Financial Results
For the fiscal year ended March 31, 2017

- Supplementary Information -SURUGA bank, Ltd.

Table of contents
Ⅰ. Financial highlights for the fiscal year ended March 31, 2017
1. Financial results

Non-Consolidated

・・・・・・・・

2. Major accounts

Non-Consolidated

・・・・・・・・

3. Management indices

Non-Consolidated

・・・・・・・・

4. Own capital

Non-Consolidated

・・・・・・・・

5. Unrealized gains (losses) on securities

Non-Consolidated

・・・・・・・・

6. Earnings forecast for the fiscal year ending March 31, 2018

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

Non-Consolidated

・・・・・・・・・・・・・・・・

11
12

・・・・・・・・

13

14
15

Ⅱ. Financial data for the fiscal year ended March 31, 2017
1. Breakdown of financial results

Consolidated

2. Net operating profit

Non-Consolidated

3. Interest margins

Non-Consolidated

4. ROA and ROE

Non-Consolidated

5. Gains (losses) on securities

Non-Consolidated

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, 2017
1. Financial results (Non-consolidated)(Millions of yen)
FY3/2016(b)(a) - (b)5,520
105,332
5,372
107,568623(2,947)
(4)
74
5,991
104,695
1,311
45,9294,680
58,765
(472)
637
4,208
59,4034,208
59,403
3,452
5,713
1,906
684
386
618
(688）
182
2,728
54,432
162
(442)
2,134
5,921
35,807

FY3/2017(a)
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
41,728Gross 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 of written-off claims
Gains (losses) on stocks
Ordinary profit
Gains (losses) on disposal of fixed assets
Gain on revision of retirement benefit plan
Net income
Net credit costs
Actual credit costs（Note5）

6,575
5,571

1,546
1,160

5,029
4,411

(Note1) Excluded 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.
For the fiscal year ended March 31, 2016, the total amount of reversal of general allowance for loan losses and reversal of
specific allowance for loan losses is recorded in reversal of allowance for loan losses, given that both allowances werereversed 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 of written-off claims(1) Gross operating profit: ¥110.8 billion
・Net interest income increased by ¥5.3 billion year-on-year on the back of the rise in interest on loans and discounts.
・Yen loan-deposit income increased by ¥6.7 billion year-on-year.
・Core gross operating profit increased by ¥5.9 billion year-on-year, mainly due to an increase in net interest income.
・Gross operating profit increased by ¥5.5 billion year-on-year.

Net interest income(Billions of yen)
92.4
85.1

FY3/13

FY3/14

100.3

107.5

Yen loan-deposit income
112.9(Billions of yen)
82.9

FY3/15

FY3/16

FY3/17

FY3/13−1−

89.6

FY3/14

96.9

102.6

109.3

FY3/15

FY3/16

FY3/17

SURUGA bank, Ltd.

(2) Expenses OHR: 42.6%･Expenses increased by ¥1.3 billion year-on-year.
･OHR improved compared to the previous fiscal year and declined to 42.6%, mainly due to an increase ingross operating profit of ¥5.5 billion.
(OHR (%) = Expenses / Gross operating profit × 100)

Gross operating profit
ＯＨＲ(Billions of yen)
49.4%

47.6%

FY3/13

45.6

43.3

41.5

110.8

105.3

45.8%

43.6%

42.6%

45.9

47.2

99.4

90.8

84.0

Expenses

FY3/14

FY3/15

FY3/16

FY3/17(3) Core net operating profit: ¥63.4 billion, Net operating profit: ¥63.6 billion･Core net operating profit increased by ¥4.6 billion year-on-year, mainly due to an increase in net interest income of¥5.3 billion.
･Net operating profit increased by ¥4.2 billion year-on-year.

Core net operating profit

Net operating profit(Billions of yen)

52.8
41.6

42.4

FY3/13

47.4

53.8

58.7

59.4

63.4

63.6

47.5

FY3/14

FY3/15

FY3/16

FY3/17(4) Ordinary profit: ¥57.1 billion
・Ordinary profit increased by ¥2.7 billion year-on-year, mainly due to an increase in net operating profit of ¥4.2 billion.
(5) Net income: ¥41.7 billion･Net income increased by ¥5.9 billion year-on-year, mainly due to an increase in ordinary profit of ¥2.7 billion
and the recording of gain on revision of retirement benefit plan of ¥2.1 billion.

(6) Actual credit costs: ¥5.5 billion･Net credit costs increased by ¥1.5 billion year-on-year, mainly due to an increase in disposal of non-performing loans of¥3.4 billion despite an increase in reversal of allowance for loan losses of ¥1.9 billion.
・Actual credit costs were ¥5.5 billion after deduction of recoveries of written-off claims of ¥1.0 billion from net credit costs of¥6.5 billion.

