June 6, 2018

To whom it may concern:
Company name: SURUGA bank, Ltd.
Representative: Akihiro Yoneyama, President
Stock exchange listings: Tokyo (code:8358)[Amendments Including Amendments to Numerical Data] Partial Amendment to theConsolidated Financial Results for the Fiscal Year Ended March 31, 2018
(under Japanese GAAP)
Suruga Bank (“the Company”) hereby announces certain amendments to the Consolidated
Financial Results for the Fiscal Year Ended March 31, 2018 (under Japanese GAAP)
disclosed on May 15, 2018. There are also amendments to the numerical data and therefore
the updated data are provided.
1. Reason for Amendment
The Company had provisioned for ¥37,224 million in allowance for loan losses based on anassessment regarding the recoverable amount on share house-related loans up to the date ofdisclousure of the financial results on May 15. However, following an on-going review of thedevelopments on the situation including the investigation on share house-related loans, theCompany has decided to provision an additional ¥4,825 million in allowance for loan losses
based on a conservative estimate on the recoverable amount on share house-related loans.
Furthermore, the Company conducted a detailed review on other investment property-relatedloans, such as on the attributes of the real estate companies involved and the existence oflong-term sublease agreements, to identify any risks that are similar to those associated withshare house-related loans. As a result, the Company has decided to account for an additional¥15,521 million in allowance for loan losses based on a conservative estimate.
It should be noted that there are no changes to the consolidated and non-consolidated
earnings forecast for the fiscal year ending March 31, 2019 as a result of the amendment.
2. Details of Amendment(Consolidated)（Millions of yen）
Items

Consolidated
statements ofincomeConsolidatedbalance sheets

Consolidated
statements ofcash flows

Ordinary expenses
Ordinary profit
Income before income taxes
Profit attributable toowners of parent
Allowance for loan losses
Deferred tax assets
Total assets
Retained earnings
Total shareholders’ equity
Total net assets
Total liabilities and net assets
Income before income taxes
Increase (decrease) inallowance for loan losses

June 6, 2018
(Afteramendment)(A)

May 15, 2018
(Beforeamendment)(B)

Difference(A - B)

145,752
10,525
10,105

125,406
30,87130,451

20,346(20,346)(20,346)

6,988

21,065(14,077)(78,218)
16,695
4,461,576
292,841
322,791
344,763
4,461,576
10,105(57,871)
10,425
4,475,653
306,917336,867
358,840
4,475,653
30,451(20,347)
6,270(14,077)(14,076)(14,076)(14,077)(14,077)(20,346)

58,912

38,566

20,346

(Non-consolidated)（Miliions of yen）
June 6, 2018
(Afteramendment)
(A)

Items

Non-consolidated
statements ofincomeNon-consolidatedbalance sheets

Ordinary expenses
Ordinary profit
Income before income taxes
Net income
Allowance for loan losses
Deferred tax assets
Total assets
Retained earnings
Total shareholders’ equity
Total net assets
Total liabilities and net assets

June 6, 2018
(Afteramendment)
(A)

Items

Provision forallowance forloan losses
Provision forgeneralallowance forloan losses
Provision for
specific
allowance forloan losses

132,862
8,670
8,256
5,223
(70,089)
15,786
4,451,689
267,090
315,141
332,711
4,451,689

Share house
Other than share house
Total provision for allowance
for loan losses
Share house
Other than share house
Total provision for generalallowance for loan losses
Share house
Other than share house
Total provision for specificallowance for loan losses

May 15, 2018
(Beforeamendment)(B)

112,516
29,01728,602
19,299(49,742)9,516
4,465,765
281,166
329,217
346,787
4,465,765
May 15, 2018
(Beforeamendment)(B)

Difference(A - B)
20,346(20,347)(20,346)(14,076)(20,347)
6,270(14,076)(14,076)(14,076)(14,076)(14,076)

Difference(A - B)

42,04916,72937,224
1,207

4,825
15,521

58,77838,432

20,34630,474
16,02425,728502

4,746
15,522

46,49926,23020,269

11,574705

11,496705

78
012,27912,20178

Given that multiple sections are subject to amendment, the amended portions
are underlined in the attached updated version of the Consolidated Financial
Results for the Fiscal Year Ended March 31, 2018 disclosed on May 15, 2018.
- End -

(After amendment)
May 15, 2018

SURUGA bank, Ltd.
Consolidated financial results for the fiscal year ended March 31, 2018
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Akihiro Yoneyama, President
Dividend payment date: June 13, 2018
(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the fiscal year ended March 31, 2018
(1) Consolidated operating results(% represents the change from the previous fiscal year)
Profit attributable
Ordinary profit
to owners of parent

Ordinary income

Fiscal year ended
Millions of yen%
Millions of yen%
March 31, 2018
156,278
7.2
10,525(81.9)March 31, 2017
145,753
4.5
58,222
3.2(Note) Comprehensive income: (a) Fiscal year ended March 31, 2018: ¥9,646 million [(77.4) %](b) Fiscal year ended March 31, 2017: ¥42,776 million [46.1 %]Earnings per share

Earnings per share(diluted)

Return on
net assets

Millions of yen

%

6,988
42,627(83.6)
16.0

Ordinary profit
on total assets

Fiscal year ended
yen
yen
%
March 31, 2018
30.17
30.16
2.0
March 31, 2017184.10184.02
13.3(Reference) Equity in gains (losses) of affiliates: (a) Fiscal year ended March 31, 2018: ¥4 million(b) Fiscal year ended March 31, 2017: ¥1 million

Ordinary profit
on ordinary income

%

%

0.2
1.3

6.7
39.9

(2) Consolidated financial position
Total assets
Total net assets
Net assets ratio
Net assets per share
As ofMillions of yen
Millions of yen%
yen
March 31, 2018
4,461,576
344,7637.6
1,479.36
March 31, 2017
4,471,725
340,379
7.5
1,459.48(Reference) Shareholders’ equity: (a) As of March 31, 2018: ¥342,667 million; (b) As of March 31, 2017: ¥338,029 million(Note) Nets 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”.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2018
March 31, 2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at year-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

32,724(43,542)

16,98478,403(5,262)(4,635)

968,741924,300

2. Dividends on common stock
1st
quarter-end

Dividends per share
2nd
Fiscal3rd
year
quarterquarter
-end
-end
-end

Total

Dividend
payout ratio

Total
dividends(Consolidated)

Fiscal year
yen
yen
yen
yen
yen
Millions of yen
ended March 31, 2017
10.00
12.00
22.00
5,094
ended March 31, 2018
10.50
10.50
21.00
4,864
ending March 31, 2019
10.50
10.50
21.00
(forecast)(Note) Breakdown of fiscal year-end dividend for the fiscal year ended March 31, 2017:(a) Ordinary dividend: ¥11.00; (b) Special dividend: ¥1.00

Dividend on
net assets
ratio(Consolidated)

%

%

11.9
69.6

1.5
1.4

19.4

3. Consolidated earnings forecast for the fiscal year ending March 31, 2019(% represents the change from the same period in the previous fiscal year)
Profit attributable
Earnings per share
Ordinary profit
to owners of parent
Millions of yen

1H, FY3/2019
FY3/2019

17,00036,500%(45.4)
246.7

Millions of yen

12,00025,000%yen(43.3)
257.7

51.80
107.92

(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 Mar. 31, 2018
(including treasury shares):(B) Number of treasury shares:

As of Mar. 31, 2018

(C) Average number of shares:

Fiscal year ended
Mar. 31, 2018

232,139,248 shares

As of Mar. 31, 2017

232,139,248 shares

507,295 shares

As of Mar. 31, 2017

530,965 shares

231,619,388 sharesFiscal year ended
Mar. 31, 2017

231,538,348 shares(Reference) Summary of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2018
(1) Non-consolidated operating results(% represents the change from the previous fiscal year)
Ordinary profit
Net income

Ordinary income
Fiscal year ended
March 31, 2018
March 31, 2017

Millions of yen%

Millions of yen%

Millions of yen%

141,533
134,286

5.3
5.5

8,670
57,160(84.8)
5.0

5,223
41,728(87.4)
16.5

Earnings per share
Fiscal year ended
March 31, 2018
March 31, 2017

Earnings per share(diluted)

yen

yen

22.55
180.2222.54
180.14(2) Non-consolidated financial position
Total assets
Total net assets
Net assets ratio
Net assets per share
As ofMillions of yen
Millions of yen%
yen
March 31, 2018
4,451,689
332,7117.4
1,436.30
March 31, 2017
4,465,825
331,551
7.4
1,431.41(Reference) Shareholders’ equity: (a) As of March 31, 2018: ¥332,694 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, 2019
Ordinary profit(% represents the change from the same period in the previous fiscal year)
Net income
Earnings per share

Millions of yen

1H, FY3/2019
FY3/2019

16,50035,000%(44.8)
303.6

Millions of yen

11,50024,000%(43.8)
359.4

yen

49.64
103.61(Note) This report is outside the scope of audit procedures by certified public accountants or audit firms.
(Note) 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 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.

SURUGA bank, Ltd.

(Appendix)
Table of contents

1. Overview of operating results, etc. ···································································· 2(1) Overview of operating results ······································································ 2(2) Overview of financial position ····································································· 3(3) Future outlook························································································ 4
2. Basic approach to the selection of accounting standards ··········································· 4
3. Consolidated financial statements and notes ························································· 5(1) Consolidated balance sheets········································································ 5(2) Consolidated statements of income and Consolidated statements of comprehensive income ·········· 7(3) Consolidated statements of changes in net assets ··············································· 9(4) Consolidated statements of cash flows ·························································· 11(5) Notes to consolidated financial statements ····················································· 12(Notes on going-concern assumption) ···························································· 12(Changes in accounting policies, changes in accounting estimates and restatements) ····· 12(Segment information)·············································································· 13(Per share data) ······················································································ 14(Significant subsequent events) ··································································· 14
4. Non-consolidated financial statements ····························································· 15(1) Non-consolidated balance sheets ································································ 15(2) Non-consolidated statements of income ························································ 17(3) Non-consolidated statements of changes in net assets ········································ 18* Financial results for the fiscal year ended March 31, 2018 supplementary information-1-

SURUGA bank, Ltd.

1. Overview of operating results, etc.
(1) Overview of operating results
In the fiscal year ended March 31, 2018, the Japanese economy witnessed signs of moderate recovery on theback of the improvement in corporate earnings, supported by the economic recovery in Japan as well as
overseas. Japan’s real GDP recorded eight consecutive quarters of growth up to the fourth quarter(October-December) of 2017 for the first time in 28 years.
Under such business conditions, consolidated ordinary income increased by ¥10.525 billion year-on-year to¥156.278 billion. This was mainly due to the growth in interest income reflecting the rise in interest on loans
and bills discounted. Meanwhile, ordinary expenses increased by ¥58.222 billion year-on-year to ¥145.752
billion, mainly due to an increase in other expenses. As a result, ordinary profit decreased by ¥47.697 billion
year-on-year to ¥10.525 billion, and profit attributable to owners of parent decreased by ¥35.639 billion
year-on-year to ¥6.988 billion.
Non-consolidated operating results were as follows:(A) Gross operating profit
Gross operating profit increased by ¥4.319 billion year-on-year to ¥115.171 billion on the back of therise (¥5.396 billion) in net interest income.
(B) Expenses
Expenses decreased by ¥0.498 billion year-on-year to ¥46.742 billion.
(C) Net operating profit
Core net operating profit increased by ¥4.703 billion year-on-year to ¥68.148 billion, mainly due to anincrease in net interest income.
Net operating profit decreased by ¥41.681 billion year-on-year to ¥21.930 billion, mainly due to anincrease in provision for general allowance for loan losses.
(Note) Core net operating profit = Net operating profit + Provision for general allowance for loan losses- Gains (losses) on bonds(D) Ordinary profit
Ordinary profit decreased by ¥48.490 billion year-on-year to ¥8.670 billion, mainly due to an increase in
net credit costs.
(E) Net income
Net income decreased by ¥36.505 billion year-on-year to ¥5.223 billion, mainly due to a decrease inordinary profit and the absence of gains on revision of retirement benefit plan (¥2.134 billion) recorded in
the previous fiscal year.
(F) Net credit costs
Provision for general allowance for loan losses increased by ¥46.499 billion year-on-year. Disposal of
non-performing loans increased by ¥9.699 billion year-on-year to ¥18.864 billion. Meanwhile, reversal of
allowance for loan losses decreased by ¥2.590 billion year-on-year. As a result, net credit costs increasedby ¥58.788 billion year-on-year to ¥65.363 billion.
Actual credit costs increased by ¥58.445 billion year-on-year to ¥64.016 billion.
(Note) Net credit costs = Provision for general allowance for loan losses+ Disposal of non-performing loans - Reversal of allowance for loan losses(Note) Actual credit costs = Net credit costs - Recoveries on written-off claims-2-

SURUGA bank, Ltd.

(2) Overview of financial position
As for consolidated major account balances, loans and bills discounted came in at ¥3,248.159 billion, downby ¥5.564 billion year-on-year, despite the growth in consumer loans through continuing to engage primarily inthe retail banking business. Securities amounted to ¥131.537 billion, down by ¥16.990 billion year-on-year.
Deposits amounted to ¥4,079.972 billion, down by ¥15.537 billion year-on-year.
Non-consolidated major account balances were as follows:(A) Loans and bills discounted
Loans and bills discounted came in at ¥3,245.978 billion, down by ¥7.812 billion year-on-year, despite
the growth in consumer loans. Consumer loans amounted to ¥2,925.991 billion, up by ¥18.642 billion
year-on-year. The average balance of loans and bills discounted in the fiscal year amounted to ¥3,229.776
billion, up by ¥93.766 billion year-on-year.
(B) Securities
Securities amounted to ¥136.822 billion, down by ¥17.518 billion year-on-year.
(C) Deferred tax assets (liabilities)
Deferred tax assets amounted to ¥15.786 billion, mainly due to an increase in allowance for loan losses.
(D) Deposits
Deposits amounted to ¥4,089.649 billion, down by ¥15.806 billion year-on-year. Individual deposits
amounted to ¥3,191.847 billion, up by ¥1.010 billion year-on-year. The average balance of deposits in thefiscal year amounted to ¥4,047.017 billion, down by ¥7.491 billion year-on-year.
As for consolidated cash flows, cash flow from operating activities was a net inflow of ¥32.724 billion(compared to a net outflow of ¥43.542 billion in the previous fiscal year), given that inflows due mainly to adecrease in loans and bills discounted exceeded outflows due mainly to a decrease in deposits. Cash flow frominvesting activities was a net inflow of ¥16.984 billion (compared to a net inflow of ¥78.403 billion in theprevious fiscal year), mainly due to proceeds from redemption of securities. Cash flow from financing activities
was a net outflow of ¥5.262 billion (compared to a net outflow of ¥4.635 billion in the previous fiscal year),mainly due to dividend payments. As a result, cash and cash equivalents as of March 31, 2018 amounted to¥968.741 billion, up by ¥44.441 billion year-on-year (compared to ¥924.300 billion as of March 31, 2017).

-3-

SURUGA bank, Ltd.

(3) Future outlook
Japan continues on its second-longest postwar period of economic recovery, exceeding the “Izanagi boom” ofthe high-growth era. Specifically, Japan has recoded 64 months of economic recovery, and the overall
assessment of the index of business conditions for March 2018 remained unchanged for the 18th consecutive
month. In 2018 and onward, the Japanese economy is expected to further extend the record in terms of postwar
expansion, with positive effects of the economic recovery feeding through to domestic demand to achieve a
better balance with overseas demand.
In light of such business conditions, Suruga Bank, as a “life and business navigator (DREAM
NAVIGATOR)”, will strive to build a trusting relationship with customers, establish a business operation tooffer customer-oriented services, and secure a sound financial position.
Earnings forecast for the fiscal year ending March 31, 2019 is as follows:
Consolidated

Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Net operating profit
Ordinary profit
Net income(Billions of yen)
FY3/2019 (Forecast)First half
Full year
17.0
36.5
12.0

25.0

(Billions of yen)
FY3/2019 (Forecast)First half
Full year
22.0
45.0
16.5
35.0
11.5
24.0

Actual credit costs
ROE (Net income basis)

9.5

19.0

7.32 %

7.68 %(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 bereasonable, and are not intended to guarantee future performance. Actual performance may differ
materially depending on various factors.

2. Basic approach to the selection of accounting standards
The Suruga Bank group intends to apply Japanese accounting standards for the foreseeable future, taking into
consideration the comparability of consolidated financial statements across reporting periods and companies. As
for the adoption of International Financial Reporting Standards (IFRS), we will respond appropriately to thevarious developments in Japan and overseas.

-4-

SURUGA bank, Ltd.

3. Consolidated financial statements and notes(1) Consolidated balance sheets
As ofMarch 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
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Goodwill
Leased assets
Software in progress
Other 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-5-（Millions of yen）
As of
March 31, 2018927,519
2,276
72
1,149
148,527
3,253,723
2,885
5,479
56,90951,906
13,98325,56412
012,34528,591
25,681
1,942
8
571
388
7,787
860
3,340
(19,305)
4,471,725

973,397
2,141
86
1,571
131,537
3,248,159
2,514
5,995
65,07652,12013,83525,712
9
143
12,41927,111
24,533
1,812
6
371
387
10,50916,6952,877(78,218)
4,461,576

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

4,079,972
1,085
23
28,300
699
182
265
2,507
365
137
396
2,877
4,116,813

SURUGA bank, Ltd.

As of
March 31, 2017
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-6-

30,043
4
291,063(606)
320,504
17,153(61)433
17,52524
2,325
340,379
4,471,725（Millions of yen）
As of
March 31, 2018
30,043489
292,841(582)
322,791
18,489(15)
1,402
19,876
172,078
344,763
4,461,576

SURUGA bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2017
March 31, 2018
Ordinary income
145,753
156,278
Interest income
124,718
130,751
Interest on loans and bills discounted
121,045
125,367Interest and dividends on securities
2,578
4,107
Interest on call loans and bills bought
38
32Interest on deposits with banks
805
814
Other interest income
250
429
Fees and commissions
13,443
13,283
Other operating income
4,393
4,118
Gains on sales of bonds
20
Gains on redemption of bonds
473
396
Other
3,917
3,720
Other income
3,198
8,125
Reversal of allowance for loan losses
927
Recoveries on written-off claims
1,339
1,793
Gains on sales of stocks and other securities
129
5,465
Equity in gains of affiliates
1
4
Other
800
861
Ordinary expenses
87,530145,752
Interest expenses
4,287
3,670
Interest on deposits
4,069
3,439
Interest on borrowings and rediscounts
14
10
Other interest expenses
203
220
Fees and commissions payments
14,326
14,981Other operating expenses
3,647
3,302
Losses on redemption of bonds
310
116
Other
3,336
3,186
General and administrative expenses
51,50051,945
Other expenses
13,76871,853
Provision for allowance for loan losses
60,546
Write-off of loans
9,381
5,938
Losses on sales of stocks and other securities
70
Losses on devaluation of stocks and other securities
636
10
Other
3,744
5,357
Ordinary profit
58,222
10,525Extraordinary gains
2,170
64
Gains on disposal of non-current assets
36
64
Gains on revision of retirement benefit plan
2,134
Extraordinary losses
335
484
Losses on disposal of non-current assets
335
484
Income before income taxes
60,057
10,105
Income taxes - current
15,781
19,927
Income taxes - deferred
1,488(17,020)
Total income taxes
17,2702,906Profit42,787
7,198
Profit attributable to non-controlling interests
159
209
Profit attributable to owners of parent
42,627
6,988-7-

SURUGA bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2017
March 31, 2018
42,787
7,198

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

-8-

1,052
21
(1,084)(10)
42,776

1,432
46
969
2,448
9,646

42,596
180

9,340
306

SURUGA bank, Ltd.

