August 8, 2024

SURUGA bank, Ltd.
Consolidated financial results for the three months ended June 30, 2024
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Kosuke Kato, President(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the three months ended June 30, 2024
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Three months ended
June 30, 2024
June 30, 2023

Profit attributableto owners of parent

Ordinary profit

Millions of yen%

Millions of yen

22,286
20,963

6.3
1.3

7,594
4,780

%

Millions of yen

58.8
11.1

%

6,810
3,510

94.0
(13.5)(Note) Comprehensive income: (a) Three months ended June 30, 2024: ¥ 4,496 million [(8.2)%](b) Three months ended June 30, 2023: ¥ 4,902 million [-%]
Earnings per share(diluted)

Earnings per share

Three months ended
June 30, 2024
June 30, 2023

Yen

Yen

35.37
18.63

-

(Note) Earnings per share (diluted) for the three months ended June 30, 2023 and 2024 are not provided because there are no potentiallyshares.

(2) Consolidated financial position
Total assets
As ofJune 30, 2024
March 31, 2024

Total net assets

Net assets ratio

Millions of yen

Millions of yen

3,527,866
3,560,741

296,916
295,120

%

8.4
8.2

(Reference) Shareholders’ equity: (a) As of June 30, 2024: ¥ 296,812 million; (b) As of March 31, 2024: ¥ 295,012 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 stock
Dividends per sharestnd

1 quarter-end

2 quarter-end

yen

yen
7.00
11.00

Fiscal year
ended March 31, 2024
ending March 31, 2025
ending March 31, 2025 (forecast)――

3rd quarter-end

Fiscal year-end

yen
―

yen
14.00

yen
21.00

―

11.00

22.00

Total

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

3. Consolidated earnings forecast for the fiscal year ending March 31, 2025(% represents the change from the previous fiscal year)

Profit attributableto owners of parent

Ordinary profit
Millions of yen

1H, FY3/2025
FY3/2025

8,500
19,000%(33.8)(7.9)

Millions of yen

7,000
14,500(Note) Revision of earnings forecast from the latest announcement: No

Earnings per
share
%

yen

(27.0)
(5.6)

36.35
75.30

*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
As of
197,139,248 shares
232,139,248 shares(including treasury shares):
June 30, 2024
March 31, 2024
As of
As of
(B) Number of treasury shares:
4,592,906 shares
39,592,505 shares
June 30, 2024
March 31, 2024
Three months ended
Three months ended(C) Average number of shares:
192,546,535 shares
188,372,270 shares
June 30, 2024
June 30, 2023
(Note) The number of treasury shares at the end of the period includes the Company's shares held by the employee stock ownership plan trust(hereinafter "ESOP Trust") (As of Jun. 30, 2024: 257,900 shares, As of Mar. 31, 2024: 257,900 shares).
The average number of the Company's shares held by the ESOP Trust is included in the number of treasury stock that are deducted in
calculation of the average number of shares during the period (As of Jun. 30, 2024: 257,900 shares, As of Jun. 30, 2023: - shares).
(Note1) Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants
or an audit firm: None
(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.
(Note3) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

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)............................................................................................................................ 6(Changes in accounting estimates) ......................................................................................................................... 6(Additional information)......................................................................................................................................... 6(Notes for segment information) .......................................................................................................................... 7(Notes for statements of cash flows) .................................................................................................................... 8* Financial results for the three months ended June 30, 2024 supplementary information ............................................ 9－1－

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, 2024, ordinary income increased by ¥1.323
billion year-on-year to ¥22.286 billion. This was primarily due to an increase in reversal of allowance for loan losses.
Meanwhile, ordinary expenses decreased by ¥1.491 billion year-on-year to ¥14.692 billion, mainly due to the decline indisposal of non-performing loan losses.
As a result, ordinary profit increased by ¥2.814 billion year-on-year to ¥7.594 billion.
Profit attributable to owners of parent increased by ¥3.300 billion year-on-year to ¥6.810 billion.
(2) Details of financial position
As for the consolidated major account balances as of June 30, 2024, deposits amounted to ¥3,212.534 billion, down by¥32.373 billion from March 31, 2024.
Loans and bills discounted came in at ¥2,081.607 billion, down by ¥4.994 billion from March 31, 2024.
Securities amounted to ¥308.223 billion, rose by ¥32.142 billion from March 31, 2024.
(3) Details of forecast information, including earnings forecast
The earnings forecast for the fiscal year ending March 31, 2025 remains unchanged from that announced on May 10,
2024.
Consolidated(Billions of yen)
FY3/2025 (Forecast)First half
Ordinary profit
Profit attributable to owners of parent