−2−

SURUGA bank, Ltd.

2. Major accounts (Non-consolidated)(1) Loans and bills discounted･Loans and bills discounted increased by ¥116.1 billion, or 3.7% year-on-year, mainly due to an increase in consumer loans.
･New consumer loans, including mainly personal loans, were ¥470.0 billion and the balance of consumer loans
as of March 31, 2017 increased by ¥135.0 billion, or 4.8% year-on-year.
･Yield on loans and bills discounted (domestic) rose by 0.05% year-on-year to 3.62%.
･Delinquency and loss rates on housing and personal loans continued to remain low.
(Millions of yen)Mar. 31, 2017(a)Loans and bills discounted(period-end balance)
Consumer loans
Housing loans
Loans and bills discounted(average balance)
Loan-deposit ratio(period-end balance basis)
Loan-deposit ratio(average balance basis)(a) - (b)(a) - (c)69,111

116,176

3,184,679

3,137,614

2,907,349
2,040,621

71,643
27,207135,051
47,402

2,835,706
2,013,414

2,772,298
1,993,219

3,136,010

30,850132,0023,105,160

3,004,008

79.2%

1.5%

1.9%

77.7%

77.3%

77.3%

0.4%

2.5%

76.9%

74.8%

FY3/2017(a)
39.9

Business alliance with Japan Post Bank
New housing loans (cumulative total)(Billions of yen)
FY3/2016(b)(a) - (b)3.6
36.3
Consumer loans ratio
Yield on loans and bills discounted (domestic)

Loans and bills discounted (period-end balance)
Consumer loans (period-end balance)(Billions of yen)
3,253.7
3,137.6
3,011.3
2,880.0
2,907.3
2,755.3
2,772.2
2,610.2
2,470.5
2,327.3

Mar.14Mar.15Mar.16

85.7%

84.4%

Mar.17

3.33%

3.40%

Mar.13

Mar.14

88.3%

86.6%

3.57%

Mar.15Mar.16

332.2

238.7

179.3

193.9

255.7

176.7
155.5

176.3

199.3

209.7

231.2

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17(Delinquency and loss rates on consumer loans)
Housing loans
Delinquency rate

89.3%
3.62%

3.51%

New consumer loans (for the second half)
New consumer loans (for the first half)
465.5
393.2
355.7

(Billions of yen)

Yield

Mar. 31, 2016(c)

3,253,790（Reference）

Mar.13

Sep. 30, 2016(b)Mar.17470.0

Personal loans
Yield

Loss rate

Delinquency rate

Loss rate

6.20%

6.12%

6.05%

5.96%

5.88%

0.39%

0.33%

0.32%

0.40%

0.50%

3.33%

3.37%

3.42%

3.45%

3.46%

0.28%

0.28%

0.22%

0.24%

0.22%

0.03%

0.03%

0.03%

0.04%

0.05%

0.09%

0.05%

0.07%

0.02%

0.05%

FY3/17

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/13

FY3/14

FY3/15

FY3/16(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 increased by ¥48.9 billion, or 1.2% year-on-year, mainly due to an increase in individual deposits.
・Individual deposits increased by ¥104.9 billion, or 3.4% year-on-year.
・Yield on deposits (domestic) was 0.09%.
(Millions of yen)Mar. 31, 2017(a)
Deposits (period-end balance)
Individual deposits
Deposits (average balance)(a) - (b)7,844
56,09518,1894,105,455
3,190,837
4,054,508(a) - (c)48,973104,930
41,898

Individual deposits (period-end balance)

2,499.5

Mar.13

4,056.4

3,959.1

3,816.3

3,514.8

Mar.14Mar.15

4,105.4

Mar.16

76.0%

77.7%

0.10%

0.10%

0.09%

Mar.15Mar.16

Mar.17

71.1%

71.4%

72.9%

0.08%

0.09%

Mar.13

Mar.14

3,190.8

3,085.9

2,889.4

2,727.1

Mar.17(3) Net fees and commissions･Net fees and commissions increased by ¥0.6 billion year-on-year, mainly due to a decrease infees and commissions payments of ¥0.6 billion.

Net fees and commissions(Millions of yen)
13,562
11,503(2,058)

FY3/13

Fees and commissions

13,167
11,382(1,784)

FY3/14Mar. 31, 2016
(c)
4,056,482
3,085,907
4,012,610

Individual deposits ratio
Yield on deposits (domestic)

Deposits (period-end balance)(Billions of yen)Sep. 30, 2016(b)
4,097,611
3,134,742
4,036,319

Fees and commissions payments
14,952

13,718
11,714(2,003)

FY3/15−4−

12,004(2,947)

FY3/16

14,327
12,002(2,324)

FY3/17

SURUGA bank, Ltd.