(3) Consolidated statements of changes in net assets
For the fiscal year ended March 31, 2017
（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
sharesTotalshareholders'equityTreasuryshares

253,182(750)

282,475(4,745)(4,745)42,62742,627

4

(4)

(4)

148

152

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period-4

37,881

143

38,02930,043

4

291,063(606)

320,504

Accumulated other comprehensive income
Net unrealized
Remeasuregains (losses) Deferred gains
ments ofon available(losses) on
definedfor-salehedgesbenefitplans
securities

Balance at beginning ofcurrent period
Changes of items during
period16,121

(83)

1,517

Total
accumulated
othercomprehensive income
17,556

Subscription
rights toshares61

Noncontrollinginterests

2,144

Dividends of surplus

Total changes of items during
periodBalance at end of current
period302,237(4,745)

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

Total net
assets42,627
(4)
152
1,031

21

(1,084)

(31)

(36)

180

112

1,031

21

(1,084)

(31)

(36)

180

38,141

17,153(61)433

17,52524

2,325

340,379-9-

SURUGA bank, Ltd.

For the fiscal year ended March 31, 2018
（Millions of yen）
Shareholders' equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043Retainedearnings
4

Dividends of surplus

Total
shareholders'equityTreasuryshares291,063(606)(5,211)

Change in ownership interest ofparent due to transactions
with non-controlling interests(5,211)

484

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

320,504

484
6,988

6,988

0

(5)

(5)

29

30

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period

-

485

1,777

23

2,286

30,043489

292,841(582)

322,791

Accumulated other comprehensive income
Net 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

Total
accumulated
othercomprehensive income
17,525

Subscription
rights toshares24

Noncontrollinginterests

2,325

Total net
assets340,379

Dividends of surplus(5,211)

Change in ownership interest ofparent due to transactions
with non-controlling interests

484

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

Total changes of items during
periodBalance at end of current
period

6,988
(5)
30
1,335

46

969

2,351

(6)

(247)

2,097

1,335

46

969

2,351

(6)

(247)

4,384

18,489

(15)

1,402

19,876

172,078

344,763- 10 -SURUGA bank, Ltd.

(4) Consolidated statements of cash flows（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2017
March 31, 2018
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for reimbursement of deposits

Increase (decrease) in provision for contingent losses

Interest income
Interest expenses
Losses (gains) on securities
Losses (gains) on money held in trust
Losses (gains) on disposal of non-current assets
Net decrease (increase) in trading account securities
Net decrease (increase) in loans and bills discounted

Net increase (decrease) in deposit
Net increase (decrease) in borrowed money (excluding subordinated borrowings)

Net decrease (increase) in deposit (excluding deposit paid to Bank of Japan)

Net decrease (increase) in call loans
Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities
Net decrease (increase) in lease receivables and investment assets
Net decrease (increase) in cash collateral paid for financial instruments assets

Interest received
Interest paid
Gains on revision of retirement benefit plan
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities

Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Increase in money held in trust
Decrease in money held in trust
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at year-end- 11 -

60,0576,819
129(2,959)0
20(5,260)31
11(92)(124,718)
4,287
348
(150)
298
(22)
(116,558)
46,015
(545)
(219)
729
648
27
51
(10,057)
124,157(3,373)(2,134)(2,235)(24,694)(18,848)(43,542)

10,1056,958
129
58,912(15)
9(1,505)
(772)
77
(32)
(130,751)
3,670(5,735)
12
420
(13)
5,564
(15,537)(455)(1,437)
135
370
(17)
(515)
(10,897)
130,486(3,527)
3,139
48,777(16,052)
32,724(44,964)
2,041
127,91249(4,193)37(2,479)78,403(91,584)
14,418100,410(434)(3,452)246(2,619)16,984(4,745)(4)
115(4,635)(0)30,225894,075
924,300(5,211)(5)
23(68)(5,262)(4)
44,440924,300
968,741SURUGA bank, Ltd.

(5) Notes to consolidated financial statements(Notes on going-concern assumption)
Not applicable.

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

- 12 -SURUGA bank, Ltd.

(Segment information)
1. Summary of reportable segment
The reportable segments of the Suruga Bank group are components for which discrete financial
information is available, and that are subject to regular review to allocate management resources and toevaluate their results.
The group consists of Suruga Bank, which mainly engages in the banking business, and its consolidated
subsidiaries that engage in businesses such as money lending, leasing, clerical agency services, credit card
services and credit guarantee. Of the reportable segments, Suruga Bank represents the “banking” segment,
which includes businesses such as deposits, loans, exchange and credit card services.
2. Method of calculating ordinary income, profit or loss, assets and other items by reportable segment
Segment profit is reported on an ordinary profit-basis.
Inter-segment internal ordinary income is based on arm’s length prices.
3. Information on ordinary income, profit or loss, assets and other items by reportable segment
For the fiscal year ended March 31, 2018
Reportablesegment
Others

Total

Banking(Millions of yen)Amountrecorded in the
consolidated
Adjustments
financialstatements

Ordinary income
Ordinary income toexternal customers

141,333

14,939156,2734

156,278

200

1,736

1,936

(1,936)-

141,533
8,670
4,451,689

16,675
1,980
49,437

158,209
10,6504,501,126(1,931)(125)(39,549)

156,278
10,525
4,461,576

Depreciation

6,747

211

6,958

-

6,958

Increase in tangible
fixed assets andintangible fixed assets

5,778

294

6,072

-

6,072

Inter-segment internal
ordinary income
Total
Segment profit
Segment assets
Other items(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,clerical agency services, credit card services and credit guarantee) which are not included in thereportable segments.
(Note3) “Adjustments” are as follows:(1) The adjustment of ¥4 million in ordinary income to external customers consists of the following:
equity in gains of affiliates (¥4 million).
(2) The negative adjustment of ¥125 million in segment profit consists of the following: amortizationof goodwill (- ¥129 million), equity in gains of affiliates (¥4 million) and deduction ofinter-segment transactions (- ¥0 million).
(3) The negative adjustment of ¥39,549 million in segment assets consists of the following: deductionof inter-segment transactions (- ¥41,613 million), adjustment of net defined benefit assets (¥2,012
million) and adjustment of shares in equity-method affiliates (¥51 million).
(Note4) Segment profit is adjusted to ordinary profit as reported in the consolidated statements of income.

- 13 -SURUGA bank, Ltd.

(Per share data)

Net assets per shareyen
Earnings per shareyen
Earnings per share (diluted)
yen(Note) The basis for calculation is as shown in the tables below.

For the fiscal year ended
March 31, 2018
1,479.36
30.17
30.16

1. Net assets per share
Total net assets
Amount deducted from total net assetsof which, Subscription rights to sharesof which, Non-controlling interests
Net assets attributable to common stock at
the fiscal year-end
Number of common stock at the fiscal
year-end used for the calculation of net
assets per share

Millions of yen
Millions of yen
Millions of yen
Millions of yen

As of March 31, 2018344,763
2,095
17
2,078

Millions of yen

342,667

Thousands ofshares

231,631

2. Earnings per share and Earnings per share (diluted)
For the fiscal year ended
March 31, 2018
Earnings per share
Profit attributable to owners of parent
Amount not attributable to commonshareholders
Profit attributable to commonshareholders of parent
Average number of common stock forthe fiscal year
Earnings per share (diluted)
Adjustment for profit attributable toowners of parent
Increase in number of common stockof which, Subscription rights to shares

Millions of yen

6,988

Millions of yen-

Millions of yen

6,988

Thousands ofshares

231,619

Millions of yen-

Thousands ofsharesThousands ofsharesAntidilutive securities which were notincluded in the calculation of Earnings per
share (diluted)

50
50
-

(Significant subsequent events)
Not applicable.

- 14 -SURUGA bank, Ltd.

4. Non-consolidated financial statements(1) Non-consolidated balance sheets
As ofMarch 31, 2017
AssetsCash and due from banks
Cash
Due from banks
Call loans
Trading account securities
Trading government bonds
Trading municipal bonds
Money held in trust
Securities
Government bonds
Municipal bonds
Corporate bonds
StocksOther securities
Loans and bills discounted
Bills discounted
Loans on bills
Loans on deeds
Overdrafts
Foreign exchanges
Due from foreign banks (our accounts)
Foreign bills bought
Foreign bills receivable
Other assets
Prepaid expenses
Accrued income
Initial margins of futures markets
Derivatives other than for trading - assets
Other
Tangible fixed assets
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Software in progress
Other intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets- 15 -

926,783
26,917
899,866
2,276
72
2
70
1,149
154,340
45,001
28,243
2,666
57,42621,002
3,253,790
1,676
22,0472,844,173
385,892
2,885
1,834
0
1,050
48,611
2,779
9,723
200
846
35,06250,56913,33524,991496
011,744
26,21225,309
523
379
7,165
3,951
(11,983)
4,465,825（Millions of yen）
As of
March 31, 2018
972,082
31,326
940,755
2,141
86
2
84
1,571
136,82258,283
4,567
51,311
22,6593,245,978
2,060
20,6042,860,414
362,898
2,514
1,130
0
1,383
56,990
2,615
9,933
200
100
44,13950,963
13,252
25,186517
143
11,86424,85524,178
298
378
8,497
15,786
3,487(70,089)
4,451,689

SURUGA bank, Ltd.

As of
March 31, 2017
Liabilities
Deposits
Current deposits
Ordinary deposits
Saving deposits
Deposits at noticeTime deposits
Other deposits
Foreign exchanges
Foreign bills sold
Foreign bills payable
Other liabilities
Income taxes payable
Accrued expenses
Unearned revenue
Deposits received from employees
Lease obligations
Derivatives other than for trading - liabilities
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- 16 -（Millions of yen）
As of
March 31, 2018

4,105,455
63,1471,265,642
17,297
76,2392,557,174
125,95440
40
20,232
8,000
6,730
104
798
497
867
3,233
667
173
3,277
287
169
18
3,951
4,134,274

4,089,649
58,891
1,345,693
17,441
172,0452,455,082
40,49423
22
021,977
11,971
6,830
68
780
518
66
1,741
648
182
2,506
365
137
3,487
4,118,977

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
4
267,090
30,043
237,04759
103,032
133,955(582)
315,141
17,563(10)
17,552
17332,711
4,451,689

SURUGA bank, Ltd.

(2) Non-consolidated statements of income

Ordinary income
Interest income
Interest on loans and bills discounted
Interest and dividends on securities
Interest on call loans
Interest on deposits with banks
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchanges

Other fees and commissions
Other operating income
Gains on foreign exchange transactions
Gains on sales of bonds
Gains on redemption of bonds
Other income
Reversal of allowance for loan losses
Recoveries on written-off claims
Gains on sales of stocks and other securities
Gains on money held in trust
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest on interest swaps
Other interest expenses
Fees and commissions payments
Fees and commissions on domestic and foreign exchanges

Other fees and commissions
Other operating expenses
Losses on trading account securities transactions
Losses on redemption of bonds
General and administrative expenses
Other expenses
Provision for allowance for loan losses
Write-off of loans
Losses on sales of stocks and other securities
Losses on devaluation of stocks and other securities

Losses on money held in trust
Other
Ordinary profit
Extraordinary gains
Gains on disposal of non-current assets
Gains on revision of retirement benefit plan
Extraordinary losses
Losses on disposal of non-current assets
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income- 17 -（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2018
March 31, 2017
134,286
141,533
117,238
122,017
113,588
116,660
2,558
4,080
38
32
804
814
248
429
1
0
12,001
11,417
2,441
2,434
9,559
8,983
546
459
70
62
2
0
473
396
4,497
7,638
2,590
1,004
1,346
129
5,465
150
47
622
779
77,125
132,862
4,299
3,682
4,069
3,439
8
7
221
235
14,327
14,925885
912
13,441
14,012
310
116
0
0
310
116
47,43647,596
10,752
66,541
58,778
7,160
3,827
0
636
10
59
2,955
3,865
57,160
8,670
2,170
59
36
59
2,134
316
474
316
474
59,013
8,256
15,214
19,3282,071(16,296)
17,285
3,032
41,7285,223

SURUGA bank, Ltd.

(3) Non-consolidated statements of changes in net assets
For the fiscal Year ended March 31, 2017
（Millions of yen）
Shareholders' equity
Retained earnings
Other retained earnings

Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus30,043

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

Retainedearnings
brought
forwardGeneralreserve

103,032

96,961Dividends of surplus(4,745)

Net income

41,728Purchase of treasury
shares
Disposal of treasury
shares44

Net changes of items otherthan shareholders' equity

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

-

-

4

4

-

-

-

36,98230,043

18,585

4

18,59030,043

59

103,032

133,943

Shareholders' equity
Valuation and translation adjustments
Retained
Total
Net
unrealized Deferred gains
Total
earnings
valuation andTreasurygains (losses) on
shareholders'(losses) on
available-fortranslation
sharesTotal retained
equityhedgessale securities
adjustments
earnings

Subscription
rights toshares230,096(750)

277,974

15,525(78)

15,44661

Total net
assets293,482

Dividends of surplus(4,745)(4,745)(4,745)

Net income

41,72841,72841,728

(4)

(4)

(4)

148

152

152

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

954

20

975

(36)

938

36,982

143

37,129

954

20

975

(36)

38,068267,078(606)

315,104

16,480(58)

16,422

24

331,551- 18 -SURUGA bank, Ltd.

For the fiscal year ended March 31, 2018
（Millions of yen）
Shareholders' equity
Retained earnings
Other retained earnings

Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

4

Reserve for
Total capital Legal retainedadvancedsurplusearnings
depreciationof non-current
assets
18,59030,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

133,943

Dividends of surplus(5,211)

Net income

5,223

Purchase 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
periodBalance at beginning ofcurrent period
Changes of items during
period

-

-

0

0

-

-

-

12

30,043

18,585

4

18,59030,043

59

103,032

133,955

Shareholders' equity
Valuation and translation adjustments
Retained
Total
Net
unrealized Deferred gains
Total
earnings
valuation andTreasurygains (losses) on
shareholders'(losses) on
available-fortranslation
sharesTotal retained
equityhedgessale securities
adjustments
earnings

Subscription
rights toshares267,078(606)

315,104

16,480(58)

16,422

24

Total net
assets331,551

Dividends of surplus(5,211)(5,211)(5,211)

Net income

5,223

5,223

5,223

(5)

(5)

(5)

29

30

30

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

1,082

47

1,130

(6)

1,123

12

23

36

1,082

47

1,130

(6)

1,160

267,090(582)

315,141

17,563(10)

17,552

17332,711- 19 -

Financial Results
For the fiscal year ended March 31, 2018

- Supplementary Information -SURUGA bank, Ltd.

Table of contents
Ⅰ. Financial highlights for the fiscal year ended March 31, 2018
1. Financial results

Non-consolidated

・・・・・・・・

2. Major accounts

Non-consolidated

・・・・・・・・

3. Management indicesNon-consolidated

・・・・・・・・

4. Own capital

Non-consolidated

・・・・・・・・

5. Unrealized gains (losses) on securities

Non-consolidated

・・・・・・・・

6. Earnings forecast for the fiscal year ending March 31, 2019

1
3
5
6
7

Non-consolidated, Consolidated

7. Asset quality

Non-consolidated

・・・・・・・・

8. Credit costs

Non-consolidated

・・・・・・・・

9. Dividends

Non-consolidated

・・・・・・・・

8
9
10

1. Details of financial results

Non-consolidated
Consolidated

・・・・・・・・・・・・・・・・

11
12

2. Net operating profit

Non-consolidated

3. Interest margins

Non-consolidated

・・・・・・・・

13

4. ROA and ROE

Non-consolidated

5. Gains (losses) on securities

Non-consolidated

Ⅱ. Financial data for the fiscal year ended March 31, 201814
15

6. Capital adequacy ratio (domestic standard)

Non-consolidated, Consolidated

・・・・・・・・

7. Composition of own capital (domestic standard)

Non-consolidated, Consolidated

・・・・・・・・

Non-consolidated

・・・・・・・・

1. Risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

2. Allowance ratio for risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

16
17
18

3. Allowance for loan losses

Non-consolidated, Consolidated

・・・・・・・・

19

・・・・・・・・

20

Non-consolidated, Consolidated

・・・・・・・・

21

Non-consolidated, Consolidated

・・・・・・・・

22

Ⅲ. Status of Loans, etc.
Comparison of asset disclosure by standard

4. Non-performing loans based on the Financial Reconstruction Law
5. Status of coverage of non-performing loans based on
the Financial Reconstruction Law

Non-consolidated
Non-consolidated

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry

Non-consolidated(2) Breakdown of risk-monitored loans by industry

Non-consolidated(3) Consumer loans

Non-consolidated(4) The ratio of loans to small- and medium-sized enterprises, etc.

Non-consolidated

7. Loan breakdown by country(1) Loans to specific foreign countries

Non-consolidated(2) Loans to Asian countries

Non-consolidated

8. Deposits and loans

Non-consolidated

9. Number of branches

Non-consolidated

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Ⅴ. Retirement benefits
1. Retirement benefit expenses

SURUGA bank, Ltd.

Ⅰ. Financial highlights for the fiscal year ended March 31, 2018
1. Financial results (Non-consolidated)
FY3/2018(a)
115,171
118,336(3,507)
61
114,890
46,742
68,148281
68,42946,49921,93018,864
1,346
5,454
8,670
(414)
5,223

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income (Note1）
Core gross operating profit
Expenses (-)
Core net operating profit （Note2）
Gains (losses) on bonds
Actual net operating profit (Note3）
Provision for general allowance for loan losses (-) (Note4)
Net operating profit
Disposal of non-performing loans (-)
Reversal of allowance for loan losses (Note4)
Recoveries on written-off claims
Gains (losses) on stocks
Ordinary profit
Gains (losses) on disposal of non-current assets
Gains on revision of retirement benefit plan
Net income(a) - (b)
4,319
5,396
(1,183)
(9)
4,204
(498)
4,703
116
4,818
46,499(41,681)
9,699(2,590)342
5,960(48,490)(134)(2,134)(36,505)(Millions of yen)
FY3/2017(b)
110,852
112,940(2,324)70
110,686
47,24063,445
165
63,611
63,611
9,165
2,590
1,004
(506)
57,160(280)
2,134
41,728Net credit costs
65,36358,7886,575
Actual credit costs（Note5）
64,01658,4455,571(Note1) Excludes 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, 2017, the net amount of Reversal of general allowance for loan losses and Provision
for specific allowance for loan losses is recorded in Reversal of allowance for loan losses, given that the former exceeded
the latter during the period.
(Note5) Actual credit costs = Net credit costs (Provision for general allowance for loan losses + Disposal of non-performing loans- Reversal of allowance for loan losses) - Recoveries on written-off claims(1) Gross operating profit: ¥115.1 billion
・Net interest income increased by ¥5.3 billion year-on-year, mainly due to an increase ininterest on loans and bills discounted.
・Yen loan-deposit income increased by ¥3.8 billion year-on-year.
・Core gross operating profit increased by ¥4.2 billion year-on-year, mainly due to an increase in net interest income.
・Gross operating profit increased by ¥4.3 billion year-on-year.

