February 7, 2018

SURUGA bank, Ltd.
Consolidated financial results for the nine months ended December 31, 2017
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
http://www.surugabank.co.jp
Representative:
Akihiro Yoneyama, President(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the nine months ended December 31, 2017
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Nine months ended
December 31, 2017
December 31, 2016

Millions of yen%

117,609
107,978

Profit attributableto owners of parent

Ordinary profit
Millions of yen

8.9
4.2

%

50,68944,346

Millions of yen

14.3
3.5

%

34,716
31,723

9.4
12.5(Note) Comprehensive income: (a) Nine months ended December 31, 2017: ¥38,832 million [19.0%](b) Nine months ended December 31, 2016: ¥32,617 million [14.6%]

Earnings per share(diluted)

Earnings per share
Nine months ended
December 31, 2017
December 31, 2016

yen

yen

149.88137.01149.85136.95(2) Consolidated financial position
Total assets
As ofDecember 31, 2017
March 31, 2017

Total net assets

Net assets ratio

Millions of yen

Millions of yen

4,472,352
4,471,725

374,011340,379

%

8.3
7.5

(Reference) Shareholders’ equity: (a) As of December 31, 2017: ¥371,395 million; (b) As of March 31, 2017: ¥338,029 million(Note) Net 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”.

2. Dividends on common stock
Dividends per share
1 quarter-end 2 quarter-end 3rd quarter-end Fiscal year-end
stFiscal year
ended March 31, 2017
ending March 31, 2018
ending March 31, 2018 (forecast)

nd

yen

yen

―
―

10.00
10.50

yen

yen

―
―

Total
yen

12.00

22.00

10.50

21.00

(Note) Revision of dividend forecast from the latest announcement: No
Breakdown of fiscal year-end dividend for the fiscal year ended March 31, 2017:(a) Ordinary dividend: ¥11.00; (b) Special dividend: ¥1.00

3. Consolidated earnings forecast for the fiscal year ending March 31, 2018(% represents the change from the previous fiscal year)

Profit attributableto owners of parent

Ordinary profit
Fiscal year ending
March 31, 2018

Millions of yen

61,500%5.6(Note) Revision of earnings forecast from the latest announcement: No

Millions of yen

43,000Earnings per share
%

0.8

yen

185.64

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of
consolidation): No(2) Adoption of any particular accounting methods for quarterly consolidated financial statements: Yes
Note: For details, please refer to page 6 of the appendix “(3) Notes regarding consolidated financial statements, (Adoption of
any particular accounting methods for quarterly consolidated financial statements)”.
(3) Changes in accounting policies, changes in accounting estimates and restatements(A) Changes in accounting policies due to revision of accounting standards: No(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: No(D) Restatements: No(4) Number of issued shares (common stock)(A) Number of issued shares
As of(including treasury shares): December 31, 2017
As of(B) Number of treasury shares:
December 31, 2017
Nine months ended(C) Average number of shares:
December 31, 2017

232,139,248 shares
515,908 shares
231,617,829 shares

As ofMarch 31, 2017
As ofMarch 31, 2017
Nine months ended
December 31, 2016

232,139,248 shares
530,965 shares
231,524,491 shares(Note) This report is outside the scope of the external auditor’s quarterly review procedure.
(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. Qualitative information on financial results ...........................................................................................2(1) Details of operating results.............................................................................................................2(2) Details of financial position ...........................................................................................................2(3) Details of forecast information, including earnings forecast........................................................2
2. Consolidated financial statements and notes..........................................................................................3(1) Consolidated balance sheets ..........................................................................................................3(2) Consolidated statements of income and Consolidated statements of comprehensive income ................4(3) Notes regarding consolidated financial statements.......................................................................6(Notes on going-concern assumption).............................................................................................6(Notes for material changes in shareholders’ equity)......................................................................6(Adoption of any particular accounting methods for quarterly consolidated financial statements) ...........6(Changes in accounting policies, changes in accounting estimates and restatements) .................6* Financial results for the nine months ended December 31, 2017 supplementary information ............7-1-

SURUGA bank, Ltd.