(4) Individual deposit assets･Individual deposit assets increased by ¥65.8 billion year-on-year.
･The ratio of investment products to total individual deposit assets declined by 1.3% year-on-year to 5.1%.
(Millions of yen)Mar. 31, 2017(a)
Individual deposit assets
Yen deposits
Investment products

Sep. 30, 2016(b)Mar. 31, 2016
(c)

3,323,382

3,291,053

104,870

3,128,501

3,079,581
211,472

3,356,908(a) - (b)33,526(a) - (c)65,855

3,184,451

55,950172,456(22,425)(39,016)

194,881

6,386

145

60

6,241

6,326

Public bonds

10(11,887)(14,164)

11,897

14,174

Mutual funds

107,988(2,689)(11,491)

110,677

119,479

Personal pension plans

43,781(7,626)(12,713)51,40756,494

14,290

(366)

(707)

14,65614,9975.1%(0.7)%(1.3)%

5.8%

6.4%

Foreign currency deposits

Single premium life insurance
The ratio of investment products tototal individual deposit assets

3. Management indices (Non-consolidated)(1) Interest margins･Loan-deposit margin (after deduction of expenses) rose by 0.05% year-on-year to 2.35%, mainly due to the rise inyield on loans and bills discounted.
･Net interest margin rose by 0.11% year-on-year to 1.54%, mainly due to the rise in yield on interest earning assets,
and continued to remain high.
(%)
FY3/2017(a)
Loan-deposit margin
Loan-deposit margin(after deduction of expenses)
Net interest margin

FY3/2016(b)

3.52(a) - (b)
0.07

2.35

0.05

2.30

1.54

0.11

1.43

3.45

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

3.28%

3.39%

3.45%

3.52%

3.20%

2.06%

2.19%

2.30%

2.35%

1.94%

1.31%

1.35%

1.43%

1.54%

1.24%

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17−5−

SURUGA bank, Ltd.

4. Own capital (Non-consolidated)・Capital adequacy ratio rose by 0.40% year-on-year to 11.96%.
The transitional arrangements of the new domestic standard based on “Basel Ⅲ” have been applied
since the end of March 2014.
(%)
Mar. 31, 2017(a)Capital adequacy ratio(domestic standard)(a) - (b)11.96(a) - (c)(0.26)

Sep. 30, 2016(b)Mar. 31, 2016
(c)

12.22

11.56

0.40

Own capital Deferred taxassets
Deferred taxassets / Own capital(Billions of yen)(previous
standard)
219.7

3.4%

Capital adequacy ratio

307.2
279.2

267.2

(previous
standard)
10.78%

247.6

1.4%

(0.4)%

0.8%(0.0)%

7.5

3.6

(1.1)

2.4

(0)

Mar.13

Mar.14Mar.16

Mar.17

Mar.15−6−

Mar.13

11.42%

11.59%

11.56%

Mar.14Mar.15Mar.1611.96%

Mar.17

SURUGA bank, Ltd.

5. Unrealized gains (losses) on securities (Non-consolidated)･Unrealized gains on securities increased by ¥1.2 billion year-on-year, mainly due to an increase in unrealized gains on others.
(Millions of yen)

Other securities
Stocks
Bonds
OthersMar. 31, 2017(a)
23,353
21,955(115)1,512(a) - (b)
6,354
5,058
(293)
1,589

(a) - (c)
1,324
(79)
(200)
1,602

Sep. 30, 2016(b)
16,99916,897
178(77)

Mar. 31, 2016(c)
22,02922,03485(90)(Millions of yen)Mar. 31, 2017(a)Held-to-maturity bonds(unrealized gains (losses))(a) - (b)

22

(116)

(a) - (c)(75)

Sep. 30, 2016(b)Mar. 31, 2016
(c)

138

97

6. Earnings forecast for the fiscal year ending March 31, 2018
Non-consolidated

Net operating profit
Ordinary profit
Net income
Actual credit costs
Consolidated

Ordinary profit
Profit attributable toowners of parent(Billions of yen)
FY3/2018 (forecast)First half
Full year
31.5
65.0
29.0
60.0
20.0
42.0
2.3

4.5

(Billions of yen)
FY3/2018 (forecast)First half
Full year
30.0
61.5
20.5

43.0

(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 decreased by ¥9.0 billion year-on-year to ¥28.9 billion.
Non-performing loan ratio declined by 0.32% year-on-year to 0.88%.
Outstanding balance
Mar. 31, 2017(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)(a) - (c)(Millions of yen, %)Sep. 30, 2016
Mar. 31, 2016
(b)
(c)

7,721

877

577

6,844

7,144

12,7248,512
28,957
3,274,497
0.88(1,266)(4,556)(4,946)69,745(0.17)(3,190)(6,477)(9,090)115,811(0.32)