Full year
8.5
7.0

19.0
14.5

Non-consolidated(Billions of yen)
FY3/2025 (Forecast)First half

Full year

Core gross operating profit
Core net operating profit
Ordinary profit
Net income

28.5
10.5
8.5
7.0

56.0
20.5
18.5
14.5

Actual credit costs

2.5

3.0

(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 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, 2024
AssetsCash and due from banks
Call loans and bills bought
Monetary claims bought
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Lease receivables and investment assets
Other assets
Property, plant and equipment
Intangible assets
Retirement benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Retirement benefit liability
Provision for share-based compensation
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury 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
Non-controlling interests
Total net assets
Total liabilities and net assets
－3－

As of
Jun. 30, 2024

982,204
85,000125,353
42
99
276,0812,076,613
6,366
4,948
40,34031,95013,35822,916
7,052
1,265(112,852)
3,560,741

887,318
115,837
119,63543
99
308,223
2,081,607
3,185
5,075
38,62730,846
12,77523,316
7,999
1,211(107,936)
3,527,866

3,244,907
180
17,332
464
19
282
676
198
44
248
1,265
3,265,621

3,212,534
13
15,618
17
－
286
814
183
48
220
1,211
3,230,949

30,043
4,579
267,190(25,735)
276,077
16,114
4
2,815
18,934
108295,120
3,560,741

30,043－
253,114(2,968)280,188
13,945
7
2,670
16,623104
296,916
3,527,866

Suruga bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
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
Impairment losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent－4－

For the three months
ended
Jun. 30, 2023

For the three months
ended
Jun. 30, 2024

20,96317,013
15,727
362
1,799
723
1,427
16,183
299
293
2,373
666
10,330
2,514
4,780
－
－
431
88
342
4,348
840
3,508
(2)
3,510

22,286
17,211
14,764
1,465
1,995
762
2,317
14,692
342
337
2,267
660
9,718
1,703
7,594
738
738
140
139
0
8,192
1,385
6,807
(3)
6,810

Suruga bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）

ProfitOther comprehensive income
Valuation difference 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 three months
ended
Jun. 30, 2023
3,508

For the three months
ended
Jun. 30, 2024
6,807

1,490
(2)
(93)
1,393
4,902

(2,168)2(144)(2,310)
4,496

4,904
(2)

4,499
(3)

Suruga bank, Ltd.

(3) Notes regarding consolidated financial statements(Notes on going-concern assumption)
Not applicable.
(Notes for material changes in shareholders’ equity)
Suruga Bank cancelled 35,000 thousand shares of treasury stock in accordance with the resolution of the Board of
Directors meeting held on April 4, 2024, resulting in a decrease of 22,767 million yen in both capital surplus and treasury
stock.
As a result of the cancellation, the balance of other capital surplus was -18,187 million yen. Other capital surplus wastherefore set to zero, and the negative value was reduced from other retained earnings.
Consequently, retained earnings decreased 14,076 million yen to 253,114 million yen and treasury stock decreased
22,767 million yen to 2,968 million yen at the end of the first quarter of the current consolidated fiscal year.
(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 forthe three months ended June 30, 2024 with the reasonably estimated effective tax rate after applying tax effect accounting toincome before income taxes for the fiscal year ending March 31, 2025, including the current first quarter.
In addition, in the case that calculating income taxes using the estimated effective tax rate significantly lacks rationality,
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)(Stock compensation plan for executives)
Effective from the current fiscal year consolidated accounting period, the Company has introduced a stockcompensation plan based on a stock-granting ESOP trust (hereinafter referred to as the “Plan”) for executive employees
consisting of the heads of the Bank's branches and each division among other executives (excluding non-residents inJapan; hereinafter referred to as “executive employees”). The purpose of this Plan is to increase engagement and shareinterests with shareholders to raise awareness of the need to contribute to improving corporate value from a long-term
perspective while extracting value from our human resources.
Regarding the accounting treatment related to the trust agreement, the Company has applied the “Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts” (PITF No. 30, March 26, 2015).
(1) Transaction summary
Under this Plan, the Company's shares acquired by the ESOP Trust with money contributed by the Company will bedelivered and paid to executives who fulfill certain requirements at the time of their retirement in accordance with thepredetermined share delivery rules, in an amount equivalent to the Company's shares and the cash proceeds from theconversion of the Company's shares.
(2) Company shares remaining in Trust
The Company's shares remaining in the Trust are recorded as treasury stock under net assets at the book value in the
Trust (excluding the amount of incidental expenses). The book value and number of shares remaining in the Trust at theend of the current first quarter consolidated accounting period were ¥148 million and 257 thousand shares, respectively.
The estimated amount to be paid under this plan for the previous consolidated fiscal year is recorded as a reserve forstock compensation.