Net interest income(Billions of yen)

92.4

100.3

107.5

112.9

Yen loan-deposit income
118.3

FY3/14 FY3/15 FY3/16 FY3/17 FY3/18(Billions of yen)

89.6

96.9

102.6

109.3

113.2

FY3/14 FY3/15 FY3/16 FY3/17 FY3/18-1-

SURUGA bank, Ltd.
(2) Expenses; OHR: 40.5%
・Expenses decreased by ¥0.4 billion year-on-year.
・OHR improved year-on-year to 40.5%, mainly due to a decrease in expenses and an increase in gross operating profit.
(OHR(%) = Expenses / Gross operating profit × 100)

Gross operating profit

ExpensesOHR

105.3 43.6%

110.8(Billions of yen)

47.6%
90.8
43.3

99.4 45.8%

45.9

45.6

FY3/14

FY3/15

FY3/16

115.1
42.6%

40.5%

47.2

46.7

FY3/17

FY3/18(3) Core net operating profit: ¥68.1 billion, Net operating profit: ¥21.9 billion
・Core net operating profit increased by ¥4.7 billion year-on-year, mainly due to an increase in net interest income.
・Net operating profit decreased by ¥41.6 billion year-on-year, mainly due to an increase inprovision for general allowance for loan losses.

Core net operating profit

Net operating profit(Billions of yen)

47.4 47.5

52.8 53.8

58.7 59.4

63.4

63.6

68.1
21.9

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18(4) Ordinary profit: ¥8.6 billion
・Ordinary profit decreased by ¥48.4 billion year-on-year, mainly due to an increase in net credit costs.

(5) Net income: ¥5.2 billion
・Net income decreased by ¥36.5 billion year-on-year, mainly due to a decrease in ordinary profit and the absence ofgains on revision of retirement benefit plan (¥2.1 billion) recorded in the previous fiscal year.
(6) Actual credit costs: ¥64.0 billion
・Net credit costs increased by ¥58.7 billion year-on-year, mainly due to an increase (¥46.4 billion) in
provision for general allowance for loan losses, an increase (¥9.6 billion) in disposal of non-performing loans anda decrease (¥2.5 billion) in reversal of allowance for loan losses.
・Actual credit costs, calculated as net credit costs (¥65.3 billion) minus the amount of recoveries on written-off claims(¥1.3 billion) amounted to ¥64.0 billion.

-2-

SURUGA bank, Ltd.

2. Major accounts (Non-consolidated)(1) Loans and bills discounted
・Loans and bills discounted decreased by ¥7.8 billion, or 0.2% year-on-year.
・New consumer loans for the fiscal year ended March 31, 2018 amounted to ¥353.3 billion, and the balance of consumer loans
as of March 31, 2018 increased by ¥18.6 billion, or 0.6% year-on-year.
・Yield on loans and bills discounted (domestic) dropped by 1 basis point year-on-year to 3.61%.

Mar. 31, 2018(a)Loans and bills discounted(period-end balance)
Consumer loans
Secured loans
Unsecured loans
Loans and bills discounted(average balance)
Loan-deposit ratio(period-end balance basis)
Loan-deposit ratio(average balance basis)(a) - (b)(a) - (c)Sep. 30, 2017(b)

(Millions of yen)Mar. 31, 2017(c)

3,245,978(40,069)(7,812)

3,286,047

3,253,790

2,925,991
2,654,576
271,414(37,454)(38,361)906

18,642
4,390
14,252

2,963,445
2,692,937
270,5082,907,349
2,650,186
257,1623,229,776

6,608

93,766

3,223,168

3,136,010

79.3%(1.3)%

0.1%

80.6%

79.2%

79.8%

0.3%

2.5%

79.5%

77.3%

（Reference）
FY3/2018(a)Business alliance with Japan Post Bank
New housing loans (cumulative total)(a) - (b)
(4.3)

35.6

Loans and bills discounted (period-end balance)
Consumer loans (period-end balance)(Billions of yen)
FY3/2017(b)
39.9

Consumer loans ratio
Yield on loans and bills discounted (domestic)(Billions of yen)

3,253.7
3,245.9
3,137.6
2,925.9
3,011.3
2,907.3
2,772.2
2,880.0
2,610.2
2,470.5

85.7%

3.40%

Mar.14Mar.15Mar.16

Mar.17

Mar.18Mar.14

New consumer loans (for the first half)(Billions of yen)

393.2

355.7

88.3%

89.3%

90.1%

3.51%

3.57%

3.62%

3.61%

Mar.15Mar.16

Mar.17

Mar.1886.6%

New consumer loans (for the second half)
465.5

470.0
238.7

353.3

179.3
176.3

193.9

255.7

199.3

209.7

231.2

127.0
226.3

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18(Delinquency rate and loss rate of consumer loans)
Secured loans
Yield

Delinquency rate

Yield

Loss rate

Unsecured loans
Delinquency rate

Loss rate

3.54%

3.60%

3.63%

3.61%

3.55%

11.27%

10.66%

10.37%

10.07%

9.94%

0.30%

0.26%

0.27%

0.25%

0.27%

0.39%

0.46%

0.04%

0.03%

0.05%

0.10%

0.16%
0.02%

0.29%

0.03%

0.11%
0.07%

0.05%

0.06%

0.13%

FY3/18

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/14

FY3/15

FY3/16

FY3/17(Note1) Delinquency rate = Loans past due 3 months or more / Loans(Note2) Loss rate = Default ratio × (1 - Recovery rate)-3-

SURUGA bank, Ltd.
(2) Deposits
・Deposits decreased by ¥15.8 billion, or 0.3% year-on-year.
・Individual deposits increased by ¥1.0 billion, or 0.0% year-on-year.
・Yield on deposits (domestic) dropped by 2 basis points year-on-year to 0.07%.
(Millions of yen)Mar. 31, 2018(a)
4,089,649
3,191,847
4,047,017

Deposits (period-end balance)
Individual deposits
Deposits (average balance)(a) - (b)13,573(16,422)(3,105)(a) - (c)(15,806)
1,010(7,491)

Sep. 30, 2017(b)
4,076,076
3,208,269
4,050,122

Individual deposits ratio
Yield on deposits (domestic)

Deposits (period-end balance)
Individual deposits (period-end balance)(Billions of yen)
3,816.3

2,727.1

Mar.14

4,105.4

4,056.4

3,959.1

Mar.15Mar.16

Mar.17

76.0%

77.7%

78.0%

0.10%

0.10%

0.09%

0.07%

Mar.15Mar.16

Mar.17

Mar.18

71.4%

72.9%

0.09%

Mar.144,089.6

3,190.8

3,085.9

2,889.4

Mar. 31, 2017(c)
4,105,455
3,190,837
4,054,508

3,191.8

Mar.18(3) Net fees and commissions
・Net fees and commissions decreased by ¥1.1 billion year-on-year, mainly due to an increase (¥0.5 billion) in
fees and commissions payments.

Net fees and commissions

Fees and commissions

Fees and commissions payments(Millions of yen)
13,167
11,382(1,784)

FY3/14

13,718
11,714(2,003)

FY3/15

14,952
12,004

14,327
12,002(2,324)(2,947)

FY3/16-4-

FY3/17

14,925
11,417(3,507)

FY3/18SURUGA bank, Ltd.
(4) Individual deposit assets
・Individual deposit assets decreased by ¥21.8 billion year-on-year.
・The ratio of investment products to total individual deposit assets dropped by 70 basis points year-on-year to 4.7%.
(Millions of yen)Mar. 31, 2018(a)Mar. 31, 2017(c)

3,374,713

3,345,282
3,185,938(15,948)1,487

3,201,886

3,367,122
3,184,451

159,344(13,483)(23,326)

172,827

182,670

Foreign currency deposits

5,908

(475)

(478)

6,383

6,386

Public bonds

8,837

(382)

(1,387)

9,219

10,224

Mutual funds

93,654(10,828)(14,334)

104,482

107,988

Personal pension plans

35,697(2,343)(8,084)38,04043,781

15,245543

955

14,702

14,2904.7%(0.4)%(0.7)%

5.1%

5.4%

Individual deposit assets
Yen deposits
Investment products

Single premium life insurance
The ratio of investment products tototal individual deposit assets(a) - (c)(21,840)

Sep. 30, 2017(b)(a) - (b)(29,431)

3. Management indices (Non-consolidated)(1) Interest margins
・Loan-deposit margin (after deduction of expenses) rose by 2 basis points year-on-year to 2.37%.
・Net interest margin rose by 14 basis points year-on-year to 1.68%, mainly due to the rise in return on investments.
(%)
FY3/2018(a)
Loan-deposit margin
Loan-deposit margin(after deduction of expenses)
Net interest margin

FY3/2017(b)

3.52(a) - (b)
0.00

2.37

0.02

2.35

1.68

0.14

1.54

3.52

Loan-deposit margin
Loan-deposit margin (after deduction of expenses)
Net interest margin
3.28%

3.39%

3.45%

3.52%

3.52%

2.06%

2.19%

2.30%

2.35%

2.37%

1.31%

1.35%

1.43%

1.54%

1.68%

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18-5-

SURUGA bank, Ltd.

4. Own capital (Non-consolidated)・Capital adequacy ratio rose by 19 basis points year-on-year to 12.15%.
(%)
Mar. 31, 2018(a)Capital adequacy ratio(domestic standard)(a) - (b)(a) - (c)(0.55)

12.15

267.2

247.6

307.2

279.2

(0.4)%

0.8%(0.0)%

3.6

(1.1)

2.4

(0.0 )

Mar.15Mar.16

Mar.17

12.70

11.96

Capital adequacy ratio

324.7

1.4%

Mar.14Mar. 31, 2017
(c)

0.19

Own capital
Deferred tax assets
Deferred tax assets / Own capital(Billions of yen)Sep. 30, 2017(b)

11.42%

11.59%

11.56%

Mar.14Mar.15Mar.1611.96%

12.15%

Mar.17

Mar.184.8%
15.7

Mar.18-6-

SURUGA bank, Ltd.

5. Unrealized gains (losses) on securities (Non-consolidated)
・Net unrealized gains (losses) on securities increased by ¥1.4 billion year-on-year, mainly due to an increase inunrealized gains on stocks.
(Millions of yen)Mar. 31, 2018(a)
24,81824,604(7)
221

Other securities
Stocks
Bonds
Others(a) - (b)(3,306)(2,102)150(1,354)(a) - (c)
1,465
2,649
108
(1,291)

Sep. 30, 2017(b)
28,12426,706(157)
1,575

Mar. 31, 2017(c)
23,353
21,955(115)
1,512(Millions of yen)Mar. 31, 2018(a)Held-to-maturity bonds(net unrealized gains (losses))(a) - (b)-(a) - (c)-(22)

Sep. 30, 2017(b)Mar. 31, 2017
(c)

-

22

6. Earnings forecast for the fiscal year ending March 31, 2019
Consolidated

Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Net operating profit
Ordinary profit
Net income
Actual credit costs(Billions of yen)
FY3/2019 (forecast)First half
Full year

17.0

36.5

12.0

25.0

(Billions of yen)
FY3/2019 (forecast)First half
Full year
22.0
45.0
35.0
16.5
11.5
24.0
9.5

19.0

(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.

-7-

SURUGA bank, Ltd.

7. Asset quality (Non-consolidated)(1) Non-performing loans based on the Financial Reconstruction Law
・Non-performing loans based on the Financial Reconstruction Law increased by ¥43.2 billion year-on-year.
Non-performing loan ratio rose by 132 basis points year-on-year to 2.20%.
Outstanding balance

Mar. 31, 2018(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total
(A)
Total claims(B)
Non-performing loan ratio(A/B)(a) - (b)(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017(b)(c)(a) - (c)10,573

1,311

2,852

9,262

7,721

47,722
13,874
72,1703,266,815
2.20

35,807
6,271
43,388(39,829)
1.33

34,998
5,362
43,213(7,682)
1.32

11,915
7,603
28,782
3,306,644
0.87

12,7248,512
28,957
3,274,497
0.88

Status of coverage(Millions of yen, %)Non-performing loans
Covered amount (C+D)
Portion secured by collateralor guarantees, etc.
Allowance for loan losses
Coverage ratio (B/A)

(A)
(B)

Claims against
bankrupt andsubstantiallybankrupt
obligors
10,573
10,573(C)

Claims withcollection risk

Claims for
specialattention

Total

Change from
Mar. 31, 2017

47,722
33,205

13,874
8,171

72,17051,951

43,21327,904

6,557

22,6005,777

34,935

14,363(D)

4,016
100.0010,604
69.58

2,394
58.89

17,01571.98

13,540(11.06)

Unsecured portion (A-C)(E)
Allowance ratio for unsecured portion
(D/E)

4,016

25,121

8,097

37,234

28,849100.00

42.21

29.56

45.69

4.25

2,303
100.00

2,253
31.42

3,828
12.09

8,385
41.44

(Reference) As of Mar. 31, 2017
Unsecured portion
Allowance ratio for unsecured portion(Note1) Category IV claims against bankrupt and substantially bankrupt obligors (corresponding to bankrupt and effectively
bankrupt obligors based on self-assessment) which are not covered by collateral or guarantees, etc., are partially written
off. Specific allowance for loan losses is provisioned against claims for which the unrecoverable amounts cannot be
determined due to potential rehabilitation measures, etc.
(Note2) Specific allowance for loan losses against claims with collection risk (corresponding to potentially bankrupt obligors
based on self-assessment) is calculated by multiplying the amount of category III claims not covered by collateral or
guarantees, etc., by an estimated loan loss ratio based on historical loan loss ratios for the previous three reporting
periods.
(Note3) General allowance for loan losses against claims for special attention is calculated by multiplying the total amount of suchclaims (categories I and II) by an estimated loan loss ratio based on historical loan loss ratios for the previous threereporting periods.
(Note4) As for large claims against potentially bankrupt and substandard obligors, for which the future cash flow can bereasonably estimated, allowance for loan losses is calculated using the Discounted Cash Flow method.

Claims against bankrupt and substantiallybankrupt obligors
Claims with collection risk

Non-performing loan ratio
Non-performing loan ratio (after deduction ofallowance)
Non-performing loan ratio (after deduction ofcollateral, guarantees and allowance)

Claims for special attention
72.1(Billions of yen)
51.1
8.2
21.9
20.9

Mar.14

10.5

45.7
7.5
18.8
19.3

Mar.15

38.0
7.1
15.9

28.9

1.76%
47.7

14.9

7.7
12.7
8.5

13.8

Mar.16

Mar.17

Mar.18

2.20%
1.50%

1.20%

0.88%

1.48%

1.26%

0.30%

0.27%

1.02%
0.18%

0.14%

Mar.14Mar.15Mar.16

Mar.17

-8-

1.68%

0.77%
0.61%

Mar.18SURUGA bank, Ltd.
(2) Risk-monitored loans

Loans to bankrupt obligors
Non-accrual delinquent loans
Loans past due 3 months or more
Restructured loans
Total

Mar. 31, 2018
(a)
1,970
56,2491,295
12,57872,094(a) - (b)1,198
35,936623
5,648
43,405(a) - (c)1,070
36,754
1,100
4,261
43,186

72.11(13.25)(10.90)Coverage ratio(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017
(b)
(c)
772
900
20,313
19,495
672
195
6,930
8,317
28,68928,908
85.36

83.01

8. Credit costs (Non-consolidated)
FY3/2018(a)
46,49918,864
3,827
12,279
2,745
11
1,346
65,36364,016
3,229,776

Provision for general allowance for loan losses(1)
Disposal of non-performing loans(2)
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses
Reversal of allowance for loan losses(3)
Recoveries on written-off claimsA
Net credit costs(4) (=(1)+(2)- (3))
Actual credit costs(4)- A
Loans and bills discounted (average balance)(a) - (b)46,4999,699(3,333)
12,279831(79)(2,590)342
58,78858,44593,766

Net credit costs ratio
2.02
1.82
Actual credit costs ratio
1.98
1.81
(Note1) Net credit costs ratio = Net credit costs / Loans and bills discounted (average balance)(Note2) Actual credit costs ratio = Actual credit costs / Loans and bills discounted (average balance)

Risk-monitored loans
Actual credit costs
Actual credit costs ratio(Billions of yen)

72.0 64.0

50.9

45.6
0.03%

0.03%

1.0

0.9

Mar.14Mar.1537.9 0.14%
4.4

28.9

Mar.16

Mar.17

-9-

0.17%

1.98%

5.5
Mar.18(Millions of yen, %)FY3/2017
(b)
9,165
7,160
1,914
90
2,590
1,004
6,575
5,571
3,136,010
0.20
0.17

SURUGA bank, Ltd.

9. Dividends
・The company has decided to pay a year-end dividend of ¥10.5 per share and an annual dividend of ¥21.0 per sharewith the aim of enhancing shareholder returns.
For the fiscal year ending March 31, 2019, the company is forecasting an annual dividend of ¥21.0 per sharein light of the company’s earnings forecast and other factors.
(yen)
FY3/2018(a)(a) - (b)

21.00
10.50
10.50
10.50
-

Annual dividend per share
Interim dividend
Year-end dividend
Ordinary dividend
Special dividend(1.00)
0.50(1.50)(0.50)(1.00)

FY3/2017(result)
(b)
22.00
10.00
12.00
11.00
1.00

Year-end dividend per share (Special dividend)Year-end dividend per share (Commemorative dividend)Year-end dividend per share (Ordinary dividend)Interim dividend per share

20.0
1.0
(yen)

22.0
1.0

21.0

21.0

11.0

10.5

10.5

9.5

10.0

10.5

10.5

FY3/16

FY3/17

FY3/18

FY3/19

20.0

17.0
15.0

13.0

13.0

10.5

13.0

10.5
9.5
8.5

6.5

6.5

6.5

6.5

6.5

6.5

6.5

FY3/10FY3/11

FY3/12

FY3/138.5

7.5

FY3/14

FY3/15(forecast)- 10 -SURUGA bank, Ltd.