13,99013,06833,9033,204,752
1.05

15,914
14,98938,047
3,158,686
1.20

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
7,721
7,721

(C)

Claims withcollection risk

Claims for
specialattention

Total

Change from
Mar. 31, 2016

12,724
11,178

8,512
5,148

28,95724,047(9,090)(8,197)

5,417

10,4704,684

20,572(5,863)(D)

2,303
100.00

708
87.85

463
60.47

3,475
83.04

(2,333)(1.70)

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

2,303

2,253

3,828

8,385

(3,227)100.00

31.42

12.09

41.44

(8.57)(Reference) As of Mar. 31, 2016
Unsecured portion
Allowance ratio for unsecured portion

2,408
100.00

2,753
33.85

6,449
38.23

11,61250.01(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.
Non-performing loan ratio
Claims against bankrupt and substantially bankrupt obligors
Claims with collection risk
Non-performing loan ratio (after deduction of allowance)
Claims for special attention(Billions of yen)
Non-performing loan ratio (after deduction of collateral,
55.8
51.1
guarantees and allowance)
45.7
2.01%
11.1
8.2
1.76%
38.0
7.5
1.50%
28.9
23.8

21.9

7.1

18.8
15.9

1.65%

7.7
12.7

20.8

20.9

19.3

14.9

Mar.13

Mar.14Mar.15Mar.16

1.20%

1.48%

0.88%
1.26%
1.02%

0.33%

0.30%

0.27%

0.18%

0.77%
0.14%

Mar.13

Mar.14Mar.15Mar.16

Mar.17

8.5

Mar.17−8−

SURUGA bank, Ltd.

(2) Risk-monitored loans(Millions of yen, %)Loans to bankrupt obligors
Non-accrual delinquent loans
Loans past due 3 months or more
Restructured loans
Total

Mar. 31, 2017(a)
900
19,495
195
8,317
28,908(a) - (b)
251
(640)
(19)
(4,536)(4,945)83.01(0.33)

Coverage ratio

8. Credit costs (Non-consolidated)
FY3/2017(a)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 of written-off claimsA
Net credit costs(4) (=(1)+(2)-(3))
Actual credit costs(4)- A
Loans and bills discounted (average balance)

9,165
7,160
1,914
90
2,590
1,004
6,575
5,571
3,136,010

91(2,632)(148)(6,328)(9,017)

Sep. 30, 2016(b)
649
20,135214
12,85333,853Mar. 31, 2016
(c)809
22,127343
14,64537,925(1.69)

83.34

84.70

(a) - (c)(Millions of yen, %)FY3/2016(b)(a) - (b)
3,452
5,713
4,244
2,916
(868)
2,782
76
14
1,906
684
386
618
1,546
5,029
1,160
4,411
132,0023,004,008

Net credit costs ratio
0.20
0.04
0.16
Actual credit costs ratio
0.17
0.03
0.14
(Note1) Net credit costs ratio = Net credit costs / The average balance of Loans and bills discounted(Note2) Actual credit costs ratio = Actual credit costs / The average balance of Loans and bills discounted(Billions of yen)

55.6

Risk-monitored loans
Actual credit costs
Actual credit costs ratio

50.9

45.6
37.9

0.16%
4.3
Mar.13

0.03%

0.03%

1.0

0.9

Mar.14Mar.15

−9−

0.14%
4.4
Mar.16

0.17%
5.5
28.9
Mar.17

SURUGA bank, Ltd.

9. Dividends･The company has decided to pay a year-end dividend of ¥12.0 per share and an annual dividend of ¥22.0 per share(of which, ordinary dividend: ¥21.0, special dividend: ¥1.0) with the aim of enhancing shareholder returns.
For the fiscal year ending March 31, 2018, the company is forecasting an annual dividend of ¥21.0 per share in light ofthe company’s earnings forecast and other factors.
(yen)
FY3/2017(a)Annual dividend per share
Interim dividend
Year-end dividend
Ordinary dividend
Special dividend(a) - (b)

22.00
10.00
12.00
11.00
1.00

2.00
0.50
1.50
0.50
1.00

FY3/2016(result)
(b)
20.00
9.50
10.50
10.50
-

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

(yen)
22.0
20.0

17.0

20.0

21.0

1.0

1.0

15.0
13.0

13.0

13.0

13.0

10.5

10.5

11.0

9.5

10.0

FY3/16

FY3/17

10.5

9.5
6.5

6.5

6.5

6.5

8.5

6.5

6.5

6.5

6.5

6.5

7.5

8.5

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15− 10 −

10.5

FY3/18(forecast)SURUGA bank, Ltd.