1. Qualitative information on financial results(1) Details of operating results
As for the consolidated operating results for the nine months ended December 31, 2017, ordinary
income increased by ¥9.631 billion year-on-year to ¥117.609 billion. This was primarily due to thegrowth in interest income on the back of the rise in interest on loans and bills discounted. Meanwhile,
Ordinary expenses increased by ¥3.288 billion year-on-year to ¥66.920 billion, mainly due to therise in other expenses.
As a result, ordinary profit increased by ¥6.343 billion year-on-year to ¥50.689 billion.
Profit attributable to owners of parent increased by ¥2.993 billion year-on-year to ¥34.716 billion.

(2) Details of financial position
As for the major account balances as of December 31, 2017 on a consolidated basis, loans andbills discounted came in at ¥3,281.164 billion, up by ¥27.441 billion from March 31, 2017. This wasprimarily due to an increase in consumer loans (non-consolidated) of ¥61.901 billion.
Securities amounted to ¥125.992 billion, down by ¥22.535 billion from March 31, 2017.
Deposits amounted to ¥4,062.928 billion, down by ¥32.581 billion from March 31, 2017, despite
an increase in individual deposits of ¥45.001 billion.

(3) Details of forecast information, including earnings forecast
The earnings forecast for the fiscal year ending March 31, 2018 remains unchanged from thatannounced on November 9, 2017.
Consolidated

Ordinary profit
Profit attributable toowners of parent
Non-consolidated(Billions of yen)
Fiscal year ending
March 31, 2018
61.5
43.0

Net operating profit
Ordinary profit
Net income(Billions of yen)
Fiscal year ending
March 31, 2018
65.0
60.0
42.0

Actual credit costs

4.5(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-

SURUGA bank, Ltd.

2. Consolidated financial statements and notes(1) Consolidated balance sheets
As ofMar. 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
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
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-3-（Millions of yen）
As of
Dec. 31, 2017927,519
2,276
72
1,149
148,527
3,253,723
2,885
5,479
56,90951,90628,591
7,787
860
3,340
(19,305)
4,471,725

907,871
1,845
90
1,361
125,992
3,281,164
3,834
5,721
71,80852,54827,339
9,047
779
3,062
(20,114)4,472,352

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

4,062,928
1,240
25,839
12
261
2,493
196
144
2,162
3,062
4,098,341

30,043
4
291,063(606)
320,504
17,153(61)433
17,52524
2,325
340,379
4,471,725

30,043
4
320,569(592)
350,024
20,832(60)
598
21,37019
2,596
374,0114,472,352

SURUGA bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income(2) Consolidated statements of income
For the nine months
ended
Dec. 31, 2016
107,978
93,30690,313
2,195
10,113
3,311
1,247
63,632
3,253
3,092
10,4302,739
39,145
8,063
44,346
2,170
36
2,134
273
273
46,243
14,326
31,917
193
31,723

Ordinary income
Interest income
Interest on loans and bills discounted
Interest and dividends on securities
Fees and commissions
Other operating income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other expenses
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
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-4-（Millions of yen）
For the nine months
ended
Dec. 31, 2017
117,609
99,194
94,213
3,918
10,083
3,039
5,293
66,9202,942
2,776
11,3172,484
39,43910,736
50,68999425
425
50,273
15,391
34,881
165
34,716SURUGA bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）
For the nine months For the nine months
ended
ended
Dec. 31, 2017
Dec. 31, 2016
31,91734,881

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

-5-

1,602
(88)
(814)
700
32,617

3,784
1
164
3,950
38,83232,399217

38,561270

SURUGA bank, Ltd.

(3) Notes regarding consolidated financial statements(Notes on going-concern assumption)
Not applicable.

(Notes for material changes in shareholders’ equity)
Not applicable.

(Adoption of any particular accounting methods for quarterly consolidated financial
statements)(Calculation of income taxes)
Income taxes reported by the company and its subsidiaries are calculated by multiplying income
before income taxes for the nine months ended December 31, 2017 with the reasonably estimatedeffective tax rate after applying tax effect accounting to income before income taxes for the fiscal
year ending March 31, 2018, including the current third quarter.

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

-6-

SURUGA bank, Ltd.

