September 26, 2022
To whom it may concern:
Name of Company: Suruga Bank, Ltd.
Name of Representative: Director and President: Kosuke Saga
(Code No. 8358 Tokyo Stock Exchange Prime Market)
Contact Person: Senior Executive Officer
Tatsuya Akita, General Manager, General Management Planning Headquarters(TEL: 03-3279-5535)

Announcement Regarding Transfer of Share House-related Loan Receivables

Suruga Bank, Ltd. is subject to a petition for civil conciliation from 105 obligors (including joint
and several obligors and guarantors, hereinafter simply referred to as “Claimants”) of the sharehouse-related financing. This is to inform you that 16.8 billion yen of share house-related loan
receivables have been transferred to a third party (hereinafter the "Transfer") based on theconciliation recommendation of the Tokyo District Court's Conciliation Committee.
Note
１． Circumstances of the Transfer
On October 5, 2018, the Company received an order for business improvement including
partial suspension of business from the Financial Services Agency based on Article 26 of theBanking Act. In response to this, the Company has considered and implemented all measurespossible as a financial institution to assist customers who have had difficulty repaying sharehouse-related loans and other loans for investment real estate, under the business
improvement plan submitted to the Financial Services Agency on November 30, 2018.
As part of these measures, we transferred share house-related loan receivables to a third
party on March 25, 2020, March 1, 2021 and March 25,2022 in an effort to quickly resolve issues
with customers who are using share house-related loans (hereafter referred to as the "bulktransfer of previously executed loans").
This transfer was executed under the same scheme as the bulk transfer of previouslyexecuted loans. As with the bulk transfer of previously executed loans, this transfer only
covered the shared housing-related loans and did not cover any other investment real estaterelated loans.

1Please refer to the attachment for more about the major initiatives to support repayment of loans for investment realestate implemented by the Company.

２．Regarding the Transfer
This transfer was made based on the conciliation recommendation of the Tokyo District
Court's Conciliation Committee. The outline is as follows.
・Acknowledging its liability for payment of a certain amount of settlement money to each of
the Claimants with regard to the share house-related loans, the Company offset its
liabilities with the share house-related loan liabilities of each of the Claimants at anequivalent amount, and transferred the post-offset loan receivables to a third party.
・After the above-mentioned offset and the transfer, each of the Claimants provided substituteperformance of their loan obligations using the collateral property owned by each of them.
The Company's share house-related financing was executed for newly built properties
without a track record of operation based on unrealistic business plans under conditions
different from general investment real estate-related financing in that the market wasimmature and there were few similar properties to compare. As a result, the customers
purchased share house properties at prices higher than the prevailing market prices, suffering
losses from the so-called high price grabbing. When executing the share house-related
financing, there were cases in which the Company took inappropriate measures, for instance,
failing to conduct sufficient analysis of the risks inherent in share houses that are not foundin general investment real estate-related financing and overlooking the unrealistic nature of
the business plans. Based on the court's conciliation committee's determination that theCompany is typically liable for damages based on tort regarding the share house-relatedloans, the Company accepted that it is liable to pay the Claimants settlement money basedon the conciliation recommendation.
The Tokyo District Court is scheduled to approve mediation as stipulated in Article 16 of
the Civil Conciliation Act, and as a result, the issues surrounding the share house-related
loan between the Petitioners and the Company will be resolved.
３． Impact of the Transfer on Business Performance, etc.
In this bulk transfer of receivables, the Company expects a gain on reversal of allowancefor doubtful receivables, including related loans, of approximately 2.5 billion yen. This has
already been incorporated in the forecast for consolidated and non-consolidated financial
results for the fiscal year ending March 31, 2023, as stated in the "Announcement Regarding
the Revision to the Earnings Forecast" announced on August 10, 2022.
Although this transfer marks the end of our actions for the bulk transfer of share houserelated loan receivables, we will continue to provide thorough customer-oriented services,
including regular repayment support and consultation according to individual customer
situations, through the "Share House-Related & Other Loan Customer Service Office."
Contact number for the "Share House-Related & Other Loan Customer Service Office"：
0120-010-636
Address：Suruga Bank, Ltd., 1-7-1 Nihonbashi Muromachi, Chuo-ku, Tokyo.
Business Hours：9：00 - 18：00（except Saturday, Sunday, national holidays and New Year'sseason）