Ⅱ. Financial data for the fiscal year ended March 31, 2017
1. Breakdown 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 of written-off claims
Gains (losses) on stocks
Ordinary profit
Extraordinary gains (losses)
Gains (losses) on disposal of fixed assets
Gains on disposal of fixed assets
Losses on disposal of fixed assets
Gain on revision of retirement benefit plan
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income

（
（

（
（

（

(Millions of yen)
FY3/2016(b)
105,332
104,695 ）
104,854
104,216 ）
107,184(2,968)
638
637 ）
478
478 ）
383
20
73
- ）
45,92918,32524,212
3,391

FY3/2017(a)
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(a) - (b)
5,520
5,991
5,742
6,075
5,452
624
(334)
(333)
(223)
(83)
(79)
0
(141)
(139)
1,311
37
919
356

63,611

4,208

59,40363,44563,611
165(6,450)
2,590
1,004
(506)
57,160
1,853
(280)
36
316
2,134
59,013
15,214
2,071
17,28541,728

4,680
4,208
(472)
(1,481)
1,906
386
(688)
2,728
2,314
162
10
(152)
2,134
5,043
(3,458)
2,579
(878)
5,921

58,76559,403637(4,969)684
618
182
54,432
(461)
(442)
26
468
53,97018,672(508)
18,16335,807(1) Provision for general allowance for loan losses (Note)(2) Disposal of non-performing loans
9,165
3,452
5,713
Write-off of loans
7,160
4,244
2,916
Provision for specific allowance for loan losses (Note)
Losses on sales of delinquent loans
1,914
(868)
2,782
Provision for allowance for contingent losses
907614(3) Reversal of allowance for loan losses (Note)
2,590
1,906
684
(4) Net credit costs (1)+(2)-(3)
6,575
1,546
5,029
(5) Recoveries of written-off claims
1,004
386
618
(6) Actual credit costs (4)-(5)
5,571
1,160
4,411
(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.
For the fiscal year ended March 31, 2016, the total amount of reversal of general allowance for loan losses and reversal of
specific allowance for loan losses is recorded in reversal of allowance for loan losses, given that both allowances werereversed during the period.

− 11 −SURUGA bank, Ltd.

Breakdown of financial results (Consolidated)(Millions of yen)
FY3/2017(a)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
42,627

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(a) - (b)
6,991
6,465
1,009
(484)
1,923
1,862
(699)
(17)
(661)
1,827
2,317
4,145
(3,645)
1,875(1,769)3
5,910

FY3/2016(b)
113,303
113,966(1,892)
1,229
49,380
8,026
186
18
293
56,395(482)
55,912
19,426(387)
19,039156
36,717(1) Provision for general allowance for loan losses(77)(2) Disposal of non-performing loans
12,155
3,284
Write-off of loans
9,381
4,637
Provision for specific allowance for loan losses(801)
Losses on sales of delinquent loans
2,683
(627)
Provision for allowance for contingent losses
9076(3) Reversal of allowance for loan losses
927927(4) Net credit costs (1)+(2)-(3)11,2282,279(5) Recoveries of written-off claims
1,339
416
(6) Actual credit costs (4)-(5)
9,888
1,862
(Note) Consolidated gross profit = (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions
payments) + (Other ordinary income - Other ordinary expenses)(Reference)

77
8,871
4,744
801
3,310
14
8,949
923
8,026

(Millions of yen)

Consolidated net operating profit
63,84568,991
5,146(Note) Consolidated net operating profit = Consolidated gross profit - Consolidated expenses (excluding non-recurring losses) Consolidated provision for general allowance for loan losses (* FY3/2017: “-“)
(Number of consolidated subsidiaries and affiliates)(Companies)

Consolidated subsidiaries
Equity-method accounted affiliates

91-

2. Net operating profit (Non-consolidated)

91(Millions of yen)

FY3/2017(a)
63,611
40,568Net operating profit
Per employee (Thousands of yen)

− 12 −(a) - (b)
4,208
3,231

FY3/2016(b)
59,40337,337

SURUGA bank, Ltd.

3. Interest margins (Non-consolidated)
Overall(%)

Yield on interest earning assets(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
(a)
2.81
3.62
1.26
1.27
0.10

(a) - (b)0.11
0.06
(0.66)
0.01(0.01)

FY3/2016
(b)
2.70
3.56
1.92
1.26
0.11

2.35

0.05

2.30

1.54

0.11

1.43

Domestic(%)

Yield on interest earning assets(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
(a)
2.81
3.62
1.28
1.23
0.09

(a) - (b)0.11
0.05
(0.64)
0.01(0.01)

FY3/2016
(b)
2.70
3.57
1.92
1.22
0.10

2.38

0.07

2.31

1.58

0.11

1.47

4. ROA and ROE (Non-consolidated)

ROA
ROE

Net operating profit basis
Net income basis
Net operating profit basis
Net income basis(%)
FY3/2017
(a)
1.45
0.95
23.08
15.14