Financial Results for the nine months ended December 31, 2017
- Supplementary Information (1) Operating results for the nine months ended December 31, 2017 (Non-consolidated)(Millions of yen)
Nine months ended
Dec. 31, 2017(a)87,28489,656(2,571)
199
151
87,13335,59913,45618,996
51,53351,684

Dec. 31, 2016(b)
83,43084,598(1,368)201
147
83,28336,10913,892
19,14047,17447,321444

Net operating profit

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income(Gains (losses) on bonds)
Core gross operating profit (Note1)
Expenses
Personnel expenses
Non-personnel expenses
Core net operating profit (Note2)
Actual net operating profit (Note3)
Provision for general allowance for loan
losses (Note4)(a) - (b)FY3/2017

3,854
5,058
(1,203)
(2)
4
3,850
(510)
(436)
(144)
4,359
4,363

110,852
112,940(2,324)236
165
110,686
47,24018,362
25,131
63,44563,611

(71)

515

-

51,24047,393

3,847

63,611

Non-recurring gains (losses)
Gains (losses) on stocks(2,307)
3,910(3,966)
(61)

1,659
3,971

(6,450)(506)

Ordinary profit

48,932

43,426

5,506

57,160Extraordinary gains (losses)
Income before income taxes
Income taxes (Note5)(407)
48,524
14,897

1,913
45,34013,919(2,320)
3,184
978

1,853
59,013
17,285

Net income

33,62731,4202,207

41,728(Millions of yen)

Net credit costs (Note6)
Provision for general allowance forloan losses (Note4)
Disposal of non-performing loans
Reversal of allowance for loan losses(Note4)
Recoveries on written-off claims
Actual credit costs (Note7)

6,260

4,061

2,199

6,575

444

(71)

515

-

5,815

4,132

1,683

9,165

-

-

-

2,590

635
5,624

657
3,403

(22)
2,221

1,004
5,571

(Note1) Core gross operating profit = Gross operating profit - 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) Income taxes for the fiscal year ended March 31, 2017 are the amount of Total income taxes.
(Note6) Net credit costs = Provision for general allowance for loan losses + Disposal of non-performing loans Reversal of allowance for loan losses(Note7) Actual credit costs = Net credit costs - Recoveries on written-off claims-7-

SURUGA bank, Ltd.

(A) Gross operating profit： ¥87.2 billion･Net interest income increased by ¥5.0 billion year-on-year, mainly due to an increase ininterest on loans and bills discounted.
Yen loan-deposit income increased by ¥3.3 billion year-on-year.
･Core gross operating profit increased by ¥3.8 billion year-on-year, mainly due to an increase in
net interest income.
･Gross operating profit increased by ¥3.8 billion year-on-year.

Net interest income

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

69.1

74.7

80.5

84.5

89.6

1-3Q,
FY3/14

1-3Q,
FY3/15

1-3Q,
FY3/16

1-3Q,
FY3/17

1-3Q,
FY3/18

66.7

72.0

76.4

81.6

84.9

1-3Q,
FY3/14

1-3Q,
FY3/15

1-3Q,
FY3/16

1-3Q,
FY3/17

1-3Q,
FY3/18(B) Expenses; OHR: 40.7%･Expenses decreased by ¥0.5 billion year-on-year.
･OHR improved year-on-year to 40.7%, mainly due to a decrease in expenses and an increase ingross operating profit.
(OHR(%) = Expenses / Gross operating profit × 100)

Gross operating profit

Expenses

OHR(Billions of yen)
47.1%

47.3%
73.6

68.0

43.7%

43.2%

40.7%

83.4

79.3

87.2

32.0

34.9

34.7

36.1

35.5

1-3Q, FY3/14

1-3Q, FY3/15

1-3Q, FY3/16

1-3Q, FY3/17

1-3Q, FY3/18(C) Core net operating profit: ¥51.5 billion, Net operating profit: ¥51.2 billion･Core net operating profit increased by ¥4.3 billion year-on-year, mainly due to an increase in
net interest income.
･Net operating profit increased by ¥3.8 billion year-on-year.

