assumptions which are considered to be reasonable, and it does not guarantee future performance.
Please take note that future performance may differ from forecasts.

2SURUGA bank, Ltd.

2. Items regarding summary information (notes)(1) Adoption of particular accounting methods for quarterly consolidated financial statements
The Company calculates tax expenses for the Company and its consolidated subsidiaries
by multiplying a reasonably estimated effective tax rate by net income before taxes forthe current quarter.
(2) Changes in accounting policies, accounting estimates and restatements
ASBJ Statement No. 21, “Revised Accounting Standard for Business Combinations”(released on September 13, 2013, hereinafter the “Accounting Standard for BusinessCombinations”), ASBJ Statement No. 22, “Revised Accounting Standard for Consolidated
Financial Statements” (released on September 13, 2013, hereinafter the “Consolidated
Accounting Standard”), ASBJ Statement No. 7, “Revised Accounting Standard for Business
Divestitures” (released on September 13, 2013, hereinafter the “Accounting Standard forBusiness Divestitures”) and others have been applied effective from the first quarter of thefiscal year ending March 31, 2016. As a result, any change resulting from the Company’sownership interests in its subsidiary when the Company retains control over the subsidiaryis accounted for as Capital surplus, and acquisition related costs are expensed in the year
in which the costs are incurred. For any business combinations on or after the beginning of
the current first quarter, subsequent measurement of the provisional amount recognizedbased on the purchase price allocation due to the completion of accounting for thebusiness combination are reflected in the quarterly consolidated financial statements forthe period to which the date of that business combination occurs. In addition, thepresentation method of Net income was amended as well as “Minority interests” to“Non-controlling interests.” To reflect these changes in presentation, adjustments havebeen made to the consolidated financial statements for the prior first quarter and the priorfiscal year presented herein.
The aforementioned accounting standards are adopted as of the beginning of the current
first quarter and thereafter, according to the transitional treatment provided for in
Paragraph 58-2 (4) of the Accounting Standard for Business Combinations, Paragraph 44-5
(4) of the Consolidated Accounting Standard and Paragraph 57-4 (4) of the AccountingStandard for Business Divestitures.
There is no effect of these changes on the quarterly consolidated financial statements
for the current first quarter.

3

SURUGA bank, Ltd.

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Millions of Yen)

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 assetsTangible 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 loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Capital surplus
Retained earningsTreasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

4

As of Mar. 31, 2015

As of Jun. 30, 2015

794,594
127,102
107
1,114
228,752
3,010,748
2,563
5,458
46,173
49,95430,743
6,288
440
3,620
△22,673
4,284,990

877,642
96,653
193
1,169
229,9102,989,055
2,987
5,420
44,37250,18230,731
6,575
414
3,614
△22,842
4,316,081

3,952,846
2,535
3
25,847
707
140
249
3,099
327
342
3,142
3,620
3,992,862

3,982,338
2,565
8
20,723
15
－243
3,156
247
374
3,276
3,614
4,016,563

30,04321,013229,924△16,110
264,870
21,673△101
3,613
25,185
112
1,959
292,1284,284,990

30,04321,062236,916△16,074
271,948
22,060△49
3,468
25,478
95
1,995
299,517
4,316,081

SURUGA bank, Ltd.

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive
incomeQuarterly consolidated statements of income(Millions of Yen)

Ordinary income
Interest income(Interest on loans and discounts)(Interest and dividends on securities)
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses(Interest on deposits)
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Income before income taxes and minority interests
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5

Three months ended
Jun. 30, 2014

Three months ended
Jun. 30, 2015

30,53626,09525,395
456
3,072
988
380
19,101
957
946
3,474
823
12,4291,416
11,43500551
551
10,883
3,959
6,923
△12
6,936

35,21430,36927,351
2,745
3,146
1,246
451
20,491
1,086
1,058
3,913
908
12,3472,234
14,72377192
192
14,538
4,798
9,739
179,721SURUGA bank, Ltd.

Quarterly consolidated statements of comprehensive income(Millions of Yen)

Three months ended
Jun. 30, 2014

Three months ended
Jun. 30, 2015

6,923

9,739

Valuation difference on available-for-sale securities

1,603

405

Deferred gains or losses on hedges△2851

Remeasurements of defined benefit plans, net of tax

△64

△145

Total other comprehensive income

1,510

311

8,433

10,050Comprehensive income attributable to owners of parent

8,434

10,014Comprehensive income attributable to non-controlling interests△036Profit
Other comprehensive income

Comprehensive income(Breakdown)

6

SURUGA bank, Ltd.

(3) Note for the assumption of going concern
Not applicable.

(4) Note for Material Changes in Shareholders’ Equity
Not applicable.

(5) Significant subsequent event
Final judgement
With regard to the litigation the Company filed in relation to the new main system development, theTokyo High Court rendered the judgement on September 26, 2013, in which it ruled IBM Japan to pay¥ 4.172 billion and delinquent charges and dismissed the whole counterclaim by IBM Japan, the amountof which was equivalent to ¥ 12.551 billion. While the Company and IBM Japan had filed appeals andpetitions for writs of certiorari to the Supreme Court, it dismissed all of the appeals and petitions on
July 8, 2015. Accordingly, the above judgement of the Tokyo High Court became final and the litigation
ended.
The balance between the amount of the total payment by IBM Japan based upon the aforementioned
finalized judgement and the amount of the recorded temporary payment and so forth related to thelawsuit will be recorded as losses in the next consolidated accounting quarterly period.

7SURUGA bank, Ltd.

（Reference data）【Non-consolidated】(1) Interest margin
All operations（％）
Three months ended
June 30, 2015(a)
Yield on Loans and bills discounted

A

Yield on deposits
Loan – deposit margin
Loan – deposit marginBA-B(after deduction from expense ratio)

Net interest margin(a) – (b)Three months ended
June 30, 2014

March 31, 2015

(b)

3.52
0.10
3.41

0.08
0.00
0.07

3.44
0.10
3.34

3.49
0.10
3.39

2.21

0.12

2.09

2.19

1.54

0.30

1.24

1.35

Domestic operations（％）
Three months ended
June 30, 2015(a)
Yield on Loans and bills discounted

A

Yield on deposits
Loan – deposit margin
Loan – deposit marginBA-B(after deduction from expense ratio)

Net interest margin(a) – (b)Three months ended
June 30, 2014

3.53
0.10
3.43

0.08
0.01
0.07

3.45
0.09
3.36

3.51
0.10
3.41

2.21

0.10

2.11

2.20

1.58

0.30

1.28

1.39

(2) OHR（％）
Three months ended
June 30, 2015

(a)
OHR

43.2

(a) – (b)Three months ended
June 30, 2014

△6.8

50.0

45.8
（％）

As of June 30,
2015

(a)
12.08

(a) – (b)0.46

As of June 30,
2014

（ｂ）
11.62

(4)ROE， ROA

As ofMarch 31, 2015

11.59

（％）
Three months ended
June 30, 2015(a)
ROEROA

March 31, 2015(b)(3) The capital adequacy ratio

The capital adequacy ratio(Domestic standard)

March 31, 2015(b)

Three months ended
June 30, 2014(a) – (b)

14.68
0.90

＊ROE: Net income per average own capital
ROA: Net income per average total assets

82.82
0.22

(b)
11.86
0.68

March 31,2015

13.92
0.78