Ⅱ. Financial data for the fiscal year ended March 31, 2018
1. Details of financial results (Non-consolidated)

Gross operating profit(excluding gains (losses) on bonds)
Domestic gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
International gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
Expenses (excluding non-recurring losses)
Personnel expenses
Non-personnel expenses
Taxes
Net operating profit(before provision for general allowance for loan losses)(excluding gains (losses) on bonds)
Provision for general allowance for loan losses (Note)
Net operating profit
Gains (losses) on bonds
Non-recurring gains (losses)
Reversal of allowance for loan losses (Note)
Recoveries on written-off claims
Gains (losses) on stocks
Ordinary profit
Extraordinary gains (losses)
Gains (losses) on disposal of non-current assets
Gains on disposal of non-current assets
Losses on disposal of non-current assets
Gains on revision of retirement benefit plan
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income

（
（

（
（

（

(1)Provision for general allowance for loan losses (Note)(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses (Note)
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3)Reversal of allowance for loan losses (Note)(4)Net credit costs (1)+(2)-(3)(5)Recoveries on written-off claims(6)Actual credit costs (4)-(5)(Millions of yen)
FY3/2017(b)
110,852
110,686 ）
110,596
110,291 ）
112,636(2,344)
304
304 ）
255
395 ）
304
20
(68)
(139) ）
47,24018,362
25,131
3,747

FY3/2018(a)
115,171
114,890
114,776
114,495
118,025(3,529)
280
281
395
395
310
22
62
46,742
17,77725,0783,886(a) - (b)
4,319
4,204
4,180
4,204
5,389
(1,185)
(24)
(23)
140
0
6
2
130
139
(498)
(585)
(53)
139

68,4294,818

63,611

68,14846,49921,930281(13,258)
1,346
5,454
8,670
(414)
(414)
59
474
8,256
19,328(16,296)
3,032
5,223

4,703
46,499(41,681)
116(6,808)(2,590)342
5,960(48,490)(2,267)
(134)
23
158
(2,134)(50,757)
4,114(18,367)(14,253)(36,505)

63,44563,611
165(6,450)
2,590
1,004
(506)
57,160
1,853
(280)
36
316
2,134
59,013
15,214
2,071
17,28541,72846,49918,864
3,827
12,2792,745
1165,363
1,346
64,01646,4999,699(3,333)
12,279831(79)(2,590)58,788342
58,445

9,165
7,160
1,914
90
2,590
6,575
1,004
5,571

(Note) For the fiscal year ended March 31, 2017, the net amount of Reversal of general allowance for loan losses and Provision for
specific allowance for loan losses is recorded in Reversal of allowance for loan losses, given that the former exceeded thelatter during the period.

- 11 -SURUGA bank, Ltd.

Details of financial results (Consolidated)(Millions of yen)

Consolidated gross profit
Net interest income
Net fees and commissions
Net other operating income
Expenses (excluding non-recurring losses)
Actual credit costs
Gains (losses) on stocks
Equity in gains (losses) of affiliates
OthersOrdinary profit
Extraordinary gains (losses)
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent(1)Provision for general allowance for loan losses(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3)Reversal of allowance for loan losses(4)Net credit costs (1)+(2)-(3)(5)Recoveries on written-off claims(6)Actual credit costs (4)-(5)FY3/2018(a)126,199
127,082(1,698)815
51,09068,8635,454
4(1,178)
10,525(420)
10,10519,927(17,020)
2,906
209
6,988

(a) - (b)
5,905
6,651
(815)
70
(213)
58,975
5,967
3
(810)
(47,697)(2,255)(49,952)
4,146(18,508)(14,364)50(35,639)

FY3/2017(b)
120,294
120,431(883)
745
51,303
9,888
(513)
1
(368)
58,222
1,835
60,057
15,781
1,488
17,270159
42,62747,28323,374
5,938
13,2624,161
1170,657
1,793
68,86347,283
11,219(3,443)
13,262
1,478
(79)
(927)
59,429454
58,975

12,155
9,381
2,683
90
927
11,2281,339
9,888(Note) Consolidated gross profit = (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions
payments) + (Other operating income - Other operating expenses)(Reference)
Consolidated net operating profit

27,825(41,166)(Millions of yen)
68,991(Note) Consolidated net operating profit = Consolidated gross profit - Consolidated expenses - Consolidated provision for generalallowance for loan losses(Number of consolidated subsidiaries and affiliates)
Consolidated subsidiaries
Equity-method accounted affiliates

91-(Companies)
91

2. Net operating profit (Non-consolidated)(Millions of yen)
FY3/2018(a)
21,93014,333

Net operating profit
Per employee (Thousands of yen)

- 12 -(a) - (b)(41,681)(26,235)

FY3/2017(b)
63,611
40,568SURUGA bank, Ltd.

3. Interest margins (Non-consolidated)
Overall(%)
FY3/2018(a)

Return on investments(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)FY3/2017(b)(a) - (b)
2.93
3.61
3.63
1.24
0.08

0.12
(0.01)
2.37(0.03)(0.02)

2.81
3.62
1.26
1.27
0.10

2.37

0.02

2.35

1.68

0.14

1.54

Domestic(%)
FY3/2018(a)

Return on investments(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)FY3/2017(b)(a) - (b)
2.92
3.61
3.74
1.20
0.07

0.11
(0.01)
2.46(0.03)(0.02)

2.81
3.62
1.28
1.23
0.09

2.40

0.02

2.38

1.72

0.14

1.58

4. ROA and ROE (Non-consolidated)(%)
FY3/2018
(a)
ROA
ROE

Net operating profit basis
Net income basis
Net operating profit basis
Net income basis

FY3/2017(b)(a) - (b)
0.49
0.11
7.02
1.67

(0.96)(0.84)(16.06)(13.47)

1.45
0.95
23.08
15.14

5. Gains (losses) on securities (Non-consolidated)(Millions of yen)
FY3/2018(a)

FY3/2017(b)(a) - (b)Gains (losses) on bonds
Gains on sales
Gains on redemptions
Losses on sales
Losses on redemptions
Losses on devaluation

281
0
396
116
-

116
(2)
(77)
(194)
-

165
2
473
310
-

Gains (losses) on stocks
Gains on sales
Losses on sales
Losses on devaluation

5,454
5,465
0
10

5,960
5,336
0
(626)

(506)
129
636

- 13 -SURUGA bank, Ltd.

6. Capital adequacy ratio (domestic standard)
Non-consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital:
instruments and reserves
Core capital:
regulatory adjustments (-)
Risk-weighted assets(Millions of yen)Mar. 31, 2018(a)12.15%
324,772(a) - (b)0.19%
17,479Mar. 31, 2017(b)
11.96%
307,293343,370

22,116321,254

18,597

4,637

13,9602,671,108

103,616

2,567,492

Consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital:
instruments and reserves
Core capital:
regulatory adjustments (-)
Risk-weighted assets(Millions of yen)Mar. 31, 2018(a)12.22%
331,014(a) - (b)0.05%
15,121Mar. 31, 2017(b)
12.17%
315,893353,473

21,235332,238

22,459

6,114

16,3452,708,022

113,3232,594,699- 14 -SURUGA bank, Ltd.

7. Composition of own capital (domestic standard)(Millions of yen）
Mar. 31, 2018
Non-consolidated
Consolidated
Amounts
Amounts
excluded
excluded
under
under
transitionaltransitionalarrangearrangements
mentsCore capital: instruments and reserves(1)
Directly issued qualifying common stock or preferred stock mandatorily convertible into common
312,709
stock capital plus related capital surplus and retained earnings
Capital and capital surplus
48,633Retained earnings
267,090
Treasury shares (-)
582
Earnings to be distributed (-)
2,432
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
17
common stock
Adjusted non-controlling interests (amount allowed to be included in Core capital)
Reserves included in Core capital: instruments and reserves
30,643General allowance for loan losses
30,643
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)
343,370
Core capital: regulatory adjustments(2)
Total intangible fixed assets (net of related tax liability, excluding those relating to mortgage
13,859servicing rights)
Goodwill (including those equivalent)
Other intangible fixed assets other than goodwill and mortgage servicing rights
13,859Deferred 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
4,738
Net defined benefit asset
Investments in own shares (excluding those reported in the net assets)
0
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 scope of
regulatory consolidation (“Other financial institutions”), net of eligible short positions, where thebank 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)
18,597
Total capital
Total capital
(A-B)
(C)
324,772
Risk-weighted assets(3)
Credit risk-weighted assets
2,451,486
Total of items included in risk-weighted assets subject to transitional arrangements
22,457
Intangible fixed assets other than goodwill and mortgage servicing rights (net of related tax
4,971
liability)_
Deferred tax assets (net of related tax liability)
15,786
Prepaid pension cost _1,699
Net defined benefit asset
Amount equivalent to market risk × 12.5
Amount equivalent to operational risk × 12.5
219,621
Credit risk-weighted assets adjustments
Amount equivalent to operational risk adjustments
Total amount of risk-weighted assets(D)
2,671,108
Capital adequacy ratio (non-consolidated)
Capital adequacy ratio (non-consolidated)(C/D)
12.15%
Capital adequacy ratio (consolidated)
Capital adequacy ratio (consolidated)(C/D)-- 15 -

320,359
30,532292,841
582
2,432
1,122
1,122
17
30,72730,727
1,246
353,473
3,464

15,919

3,526

3,464

1,812
14,106

3,526

-

581

-

1,184
-

5,860
0
-

1,465
-

-

-

-

1,512

97

912

-

-

-

1,512
-

97
22,459912-

331,0142,458,203
23,856
5,059
16,6952,101
249,818
2,708,022
12.22%SURUGA bank, Ltd.

Ⅲ. Status of loans, etc.
Comparison of asset disclosure by standard
Non-consolidated (As of March 31, 2018)
Classification and status of coverage by disclosure standard
Self-assessment result(by obligor classification)* Includes total claims (“Claims for special
attention” includes only loans and bills
discounted).

* Includes total claims.

Classification

Category
Creditbalance

Nonclassification

Classification
Ⅱ

1,113

858

Category

Classification
Ⅲ

ClassificationⅣ

Creditbalance

Bankrupt obligors
1,971
[796]

-

[796]

Effectively
bankrupt obligors
3,647

4,954

-

8,601
[3,219][3,219]Potentiallybankrupt obligors
15,39017,81547,722[10,604]

Substandard
obligors
Obligors
requiring
cautionNon-performing loans based on
the Financial Reconstruction Law

14,516[10,604]-

Claimsagainstbankrupt
andsubstantiallybankrupt
obligors

CollateralorAllowance
guarantees,
etc.

6,557

4,016

* Includes loans andbills discounted.

Coverage
ratio

22,60010,60469.58%

47,722Claims for
specialattention
449

19,077

-

-

5,777

2,394

Category

Outstandingbalance

Loans tobankrupt
obligors

1,970

Non-accrualdelinquentloans

56,249Loans pastdue 3 months
or more1,295

Restructured
loans

12,578

Total

72,094100%

10,573Claims withcollection
risk(Millions of yen)
Risk-monitoredloans

58.89%

13,874
Subtotal

19,52734,93517,01571.98%

72,170Other
obligors
requiring
caution20,770273,259--

294,029

Normalassets3,194,644

Normal obligors
2,894,961---

2,936,332

315,965

14,516[10,604][4,016]2,894,961
Total
3,266,815[14,621]

Total
3,266,815(Note1) “Total claims” includes “Loans and bills discounted”, “Customers’ liabilities for acceptances and guarantees”, “Foreignexchanges”, “Securities lent”, “Suspense payment” and “Accrued interest”.
(Note2) Numbers shown in brackets under “Self-assessment result” represent the reserved amount for each category.

- 16 -SURUGA bank, Ltd.

1. Risk-monitored loans
The following table shows figures after deduction of partial direct write-off of loans.
The amounts of partial direct write-off of loans for the fiscal year ended March 31, 2018 were as follows:(a) Non-consolidated: ¥4,128 million; (b) Consolidated: ¥5,885 million
Loans to “Potentially bankrupt obligors”, “Effectively bankrupt obligors” and “Bankrupt obligors” under self-assessment areplaced on non-accrual status.
Non-consolidated

Loans to bankrupt obligors
Non-accrual delinquent loans

Riskmonitored Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)
Loans to bankrupt obligors％ to loans Non-accrual delinquent loans
and bills Loans past due 3 months or morediscounted Restructured loans
Total(Millions of yen, %)Mar. 31, 2018
(a)
1,970
56,2491,295
12,57872,094(a) - (b)1,198
35,936623
5,648
43,405(a) - (c)1,070
36,754
1,100
4,261
43,186

Sep. 30, 2017(b)
772
20,313672
6,930
28,689Mar. 31, 2017(c)
900
19,495
195
8,317
28,9083,245,978(40,069)(7,812)

3,286,047

3,253,790

0.06
1.73
0.03
0.38
2.22

0.04
1.12
0.01
0.17
1.35

0.04
1.14
0.03
0.13
1.34

0.02
0.61
0.02
0.21
0.87

0.02
0.59
0.00
0.25
0.88

Consolidated

Loans to bankrupt obligors
Non-accrual delinquent loans
Riskmonitored Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)
Loans to bankrupt obligors％ to loans Non-accrual delinquent loans
and bills Loans past due 3 months or morediscounted Restructured loans
Total(Millions of yen, %)Mar. 31, 2018
(a)
2,987
62,346
1,295
12,57879,207(a) - (b)1,492
35,885623
5,648
43,648(a) - (c)1,353
36,743
1,100
4,261
43,457

Sep. 30, 2017
(b)
1,495
26,461672
6,930
35,559Mar. 31, 2017
(c)
1,634
25,603
195
8,317
35,7503,248,159(38,743)(5,564)

3,286,902

3,253,723

0.09
1.91
0.03
0.38
2.43

0.05
1.11
0.01
0.17
1.35

0.04
1.13
0.03
0.13
1.34

0.04
0.80
0.02
0.21
1.08

0.05
0.78
0.00
0.25
1.09

- 17 -SURUGA bank, Ltd.

2. Allowance ratio for risk-monitored loans
Non-Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Mar. 31, 2018(a)
72,09434,89417,092
23.70
72.11(a) - (b)43,405
13,878
13,617
11.59(13.25)(a) - (c)43,186
14,352
13,635
11.75(10.90)(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017(b)(c)
28,68928,90821,016
20,542
3,475
3,457
12.11
11.95
85.36
83.01

(a) - (c)43,457
14,456
13,691
7.08(9.89)(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017(b)(c)
35,55935,75023,45922,947
6,540
6,651
18.39
18.60
84.36
82.79

(a) - (c)58,10646,49911,607(Millions of yen)Sep. 30, 2017
Mar. 31, 2017(b)(c)
12,191
11,983
8,904
8,983
3,078
3,207

(a) - (c)58,913
47,231
11,682(Millions of yen)Sep. 30, 2017
Mar. 31, 2017(b)(c)
19,70819,305
12,601
12,951
6,703
6,756(a) - (c)Sep. 30, 2017(b)

(Millions of yen)Mar. 31, 2017(c)Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Mar. 31, 2018(a)
79,20737,403
20,342
25.68
72.90(a) - (b)43,648
13,944
13,802
7.29(11.46)

3. Allowance for loan losses
Non-consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses

Mar. 31, 2018(a)
70,08955,403
14,685(a) - (b)57,89846,42011,478

Consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses

Mar. 31, 2018(a)
78,21859,832
18,385(a) - (b)58,51046,881
11,6294. Non-performing loans based on the Financial Reconstruction Law
Non-consolidated
Mar. 31, 2018(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total

(A)

(a) - (b)10,573

1,311

2,852

9,262

7,721

47,722
13,874
72,17035,807
6,271
43,38834,998
5,362
43,213

11,915
7,603
28,782

12,7248,512
28,957

5. Status of coverage of non-performing loans based on the Financial Reconstruction Law
Non-consolidated

Total coverage
Allowance for loan losses
Collateral or guarantees, etc.
Coverage ratio(B)Mar. 31, 2018(a)
51,951
17,01534,935(a) - (b)27,367
13,512
13,855(a) - (c)27,904
13,54014,363

(B/A)

71.98

(13.43)(11.06)- 18 -(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017(b)(c)
24,58424,0473,503
3,475
21,08020,572
85.41

83.04

SURUGA bank, Ltd.

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry (Non-consolidated)
Mar. 31, 2018(a)Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others(Millions of yen)(a) - (b)(a) - (c)Sep. 30, 2017(b)Mar. 31, 2017(c)

3,245,978(40,069)(7,812)

3,286,047

3,253,790

54,276
4,949
37
15,4091,001
1,655
13,84735,852
74,77369,35833,646
7,295
2,933,868

(6)
(101)
(1)
201
(2,125)164
610(1,633)742(982)(2,033)
1,609(36,516)(12,463)(201)(3)(1,273)(4,018)150
330(3,136)(15)(2,064)(2,610)(2,406)
19,89654,2825,050
38
15,2083,126
1,491
13,23737,48574,031
70,34035,6795,686
2,970,384

66,7395,150
40
16,682
5,019
1,505
13,51738,98874,78871,42236,2569,701
2,913,972(2) Breakdown of risk-monitored loans by industry (Non-consolidated)
Mar. 31, 2018(a)Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others(a) - (b)(Millions of yen)(a) - (c)Sep. 30, 2017(b)Mar. 31, 2017(c)

72,094

43,40543,186

28,68928,908

1,549
33
1,518
10
125
93
2,601
2,158
1,757
62,245

(4)
0
(40)
(1)
0
(8)
(244)
(285)
(35)
44,024(1,763)
(29)
0
(293)
10
0
(38)
(369)
(451)
(139)
46,259

1,553
33
1,558
11
125
101
2,845
2,443
1,792
18,221

3,312
29
33
1,811
125
131
2,970
2,609
1,896
15,986- 19 -SURUGA bank, Ltd.

(3) Consumer loans (Non-consolidated)

Consumer loans
Secured loans
Unsecured loans(Millions of yen)Mar. 31, 2018(a)2,925,991
2,654,576
271,414(a) - (b)(37,454)(38,361)906(a) - (c)18,642
4,390
14,252

Sep. 30, 2017(b)
2,963,445
2,692,937
270,508(4) The ratio of loans to small- and medium-sized enterprises, etc. (Non-consolidated)
Mar. 31, 2018(a)
The ratio of loans to small- andmedium-sized enterprises, etc.

96.65(a) - (b)(%)(a) - (c)(0.09)

Mar. 31, 2017(c)
2,907,349
2,650,186
257,162

0.54

Sep. 30, 2017(b)Mar. 31, 2017
(c)

96.74

96.11

7. Loan breakdown by country(1) Loans to specific foreign countries (Non-consolidated)
Not applicable.
(2) Loans to Asian countries (Non-consolidated)
Not applicable.

8. Deposits and loans (Non-consolidated)(Millions of yen)

Deposits
Loans

period-end balance
average balance
period-end balance
average balance

Mar. 31, 2018(a)
4,089,649
4,047,017
3,245,9783,229,776(a) - (b)13,573(3,105)(40,069)
6,608(a) - (c)(15,806)(7,491)(7,812)
93,766

Sep. 30, 2017(b)
4,076,076
4,050,122
3,286,047
3,223,168

Mar. 31, 2017(c)
4,105,455
4,054,508
3,253,790
3,136,010

9. Number of branches (Non-consolidated)(Branches)

Number of branches

Mar. 31, 2018(a)132

- 20 -(a) - (b)(a) - (c)-(1)

Sep. 30, 2017(b)132

Mar. 31, 2017(c)133

SURUGA bank, Ltd.