－6－

Suruga bank, Ltd.

(Notes for Segment Information)
For the three months ended June 30, 2023
1. Information on ordinary income and profit or loss by reportable segment
Reportablesegment

Others

Total

Adjustments

Banking(Millions of yen)Amountrecorded in the
consolidated
financialstatements

Ordinary income
Ordinary income
to external
18,9492,014
20,963
20,963customers
Inter-segmentinternal ordinary
30
286
316
(316)
incomeTotal
18,9792,300
21,280(316)
20,963
Segment profit
4,616
195
4,811
(31)
4,780
(Note1) Ordinary income is equivalent to net sales reported by companies in other industries.
(Note2) “Others” consists of businesses operated by consolidated subsidiaries (such as money lending, leasing, clericalagency services, credit guarantee and credit card services) which are not included in the reportable segments.
(Note3) The negative adjustment of ¥31 million in segment profit consists of the following: amortization of goodwill (¥(32)
million) and deduction of inter-segment transactions (¥0 million).
(Note4) Segment profit is adjusted to ordinary profit as reported in the consolidated statements of income.
2. Information on impairment loss on non-current assets or goodwill by reportable segment(Impairment loss on non-current assets by reportable segment)
In the banking segment, due to a decrease in operating cash flow from branches, etc., the book value of assets has
been reduced to their recoverable amount, and the decrease has been recorded as an impairment loss under
extraordinary losses. Additionally, for idle assets where the recovery of investment is no longer anticipated due to achange in usage, the book value of these assets has also been reduced to their recoverable amount, with the decrease
recorded as an impairment loss under extraordinary losses.
The amount of such impairment loss recorded was 342 million yen for the first quarter of the consolidated
cumulative accounting period.
(Significant changes in the amount of goodwill)
Not applicable.
(Gain on negative goodwill by reportable segment)
Not applicable.

－7－Suruga bank, Ltd.

For the three months ended June 30, 2024
1. Information on ordinary income and profit or loss by reportable segment
Reportablesegment

Others

Total

Adjustments

Banking(Millions of yen)Amountrecorded in the
consolidated
financialstatements

Ordinary income
Ordinary income to20,4282,076
22,505(218)
22,286
external customers
Inter-segment internal
33
247
280
(280)
ordinary income
Total
20,462
2,323
22,786(499)
22,286
Segment profit
7,572
69
7,641
(47)
7,594
(Note1) Ordinary income is equivalent to net sales reported by companies in other industries.
(Note2) “Others” consists of businesses operated by consolidated subsidiaries (such as money lending, leasing, clericalagency services, credit guarantee and credit card services) which are not included in the reportable segments.
(Note3) The negative adjustment of ¥218 million in ordinary income to external customers consists of the following: reversalof allowance for loan losses (¥(218) million).
(Note4) The negative adjustment of ¥47 million in segment profit consists of the following: amortization of goodwill (¥(32)
million) and deduction of inter-segment transactions (¥(14) million).
(Note5) Segment profit is adjusted to ordinary profit as reported in the consolidated statements of income.
2. Information on impairment loss on non-current assets or goodwill by reportable segment(Impairment loss on non-current assets by reportable segment)
Not applicable.
(Significant changes in the amount of goodwill)
Not applicable.
(Gain on negative goodwill by reportable segment)
Not applicable.
3. Matters related to changes in reportable segments, etc
The Suruga Bank Group used to report Banking and Credit Card Business as its reportable segments. However, fromthe first quarter of the consolidated accounting period, the Group has changed to report only Banking as a reportablesegment, as it has determined that the Credit Card Business is no longer significant in terms of volume. For reference,the segment information for the previous first quarter consolidated cumulative period is presented according to therevised classification.
(Notes for statements of cash flows)
The Company does not prepare the quarterly statement of cash flows for the cumulative first quarter period of thecurrent fiscal year. Depreciation expenses (including the amortization of intangible assets excluding good will) andgoodwill amortization expense for the cumulative first quarter periods are as follows.
(Millions of yen)
For the three months ended
For the three months ended
June 30, 2023
June 30, 2024
Depreciation expenses
1,283
1,178
Goodwill amortization expense
32
32

－8－

Suruga bank, Ltd.