Core net operating profit

Net operating profit(Billions of yen)

36.2

35.9

1-3Q, FY3/14

38.5

38.7

1-3Q, FY3/15

43.8

44.5

1-3Q, FY3/16

47.1

47.3

1-3Q, FY3/17

51.5

51.2

1-3Q, FY3/18(D) Ordinary profit: ¥48.9 billion, Net income: ¥33.6 billion･Ordinary profit increased by ¥5.5 billion year-on-year, mainly due to an increase in net operating profit.
･Net income increased by ¥2.2 billion year-on-year, mainly due to an increase in ordinary profit.

(E) Actual credit costs: ¥5.6 billion･Net credit costs increased by ¥2.1 billion year-on-year, mainly due to an increase (¥1.6 billion) in
the amount of disposal of non-performing loans.
･Actual credit costs, calculated as net credit costs (¥6.2 billion) minus the amount ofrecoveries on written-off claims (¥0.6 billion) amounted to ¥5.6 billion.

-8-

SURUGA bank, Ltd.

(2) Loans and deposits (Non-consolidated)(A) Loans and bills discounted･Loans and bills discounted increased by ¥77.6 billion year-on-year, mainly due to an increase in
consumer loans of ¥101.6 billion.
･Yield on loans and bills discounted (domestic) dropped by 1 basis point year-on-year to 3.60%.
(Millions of yen）
Dec. 31, 2017(a)(a) - (b)3,278,997

77,6072,969,250
2,055,312
3,228,742

Loans and bills discounted(period-end balance)
Consumer loans
Housing loans
Loans and bills discounted(average balance)(a - b)/ (b)Dec. 31, 2016(b)Mar. 31, 2017

2.4 %3,201,390

3,253,790

101,657
27,361

3.5 %
1.3 %

2,867,593
2,027,951

2,907,349
2,040,621

108,119

3.4 %

3,120,623

3,136,010(Billions of yen)
Nine months ended
Dec. 31, 2017
New consumer loans

FY3/2017

317.9

470.0

(Reference) Business alliance with Japan Post Bank
Nine months ended
Dec. 31, 2017
New housing loans
26.9(Billions of yen)
FY3/2017

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

39.9

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

3,278.9
3,201.3
3,082.2
2,962.9
2,969.2
2,836.7
2,867.5
2,722.2
2,582.8
2,427.9

85.5%
3.38%

Dec. 13

Dec. 14

Dec. 15

Dec. 16

Dec. 17

Dec. 13

87.1%

88.3%

89.5%

90.5%

3.48%

3.55%

3.61%

3.60%

Dec. 14

Dec. 15

Dec. 16

Dec. 17(B) Deposits･Deposits decreased by ¥61.9 billion year-on-year, despite an increase in individual deposits of ¥45.5 billion.
･Yield on deposits (domestic) dropped by 2 basis points year-on-year to 0.07%.
（Millions of yen）
Dec. 31, 2017(a)4,072,403
3,235,838
4,048,559

Deposits (period-end balance)
Individual deposits
Deposits (average balance)(Billions of yen)
3,628.1(61,965)
45,522(426)(a - b)Dec. 31, 2016
/ (b)
(b)
(1.4) %
4,134,368
1.4 %
3,190,316(0.0) %
4,048,985

Deposits (period-end balance)
Individual deposits (period-end balance)
3,866.5

2,690.1

Dec. 13(a) - (b)Dec. 15

Dec. 16

Dec. 17-9-4,105,455
3,190,837
4,054,508

Individual deposits ratio
Yield on deposits (domestic)

4,058.7

2,875.4

Dec. 14

4,134.3
4,072.4
3,190.3
3,235.8
3,045.2

Mar. 31, 2017

79.4%

74.1%

74.3%

75.0%

77.1%

0.09%

0.10%

0.10%

0.09%

0.07%

Dec. 13

Dec. 14

Dec. 15

Dec. 16

Dec. 17SURUGA bank, Ltd.

(3) Interest margins (Non-consolidated)･Loan-deposit margin (after deduction of expenses, overall) rose by 2 basis points year-on-year to 2.34%.
･Net interest margin (overall) rose by 18 basis points year-on-year to 1.68%, mainly due to the rise inreturn on investments.