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Non-consolidated(Millions of yen)Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Fair
Fair
Fair
value
value
value
Gains Losses
Gains Losses
Gains Losses

Other
487
116,151 24,818 25,400
581 111,220 28,124 28,530
406 90,702 23,353 23,840
securities
106 47,380 21,955 22,088
Stocks41,275 24,604 24,699
95 46,085 26,706 26,813
132
213 30,910
(115)
62
Bonds
62,850(7)90
98 55,477
(157)
55
178
85
12,411
1,512
1,689
Others12,025
221
609
388
9,657
1,575
1,661
176
(Note1) Amounts less than one million yen are rounded down.
(Note2) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note3) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.
(Note4) Unrealized gains (losses) on held-to-maturity bonds were as shown in the table below.
(Millions of yen)Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Book
Book
Book
value
value
value
Gains Losses
Gains Losses
Gains Losses
Held-tomaturity
22
22- 45,001
bonds
Consolidated(Millions of yen)Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Fair
Fair
Fair
value
value
value
Gains Losses
Gains Losses
Gains Losses

Other
406 92,250 24,680 25,167
487
118,214 26,659 27,241
581 113,177 29,860 30,266
securities
106 47,855 22,334 22,466
Stocks41,970 25,201 25,296
95 46,765 27,289 27,396
132
(157)
55
213 30,910
(115)
62
Bonds
62,850(7)90
98 55,477
178
2,728
2,814
85 13,484
2,461
2,637
Others13,3931,464
1,853
388 10,934
176(Note1) Amounts less than one million yen are rounded down.
(Note2) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note3) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.
(Note4) Unrealized gains (losses) on held-to-maturity bonds were as shown in the table below.
(Millions of yen)Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Book
Book
Book
value
value
value
Gains Losses
Gains Losses
Gains Losses
Held-tomaturity
22
22- 45,001
bonds- 21 -SURUGA bank, Ltd.

Ⅴ. Retirement benefits
1. Retirement benefit expenses
Non-consolidated
FY3/2018
Service cost
Interest cost
Expected returns on plan assets
Amortization of unrecognized prior service cost
Amortization of unrecognized net actuarial gains (losses)
Others (non-recurring extra retirement payments, etc.) (Note1)
Retirement benefit expenses

553
113
(731)
(159)
233
8

(Millions of yen)
FY3/2017
782
126
(749)
8
(270)
16
(86)

(Note1) “Others (non-recurring extra retirement payments, etc.)” for the fiscal year ended March 31, 2018 includes contribution toa defined contribution pension plan.
Consolidated
FY3/2018
Service cost (Note1)
Interest cost
Expected returns on plan assets
Amortization of unrecognized prior service cost
Amortization of unrecognized net actuarial gains (losses)
Others (non-recurring extra retirement payments, etc.) (Note2)
Retirement benefit expenses

576
113
(731)
(159)
245
44

(Millions of yen)
FY3/2017
824
126
(749)
8
(270)
16
(43)

(Note1) Retirement benefit expenses of consolidated subsidiaries adopting a simplified method are included in “Service cost”.
(Note2) “Others (non-recurring extra retirement payments, etc.)” for the fiscal year ended March 31, 2018 includes contribution toa defined contribution pension plan.

- 22 -

(Before amendment)
May 15, 2018

SURUGA bank, Ltd.
Consolidated financial results for the fiscal year ended March 31, 2018
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Akihiro Yoneyama, President
Dividend payment date: June 13, 2018
(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the fiscal year ended March 31, 2018
(1) Consolidated operating results(% represents the change from the previous fiscal year)
Profit attributable
Ordinary profit
to owners of parent

Ordinary income

Fiscal year ended
Millions of yen%
Millions of yen%
March 31, 2018
156,278
7.2
30,871(46.9)March 31, 2017
145,753
4.5
58,222
3.2(Note) Comprehensive income: (a) Fiscal year ended March 31, 2018: ¥23,723 million [(44.5) %](b) Fiscal year ended March 31, 2017: ¥42,776 million [46.1 %]Earnings per share

Earnings per share(diluted)

Return on
net assets

Millions of yen%

21,06542,627(50.5)
16.0

Ordinary profit
on total assets

Fiscal year ended
yen
yen
%
March 31, 2018
90.94
90.92
6.0
March 31, 2017184.10184.02
13.3(Reference) Equity in gains (losses) of affiliates: (a) Fiscal year ended March 31, 2018: ¥4 million(b) Fiscal year ended March 31, 2017: ¥1 million

Ordinary profit
on ordinary income

%

%

0.6
1.3

19.7
39.9

(2) Consolidated financial position
Total assets
Total net assets
Net assets ratio
Net assets per share
As ofMillions of yen
Millions of yen%
yen
March 31, 2018
4,475,653
358,840
7.9
1,540.13
March 31, 2017
4,471,725
340,379
7.5
1,459.48(Reference) Shareholders’ equity: (a) As of March 31, 2018: ¥356,744 million; (b) As of March 31, 2017: ¥338,029 million(Note) Nets 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”.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2018
March 31, 2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at year-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

32,724(43,542)

16,98478,403(5,262)(4,635)

968,741924,300

2. Dividends on common stock
1st
quarter-end

Dividends per share
2nd
Fiscal3rd
year
quarterquarter
-end
-end
-end

Total

Dividend
payout ratio

Total
dividends(Consolidated)

Fiscal year
yen
yen
yen
yen
yen
Millions of yen
ended March 31, 2017
10.00
12.00
22.00
5,094
ended March 31, 2018
10.50
10.50
21.00
4,864
ending March 31, 2019
10.50
10.50
21.00
(forecast)(Note) Breakdown of fiscal year-end dividend for the fiscal year ended March 31, 2017:(a) Ordinary dividend: ¥11.00; (b) Special dividend: ¥1.00

Dividend on
net assets
ratio(Consolidated)

%

%

11.9
23.0

1.5
1.4

19.4

3. Consolidated earnings forecast for the fiscal year ending March 31, 2019(% represents the change from the same period in the previous fiscal year)
Profit attributable
Earnings per share
Ordinary profit
to owners of parent
Millions of yen

1H, FY3/2019
FY3/2019

17,00036,500%(45.4)
18.2

Millions of yen

12,00025,000%yen(43.3)
18.6

51.80
107.92

(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 Mar. 31, 2018
(including treasury shares):(B) Number of treasury shares:

As of Mar. 31, 2018

(C) Average number of shares:

Fiscal year ended
Mar. 31, 2018

232,139,248 shares

As of Mar. 31, 2017

232,139,248 shares

507,295 shares

As of Mar. 31, 2017

530,965 shares

231,619,388 sharesFiscal year ended
Mar. 31, 2017

231,538,348 shares(Reference) Summary of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2018
(1) Non-consolidated operating results(% represents the change from the previous fiscal year)
Ordinary profit
Net income

Ordinary income
Fiscal year ended
March 31, 2018
March 31, 2017

Millions of yen%

Millions of yen%

Millions of yen%

141,533
134,286

5.3
5.5

29,01757,160(49.2)
5.0

19,29941,728(53.7)
16.5

Earnings per share
Fiscal year ended
March 31, 2018
March 31, 2017

Earnings per share(diluted)

yen

yen

83.32
180.2283.30
180.14(2) Non-consolidated financial position
Total assets
Total net assets
Net assets ratio
Net assets per share
As ofMillions of yen
Millions of yen%
yen
March 31, 2018
4,465,765
346,7877.7
1,497.07
March 31, 2017
4,465,825
331,551
7.4
1,431.41(Reference) Shareholders’ equity: (a) As of March 31, 2018: ¥346,770 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, 2019
Ordinary profit(% represents the change from the same period in the previous fiscal year)
Net income
Earnings per share

Millions of yen

1H, FY3/2019
FY3/2019

16,50035,000%(44.8)
20.6

Millions of yen

11,50024,000%(43.8)
24.3

yen

49.64
103.61(Note) This report is outside the scope of audit procedures by certified public accountants or audit firms.
(Note) 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 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.

SURUGA bank, Ltd.

(Appendix)
Table of contents

1. Overview of operating results, etc. ···································································· 2(1) Overview of operating results ······································································ 2(2) Overview of financial position ····································································· 3(3) Future outlook························································································ 4
2. Basic approach to the selection of accounting standards ··········································· 4
3. Consolidated financial statements and notes ························································· 5(1) Consolidated balance sheets········································································ 5(2) Consolidated statements of income and Consolidated statements of comprehensive income ·········· 7(3) Consolidated statements of changes in net assets ··············································· 9(4) Consolidated statements of cash flows ·························································· 11(5) Notes to consolidated financial statements ····················································· 12(Notes on going-concern assumption) ···························································· 12(Changes in accounting policies, changes in accounting estimates and restatements) ····· 12(Segment information)·············································································· 13(Per share data) ······················································································ 14(Significant subsequent events) ··································································· 14
4. Non-consolidated financial statements ····························································· 15(1) Non-consolidated balance sheets ································································ 15(2) Non-consolidated statements of income ························································ 17(3) Non-consolidated statements of changes in net assets ········································ 18* Financial results for the fiscal year ended March 31, 2018 supplementary information-1-

SURUGA bank, Ltd.

1. Overview of operating results, etc.
(1) Overview of operating results
In the fiscal year ended March 31, 2018, the Japanese economy witnessed signs of moderate recovery on theback of the improvement in corporate earnings, supported by the economic recovery in Japan as well as
overseas. Japan’s real GDP recorded eight consecutive quarters of growth up to the fourth quarter(October-December) of 2017 for the first time in 28 years.
Under such business conditions, consolidated ordinary income increased by ¥10.525 billion year-on-year to¥156.278 billion. This was mainly due to the growth in interest income reflecting the rise in interest on loans
and bills discounted. Meanwhile, ordinary expenses increased by ¥37.876 billion year-on-year to ¥125.406
billion, mainly due to an increase in other expenses. As a result, ordinary profit decreased by ¥27.351 billion
year-on-year to ¥30.871 billion, and profit attributable to owners of parent decreased by ¥21.562 billion
year-on-year to ¥21.065 billion.
Non-consolidated operating results were as follows:(A) Gross operating profit
Gross operating profit increased by ¥4.319 billion year-on-year to ¥115.171 billion on the back of therise (¥5.396 billion) in net interest income.
(B) Expenses
Expenses decreased by ¥0.498 billion year-on-year to ¥46.742 billion.
(C) Net operating profit
Core net operating profit increased by ¥4.703 billion year-on-year to ¥68.148 billion, mainly due to anincrease in net interest income.
Net operating profit decreased by ¥21.413 billion year-on-year to ¥42.198 billion, mainly due to anincrease in provision for general allowance for loan losses.
(Note) Core net operating profit = Net operating profit + Provision for general allowance for loan losses- Gains (losses) on bonds(D) Ordinary profit
Ordinary profit decreased by ¥28.143 billion year-on-year to ¥29.017 billion, mainly due to an increasein net credit costs.
(E) Net income
Net income decreased by ¥22.429 billion year-on-year to ¥19.299 billion, mainly due to a decrease inordinary profit and the absence of gains on revision of retirement benefit plan (¥2.134 billion) recorded in
the previous fiscal year.
(F) Net credit costs
Provision for general allowance for loan losses increased by ¥26.230 billion year-on-year. Disposal of
non-performing loans increased by ¥9.620 billion year-on-year to ¥18.785 billion. Meanwhile, reversal of
allowance for loan losses decreased by ¥2.590 billion year-on-year. As a result, net credit costs increasedby ¥38.441 billion year-on-year to ¥45.016 billion.
Actual credit costs increased by ¥38.099 billion year-on-year to ¥43.670 billion.
(Note) Net credit costs = Provision for general allowance for loan losses+ Disposal of non-performing loans - Reversal of allowance for loan losses(Note) Actual credit costs = Net credit costs - Recoveries on written-off claims-2-

SURUGA bank, Ltd.

(2) Overview of financial position
As for consolidated major account balances, loans and bills discounted came in at ¥3,248.159 billion, downby ¥5.564 billion year-on-year, despite the growth in consumer loans through continuing to engage primarily inthe retail banking business. Securities amounted to ¥131.537 billion, down by ¥16.990 billion year-on-year.
Deposits amounted to ¥4,079.972 billion, down by ¥15.537 billion year-on-year.
Non-consolidated major account balances were as follows:(A) Loans and bills discounted
Loans and bills discounted came in at ¥3,245.978 billion, down by ¥7.812 billion year-on-year, despite
the growth in consumer loans. Consumer loans amounted to ¥2,925.991 billion, up by ¥18.642 billion
year-on-year. The average balance of loans and bills discounted in the fiscal year amounted to ¥3,229.776
billion, up by ¥93.766 billion year-on-year.
(B) Securities
Securities amounted to ¥136.822 billion, down by ¥17.518 billion year-on-year.
(C) Deferred tax assets (liabilities)
Deferred tax assets amounted to ¥9.516 billion, mainly due to an increase in allowance for loan losses.
(D) Deposits
Deposits amounted to ¥4,089.649 billion, down by ¥15.806 billion year-on-year. Individual deposits
amounted to ¥3,191.847 billion, up by ¥1.010 billion year-on-year. The average balance of deposits in thefiscal year amounted to ¥4,047.017 billion, down by ¥7.491 billion year-on-year.
As for consolidated cash flows, cash flow from operating activities was a net inflow of ¥32.724 billion(compared to a net outflow of ¥43.542 billion in the previous fiscal year), given that inflows due mainly to adecrease in loans and bills discounted exceeded outflows due mainly to a decrease in deposits. Cash flow frominvesting activities was a net inflow of ¥16.984 billion (compared to a net inflow of ¥78.403 billion in theprevious fiscal year), mainly due to proceeds from redemption of securities. Cash flow from financing activities
was a net outflow of ¥5.262 billion (compared to a net outflow of ¥4.635 billion in the previous fiscal year),mainly due to dividend payments. As a result, cash and cash equivalents as of March 31, 2018 amounted to¥968.741 billion, up by ¥44.441 billion year-on-year (compared to ¥924.300 billion as of March 31, 2017).

-3-

SURUGA bank, Ltd.

(3) Future outlook
Japan continues on its second-longest postwar period of economic recovery, exceeding the “Izanagi boom” ofthe high-growth era. Specifically, Japan has recoded 64 months of economic recovery, and the overall
assessment of the index of business conditions for March 2018 remained unchanged for the 18th consecutive
month. In 2018 and onward, the Japanese economy is expected to further extend the record in terms of postwar
expansion, with positive effects of the economic recovery feeding through to domestic demand to achieve a
better balance with overseas demand.
In light of such business conditions, Suruga Bank, as a “life and business navigator (DREAM
NAVIGATOR)”, will strive to build a trusting relationship with customers, establish a business operation tooffer customer-oriented services, and secure a sound financial position.
Earnings forecast for the fiscal year ending March 31, 2019 is as follows:
Consolidated

Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Net operating profit
Ordinary profit
Net income(Billions of yen)
FY3/2019 (Forecast)First half
Full year
17.0
36.5
12.0

25.0

(Billions of yen)
FY3/2019 (Forecast)First half
Full year
22.0
45.0
16.5
35.0
11.5
24.0

Actual credit costs
ROE (Net income basis)

9.5

19.0

7.00 %

7.35 %(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 bereasonable, and are not intended to guarantee future performance. Actual performance may differ
materially depending on various factors.

2. Basic approach to the selection of accounting standards
The Suruga Bank group intends to apply Japanese accounting standards for the foreseeable future, taking into
consideration the comparability of consolidated financial statements across reporting periods and companies. As
for the adoption of International Financial Reporting Standards (IFRS), we will respond appropriately to thevarious developments in Japan and overseas.

-4-

SURUGA bank, Ltd.

3. Consolidated financial statements and notes(1) Consolidated balance sheets
As ofMarch 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
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Goodwill
Leased assets
Software in progress
Other 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-5-（Millions of yen）
As of
March 31, 2018927,519
2,276
72
1,149
148,527
3,253,723
2,885
5,479
56,90951,906
13,98325,56412
012,34528,591
25,681
1,942
8
571
388
7,787
860
3,340
(19,305)
4,471,725

973,397
2,141
86
1,571
131,537
3,248,159
2,514
5,995
65,07652,12013,83525,712
9
143
12,41927,111
24,533
1,812
6
371
387
10,50910,425
2,877(57,871)
4,475,653

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

4,079,972
1,085
23
28,300
699
182
265
2,507
365
137
396
2,877
4,116,813

SURUGA bank, Ltd.

As of
March 31, 2017
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-6-

30,043
4
291,063(606)
320,504
17,153(61)433
17,52524
2,325
340,379
4,471,725（Millions of yen）
As of
March 31, 2018
30,043489
306,917(582)
336,867
18,489(15)
1,402
19,876172,078
358,840
4,475,653

SURUGA bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2017
March 31, 2018
Ordinary income
145,753
156,278
Interest income
124,718
130,751
Interest on loans and bills discounted
121,045
125,367Interest and dividends on securities
2,578
4,107
Interest on call loans and bills bought
38
32Interest on deposits with banks
805
814
Other interest income
250
429
Fees and commissions
13,443
13,283
Other operating income
4,393
4,118
Gains on sales of bonds
20
Gains on redemption of bonds
473
396
Other
3,917
3,720
Other income
3,198
8,125
Reversal of allowance for loan losses
927
Recoveries on written-off claims
1,339
1,793
Gains on sales of stocks and other securities
129
5,465
Equity in gains of affiliates
1
4
Other
800
861
Ordinary expenses
87,530125,406
Interest expenses
4,287
3,670
Interest on deposits
4,069
3,439
Interest on borrowings and rediscounts
14
10
Other interest expenses
203
220
Fees and commissions payments
14,326
14,981Other operating expenses
3,647
3,302
Losses on redemption of bonds
310
116
Other
3,336
3,186
General and administrative expenses
51,50051,945
Other expenses
13,76851,507
Provision for allowance for loan losses
40,199
Write-off of loans
9,381
5,938
Losses on sales of stocks and other securities
70
Losses on devaluation of stocks and other securities
636
10
Other
3,744
5,357
Ordinary profit
58,22230,871
Extraordinary gains
2,170
64
Gains on disposal of non-current assets
36
64
Gains on revision of retirement benefit plan
2,134
Extraordinary losses
335
484
Losses on disposal of non-current assets
335
484
Income before income taxes
60,05730,451
Income taxes - current
15,781
19,927
Income taxes - deferred
1,488(10,750)
Total income taxes
17,2709,176
Profit42,787
21,274
Profit attributable to non-controlling interests
159
209
Profit attributable to owners of parent
42,62721,065-7-

SURUGA bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2017
March 31, 2018
42,787
21,274

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

-8-

1,052
21
(1,084)(10)
42,776

1,432
46
969
2,448
23,72342,596
180

23,416306

SURUGA bank, Ltd.

(3) Consolidated statements of changes in net assets
For the fiscal year ended March 31, 2017
（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
sharesTotalshareholders'equityTreasuryshares

253,182(750)

282,475(4,745)(4,745)42,62742,627

4

(4)

(4)

148

152

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period-4

37,881

143

38,02930,043

4

291,063(606)

320,504

Accumulated other comprehensive income
Net unrealized
Remeasuregains (losses) Deferred gains
ments ofon available(losses) on
definedfor-salehedgesbenefitplans
securities

Balance at beginning ofcurrent period
Changes of items during
period16,121

(83)

1,517

Total
accumulated
othercomprehensive income
17,556

Subscription
rights toshares61

Noncontrollinginterests

2,144

Dividends of surplus

Total changes of items during
periodBalance at end of current
period302,237(4,745)

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

Total net
assets42,627
(4)
152
1,031

21

(1,084)

(31)

(36)

180

112

1,031

21

(1,084)

(31)

(36)

180

38,141

17,153(61)433

17,52524

2,325

340,379-9-

SURUGA bank, Ltd.