Financial Results for the three months ended June 30, 2024
- Supplementary Information (1)Operating results for the three months ended June 30, 2024 (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

Three months ended Three months ended
Jun. 30, 2024
Jun. 30, 2023(a)(b)
15,448
14,97815,911
15,766
(476)
(782)
(5)
13
(1)
(12)
(
15,45014,990
9,010
9,610
3,382
3,406
4,703
5,209

ChangeFY3/2024(a) - (b)
470
145
306
18
11
460
(600)
(24)
(506)

51,17561,473(2,984)(7,313)(7,339)58,51435,15913,41418,851

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

6,439

5,380

1,059

23,354

6,439

5,380

1,059

23,354

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

6,438

5,367

1,071

16,015-(1,438)

1,438-

Net operating profit

6,438

6,805

(367)

16,015

Non-recurring gains (losses)
Gains (losses) on stocks

1,134
-

(2,189)
(0)

3,323
0

4,141
2,150

Ordinary profit

7,572

4,616

2,956

20,156Extraordinary gains (losses)
Income before income taxes
Income taxes (Note5)

598
8,170
1,356

(431)
4,184
790

1,029
3,986
566

(1,153)19,003
3,977

Net income

6,814

3,393

3,421

15,025)(Millions of yen)
Net credit costs (Note6)
Provision of general allowance for loan
losses (Note4)
Disposal of non-performing loans
Reversal of allowance for loan losses(Note4)
Recoveries of written-off claims
Actual credit costs (Note7)

30

1,864

(1,834)

4,248-(1,438)

1,438

-

1,220

3,303

(2,083)

8,796

1,189

-

1,189

4,547

1,231

1,235

(4)

6,308

(1,200)629(1,829)(2,059)(Note1) Core gross operating profit = Gross operating profit - Gains (losses) on bonds(Note2) Core net operating profit = Net operating profit + Provision of general allowance for loan losses - Gains (losses) on bonds(Note3) Actual net operating profit = Net operating profit + Provision of general allowance for loan losses(Note4) For the fiscal year ended Jun. 30, 2024, and FY 3/2024 the net amount of reversal of general allowance for loan losses andprovision for specific 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 FY3/2024 is that of Total income taxes.
(Note6) Net credit costs = Provision of 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.
－9－Suruga bank, Ltd.

(A) Gross operating profit： ¥15.4 billion･Core gross operating profit increased by ¥0.4 billion year-on-year.
･Net interest income increased by ¥0.1 billion year-on-year, mainly due to an increase in interest and dividends on securities.

Net interest income

Core gross operating profit(Billions of yen)(Billions of yen)

18.3

16.5

15.1

14.9

15.4

1Q,
FY3/21

1Q,
FY3/22

1Q,
FY3/23

1Q,
FY3/241Q,
FY3/25

19.6

17.7

15.7

15.9

15.9

1Q,
1Q,
1Q,
1Q,
1Q,
FY3/21 FY3/22 FY3/23 FY3/24 FY3/25(B) Expenses: OHR (Based on core gross profit (excluding gains (losses) on cancellation of investment trusts): 58.3%･Expenses decreased by ¥0.6 billion year-on-year, mainly due to a decrease in Non-personnel expenses.
･OHR declined year-on-year to 58.3%.
(OHR (%) = Expenses / Core gross operating profit (excluding gains (losses) on cancellation of investment trusts) × 100)

Expenses(Billions of yen)

OHR

61.4%

56.8%

64.1%

62.8%

58.3%

10.4

10.1

9.5

9.6

9.0

1Q, FY3/21

1Q, FY3/22

1Q, FY3/23

1Q, FY3/24

1Q, FY3/25(C) Core net operating profit: ¥6.4 billion, Net operating profit: ¥6.4 billion･Core net operating profit increased by ¥1.0 billion year-on-year, mainly due to a decrease in expenses.
･Net operating profit decreased by ¥0.3 billion year-on-year.

