February 9, 2024
Company name:
Suruga Bank, Ltd.
Representative:
Kosuke Kato, Director and President(Code: 8358, Prime Market of the Tokyo Stock Exchange)
Inquiries:
Fujio Sato, Senior Executive Officer, General
Manager of General Management Planning
Headquarters(TEL: +81-3-3279-5536)

Notice Regarding Recording of Loss due to Sale of Securities andRevision of Full-year Earnings Forecast for the fiscal year ending March 2024
In light of the solid performance of core gross operating profit, the prospect of a decrease in actual credit costs,
and the fact that the Suruga Bank is projected to record losses due to sales of securities, the Bank has revised its
earnings forecast (previously announced on November 6, 2023)
as follows.
1. Revisions to earnings forecast
Revision of consolidated earnings forecast for the fiscal year ending March 2024 (April 1, 2023 to March 31,2024)
Ordinary income

Ordinary profit

Profit attributableto owners ofparent

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecast (A)81,00014,50010,00049.62

Revised forecast (B)87,50017,50012,00059.50

Change (B-A)

6,500

3,000

2,000

8.020.7

20.0

92,403

13,266

10,576

Change (%)(Reference) Previous year
results
FY3/23

56.15

Revision of non-consolidated earnings forecast for the fiscal year ending March 2024 (April 1, 2023 to March31, 2024)
Ordinary income

Ordinary profit

Net income

Previous forecast (A)Millions of yen
73,000Millions of yen
14,000Millions of yen
10,000Net income
per share
Yen
49.62

Revised forecast (B)79,50017,00011,50057.02

Change (B-A)

6,500

3,000

1,500

8.9

21.4

15.0

82,794

11,267

9,537

Change (%)(Reference) Previous year
results
FY3/2350.63

2. Main reasons for revision, etc.
(1) Sale of some cross-shareholdings and restructuring of securities portfolio
Suruga Bank’s policy is to reduce the balance of shares held for strategic investment purposes. In accordancewith this policy, we have decided to proceed with the sale of some cross-shareholdings. Moreover, withregard to measures to improve the quality of our securities portfolio implemented up to the third quarter, wewill proceed in restructuring the securities portfolio through additional reductions primarily in multi-asset
funds that have suffered valuation losses. As a result, we expect to record a loss of 6 billion yen in securitiesrelated gains/losses for the full year.
With our aim to build a more stable profit structure, there will be no change to our securities investment
policy as we intend to progressively build a portfolio centered on yen bonds while taking into account themarket environment.
Securities-related gains (losses) forecast for the fiscal year ending March 2024 (non-consolidated)(Millions of yen)Q3 results
Gains (losses) on

Full year forecast(2,253)(6,000)Change(3,747)

securities** Total gains/losses on bonds, such as government bonds, and gains/losses on stocks, etc.

(Reference) Excerpt from corporate governance report
Principle 1.4 Cross-Shareholdings(1) Policy Regarding Cross-Shareholdings
・The Company’s policy is to reduce the balance of shares held for policy investment purposes (hereinafter referredto as “cross-shareholdings”) after sufficient dialogue with business partners.
・The Company will hold cross-shareholdings when it is judged to contribute to the enhancement of corporate value
over the medium to long term from the perspective of facilitating and strengthening the building of stable, medium
to long term business relationships with business partners; business alliances; alliance business development; and soforth.
・The Board of Directors will review the significance, economic rationality over the medium to long term, andfuture prospects of all cross-shareholdings to determine the appropriateness of holding these shares.

(2) Earnings forecast for the full year ending March 2024
Consolidated and non-consolidated earnings forecasts will be revised in consideration of the expected sale ofsome cross-shareholdings and reduction of valuation losses aimed at improving the quality of the securities
portfolio as described in (1) above, and in light of the Bank’s solid core gross operating profit and the fact that
actual credit costs are expected to be lower than the previously announced forecasts.
(3) Dividend forecast
The Bank's basic policy for shareholder returns is to improve returns by considering the optimal balance
between the soundness of capital and investments for growth. Upon which, the Bank's basic policy for
dividends is a stable dividend with a payout ratio of approximately 30%.
Although we expect an increase in (full-year) profit attributable to owners of parent and other factors as aresult of this revision to our earnings forecast, we have decided to leave our year-end dividend forecast
unchanged, taking into account that we are currently in the process of purchasing treasury stock* and thenumber of treasury shares held at the end of the fiscal year has not yet been determined.

In light of the changes in the business environment surrounding the Bank since the announcement of theMid-Term Business Plan at the beginning of this fiscal year, such as the capital and business alliance* with
Credit Saison, the Bank is currently considering a partial revision to the Plan, including the stated KPIs, andhopes to announce the revised Mid-Term Business Plan by the beginning of the next fiscal year. The year-end
dividend forecast will be determined, and announced soon thereafter, in accordance with the Bank's basic
policy on shareholder returns, taking all of the above into consideration.
* Please refer to the “Announcement Regarding the Establishment of a Quota for the Repurchase of Treasury Stock” and"Notice Concerning the Capital and Business Alliance Between Credit Saison Co., Ltd. and Suruga Bank, Ltd.” publishedon May 18, 2023.

Reference:Non-consolidated earnings forecast for the full year ending March 2024
Revised forecast
Ordinary income(Billions of yen)
ChangePrevious forecast

79.5

73.0

6.5

57.5

56.0

1.5

36.0

36.0

―

Core net operating profit

21.5

20.0

1.5

Gains (losses) on securities

(6.0)

(2.5)

(3.5)

Ordinary profit

17.0

14.0

3.0

Net income

11.5

10.0

1.5

Actual credit costs(1.0)

4.0(5.0)

Normal amount

(5.0)

(3.0)

(2.0)

Preventive allowances*24.0

7.0

(3.0)

(a)

0

0.5

(0.5)

(b)

4.0

6.5

(2.5)

Core gross operating profit*

1Expenses*1 Core gross operating profit: The forecast does not include gains/losses from the redemption of investment trusts.
*2 Preventive allowances: Allowance for (a) suspension of repayments by some investment real estate loan customers
triggered by organized negotiations, and for (b) restructured loans for which normalization of recovery is unlikely.
Note: The performance forecasts in this report are based on information currently available to the company and on certain
assumptions deemed to be reasonable. Actual performance may differ.