Overall(%)

Yield on loans and bills discounted
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin

Nine months
ended
Dec. 31, 2017
(a)
3.60
0.09

(0.01)(0.01)

Nine months
ended
Dec. 31, 2016
(b)
3.61
0.10

2.34

0.02

2.32

2.35

1.68

0.18

1.50

1.54

(a) - (b)Domestic

FY3/2017
3.62
0.10

(%)

Yield on loans and bills discounted
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin

Nine months
ended
Dec. 31, 2017
(a)
3.60
0.07

(0.01)(0.02)

Nine months
ended
Dec. 31, 2016
(b)
3.61
0.09

2.37

0.03

2.34

2.38

1.72

0.18

1.54

1.58

(a) - (b)Loan-deposit margin (overall)
Loan-deposit margin (after deduction of
expenses, overall)
Net interest margin（overall）
3.26%

3.37%

3.43%

3.50%

3.51%

2.06%

2.14%

2.28%

2.32%

2.34%

1.53%

1.31%

1.42%

1.50%

1.68%

1-3Q,
FY3/14

1-3Q,
FY3/15

1-3Q,
FY3/16

1-3Q,
FY3/17

1-3Q,
FY3/18- 10 -

FY3/2017
3.62
0.09

SURUGA bank, Ltd.

(4) Non-performing loans based on the Financial Reconstruction Law (Non-consolidated)･Non-performing loans based on the Financial Reconstruction Law decreased by ¥6.2 billion year-on-year to¥27.8 billion.
･Non-performing loan ratio dropped by 21 basis points year-on-year to 0.84%.

Dec. 31, 2017

Dec. 31, 2016

(Millions of yen)Mar. 31, 2017

Claims against bankrupt andsubstantially bankrupt obligors

9,475

7,482

7,721

Claims with collection risk

11,196

13,67012,724Claims for special attention

7,205

12,985

8,512

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

27,877

34,13828,957

Non-performing loan ratio

0.84%

1.05%

0.88%

(Note1) Total claims = Loans and bills discounted + Foreign exchanges + Accrued interest + Customers’ liabilities
for acceptances and guarantees + Securities lent + Suspense payment (”Claims for special attention”
include only “Loans and bills discounted”)(Note2) The figures above are based on the claim classification as defined in the Article 4 of the “Ordinance for
Enforcement of the Act on Emergency Measures for the Revitalization of Financial Functions”.
(Note3) The correspondence between classifications of obligors, etc.
(a) ”Claims against bankrupt and substantially bankrupt obligors” correspond to the claims against“Effectively bankrupt obligors” or “Bankrupt obligors” under self-assessment.
(b) ”Claims with collection risk” correspond to the claims against “Potentially bankrupt obligors” underself-assessment.
(c) ”Claims for special attention” correspond to the claims which are against “Obligors requiring caution”
under self-assessment and classified as “Loans past due 3 months or more” or “Restructured loans”.

Claims against bankrupt and substantiallybankrupt obligors
Claims with collection risk

Non-performing loan ratio
Non-performing loan ratio (after deductionof allowance)
Non-performing loan ratio (after deductionof collateral, guarantees and allowance)

Claims for special attention(Billions of yen)

53.4
46.8
9.8
7.8
22.7

18.8

42.0
7.5
16.3

1.87%

34.1
7.4
13.6

20.9
Dec. 13

20.1
Dec. 14

18.2
Dec. 15

1.56%

27.8

1.35%

1.56%
11.1

12.9

7.2

Dec. 16

Dec. 17- 11 -

1.05%

0.84%

1.30%

1.14%

0.31%

0.27%

0.25%

0.89%
0.17%

0.74%
0.12%

Dec. 13

Dec. 14

Dec. 15

Dec. 16

Dec. 17

9.4

SURUGA bank, Ltd.

(5) Capital adequacy ratio (domestic standard)･Capital adequacy ratio (non-consolidated) rose by 59 basis points year-on-year to 13.35%.
The transitional arrangements of the new domestic standard based on “Basel Ⅲ” have been applied since the end of
March 2014.