Core net operating profit

Net operating profit(Billions of yen)

7.9

12.6

1Q, FY3/21

13.4
6.3
1Q, FY3/22

5.6

6.1

1Q, FY3/23

5.3

6.8

1Q, FY3/24

6.4

6.4

1Q, FY3/25(D) Ordinary profit: ¥7.5 billion, Net income: ¥6.8 billion･Ordinary profit increased by ¥2.9 billion year-on-year.
･Net income increased by ¥3.4 billion year-on-year, mainly due to an increase in ordinary profit.

(E) Actual credit costs: ¥(1.2) billion･Net credit costs decreased by ¥1.8 billion year-on-year, mainly due to a decrease (¥2.0 billion) in disposal of non-performing
loans.
･Actual credit costs, calculated as net credit costs (¥0.0 billion) minus the amount of recoveries of written-off claims (¥1.2
billion) amounted to ¥(1.2) billion.
－10－Suruga bank, Ltd.

(2) Loans and deposits (Non-consolidated)(A) Loans and bills discounted･Loans and bills discounted (period-end balance) increased by ¥12.8 billion year-on-year.
･Yield on loans and bills discounted dropped by 17 basis points year-on-year to 2.69%.
(Billions of yen）
Jun. 30, 2024(a)Jun. 30, 2023(b)(a) – (b)Mar. 31, 2024

Loans and bills discounted(period-end balance)

2,072.1

12.8

2,059.3

2,066.7

Consumer loans

1,512.0(120.8)

1,632.8

1,537.9

Corporate investment real estate loans

112.3

46.6

65.7

101.8

Structured finance

188.0

49.3

138.7

172.2

Loans and bills discounted(average balance)

2,059.1(14.9)

2,074.1

2,049.0

Results of new loans
Three months ended
Jun. 30, 2024(a)(Billions of yen)Three months ended
Jun. 30, 2023(b)(a) - (b)New consumer loans

25.0

8.6

16.4

New corporate investment real estate loans

11.8

3.1

8.7

Subtotal

36.9

11.8

25.1

New structured finance

19.1

(1.6)

20.7

New collaboration loans, etc.

11.1

11.1

-

Grand total

67.2

21.4

45.8

(Note1) New loans of the areas to be promoted under the “Re:Start 2025” Mid-term Business Plan and thereafter.
(Note2) Structured finance includes specified bonds, etc. and collaboration loans, etc. includes monetary claims bought.

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

Yield on loans and bills discounted(Billions of yen)

2,459.4
2,261.2 2,278.5
2,129.0
2,072.1
2,059.3
2,025.9
1,799.1
1,632.8
1,512.0

Jun. 20

Jun. 21Jun. 22

Jun. 23

Jun. 24

－11－

3.16%

3.08%

2.93%

2.86%

2.69%

Jun. 20

Jun. 21Jun. 22

Jun. 23

Jun. 24

Suruga bank, Ltd.

Outstanding balance, yield, delinquency rate by loan category

Loan category
Secured loans
Housing loans
Investment property loans
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans
Consumer loans(Billions of yen)Jun. 30, 2024
Jun. 30, 2023
Period-end
Delinquency Period-end
Delinquency
Yield
Yield
balanceratebalancerate
1,402.0
2.91%
7.12%
1,509.0
3.04%
7.15%
422.2
2.52%
0.35%
426.0
2.67%
0.35%
948.9
3.05%
10.36%
1,050.7
3.15%
10.11%
30.8
4.00%
0.25%
32.2
4.19%
0.23%
110.0
10.48%
1.66%
123.8
10.47%
2.41%
80.8
11.58%
0.57%
87.1
11.71%
0.90%
29.1
7.44%
4.68%
36.7
7.52%
6.01%
(A)
1,512.0
3.46%
6.72%
1,632.8
3.60%
6.79%

Consumer loans(excluding organizational negotiation partners)

1,419.2-

1.21%

1,533.7-

1.61%

Corporate investment real estate loans

(B)

112.3

1.68%

-

65.7

1.76%

-

Structured finance

(C)

193.5

2.39%

-

143.3

2.34%

-

Collaboration loans, etc.