For the fiscal year ended March 31, 2018
（Millions of yen）
Shareholders' equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043Retainedearnings
4

Dividends of surplus

Total
shareholders'equityTreasuryshares291,063(606)(5,211)

Change in ownership interest ofparent due to transactions
with non-controlling interests(5,211)

484

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

320,504

484
21,06521,065

0

(5)

(5)

29

30

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period-485

15,85323

16,36230,043489

306,917(582)

336,867

Accumulated other comprehensive income
Net 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

Total
accumulated
othercomprehensive income
17,525

Subscription
rights toshares24

Noncontrollinginterests

2,325

Total net
assets340,379

Dividends of surplus(5,211)

Change in ownership interest ofparent due to transactions
with non-controlling interests

484

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

Total changes of items during
periodBalance at end of current
period21,065
(5)
30
1,335

46

969

2,351

(6)

(247)

2,097

1,335

46

969

2,351

(6)

(247)

18,46018,489

(15)

1,402

19,876172,078

358,840- 10 -SURUGA bank, Ltd.

(4) Consolidated statements of cash flows（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2017
March 31, 2018
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for reimbursement of deposits

Increase (decrease) in provision for contingent losses

Interest income
Interest expenses
Losses (gains) on securities
Losses (gains) on money held in trust
Losses (gains) on disposal of non-current assets
Net decrease (increase) in trading account securities
Net decrease (increase) in loans and bills discounted

Net increase (decrease) in deposit
Net increase (decrease) in borrowed money (excluding subordinated borrowings)

Net decrease (increase) in deposit (excluding deposit paid to Bank of Japan)

Net decrease (increase) in call loans
Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities
Net decrease (increase) in lease receivables and investment assets
Net decrease (increase) in cash collateral paid for financial instruments assets

Interest received
Interest paid
Gains on revision of retirement benefit plan
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities

Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Increase in money held in trust
Decrease in money held in trust
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at year-end- 11 -

60,0576,819
129(2,959)0
20(5,260)31
11(92)(124,718)
4,287
348
(150)
298
(22)
(116,558)
46,015
(545)
(219)
729
648
27
51
(10,057)
124,157(3,373)(2,134)(2,235)(24,694)(18,848)(43,542)

30,4516,958
129
38,566(15)
9(1,505)
(772)
77
(32)
(130,751)
3,670(5,735)
12
420
(13)
5,564
(15,537)(455)(1,437)
135
370
(17)
(515)
(10,897)
130,486(3,527)
3,139
48,777(16,052)
32,724(44,964)
2,041
127,91249(4,193)37(2,479)78,403(91,584)
14,418100,410(434)(3,452)246(2,619)16,984(4,745)(4)
115(4,635)(0)30,225894,075
924,300(5,211)(5)
23(68)(5,262)(4)
44,440924,300
968,741SURUGA bank, Ltd.

(5) Notes to consolidated financial statements(Notes on going-concern assumption)
Not applicable.

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

- 12 -SURUGA bank, Ltd.

(Segment information)
1. Summary of reportable segment
The reportable segments of the Suruga Bank group are components for which discrete financial
information is available, and that are subject to regular review to allocate management resources and toevaluate their results.
The group consists of Suruga Bank, which mainly engages in the banking business, and its consolidated
subsidiaries that engage in businesses such as money lending, leasing, clerical agency services, credit card
services and credit guarantee. Of the reportable segments, Suruga Bank represents the “banking” segment,
which includes businesses such as deposits, loans, exchange and credit card services.
2. Method of calculating ordinary income, profit or loss, assets and other items by reportable segment
Segment profit is reported on an ordinary profit-basis.
Inter-segment internal ordinary income is based on arm’s length prices.
3. Information on ordinary income, profit or loss, assets and other items by reportable segment
For the fiscal year ended March 31, 2018
Reportablesegment
Others

Total

Banking(Millions of yen)Amountrecorded in the
consolidated
Adjustments
financialstatements

Ordinary income
Ordinary income toexternal customers

141,333

14,939156,2734

156,278

200

1,736

1,936

(1,936)-

141,533
29,017
4,465,765

16,675
1,980
49,437

158,20930,997
4,515,203(1,931)(125)(39,549)

156,278
30,871
4,475,653

Depreciation

6,747

211

6,958

-

6,958

Increase in tangible
fixed assets andintangible fixed assets

5,778

294

6,072

-

6,072

Inter-segment internal
ordinary income
Total
Segment profit
Segment assets
Other items(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,clerical agency services, credit card services and credit guarantee) which are not included in thereportable segments.
(Note3) “Adjustments” are as follows:(1) The adjustment of ¥4 million in ordinary income to external customers consists of the following:
equity in gains of affiliates (¥4 million).
(2) The negative adjustment of ¥125 million in segment profit consists of the following: amortizationof goodwill (- ¥129 million), equity in gains of affiliates (¥4 million) and deduction ofinter-segment transactions (- ¥0 million).
(3) The negative adjustment of ¥39,549 million in segment assets consists of the following: deductionof inter-segment transactions (- ¥41,613 million), adjustment of net defined benefit assets (¥2,012
million) and adjustment of shares in equity-method affiliates (¥51 million).
(Note4) Segment profit is adjusted to ordinary profit as reported in the consolidated statements of income.

- 13 -SURUGA bank, Ltd.

(Per share data)

Net assets per shareyen
Earnings per shareyen
Earnings per share (diluted)
yen(Note) The basis for calculation is as shown in the tables below.

For the fiscal year ended
March 31, 2018
1,540.13
90.94
90.92

1. Net assets per share
Total net assets
Amount deducted from total net assetsof which, Subscription rights to sharesof which, Non-controlling interests
Net assets attributable to common stock at
the fiscal year-end
Number of common stock at the fiscal
year-end used for the calculation of net
assets per share

Millions of yen
Millions of yen
Millions of yen
Millions of yen

As of March 31, 2018358,840
2,095
17
2,078

Millions of yen

356,744

Thousands ofshares

231,631

2. Earnings per share and Earnings per share (diluted)
For the fiscal year ended
March 31, 2018
Earnings per share
Profit attributable to owners of parent
Amount not attributable to commonshareholders
Profit attributable to commonshareholders of parent
Average number of common stock forthe fiscal year
Earnings per share (diluted)
Adjustment for profit attributable toowners of parent
Increase in number of common stockof which, Subscription rights to shares

Millions of yen

21,065

Millions of yen-

Millions of yen

21,065

Thousands ofshares

231,619

Millions of yen-

Thousands ofsharesThousands ofsharesAntidilutive securities which were notincluded in the calculation of Earnings per
share (diluted)

50
50
-

(Significant subsequent events)
Not applicable.

- 14 -SURUGA bank, Ltd.

4. Non-consolidated financial statements(1) Non-consolidated balance sheets
As ofMarch 31, 2017
AssetsCash and due from banks
Cash
Due from banks
Call loans
Trading account securities
Trading government bonds
Trading municipal bonds
Money held in trust
Securities
Government bonds
Municipal bonds
Corporate bonds
StocksOther securities
Loans and bills discounted
Bills discounted
Loans on bills
Loans on deeds
Overdrafts
Foreign exchanges
Due from foreign banks (our accounts)
Foreign bills bought
Foreign bills receivable
Other assets
Prepaid expenses
Accrued income
Initial margins of futures markets
Derivatives other than for trading - assets
Other
Tangible fixed assets
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Software in progress
Other intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets- 15 -

926,783
26,917
899,866
2,276
72
2
70
1,149
154,340
45,001
28,243
2,666
57,42621,002
3,253,790
1,676
22,0472,844,173
385,892
2,885
1,834
0
1,050
48,611
2,779
9,723
200
846
35,06250,56913,33524,991496
011,744
26,21225,309
523
379
7,165
3,951
(11,983)
4,465,825（Millions of yen）
As of
March 31, 2018
972,082
31,326
940,755
2,141
86
2
84
1,571
136,82258,283
4,567
51,311
22,6593,245,978
2,060
20,6042,860,414
362,898
2,514
1,130
0
1,383
56,990
2,615
9,933
200
100
44,13950,963
13,252
25,186517
143
11,86424,85524,178
298
378
8,497
9,516
3,487
(49,742)4,465,765

SURUGA bank, Ltd.

As of
March 31, 2017
Liabilities
Deposits
Current deposits
Ordinary deposits
Saving deposits
Deposits at noticeTime deposits
Other deposits
Foreign exchanges
Foreign bills sold
Foreign bills payable
Other liabilities
Income taxes payable
Accrued expenses
Unearned revenue
Deposits received from employees
Lease obligations
Derivatives other than for trading - liabilities
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- 16 -（Millions of yen）
As of
March 31, 2018

4,105,455
63,1471,265,642
17,297
76,2392,557,174
125,95440
40
20,232
8,000
6,730
104
798
497
867
3,233
667
173
3,277
287
169
18
3,951
4,134,274

4,089,649
58,891
1,345,693
17,441
172,0452,455,082
40,49423
22
021,977
11,971
6,830
68
780
518
66
1,741
648
182
2,506
365
137
3,487
4,118,977

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
4281,166
30,043
251,123
59
103,032
148,032(582)
329,217
17,563(10)
17,552
17346,787
4,465,765

SURUGA bank, Ltd.

(2) Non-consolidated statements of income

Ordinary income
Interest income
Interest on loans and bills discounted
Interest and dividends on securities
Interest on call loans
Interest on deposits with banks
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchanges

Other fees and commissions
Other operating income
Gains on foreign exchange transactions
Gains on sales of bonds
Gains on redemption of bonds
Other income
Reversal of allowance for loan losses
Recoveries on written-off claims
Gains on sales of stocks and other securities
Gains on money held in trust
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest on interest swaps
Other interest expenses
Fees and commissions payments
Fees and commissions on domestic and foreign exchanges

Other fees and commissions
Other operating expenses
Losses on trading account securities transactions
Losses on redemption of bonds
General and administrative expenses
Other expenses
Provision for allowance for loan losses
Write-off of loans
Losses on sales of stocks and other securities
Losses on devaluation of stocks and other securities

Losses on money held in trust
Other
Ordinary profit
Extraordinary gains
Gains on disposal of non-current assets
Gains on revision of retirement benefit plan
Extraordinary losses
Losses on disposal of non-current assets
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income- 17 -（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2018
March 31, 2017
134,286
141,533
117,238
122,017
113,588
116,660
2,558
4,080
38
32
804
814
248
429
1
0
12,001
11,417
2,441
2,434
9,559
8,983
546
459
70
62
2
0
473
396
4,497
7,638
2,590
1,004
1,346
129
5,465
150
47
622
779
77,125112,516
4,299
3,682
4,069
3,439
8
7
221
235
14,327
14,925885
912
13,441
14,012
310
116
0
0
310
116
47,43647,596
10,752
46,19538,432
7,160
3,827
0
636
10
59
2,955
3,865
57,16029,017
2,170
59
36
59
2,134
316
474
316
474
59,01328,602
15,214
19,3282,071(10,026)
17,2859,302
41,72819,299SURUGA bank, Ltd.

(3) Non-consolidated statements of changes in net assets
For the fiscal Year ended March 31, 2017
（Millions of yen）
Shareholders' equity
Retained earnings
Other retained earnings

Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus30,043

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

Retainedearnings
brought
forwardGeneralreserve

103,032

96,961Dividends of surplus(4,745)

Net income

41,728Purchase of treasury
shares
Disposal of treasury
shares44

Net changes of items otherthan shareholders' equity

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

-

-

4

4

-

-

-

36,98230,043

18,585

4

18,59030,043

59

103,032

133,943

Shareholders' equity
Valuation and translation adjustments
Retained
Total
Net
unrealized Deferred gains
Total
earnings
valuation andTreasurygains (losses) on
shareholders'(losses) on
available-fortranslation
sharesTotal retained
equityhedgessale securities
adjustments
earnings

Subscription
rights toshares230,096(750)

277,974

15,525(78)

15,44661

Total net
assets293,482

Dividends of surplus(4,745)(4,745)(4,745)

Net income

41,72841,72841,728

(4)

(4)

(4)

148

152

152

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

954

20

975

(36)

938

36,982

143

37,129

954

20

975

(36)

38,068267,078(606)

315,104

16,480(58)

16,422

24

331,551- 18 -SURUGA bank, Ltd.

For the fiscal year ended March 31, 2018
（Millions of yen）
Shareholders' equity
Retained earnings
Other retained earnings

Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

4

Reserve for
Total capital Legal retainedadvancedsurplusearnings
depreciationof non-current
assets
18,59030,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

133,943

Dividends of surplus(5,211)

Net income

19,299Purchase 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
periodBalance at beginning ofcurrent period
Changes of items during
period

-

-

0

0

-

-

-

14,08830,043

18,585

4

18,59030,043

59

103,032

148,032

Shareholders' equity
Valuation and translation adjustments
Retained
Total
Net
unrealized Deferred gains
Total
earnings
valuation andTreasurygains (losses) on
shareholders'(losses) on
available-fortranslation
sharesTotal retained
equityhedgessale securities
adjustments
earnings

Subscription
rights toshares267,078(606)

315,104

16,480(58)

16,422

24

Total net
assets331,551

Dividends of surplus(5,211)(5,211)(5,211)

Net income

19,29919,29919,299

(5)

(5)

(5)

29

30

30

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

1,082

47

1,130

(6)

1,123

14,08823

14,112

1,082

47

1,130

(6)

15,236281,166(582)

329,217

17,563(10)

17,552

17346,787- 19 -

Financial Results
For the fiscal year ended March 31, 2018

- Supplementary Information -SURUGA bank, Ltd.

Table of contents
Ⅰ. Financial highlights for the fiscal year ended March 31, 2018
1. Financial results

Non-consolidated

・・・・・・・・

2. Major accounts

Non-consolidated

・・・・・・・・

3. Management indicesNon-consolidated

・・・・・・・・

4. Own capital

Non-consolidated

・・・・・・・・

5. Unrealized gains (losses) on securities

Non-consolidated

・・・・・・・・

6. Earnings forecast for the fiscal year ending March 31, 2019

1
3
5
6
7

Non-consolidated, Consolidated

7. Asset quality

Non-consolidated

・・・・・・・・

8. Credit costs

Non-consolidated

・・・・・・・・

9. Dividends

Non-consolidated

・・・・・・・・

8
9
10

1. Details of financial results

Non-consolidated
Consolidated

・・・・・・・・・・・・・・・・

11
12

2. Net operating profit

Non-consolidated

3. Interest margins

Non-consolidated

・・・・・・・・

13

4. ROA and ROE

Non-consolidated

5. Gains (losses) on securities

Non-consolidated

Ⅱ. Financial data for the fiscal year ended March 31, 201814
15

6. Capital adequacy ratio (domestic standard)

Non-consolidated, Consolidated

・・・・・・・・

7. Composition of own capital (domestic standard)

Non-consolidated, Consolidated

・・・・・・・・

Non-consolidated

・・・・・・・・

1. Risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

2. Allowance ratio for risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

16
17
18

3. Allowance for loan losses

Non-consolidated, Consolidated

・・・・・・・・

19

・・・・・・・・

20

Non-consolidated, Consolidated

・・・・・・・・

21

Non-consolidated, Consolidated

・・・・・・・・

22

Ⅲ. Status of Loans, etc.
Comparison of asset disclosure by standard

4. Non-performing loans based on the Financial Reconstruction Law
5. Status of coverage of non-performing loans based on
the Financial Reconstruction Law

Non-consolidated
Non-consolidated

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry

Non-consolidated(2) Breakdown of risk-monitored loans by industry

Non-consolidated(3) Consumer loans

Non-consolidated(4) The ratio of loans to small- and medium-sized enterprises, etc.

Non-consolidated

7. Loan breakdown by country(1) Loans to specific foreign countries

Non-consolidated(2) Loans to Asian countries

Non-consolidated

8. Deposits and loans

Non-consolidated

9. Number of branches

Non-consolidated

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Ⅴ. Retirement benefits
1. Retirement benefit expenses

SURUGA bank, Ltd.

Ⅰ. Financial highlights for the fiscal year ended March 31, 2018
1. Financial results (Non-consolidated)
FY3/2018(a)
115,171
118,336(3,507)
61
114,890
46,742
68,148281
68,42926,23042,19818,7851,346
5,454
29,017(414)
19,299Gross operating profit
Net interest income
Net fees and commissions
Net other operating income (Note1）
Core gross operating profit
Expenses (-)
Core net operating profit （Note2）
Gains (losses) on bonds
Actual net operating profit (Note3）
Provision for general allowance for loan losses (-) (Note4)
Net operating profit
Disposal of non-performing loans (-)
Reversal of allowance for loan losses (Note4)
Recoveries on written-off claims
Gains (losses) on stocks
Ordinary profit
Gains (losses) on disposal of non-current assets
Gains on revision of retirement benefit plan
Net income(a) - (b)
4,319
5,396
(1,183)
(9)
4,204
(498)
4,703
116
4,818
26,230(21,413)9,620(2,590)342
5,960(28,143)(134)(2,134)(22,429)(Millions of yen)
FY3/2017(b)
110,852
112,940(2,324)70
110,686
47,24063,445
165
63,611
63,611
9,165
2,590
1,004
(506)
57,160(280)
2,134
41,728Net credit costs
45,01638,441
6,575
Actual credit costs（Note5）
43,67038,0995,571(Note1) Excludes 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, 2017, the net amount of Reversal of general allowance for loan losses and Provision
for specific allowance for loan losses is recorded in Reversal of allowance for loan losses, given that the former exceeded
the latter during the period.
(Note5) Actual credit costs = Net credit costs (Provision for general allowance for loan losses + Disposal of non-performing loans- Reversal of allowance for loan losses) - Recoveries on written-off claims(1) Gross operating profit: ¥115.1 billion
・Net interest income increased by ¥5.3 billion year-on-year, mainly due to an increase ininterest on loans and bills discounted.
・Yen loan-deposit income increased by ¥3.8 billion year-on-year.
・Core gross operating profit increased by ¥4.2 billion year-on-year, mainly due to an increase in net interest income.
・Gross operating profit increased by ¥4.3 billion year-on-year.

Net interest income(Billions of yen)

92.4

100.3

107.5

112.9

Yen loan-deposit income
118.3

FY3/14 FY3/15 FY3/16 FY3/17 FY3/18(Billions of yen)

89.6

96.9

102.6

109.3

113.2

FY3/14 FY3/15 FY3/16 FY3/17 FY3/18-1-

SURUGA bank, Ltd.
(2) Expenses; OHR: 40.5%
・Expenses decreased by ¥0.4 billion year-on-year.
・OHR improved year-on-year to 40.5%, mainly due to a decrease in expenses and an increase in gross operating profit.
(OHR(%) = Expenses / Gross operating profit × 100)

Gross operating profit

ExpensesOHR

105.3 43.6%

110.8(Billions of yen)

47.6%
90.8
43.3

99.4 45.8%

45.9

45.6

FY3/14

FY3/15

FY3/16

115.1
42.6%

40.5%

47.2

46.7

FY3/17

FY3/18(3) Core net operating profit: ¥68.1 billion, Net operating profit: ¥42.1 billion
・Core net operating profit increased by ¥4.7 billion year-on-year, mainly due to an increase in net interest income.
・Net operating profit decreased by ¥21.4 billion year-on-year, mainly due to an increase inprovision for general allowance for loan losses.