5. Gains (losses) on securities (Non-consolidated)(a) - (b)0.08
0.13
(0.36)
1.02

FY3/2016
(b)
1.37
0.82
23.44
14.12

(Millions of yen)

Gains (losses) on bonds
Gains on sales
Gains on redemptions
Losses on sales
Losses on redemptions
Losses on devaluation

FY3/2017
(a)
165
2
473
310
-

(a) - (b)
(472)
(37)
(324)
111
-

FY3/2016
(b)
637
39
797
199
-

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

(506)
129
636

(688)
(54)
636

182
183
0

− 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, 2017(a)11.96%
307,293
321,254
13,9602,567,492(a) - (b)0.40%
28,05033,451
5,401
152,385

Consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital: instruments and reserves
Core capital: regulatory adjustments (-)
Risk-weighted assets

Mar. 31, 2016(c)
11.56%
279,243
287,803
8,559
2,415,107(Millions of yen)Mar. 31, 2017(a)12.17%
315,893332,238
16,3452,594,699− 14 −(a) - (b)0.50%
29,851
34,848
4,997
145,667

Mar. 31, 2016(c)11.67%
286,042
297,390
11,3482,449,032

SURUGA bank, Ltd.

7. Composition of own capital (domestic standard)(Millions of yen）
As of Mar. 31, 2017
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 stock (-)
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 reserve for possible 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
Gain on sale related to securitization transactions
Gains and 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

312,325

317,725

48,633
267,078
606
2,779
-

30,047
291,063
606
2,779
260
260

24

24

-

-

8,904
8,904

12,601
12,601

-

-

-

-

-

-

-

-

-

1,627

321,254332,238

10,962

7,308

13,086

7,429

-

-

1,942

-

10,962

7,308

11,144

7,429

-

-

-

-

2,996
1

1,997
-

3,256
1

2,171
-

-

-

-

-

-

-

-

-

13,960-16,345-

307,293

315,893

2,358,416

2,362,060

13,351

14,635

10,485

10,6592,866
209,075
2,567,492

860
3,115
232,638
2,594,699

11.96%--

12.17%SURUGA bank, Ltd.

Ⅲ. Status of loans, etc.
Comparison of asset disclosure by standard
Non-consolidated (As of Mar. 31, 2017)Classification and status of coverage by disclosure standard
Self-assessment result(by obligor classification)* Included total claims (“Claims for special
attention” includes only loans and bills
discounted)* Included total claims
Classification

Category
Creditbalance

Nonclassification

Classification
Ⅱ

267

643

Category

Classification
Ⅲ

ClassificationⅣ

Creditbalance

Bankrupt obligors
910
[258]

-

[258]

Effectively
bankrupt obligors
2,424

4,385

-

6,810
[2,045][2,045]

Potentiallybankrupt obligors
6,724

4,453

12,724[708]

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

1,545
[708]

-

Claimsagainstbankrupt
andsubstantiallybankrupt
obligors

CollateralorAllowance
guarantees,
etc.

5,417

2,303

* Included loans andbills discounted

Coverage
ratio

10,47070887.85%

12,724Claims for
specialattention
420

9,798

-

-

4,684

463

Category

Outstandingbalance

Loans tobankrupt
obligors

900

Non-accrualdelinquentloans

19,495Loans pastdue 3 months
or more195

Restructured
loans

8,317

Total

28,908

100%

7,721

Claims withcollection
risk(Millions of yen)
Risk-monitoredloans

60.47%

8,512
Subtotal

10,21920,572

3,475

83.04%

28,957

Other
obligors
requiring
caution23,157139,096--

162,254

Normalassets3,245,539

Normal obligors
3,081,578---

3,114,573

158,378

1,545
[708]

[2,303]3,081,578
Total
3,274,497[3,011]

Total
3,274,497(Note1) “Total claims” include “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 partial direct write-offs of loans, the amounts of which for the fiscal year ended March 31,2017 were ¥7,489 million on a non-consolidated basis and ¥9,623 million on a consolidated basis.
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
Non-accrual delinquent loans％ to loans
and bills Loans past due 3 months or morediscounted
Restructured loans
Total(Millions of yen, %)91(2,632)(148)(6,328)(9,017)

Sep. 30, 2016(b)
649
20,135214
12,85333,853Mar. 31, 2016
(c)809
22,127343
14,64537,925

69,111

116,176

3,184,679

3,137,614

0.02

0.00

0.00

0.02

0.02

0.59

(0.04)(0.11)

0.63

0.70

0.00

0.00

(0.01)

0.00

0.01

0.25

(0.15)(0.21)

0.40

0.46

0.88

(0.18)(0.32)

1.06

1.20

Mar. 31, 2017(a)
900
19,495
195
8,317
28,908(a) - (b)
251
(640)
(19)
(4,536)(4,945)