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

Dec. 31, 201713.35%
339,131353,049
13,9172,539,784
101,591

Dec. 31, 201612.76%
307,604
316,8879,283
2,410,115
96,404(Millions of yen)Mar. 31, 201711.96%
307,293
321,254
13,9602,567,492
102,699

Dec. 31, 201612.93%
315,410
327,070
11,6602,439,114
97,564(Millions of yen)Mar. 31, 201712.17%
315,893332,238
16,3452,594,699
103,787

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

Dec. 31, 201713.56%
349,095
365,618
16,5232,572,947
102,917(Note) Total required capital = Risk-weighted assets × 0.04

Capital adequacy ratio （non-consolidated）
Own capital (non-consolidated)
11.90%

12.16%

12.76%

240.3

265.9

277.8

307.6

Dec. 13

Dec. 14

Dec. 15

Dec. 16

11.44%

13.35%(Billions of yen)

- 12 -

339.1

Dec. 17SURUGA bank, Ltd.

(6) Composition of own capital (domestic standard)(Millions of yen)
December 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 andretained 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 inCore 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 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 arisingfrom 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 thatare outside 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)- 13 -

Amounts
excludedundertransitionalarrangements

343,536

350,024

48,633
295,494592-

30,047
320,569
592
359
359

19

19

-

-

9,493
9,493

13,396
13,396

-

-

-

-

-

-

-

-

-

1,817

353,049

365,618

10,492

6,995

12,506

7,107

-

-

1,844

-

10,492

6,995

10,661

7,107

-

-

232

-

3,424
-

2,283
-

3,783
-

2,522
-

-

-

-

-

-

-

-

-

13,917-

16,523-

339,131

349,095

2,324,792

2,331,462

13,311

14,595

10,036

10,197

3,275
214,992
2,539,784

779
3,618
241,484
2,572,947

13.35%--

13.56%SURUGA bank, Ltd.

(5) Unrealized gains (losses) on securities (Non-consolidated)･Net unrealized gains (losses) on securities increased by ¥3.7 billion year-on-year, mainly due to an increase inunrealized gains on stocks(Millions of yen)Dec. 31, 2017

Dec. 31, 2016

Mar. 31, 2017

Fair Net unrealized gains (losses) Fair
Value
Gains
Losses value

Net unrealized gains (losses)

Other
securities

111,597

28,23228,549316 86,540

Stocks45,80627,80927,89485 48,483

Bonds

60,372(67)72

140 29,434

Others

5,418

491

581

90

Gains

LossesFair
value

24,44325,073630

90,702

22,90723,300392

47,380

(59)

68

128

30,910

1,595

1,704

109

12,411

8,622

Net unrealized gains (losses)
Gains

Losses23,353

23,840487

21,95522,088

132

(115)

62

178

1,512

1,689

176

(Note1) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note2) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition
costs.
(Note3) Unrealized gains (losses) on held-to-maturity bonds were as shown in the table below.
(Millions of yen)Dec. 31, 2017
Book
value
Held-tomaturity
bonds

Dec. 31, 2016

Net unrealized gains (losses) Book
Gains Losses value---

Mar. 31, 2017

Net unrealized gains (losses)
Gains- 75,006

74

Losses

74

-

Book
value

Net unrealized gains (losses)

45,00122

Gains

Losses22-(6) Individual deposit assets (Non-consolidated)･Individual deposit assets increased by ¥25.5 billion year-on-year.
･The ratio of investment products to total individual deposit assets dropped by 60 basis points year-on-year
to 5.0%(Millions of yen)

Individual deposit assets
Yen deposits
Investment products
Foreign currency
deposits
Public bonds
Mutual funds
Personal pension
plansSingle premium life
insurance
The ratio of investment
products to total
individual deposit assets

Dec. 31, 2017(a)
3,400,143
3,229,961
170,181

25,594
46,193(20,599)(a - b)
/ (b)
0.7%
1.4%
(10.7)%

Dec. 31, 2016(b)
3,374,549
3,183,768
190,780

5,876

(671)

(10.2)%

6,547

6,386

8,943
103,792(2,124)(7,418)(19.1)%(6.6)%

11,067111,210

10
107,988

36,496(11,038)(23.2)%

47,53443,781

15,072652

4.5%

14,42014,290(0.6)%

5.6%

5.1%(a) - (b)5.0%

- 14 -

Mar. 31, 2017
3,356,908
3,184,451
172,456