Core net operating profit

Net operating profit(Billions of yen)

47.4 47.5

52.8 53.8

FY3/14

FY3/1558.7 59.4

63.4

63.6

68.1
42.1

FY3/16

FY3/17

FY3/18(4) Ordinary profit: ¥29.0 billion
・Ordinary profit decreased by ¥28.1 billion year-on-year, mainly due to an increase in net credit costs.

(5) Net income: ¥19.2 billion
・Net income decreased by ¥22.4 billion year-on-year, mainly due to a decrease in ordinary profit and the absence ofgains on revision of retirement benefit plan (¥2.1 billion) recorded in the previous fiscal year.
(6) Actual credit costs: ¥43.6 billion
・Net credit costs increased by ¥38.4 billion year-on-year, mainly due to an increase (¥26.2 billion) in
provision for general allowance for loan losses, an increase (¥9.6 billion) in disposal of non-performing loans anda decrease (¥2.5 billion) in reversal of allowance for loan losses.
・Actual credit costs, calculated as net credit costs (¥45.0 billion) minus the amount of recoveries on written-off claims(¥1.3 billion) amounted to ¥43.6 billion.

-2-

SURUGA bank, Ltd.

2. Major accounts (Non-consolidated)(1) Loans and bills discounted
・Loans and bills discounted decreased by ¥7.8 billion, or 0.2% year-on-year.
・New consumer loans for the fiscal year ended March 31, 2018 amounted to ¥353.3 billion, and the balance of consumer loans
as of March 31, 2018 increased by ¥18.6 billion, or 0.6% year-on-year.
・Yield on loans and bills discounted (domestic) dropped by 1 basis point year-on-year to 3.61%.

Mar. 31, 2018(a)Loans and bills discounted(period-end balance)
Consumer loans
Secured loans
Unsecured loans
Loans and bills discounted(average balance)
Loan-deposit ratio(period-end balance basis)
Loan-deposit ratio(average balance basis)(a) - (b)(a) - (c)Sep. 30, 2017(b)

(Millions of yen)Mar. 31, 2017(c)

3,245,978(40,069)(7,812)

3,286,047

3,253,790

2,925,991
2,654,576
271,414(37,454)(38,361)906

18,642
4,390
14,252

2,963,445
2,692,937
270,5082,907,349
2,650,186
257,1623,229,776

6,608

93,766

3,223,168

3,136,010

79.3%(1.3)%

0.1%

80.6%

79.2%

79.8%

0.3%

2.5%

79.5%

77.3%

（Reference）
FY3/2018(a)Business alliance with Japan Post Bank
New housing loans (cumulative total)(a) - (b)
(4.3)

35.6

Loans and bills discounted (period-end balance)
Consumer loans (period-end balance)(Billions of yen)
FY3/2017(b)
39.9

Consumer loans ratio
Yield on loans and bills discounted (domestic)(Billions of yen)

3,253.7
3,245.9
3,137.6
2,925.9
3,011.3
2,907.3
2,772.2
2,880.0
2,610.2
2,470.5

85.7%

3.40%

Mar.14Mar.15Mar.16

Mar.17

Mar.18Mar.14

New consumer loans (for the first half)(Billions of yen)

393.2

355.7

88.3%

89.3%

90.1%

3.51%

3.57%

3.62%

3.61%

Mar.15Mar.16

Mar.17

Mar.1886.6%

New consumer loans (for the second half)
465.5

470.0
238.7

353.3

179.3
176.3

193.9

255.7

199.3

209.7

231.2

127.0
226.3

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18(Delinquency rate and loss rate of consumer loans)
Secured loans
Yield

Delinquency rate

Yield

Loss rate

Unsecured loans
Delinquency rate

Loss rate

3.54%

3.60%

3.63%

3.61%

3.55%

11.27%

10.66%

10.37%

10.07%

9.94%

0.30%

0.26%

0.27%

0.25%

0.27%

0.39%

0.46%

0.04%

0.03%

0.05%

0.10%

0.16%
0.02%

0.29%

0.03%

0.11%
0.07%

0.05%

0.06%

0.13%

FY3/18

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/14

FY3/15

FY3/16

FY3/17(Note1) Delinquency rate = Loans past due 3 months or more / Loans(Note2) Loss rate = Default ratio × (1 - Recovery rate)-3-

SURUGA bank, Ltd.
(2) Deposits
・Deposits decreased by ¥15.8 billion, or 0.3% year-on-year.
・Individual deposits increased by ¥1.0 billion, or 0.0% year-on-year.
・Yield on deposits (domestic) dropped by 2 basis points year-on-year to 0.07%.
(Millions of yen)Mar. 31, 2018(a)
4,089,649
3,191,847
4,047,017

Deposits (period-end balance)
Individual deposits
Deposits (average balance)(a) - (b)13,573(16,422)(3,105)(a) - (c)(15,806)
1,010(7,491)

Sep. 30, 2017(b)
4,076,076
3,208,269
4,050,122

Individual deposits ratio
Yield on deposits (domestic)

Deposits (period-end balance)
Individual deposits (period-end balance)(Billions of yen)
3,816.3

2,727.1

Mar.14

4,105.4

4,056.4

3,959.1

Mar.15Mar.16

Mar.17

76.0%

77.7%

78.0%

0.10%

0.10%

0.09%

0.07%

Mar.15Mar.16

Mar.17

Mar.18

71.4%

72.9%

0.09%

Mar.144,089.6

3,190.8

3,085.9

2,889.4

Mar. 31, 2017(c)
4,105,455
3,190,837
4,054,508

3,191.8

Mar.18(3) Net fees and commissions
・Net fees and commissions decreased by ¥1.1 billion year-on-year, mainly due to an increase (¥0.5 billion) in
fees and commissions payments.

Net fees and commissions

Fees and commissions

Fees and commissions payments(Millions of yen)
13,167
11,382(1,784)

FY3/14

13,718
11,714(2,003)

FY3/15

14,952
12,004

14,327
12,002(2,324)(2,947)

FY3/16-4-

FY3/17

14,925
11,417(3,507)

FY3/18SURUGA bank, Ltd.
(4) Individual deposit assets
・Individual deposit assets decreased by ¥21.8 billion year-on-year.
・The ratio of investment products to total individual deposit assets dropped by 70 basis points year-on-year to 4.7%.
(Millions of yen)Mar. 31, 2018(a)Mar. 31, 2017(c)

3,374,713

3,345,282
3,185,938(15,948)1,487

3,201,886

3,367,122
3,184,451

159,344(13,483)(23,326)

172,827

182,670

Foreign currency deposits

5,908

(475)

(478)

6,383

6,386

Public bonds

8,837

(382)

(1,387)

9,219

10,224

Mutual funds

93,654(10,828)(14,334)

104,482

107,988

Personal pension plans

35,697(2,343)(8,084)38,04043,781

15,245543

955

14,702

14,2904.7%(0.4)%(0.7)%

5.1%

5.4%

Individual deposit assets
Yen deposits
Investment products

Single premium life insurance
The ratio of investment products tototal individual deposit assets(a) - (c)(21,840)

Sep. 30, 2017(b)(a) - (b)(29,431)

3. Management indices (Non-consolidated)(1) Interest margins
・Loan-deposit margin (after deduction of expenses) rose by 2 basis points year-on-year to 2.37%.
・Net interest margin rose by 14 basis points year-on-year to 1.68%, mainly due to the rise in return on investments.
(%)
FY3/2018(a)
Loan-deposit margin
Loan-deposit margin(after deduction of expenses)
Net interest margin

FY3/2017(b)

3.52(a) - (b)
0.00

2.37

0.02

2.35

1.68

0.14

1.54

3.52

Loan-deposit margin
Loan-deposit margin (after deduction of expenses)
Net interest margin
3.28%

3.39%

3.45%

3.52%

3.52%

2.06%

2.19%

2.30%

2.35%

2.37%

1.31%

1.35%

1.43%

1.54%

1.68%

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18-5-

SURUGA bank, Ltd.

4. Own capital (Non-consolidated)・Capital adequacy ratio rose by 79 basis points year-on-year to 12.75%.
(%)
Mar. 31, 2018(a)Capital adequacy ratio(domestic standard)(a) - (b)(a) - (c)

0.05

12.75

11.96

Capital adequacy ratio

307.2

279.2

1.4%

(0.4)%

0.8%(0.0)%

2.8%

3.6

(1.1)

2.4

(0.0 )

9.5

Mar.14

12.70

338.6

267.2

247.6

Mar. 31, 2017
(c)

0.79

Own capital
Deferred tax assets
Deferred tax assets / Own capital(Billions of yen)Sep. 30, 2017(b)

Mar.15Mar.16

Mar.17

Mar.18-6-

11.42%

11.59%

11.56%

11.96%

Mar.14Mar.15Mar.16

Mar.1712.75%

Mar.18SURUGA bank, Ltd.

5. Unrealized gains (losses) on securities (Non-consolidated)
・Net unrealized gains (losses) on securities increased by ¥1.4 billion year-on-year, mainly due to an increase inunrealized gains on stocks.
(Millions of yen)Mar. 31, 2018(a)
24,81824,604(7)
221

Other securities
Stocks
Bonds
Others(a) - (b)(3,306)(2,102)150(1,354)(a) - (c)
1,465
2,649
108
(1,291)

Sep. 30, 2017(b)
28,12426,706(157)
1,575

Mar. 31, 2017(c)
23,353
21,955(115)
1,512(Millions of yen)Mar. 31, 2018(a)Held-to-maturity bonds(net unrealized gains (losses))(a) - (b)-(a) - (c)-(22)

Sep. 30, 2017(b)Mar. 31, 2017
(c)

-

22

6. Earnings forecast for the fiscal year ending March 31, 2019
Consolidated

Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Net operating profit
Ordinary profit
Net income
Actual credit costs(Billions of yen)
FY3/2019 (forecast)First half
Full year

17.0

36.5

12.0

25.0

(Billions of yen)
FY3/2019 (forecast)First half
Full year
22.0
45.0
35.0
16.5
11.5
24.0
9.5

19.0

(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.

-7-

SURUGA bank, Ltd.

7. Asset quality (Non-consolidated)(1) Non-performing loans based on the Financial Reconstruction Law
・Non-performing loans based on the Financial Reconstruction Law increased by ¥43.2 billion year-on-year.
Non-performing loan ratio rose by 132 basis points year-on-year to 2.20%.
Outstanding balance

Mar. 31, 2018(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total
(A)
Total claims(B)
Non-performing loan ratio(A/B)(a) - (b)(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017(b)(c)(a) - (c)10,573

1,311

2,852

9,262

7,721

47,722
13,874
72,1703,266,815
2.20

35,807
6,271
43,388(39,829)
1.33

34,998
5,362
43,213(7,682)
1.32

11,915
7,603
28,782
3,306,644
0.87

12,7248,512
28,957
3,274,497
0.88

Status of coverage(Millions of yen, %)Non-performing loans
Covered amount (C+D)
Portion secured by collateralor guarantees, etc.
Allowance for loan losses
Coverage ratio (B/A)

(A)
(B)

Claims against
bankrupt andsubstantiallybankrupt
obligors
10,573
10,573(C)

Claims withcollection risk

Claims for
specialattention

Total

Change from
Mar. 31, 2017

47,722
33,127

13,874
8,172

72,17051,874

43,21327,827

6,557

22,6005,777

34,935

14,363(D)

4,016
100.0010,526
69.41

2,395
58.90

16,93871.87

13,463(11.17)

Unsecured portion (A-C)(E)
Allowance ratio for unsecured portion
(D/E)

4,016

25,121

8,097

37,234

28,849100.00

41.90

29.57

45.49

4.05

2,303
100.00

2,253
31.42

3,828
12.09

8,385
41.44

(Reference) As of Mar. 31, 2017
Unsecured portion
Allowance ratio for unsecured portion(Note1) Category IV claims against bankrupt and substantially bankrupt obligors (corresponding to bankrupt and effectively
bankrupt obligors based on self-assessment) which are not covered by collateral or guarantees, etc., are partially written
off. Specific allowance for loan losses is provisioned against claims for which the unrecoverable amounts cannot be
determined due to potential rehabilitation measures, etc.
(Note2) Specific allowance for loan losses against claims with collection risk (corresponding to potentially bankrupt obligors
based on self-assessment) is calculated by multiplying the amount of category III claims not covered by collateral or
guarantees, etc., by an estimated loan loss ratio based on historical loan loss ratios for the previous three reporting
periods.
(Note3) General allowance for loan losses against claims for special attention is calculated by multiplying the total amount of suchclaims (categories I and II) by an estimated loan loss ratio based on historical loan loss ratios for the previous threereporting periods.
(Note4) As for large claims against potentially bankrupt and substandard obligors, for which the future cash flow can bereasonably estimated, allowance for loan losses is calculated using the Discounted Cash Flow method.

Claims against bankrupt and substantiallybankrupt obligors
Claims with collection risk

Non-performing loan ratio
Non-performing loan ratio (after deduction ofallowance)
Non-performing loan ratio (after deduction ofcollateral, guarantees and allowance)

Claims for special attention
72.1(Billions of yen)
51.1
8.2
21.9
20.9

Mar.14

10.5

45.7
7.5
18.8
19.3

Mar.15

38.0
7.1
15.9

28.9

1.76%
47.7

14.9

7.7
12.7
8.5

13.8

Mar.16

Mar.17

Mar.18

2.20%
1.50%

1.20%

0.88%

1.48%

1.26%

0.30%

0.27%

1.02%
0.18%

0.14%

Mar.14Mar.15Mar.16

Mar.17

-8-

1.69%

0.77%
0.62%

Mar.18SURUGA bank, Ltd.
(2) Risk-monitored loans

Loans to bankrupt obligors
Non-accrual delinquent loans
Loans past due 3 months or more
Restructured loans
Total

Mar. 31, 2018
(a)
1,970
56,2491,295
12,57872,094(a) - (b)1,198
35,936623
5,648
43,405(a) - (c)1,070
36,754
1,100
4,261
43,18672.00(13.36)(11.01)

Coverage ratio(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017
(b)
(c)
772
900
20,313
19,495
672
195
6,930
8,317
28,68928,908
85.36

83.01

8. Credit costs (Non-consolidated)
FY3/2018(a)
26,23018,785
3,827
12,201
2,745
11
1,346
45,016
43,6703,229,776

Provision for general allowance for loan losses(1)
Disposal of non-performing loans(2)
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses
Reversal of allowance for loan losses(3)
Recoveries on written-off claimsA
Net credit costs(4) (=(1)+(2)- (3))
Actual credit costs(4)- A
Loans and bills discounted (average balance)(a) - (b)26,2309,620(3,333)
12,201831(79)(2,590)342
38,441
38,09993,766

Net credit costs ratio
1.39
1.19
Actual credit costs ratio
1.35
1.18
(Note1) Net credit costs ratio = Net credit costs / Loans and bills discounted (average balance)(Note2) Actual credit costs ratio = Actual credit costs / Loans and bills discounted (average balance)

Risk-monitored loans
Actual credit costs
Actual credit costs ratio(Billions of yen)

50.9

72.0

45.6
0.03%

0.03%

1.0

0.9

Mar.14Mar.1537.9 0.14%
4.4

28.9

Mar.16

Mar.17

-9-

0.17%
5.5

43.6
1.35%

Mar.18(Millions of yen, %)FY3/2017
(b)
9,165
7,160
1,914
90
2,590
1,004
6,575
5,571
3,136,010
0.20
0.17

SURUGA bank, Ltd.

9. Dividends
・The company has decided to pay a year-end dividend of ¥10.5 per share and an annual dividend of ¥21.0 per sharewith the aim of enhancing shareholder returns.
For the fiscal year ending March 31, 2019, the company is forecasting an annual dividend of ¥21.0 per sharein light of the company’s earnings forecast and other factors.
(yen)
FY3/2018(a)(a) - (b)

21.00
10.50
10.50
10.50
-

Annual dividend per share
Interim dividend
Year-end dividend
Ordinary dividend
Special dividend(1.00)
0.50(1.50)(0.50)(1.00)

FY3/2017(result)
(b)
22.00
10.00
12.00
11.00
1.00

Year-end dividend per share (Special dividend)Year-end dividend per share (Commemorative dividend)Year-end dividend per share (Ordinary dividend)Interim dividend per share

20.0
1.0
(yen)

22.0
1.0

21.0

21.0

11.0

10.5

10.5

9.5

10.0

10.5

10.5

FY3/16

FY3/17

FY3/18

FY3/19

20.0

17.0
15.0

13.0

13.0

10.5

13.0

10.5
9.5
8.5

6.5

6.5

6.5

6.5

6.5

6.5

6.5

FY3/10FY3/11

FY3/12

FY3/138.5

7.5

FY3/14

FY3/15(forecast)- 10 -SURUGA bank, Ltd.

Ⅱ. Financial data for the fiscal year ended March 31, 2018
1. Details of financial results (Non-consolidated)

Gross operating profit(excluding gains (losses) on bonds)
Domestic gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
International gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
Expenses (excluding non-recurring losses)
Personnel expenses
Non-personnel expenses
Taxes
Net operating profit(before provision for general allowance for loan losses)(excluding gains (losses) on bonds)
Provision for general allowance for loan losses (Note)
Net operating profit
Gains (losses) on bonds
Non-recurring gains (losses)
Reversal of allowance for loan losses (Note)
Recoveries on written-off claims
Gains (losses) on stocks
Ordinary profit
Extraordinary gains (losses)
Gains (losses) on disposal of non-current assets
Gains on disposal of non-current assets
Losses on disposal of non-current assets
Gains on revision of retirement benefit plan
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income

（
（

（
（

（

(1)Provision for general allowance for loan losses (Note)(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses (Note)
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3)Reversal of allowance for loan losses (Note)(4)Net credit costs (1)+(2)-(3)(5)Recoveries on written-off claims(6)Actual credit costs (4)-(5)(Millions of yen)
FY3/2017(b)
110,852
110,686 ）
110,596
110,291 ）
112,636(2,344)
304
304 ）
255
395 ）
304
20
(68)
(139) ）
47,24018,362
25,131
3,747

FY3/2018(a)
115,171
114,890
114,776
114,495
118,025(3,529)
280
281
395
395
310
22
62
46,742
17,77725,0783,886(a) - (b)
4,319
4,204
4,180
4,204
5,389
(1,185)
(24)
(23)
140
0
6
2
130
139
(498)
(585)
(53)
139

68,4294,818

63,611

68,14826,23042,198281(13,179)
1,346
5,454
29,017
(414)
(414)
59
474
28,602
19,328(10,026)
9,302
19,2994,703
26,230(21,413)116(6,729)(2,590)342
5,960(28,143)(2,267)
(134)
23
158
(2,134)(30,411)
4,114(12,097)(7,983)(22,429)

63,44563,611
165(6,450)
2,590
1,004
(506)
57,160
1,853
(280)
36
316
2,134
59,013
15,214
2,071
17,28541,72826,23018,785
3,827
12,2012,745
1145,016
1,346
43,67026,2309,620(3,333)
12,201831(79)(2,590)38,441
342
38,099

9,165
7,160
1,914
90
2,590
6,575
1,004
5,571

(Note) For the fiscal year ended March 31, 2017, the net amount of Reversal of general allowance for loan losses and Provision for
specific allowance for loan losses is recorded in Reversal of allowance for loan losses, given that the former exceeded thelatter during the period.