3,253,790(a) - (c)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, 2017
(a)
1,634
25,603
195
8,317
35,750(a) - (b)
427
(718)
(19)
(4,536)(4,847)(a) - (c)307
(2,121)(148)(6,328)(8,291)

Sep. 30, 2016
(b)
1,207
26,321
214
12,85340,597Mar. 31, 2016
(c)
1,327
27,724343
14,64544,041

3,253,723

68,987

116,559

3,184,736

3,137,164

0.05
0.78
0.00
0.25
1.09

0.02
(0.04)
0.00(0.15)(0.18)

0.01(0.10)(0.01)(0.21)(0.31)

0.03
0.82
0.00
0.40
1.27

0.04
0.88
0.01
0.46
1.40

− 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, 2017(a)
28,90820,542
3,457
11.95
83.01

(a) - (b)(4,945)(2,314)(1,902)(3.88)(0.33)(a) - (c)(9,017)(5,871)(2,255)(3.11)(1.69)(Millions of yen, %)Sep. 30, 2016
Mar. 31, 2016(b)(c)
33,85337,92522,856
26,413
5,359
5,712
15.83
15.06
83.34
84.70

(a) - (c)(8,291)(5,343)(2,187)(1.46)(1.51)(Millions of yen, %)Sep. 30, 2016
Mar. 31, 2016(b)(c)
40,59744,041
25,13528,290
8,625
8,838
21.24
20.06
83.16
84.30

(Millions of yen)Mar. 31, 2016(c)
15,607
12,1973,409

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, 2017(a)35,75022,947
6,651
18.60
82.79

(a) - (b)(4,847)(2,188)(1,974)(2.64)(0.37)

3. Allowance for loan losses
Non-consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses
Allowance for loans to specificforeign obligors

Mar. 31, 2017(a)
11,9838,904
3,078(a) - (b)(3,143)(3,097)(46)(a) - (c)(3,624)(3,293)(331)

Sep. 30, 2016(b)
15,126
12,001
3,124

-

-

-

-

(Millions of yen)Mar. 31, 2016(c)
22,26515,093
7,171-

Consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses
Allowance for loans to specificforeign obligors

Mar. 31, 2017(a)
19,305
12,601
6,703(a) - (b)(2,706)(2,632)(75)(a) - (c)(2,960)(2,492)(468)

Sep. 30, 2016(b)
22,011
15,233
6,778

-

-

-

-

4. Non-performing loans based on the Financial Reconstruction Law
Non-consolidated
Mar. 31, 2017(a)Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total

(A)

(a) - (b)(Millions of yen)Sep. 30, 2016
Mar. 31, 2016(b)(c)(a) - (c)

7,721

877

577

6,844

7,144

12,7248,512
28,957(1,266)(4,556)(4,946)(3,190)(6,477)(9,090)13,99013,06833,903

15,914
14,98938,047

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

Total coverage(B)
Allowance for loan losses
Allowance for loans to specificobligors
Collateral or guarantees, etc.
Coverage ratio(B/A)(Millions of yen, %)Sep. 30, 2016
Mar. 31, 2016(b)(c)
28,26632,2445,388
5,808

Mar. 31, 2017(a)
24,0473,475(a) - (b)(4,219)(1,913)(a) - (c)(8,197)(2,333)

-

-

-

-

-

20,572(2,305)(5,863)22,877

26,43583.04(0.33)(1.70)

83.37

84.74

− 18 −SURUGA bank, Ltd.

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry (Non-consolidated)
Mar. 31, 2017(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, 2016(b)Mar. 31, 2016(c)

3,253,790

69,111

116,176

3,184,679

3,137,614

66,7395,150
40
16,682
5,019
1,505
13,51738,98874,78871,42236,2569,701
2,913,972

1,435
(97)
4
(348)
(243)
(58)
1,608
169
1,720
1,154
(1,368)(6,497)
71,631

419
(316)
(99)
(2,376)
(402)
(76)
1,478
(3,111)
1,157(5,923)(2,306)(7,895)
135,623

65,304
5,247
36
17,0305,262
1,563
11,90938,81973,06870,26837,624
16,1982,842,341

66,3205,466
139
19,0585,421
1,581
12,03942,09973,631
77,34538,562
17,596
2,778,349(2) Breakdown of risk-monitored loans by industry (Non-consolidated)
Mar. 31, 2017(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, 2016(b)Mar. 31, 2016(c)

28,908(4,945)(9,017)33,85337,925

3,312
29
33
1,811
125
131
2,970
2,609
1,896
15,986(3,423)
(1)
0
(186)
(4)
(1)
(1,616)
(260)
(485)
1,031

(4,200)
(2)
0
(384)
(6)
(4)
(31)
(2,507)(366)(1,134)
(384)

6,735
30
33
1,997
129
132
4,586
2,869
2,381
14,955

7,512
31
33
2,195
6
129
162
5,477
2,975
3,030
16,370− 19 −SURUGA bank, Ltd.