(D)

146.5

2.21%

0.03%

127.6

2.23%

-

Total
(A)+(B)+(C)+(D)1,964.4
3.16%
5.18%
1,969.6
3.36%
5.62%(Note1) Delinquency rate＝Loans past due 3 months or more / Loans(Note2) Yield: Yield for customers (guarantee fee and accrued interest are not taken into account), period-end balance basis(Note3) Classified by the areas to be promoted under the “Re:Start 2025” Mid-term Business Plan and thereafter.
Corporate investment real estate loans include investment real estate loans for asset management companies, etc.
Structured finance includes specified bonds, etc.
Collaboration loans, etc. are loans made jointly or in partnership with other companies (loan participations, purchases ofcorporate loans, etc.)(Note4) Organizational negotiation partners are customers who have suspended repayment as a result of structured negotiations.

Actual credit costs and Allowance for loan losses(Billions of yen)
ItemJun. 30, 2024
Actual credit costs

Allowance

Investment property loans

1.3

91.6

Housing loans

0.1

1.8

Unsecured loans

(0.0)

1.9

Collaboration loans, etc.

0.0

0.2

Business financing loans, etc.

0.0

7.0

Total

(1.2)

102.7

(Note) Investment property loans: Studio apartment loans, Single building apartment loans and other secured loans－12－Suruga bank, Ltd.

(B) Deposits･Deposits (period-end balance) decreased by ¥138.0 billion year-on-year.
･Yield on deposits rose by 1 basis point year-on-year to 0.04%.
（Billions of yen）
Jun. 30, 2024(a)Jun. 30, 2023(b)(a) – (b)Mar. 31, 2024

Deposits (period-end balance)

3,217.5(138.0)3,355.6

3,250.4

Individual deposits

2,610.7(72.9)

2,683.6

2,610.9

Deposits (average balance)

3,223.7(126.4)3,350.1

3,278.4

Deposits (period-end balance)

Yield on deposits

Individual deposits (period-end balance)(Billions of yen)
3,395.3
3,355.6
3,302.2
3,271.1
3,217.5
2,712.4
2,666.9
2,683.6
2,568.0
2,610.7

0.04%

0.04%

0.04%

0.04%
0.03%

Jun. 20

Jun. 21Jun. 22

Jun. 23

Jun. 24－13－

Jun. 20

Jun. 21Jun. 22

Jun. 23

Jun. 24

Suruga bank, Ltd.

(3) Interest margins (Non-consolidated)･Loan-deposit margin (after deduction of expenses, overall) shrunk by 15 basis points year-on-year to 1.52%, mainly due to thedecline in the yield on loans and bills discounted.
･Net interest margin (overall) expanded by 2 basis points year-on-year to 0.73%, mainly due to the rising in the yield on
securities.

Overall(%)

Yield on loans and bills discounted

Three months ended
Jun. 30, 2024
(a)
2.69

Three months ended
Jun. 30, 2023(b)(a) - (b)FY3/2024(0.17)

2.86

2.80

Yield on deposits

0.04

0.01

0.03

0.03

Loan-deposit margin(after deduction of expenses)

1.52(0.15)

1.67

1.70

Net interest margin

0.73

0.02

0.71

0.73

Domestic(%)

Yield on loans and bills discounted

Three months ended(a) - (b)Jun. 30, 2023(b)
(0.17)
2.86

Three months ended
Jun. 30, 2024
(a)
2.69

FY3/2024
2.80

Yield on deposits

0.04

0.01

0.03

0.03

Loan-deposit margin(after deduction of expenses)

1.53(0.15)

1.68

1.70

Net interest margin

0.74

0.02

0.72

0.74

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

3.11%

1.80%
1.00%

1Q, FY3/21

3.04%

1.79%

2.89%

2.82%

1.74%

1.67%

2.65%

1.52%

0.81%

0.68%

0.71%

0.73%

1Q, FY3/22

1Q, FY3/23

1Q, FY3/24

1Q, FY3/25－14－

Suruga bank, Ltd.

(4) Non-performing loans based on the Financial Reconstruction Law (Non-consolidated)･Non-performing loans based on the Financial Reconstruction Law decreased by ¥ 16.0 billion year-on-year.
･Non-performing loan ratio dropped by 83 basis points year-on-year to 9.45%.
Non-performing loan ratio that excluding organizational negotiation partners declined by 71 basis points year-on-year (As ofJune 30, 2023:6.52%, As of June 30, 2024:5.95%)(Millions of yen)Jun. 30, 2024

Jun. 30, 2023

Mar. 31, 2024

Claims against bankrupt and substantiallybankrupt obligors

109,320

120,400

113,939

Claims with collection risk

52,79743,90953,336Claims for special attention

34,66748,51237,964

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

196,784

212,822205,239

Non-performing loan ratio

9.45%

10.28%

9.88%

Total coverage

164,894

177,738

171,389

Coverage ratio

83.79%

83.51%

83.50%(Note1) Total claims = Loans and bills discounted + Foreign exchanges + Accrued interest + Customers’ liabilities for acceptancesand guarantees + 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
14.72%

Jun.2013.96%

Jun.2112.35%

Jun.22－15－

10.28%

9.45%

Jun.23

Jun.24

Suruga bank, Ltd.