- 11 -SURUGA bank, Ltd.

Details of financial results (Consolidated)(Millions of yen)

Consolidated gross profit
Net interest income
Net fees and commissions
Net other operating income
Expenses (excluding non-recurring losses)
Actual credit costs
Gains (losses) on stocks
Equity in gains (losses) of affiliates
OthersOrdinary profit
Extraordinary gains (losses)
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent(1)Provision for general allowance for loan losses(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3)Reversal of allowance for loan losses(4)Net credit costs (1)+(2)-(3)(5)Recoveries on written-off claims(6)Actual credit costs (4)-(5)FY3/2018(a)126,199
127,082(1,698)815
51,09048,5175,454
4(1,178)30,871(420)
30,451
19,927(10,750)
9,176
209
21,065(a) - (b)
5,905
6,651
(815)
70
(213)
38,629
5,967
3
(810)
(27,351)(2,255)(29,606)
4,146(12,238)(8,094)
50(21,562)

FY3/2017(b)
120,294
120,431(883)
745
51,303
9,888
(513)
1
(368)
58,222
1,835
60,057
15,781
1,488
17,270159
42,62727,01523,295
5,938
13,1844,161
1150,311
1,793
48,51727,015
11,140(3,443)
13,184
1,478
(79)
(927)
39,083454
38,62912,155
9,381
2,683
90
927
11,2281,339
9,888(Note) Consolidated gross profit = (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions
payments) + (Other operating income - Other operating expenses)(Reference)
Consolidated net operating profit

48,093(20,898)(Millions of yen)
68,991(Note) Consolidated net operating profit = Consolidated gross profit - Consolidated expenses - Consolidated provision for generalallowance for loan losses(Number of consolidated subsidiaries and affiliates)
Consolidated subsidiaries
Equity-method accounted affiliates

91-(Companies)
91

2. Net operating profit (Non-consolidated)(Millions of yen)
FY3/2018(a)
42,19827,580Net operating profit
Per employee (Thousands of yen)

- 12 -(a) - (b)(21,413)(12,988)

FY3/2017(b)
63,611
40,568SURUGA bank, Ltd.

3. Interest margins (Non-consolidated)
Overall(%)
FY3/2018(a)

Return on investments(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)FY3/2017(b)(a) - (b)
2.93
3.61
3.63
1.24
0.08

0.12
(0.01)
2.37(0.03)(0.02)

2.81
3.62
1.26
1.27
0.10

2.37

0.02

2.35

1.68

0.14

1.54

Domestic(%)
FY3/2018(a)

Return on investments(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)FY3/2017(b)(a) - (b)
2.92
3.61
3.74
1.20
0.07

0.11
(0.01)
2.46(0.03)(0.02)

2.81
3.62
1.28
1.23
0.09

2.40

0.02

2.38

1.72

0.14

1.58

4. ROA and ROE (Non-consolidated)(%)
FY3/2018
(a)
ROA
ROE

Net operating profit basis
Net income basis
Net operating profit basis
Net income basis

FY3/2017(b)(a) - (b)
0.95
0.43
13.51
6.18

(0.50)(0.52)(9.57)(8.96)

1.45
0.95
23.08
15.14

5. Gains (losses) on securities (Non-consolidated)(Millions of yen)
FY3/2018(a)

FY3/2017(b)(a) - (b)Gains (losses) on bonds
Gains on sales
Gains on redemptions
Losses on sales
Losses on redemptions
Losses on devaluation

281
0
396
116
-

116
(2)
(77)
(194)
-

165
2
473
310
-

Gains (losses) on stocks
Gains on sales
Losses on sales
Losses on devaluation

5,454
5,465
0
10

5,960
5,336
0
(626)

(506)
129
636

- 13 -SURUGA bank, Ltd.

6. Capital adequacy ratio (domestic standard)
Non-consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital:
instruments and reserves
Core capital:
regulatory adjustments (-)
Risk-weighted assets(Millions of yen)Mar. 31, 2018(a)12.75%
338,653(a) - (b)0.79%
31,360Mar. 31, 2017(b)
11.96%
307,293357,250

35,996321,254

18,597

4,637

13,9602,655,433

87,941

2,567,492

Consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital:
instruments and reserves
Core capital:
regulatory adjustments (-)
Risk-weighted assets(Millions of yen)Mar. 31, 2018(a)12.81%
344,992(a) - (b)0.64%
29,099Mar. 31, 2017(b)
12.17%
315,893367,353

35,115332,238

22,361

6,016

16,3452,692,347

97,6482,594,699- 14 -SURUGA bank, Ltd.

7. Composition of own capital (domestic standard)(Millions of yen）
Mar. 31, 2018
Non-consolidated

Consolidated

Amounts
excludedundertransitionalarrangementsCore 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 transitionalarrangement 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 andreserves
Non-controlling interests included in Core capital subject to transitionalarrangementsCore capital: instruments and reserves(A)Core capital: regulatory adjustments(2)
Total intangible fixed assets (net of related tax liability, excluding thoserelating to mortgage servicing rights)
Goodwill (including those equivalent)
Other intangible fixed assets other than goodwill and mortgage servicing
rightsDeferred 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 otherfinancial institutions
Investments in the capital of banking, financial and insurance entities that areoutside the scope of 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
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 transitionalarrangements
Intangible fixed assets other than goodwill and mortgage servicing
rights (net of related tax liability)_
Deferred tax assets (net of related tax liability)
Prepaid pension cost _Net defined benefit asset
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 -

Amounts
excludedundertransitionalarrangements

326,785

334,435

48,633281,166
582
2,432
-

30,532306,917
582
2,432
1,122
1,122

17

17

-

-

30,44730,44730,531
30,531

-

-

-

-

-

-

-

-

-

1,246

357,250

367,353

13,8593,464

15,919

3,526

-

-

1,812

-

13,8593,464

14,106

3,526

-

-

581

-

4,738
0

1,184
-

5,860
0

1,465
-

-

-

-

-

-

-

-

-

18,597-22,361-

338,653

344,992

2,435,811

2,442,528

16,187

17,586

4,971

5,059

9,516
1,699
219,6212,655,433

10,4252,101
249,818
2,692,347

12.75%--

12.81%SURUGA bank, Ltd.

Ⅲ. Status of loans, etc.
Comparison of asset disclosure by standard
Non-consolidated (As of March 31, 2018)
Classification and status of coverage by disclosure standard
Self-assessment result(by obligor classification)* Includes total claims (“Claims for special
attention” includes only loans and bills
discounted).

* Includes total claims.

Classification

Category
Creditbalance

Nonclassification

Classification
Ⅱ

1,113

858

Category

Classification
Ⅲ

ClassificationⅣ

Creditbalance

Bankrupt obligors
1,971
[796]

-

[796]

Effectively
bankrupt obligors
3,647

4,954

-

8,601
[3,219][3,219]Potentiallybankrupt obligors
15,312

17,81547,722[10,526]

Substandard
obligors
Obligors
requiring
cautionNon-performing loans based on
the Financial Reconstruction Law

14,594[10,526]-

Claimsagainstbankrupt
andsubstantiallybankrupt
obligors

CollateralorAllowance
guarantees,
etc.

6,557

4,016

* Includes loans andbills discounted.

Coverage
ratio

22,60010,52669.41%

47,722Claims for
specialattention
449

19,077

-

-

5,777

2,395

Category

Outstandingbalance

Loans tobankrupt
obligors

1,970

Non-accrualdelinquentloans

56,249Loans pastdue 3 months
or more1,295

Restructured
loans

12,578

Total

72,094100%

10,573Claims withcollection
risk(Millions of yen)
Risk-monitoredloans

58.90%

13,874
Subtotal

19,52734,935

16,93871.87%

72,170Other
obligors
requiring
caution20,770273,259--

294,029

Normalassets3,194,644

Normal obligors
2,894,961---

2,936,254

315,965

14,594[10,526][4,016]2,894,961
Total
3,266,815[14,542]

Total
3,266,815(Note1) “Total claims” includes “Loans and bills discounted”, “Customers’ liabilities for acceptances and guarantees”, “Foreignexchanges”, “Securities lent”, “Suspense payment” and “Accrued interest”.
(Note2) Numbers shown in brackets under “Self-assessment result” represent the reserved amount for each category.

- 16 -SURUGA bank, Ltd.

1. Risk-monitored loans
The following table shows figures after deduction of partial direct write-off of loans.
The amounts of partial direct write-off of loans for the fiscal year ended March 31, 2018 were as follows:(a) Non-consolidated: ¥4,128 million; (b) Consolidated: ¥5,885 million
Loans to “Potentially bankrupt obligors”, “Effectively bankrupt obligors” and “Bankrupt obligors” under self-assessment areplaced on non-accrual status.
Non-consolidated

Loans to bankrupt obligors
Non-accrual delinquent loans

Riskmonitored Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)
Loans to bankrupt obligors％ to loans Non-accrual delinquent loans
and bills Loans past due 3 months or morediscounted Restructured loans
Total(Millions of yen, %)Mar. 31, 2018
(a)
1,970
56,2491,295
12,57872,094(a) - (b)1,198
35,936623
5,648
43,405(a) - (c)1,070
36,754
1,100
4,261
43,186

Sep. 30, 2017(b)
772
20,313672
6,930
28,689Mar. 31, 2017(c)
900
19,495
195
8,317
28,9083,245,978(40,069)(7,812)

3,286,047

3,253,790

0.06
1.73
0.03
0.38
2.22

0.04
1.12
0.01
0.17
1.35

0.04
1.14
0.03
0.13
1.34

0.02
0.61
0.02
0.21
0.87

0.02
0.59
0.00
0.25
0.88

Consolidated

Loans to bankrupt obligors
Non-accrual delinquent loans
Riskmonitored Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)
Loans to bankrupt obligors％ to loans Non-accrual delinquent loans
and bills Loans past due 3 months or morediscounted Restructured loans
Total(Millions of yen, %)Mar. 31, 2018
(a)
2,987
62,346
1,295
12,57879,207(a) - (b)1,492
35,885623
5,648
43,648(a) - (c)1,353
36,743
1,100
4,261
43,457

Sep. 30, 2017
(b)
1,495
26,461672
6,930
35,559Mar. 31, 2017
(c)
1,634
25,603
195
8,317
35,7503,248,159(38,743)(5,564)

3,286,902

3,253,723

0.09
1.91
0.03
0.38
2.43

0.05
1.11
0.01
0.17
1.35

0.04
1.13
0.03
0.13
1.34

0.04
0.80
0.02
0.21
1.08

0.05
0.78
0.00
0.25
1.09

- 17 -SURUGA bank, Ltd.

2. Allowance ratio for risk-monitored loans
Non-Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Mar. 31, 2018(a)
72,09434,89417,01523.60
72.00(a) - (b)43,405
13,87813,54011.49(13.36)(a) - (c)43,186
14,352
13,55811.65(11.01)(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017(b)(c)
28,68928,90821,016
20,542
3,475
3,457
12.11
11.95
85.36
83.01

(a) - (c)43,457
14,456
13,614
6.98(9.99)(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017(b)(c)
35,55935,75023,45922,947
6,540
6,651
18.39
18.60
84.36
82.79

(a) - (c)37,75926,231
11,529(Millions of yen)Sep. 30, 2017
Mar. 31, 2017(b)(c)
12,191
11,983
8,904
8,983
3,078
3,207

(a) - (c)38,566
26,963
11,604(Millions of yen)Sep. 30, 2017
Mar. 31, 2017(b)(c)
19,70819,305
12,601
12,951
6,703
6,756(a) - (c)Sep. 30, 2017(b)

(Millions of yen)Mar. 31, 2017(c)Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Mar. 31, 2018(a)
79,20737,403
20,26525.58
72.80(a) - (b)43,648
13,944
13,725
7.19(11.56)

3. Allowance for loan losses
Non-consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses

Mar. 31, 2018(a)49,74235,135
14,607(a) - (b)37,551
26,152
11,400Consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses

Mar. 31, 2018(a)
57,871
39,56418,307(a) - (b)38,163
26,613
11,551

4. Non-performing loans based on the Financial Reconstruction Law
Non-consolidated
Mar. 31, 2018(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total

(A)

(a) - (b)10,573

1,311

2,852

9,262

7,721

47,722
13,874
72,17035,807
6,271
43,38834,998
5,362
43,213

11,915
7,603
28,782

12,7248,512
28,957

5. Status of coverage of non-performing loans based on the Financial Reconstruction Law
Non-consolidated

Total coverage
Allowance for loan losses
Collateral or guarantees, etc.
Coverage ratio(B)Mar. 31, 2018(a)
51,874
16,93834,935(a) - (b)27,29013,435
13,855(a) - (c)27,827
13,46314,363

(B/A)

71.87

(13.54)(11.17)- 18 -(Millions of yen, %)Sep. 30, 2017
Mar. 31, 2017(b)(c)
24,58424,0473,503
3,475
21,08020,572
85.41

83.04

SURUGA bank, Ltd.

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry (Non-consolidated)
Mar. 31, 2018(a)Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others(Millions of yen)(a) - (b)(a) - (c)Sep. 30, 2017(b)Mar. 31, 2017(c)

3,245,978(40,069)(7,812)

3,286,047

3,253,790

54,276
4,949
37
15,4091,001
1,655
13,84735,852
74,77369,35833,646
7,295
2,933,868

(6)
(101)
(1)
201
(2,125)164
610(1,633)742(982)(2,033)
1,609(36,516)(12,463)(201)(3)(1,273)(4,018)150
330(3,136)(15)(2,064)(2,610)(2,406)
19,89654,2825,050
38
15,2083,126
1,491
13,23737,48574,031
70,34035,6795,686
2,970,384

66,7395,150
40
16,682
5,019
1,505
13,51738,98874,78871,42236,2569,701
2,913,972(2) Breakdown of risk-monitored loans by industry (Non-consolidated)
Mar. 31, 2018(a)Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others(a) - (b)(Millions of yen)(a) - (c)Sep. 30, 2017(b)Mar. 31, 2017(c)

72,094

43,40543,186

28,68928,908

1,549
33
1,518
10
125
93
2,601
2,158
1,757
62,245

(4)
0
(40)
(1)
0
(8)
(244)
(285)
(35)
44,024(1,763)
(29)
0
(293)
10
0
(38)
(369)
(451)
(139)
46,259

1,553
33
1,558
11
125
101
2,845
2,443
1,792
18,221

3,312
29
33
1,811
125
131
2,970
2,609
1,896
15,986- 19 -SURUGA bank, Ltd.

(3) Consumer loans (Non-consolidated)

Consumer loans
Secured loans
Unsecured loans(Millions of yen)Mar. 31, 2018(a)2,925,991
2,654,576
271,414(a) - (b)(37,454)(38,361)906(a) - (c)18,642
4,390
14,252

Sep. 30, 2017(b)
2,963,445
2,692,937
270,508(4) The ratio of loans to small- and medium-sized enterprises, etc. (Non-consolidated)
Mar. 31, 2018(a)
The ratio of loans to small- andmedium-sized enterprises, etc.

96.65(a) - (b)(%)(a) - (c)(0.09)

Mar. 31, 2017(c)
2,907,349
2,650,186
257,162

0.54

Sep. 30, 2017(b)Mar. 31, 2017
(c)

96.74

96.11

7. Loan breakdown by country(1) Loans to specific foreign countries (Non-consolidated)
Not applicable.
(2) Loans to Asian countries (Non-consolidated)
Not applicable.

8. Deposits and loans (Non-consolidated)(Millions of yen)

Deposits
Loans

period-end balance
average balance
period-end balance
average balance

Mar. 31, 2018(a)
4,089,649
4,047,017
3,245,9783,229,776(a) - (b)13,573(3,105)(40,069)
6,608(a) - (c)(15,806)(7,491)(7,812)
93,766

Sep. 30, 2017(b)
4,076,076
4,050,122
3,286,047
3,223,168

Mar. 31, 2017(c)
4,105,455
4,054,508
3,253,790
3,136,010

9. Number of branches (Non-consolidated)(Branches)

Number of branches

Mar. 31, 2018(a)132

- 20 -(a) - (b)(a) - (c)-(1)

Sep. 30, 2017(b)132

Mar. 31, 2017(c)133

SURUGA bank, Ltd.

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Non-consolidated(Millions of yen)Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Fair
Fair
Fair
value
value
value
Gains Losses
Gains Losses
Gains Losses

Other
487
116,151 24,818 25,400
581 111,220 28,124 28,530
406 90,702 23,353 23,840
securities
106 47,380 21,955 22,088
Stocks41,275 24,604 24,699
95 46,085 26,706 26,813
132
213 30,910
(115)
62
Bonds
62,850(7)90
98 55,477
(157)
55
178
85
12,411
1,512
1,689
Others12,025
221
609
388
9,657
1,575
1,661
176
(Note1) Amounts less than one million yen are rounded down.
(Note2) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note3) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.
(Note4) Unrealized gains (losses) on held-to-maturity bonds were as shown in the table below.
(Millions of yen)Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Book
Book
Book
value
value
value
Gains Losses
Gains Losses
Gains Losses
Held-tomaturity
22
22- 45,001
bonds
Consolidated(Millions of yen)Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Fair
Fair
Fair
value
value
value
Gains Losses
Gains Losses
Gains Losses

Other
406 92,250 24,680 25,167
487
118,214 26,659 27,241
581 113,177 29,860 30,266
securities
106 47,855 22,334 22,466
Stocks41,970 25,201 25,296
95 46,765 27,289 27,396
132
(157)
55
213 30,910
(115)
62
Bonds
62,850(7)90
98 55,477
178
2,728
2,814
85 13,484
2,461
2,637
Others13,3931,464
1,853
388 10,934
176(Note1) Amounts less than one million yen are rounded down.
(Note2) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note3) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.
(Note4) Unrealized gains (losses) on held-to-maturity bonds were as shown in the table below.
(Millions of yen)Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Book
Book
Book
value
value
value
Gains Losses
Gains Losses
Gains Losses
Held-tomaturity
22
22- 45,001
bonds- 21 -SURUGA bank, Ltd.

Ⅴ. Retirement benefits
1. Retirement benefit expenses
Non-consolidated
FY3/2018
Service cost
Interest cost
Expected returns on plan assets
Amortization of unrecognized prior service cost
Amortization of unrecognized net actuarial gains (losses)
Others (non-recurring extra retirement payments, etc.) (Note1)
Retirement benefit expenses

553
113
(731)
(159)
233
8

(Millions of yen)
FY3/2017
782
126
(749)
8
(270)
16
(86)

(Note1) “Others (non-recurring extra retirement payments, etc.)” for the fiscal year ended March 31, 2018 includes contribution toa defined contribution pension plan.
Consolidated
FY3/2018
Service cost (Note1)
Interest cost
Expected returns on plan assets
Amortization of unrecognized prior service cost
Amortization of unrecognized net actuarial gains (losses)
Others (non-recurring extra retirement payments, etc.) (Note2)
Retirement benefit expenses

576
113
(731)
(159)
245
44

(Millions of yen)
FY3/2017
824
126
(749)
8
(270)
16
(43)

(Note1) Retirement benefit expenses of consolidated subsidiaries adopting a simplified method are included in “Service cost”.
(Note2) “Others (non-recurring extra retirement payments, etc.)” for the fiscal year ended March 31, 2018 includes contribution toa defined contribution pension plan.

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