(3) Consumer loans (Non-consolidated)

Consumer loans
Housing loans
Personal loans(Millions of yen)Mar. 31, 2017(a)2,907,349
2,040,621
866,727(a) - (b)71,643
27,20744,436(a) - (c)135,051
47,402
87,649Sep. 30, 2016(b)
2,835,706
2,013,414
822,291(4) The ratio of loans to small- and medium-sized enterprises, etc. (Non-consolidated)
Mar. 31, 2017(a)
The ratio of loans to small- andmedium-sized enterprises, etc.

(a) - (b)

96.11

(%)

(a) - (c)(0.04)

Mar. 31, 2016(c)
2,772,298
1,993,219
779,078

0.18

Sep. 30, 2016(b)Mar. 31, 2016
(c)

96.15

95.93

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)

Deposits
Loans

period-end balance
average balance
period-end balance
average balance(Millions of yen)Mar. 31, 2017(a)4,105,455
4,054,508
3,253,790
3,136,010(a) - (b)7,844
18,18969,11130,850(a) - (c)48,97341,898116,176
132,002

Sep. 30, 2016(b)
4,097,611
4,036,319
3,184,679
3,105,160

9. Number of branches (Non-consolidated)

Number of branches

Mar. 31, 2016
(c)
4,056,482
4,012,610
3,137,614
3,004,008(Branches)

Mar. 31, 2017(a)133(a) - (b)− 20 −(a) - (c)-1Sep. 30, 2016(b)
133

Mar. 31, 2016(c)132

SURUGA bank, Ltd.

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Non-consolidated
Fair
value

Mar. 31, 2017
Unrealized gains (losses)
Gains Losses

Fair
value

Sep. 30, 2016
Unrealized gains (losses)
Gains Losses

Fair
value

(Millions of yen)Mar. 31, 2016
Unrealized gains (losses)
Gains Losses

Other
90,702 23,353 23,840
487 87,768 16,999 19,089
2,090 74,182 22,029 23,748
1,719
securities
47,380 21,955 22,088
132 42,474 16,897 17,645
Stocks747 47,610 22,034 22,343
308
30,910(115)
62178 25,216
Bonds
178
178
0
6,163
85
87
1
12,411
1,512
1,689
176 20,077
Others(77)
1,265
1,343 20,408
(90)
1,318
1,408
(Note1) Amounts less than one million yen are rounded down.
(Note2) Not measured at fair value, the stocks of subsidiaries and affiliates are not included.
(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, 2017
Sep. 30, 2016
Mar. 31, 2016
Unrealized gains (losses)
Unrealized gains (losses)
Unrealized gains (losses)
Book
Book
Book
value
Gains Losses value
Gains Losses value
Gains Losses
Held-to- 145,059
maturity
45,00122
22- 125,022
138
138
97
102
4
bonds
Consolidated
Fair
value

Mar. 31, 2017
Unrealized gains (losses)
Gains Losses

Fair
value

Sep. 30, 2016
Unrealized gains (losses)
Gains Losses

Fair
value

(Millions of yen)Mar. 31, 2016
Unrealized gains (losses)
Gains Losses

Other
92,250 24,680 25,167
487 89,160 18,169 20,260
2,090 75,580 23,206 24,926
1,719
securities
47,855 22,334 22,466
132 42,966 17,292 18,040
Stocks747 48,081 22,407 22,716
308
30,910(115)
62178 25,216
Bonds
178
178
0
6,163
85
87
1
13,4842,461
2,637
176 20,977
Others698
2,041
1,343 21,335
713
2,121
1,408
(Note1) Amounts less than one million yen are rounded down.
(Note2) Not measured at fair value, the stocks of subsidiaries and affiliates are not included.
(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, 2017
Sep. 30, 2016
Mar. 31, 2016
Unrealized gains (losses)
Unrealized gains (losses)
Unrealized gains (losses)
Book
Book
Book
value
Gains Losses value
Gains Losses value
Gains Losses
Held-tomaturity
45,00122
22- 125,022
138
138- 145,059
97
102
4
bonds

− 21 −SURUGA bank, Ltd.

Ⅴ. Retirement benefits
1. Retirement benefit expenses
Non-consolidated
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)
Retirement benefit expenses

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

(Millions of yen)
FY3/2016
671
309
(725)
16
(868)
(597)

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

(Millions of yen)
FY3/2016
712
309
(725)
16
(868)
(556)

Consolidated
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)
Retirement benefit expenses(Note) Retirement benefit expenses of consolidated subsidiaries adopting a simplified method are included in“Service cost”.

− 22 −