(5) Capital adequacy ratio (domestic standard)･Capital adequacy ratio (non-consolidated) rose by 42 basis points year-on-year to 14.27%.

Non-consolidated(Millions of yen)Jun. 30, 2024

Jun. 30, 2023

Mar. 31, 2024

Capital adequacy ratio

14.27%

13.85%

14.00%

Own capital (Core capital)

265,545

254,182258,609

Core capital: instruments and reserves

287,986

278,364

280,990

Core capital: regulatory adjustments (-)

22,44024,181

22,380Risk-weighted assets

1,860,797

1,834,997

1,846,272

Total required capital

74,43173,39973,850Consolidated(Millions of yen)Jun. 30, 2024

Jun. 30, 2023

Mar. 31, 2024

Capital adequacy ratio

14.70%

14.25%

14.44%

Own capital (Core capital)

278,382

266,620

271,421Core capital: instruments and reserves

304,729

293,962

297,905

Core capital: regulatory adjustments (-)

26,34627,342

26,484

Risk-weighted assets

1,892,903

1,870,713

1,879,337

Total required capital

75,71674,82875,173

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

10.49%

241.1

Jun. 20

13.85%

14.27%

249.1

254.1

265.5

Jun. 22

Jun. 23

Jun. 24

12.54%

12.81%

260.7

Jun. 21－16－

Suruga bank, Ltd.

(6) Composition of own capital (domestic standard)(Millions of yen)Jun. 30, 2024
Non-consolidated
ConsolidatedCore 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 thescope of regulatory consolidation (“Other financial institutions”), net of eligible shortpositions, where the bank does not own more than 10% of the issued share capital (amountabove 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)

－17－

266,278

280,188

48,629220,618
2,968-

30,043
253,114
2,968
2,670
2,670

-

-

21,707
21,707

21,87021,870

-

-

-

-

-

-

287,986

304,729

8,064

9,220

8,064

1,003
8,217

772

851

13,604-

16,274
-

-

-

-

-

-

-

-

-

22,44026,346

265,545

278,382

1,736,624
124,172
1,860,797

1,749,656
143,246
1,892,903

14.27%--

14.70%

Suruga bank, Ltd.

(7) Unrealized gains (losses) on securities (Non-consolidated)･Net unrealized gains (losses) on securities increased by ¥ 18.0 billion year-on-year.
(Millions of yen)Jun. 30, 2024
Fair
Value
Available-for-sale
303,306
securities

Jun. 30, 2023

Net unrealized gains (losses)
Gains
18,72925,614LossesNet unrealized gains (losses)
LossesFairvalue

Net unrealized gains (losses)

Gains
640

10,5699,929

270,974

17,681

9,824

9,890

66

Fair
value

6,884 316,235-

Mar. 31, 2024
Gains

Losses21,74225,503

3,761

46,93525,28725,287-

Stocks47,20225,55525,555

Bonds

186,342(3,718)13

3,731 176,351

49

678

628

159,094

(933)

191

1,125

Others69,761(3,106)45

3,152 122,202(9,234)-

9,234

64,944(2,611)24

2,635(Note1) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note2) Net 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 decreased by ¥ 48.4 billion year-on-year.
･The ratio of investment products to total individual deposit assets rose by 100 basis points year-on-year to 4.8%.
(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 tototal individual deposit assets

Jun. 30, 2024(a)2,741,191
2,609,205
131,986
1,507
5,591
74,59025,323
24,9724.8%－18－(48,432)(71,986)
23,555
(960)
1,577
8,172
9,521
5,244

Jun. 30, 2023(b)
2,789,623
2,681,191
108,4312,467
4,014
66,41815,802
19,7281.0%

3.8%(a) - (b)Mar. 31, 2024
2,734,405
2,609,110
125,294
1,807
4,627
71,446
23,637
23,7754.5%