August 10, 2023

SURUGA bank, Ltd.
Consolidated financial results for the three months ended June 30, 2023
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Kosuke Kato, President(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the three months ended June 30, 2023
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Three months ended
June 30, 2023
June 30, 2022

Millions of yen

20,963
20,681

Profit attributableto owners of parent

Ordinary profit%

Millions of yen

1.3(11.7)

4,780
4,302

%

Millions of yen

11.1
24.3

3,510
4,060

%

(13.5)
59.2(Note) Comprehensive income: (a) Three months ended June 30, 2023: ¥ 4,902 million [-%](b) Three months ended June 30, 2022: ¥ (9,270) million [-%]

Yen

Earnings per share(diluted)
Yen

18.63
21.56

-

Earnings per share

Three months ended
June 30, 2023
June 30, 2022

(Note) Earnings per share (diluted) for the three months ended June 30, 2022 and 2023 are not provided because there are no potentiallyshares.

(2) Consolidated financial position
Total assets
As ofJune 30, 2023
March 31, 2023

Total net assets

Net assets ratio

Millions of yen

Millions of yen

3,641,912
3,639,910

274,250
271,040

%

7.5
7.4

(Reference) Shareholders’ equity: (a) As of June 30, 2023: ¥ 274,150 million; (b) As of March 31, 2023: ¥ 270,939 million(Note) Net assets ratio = (Total net assets - 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 sharestnd

1 quarter-end

2 quarter-end

yen

yen
0.00
7.00

Fiscal year
ended March 31, 2023
ending March 31, 2024
ending March 31, 2024 (forecast)――

3rd quarter-end

Fiscal year-end

yen
―

yen
9.00

yen
9.00

―

7.00

14.00

Total

(Note) Revision of dividend forecast from the latest announcement: No

3. Consolidated earnings forecast for the fiscal year ending March 31, 2024(% represents the change from the previous fiscal year)

Ordinary income
Millions of yen

1H, FY3/2024
FY3/2024

39,00077,500

Profit attributableto owners of parent

Ordinary profit% Millions of yen(25.9)(16.1)

4,500
12,000(Note) Revision of earnings forecast from the latest announcement: No%(75.3)(9.5)

Millions of yen

2,500
8,500

Earnings per
share
%

yen

(84.7)(19.6)

13.27
45.12

*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 “2. Consolidated financial statements and notes, (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
As of
232,139,248 shares
232,139,248 shares(including treasury shares):
June 30, 2023
March 31, 2023
As of
As of
(B) Number of treasury shares:
43,764,018 shares
43,768,676 shares
June 30, 2023
March 31, 2023
Three months ended
Three months ended
188,321,128 shares(C) Average number of shares:
188,372,270 shares
June 30, 2022
June 30, 2023
(Note1) This report is outside the scope of the external auditor’s quarterly review procedure.
(Note2) 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 thecompany 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)..................................................................................................... 6(Changes in accounting estimates) .................................................................................................. 6(Additional information) .................................................................................................................. 6* Financial results for the three months ended June 30, 2023 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 three months ended June 30, 2023, ordinary income increasedby ¥0.282 billion year-on-year to ¥20.963 billion. This was primarily due to an increase in recoveries ofwritten-off claims, despite a decline in interest income reflecting the drop in interest on loans and bills
discounted. Meanwhile, ordinary expenses decreased by ¥0.196 billion year-on-year to ¥16.183 billion, mainly
due to the decline in provision of general allowance for loan losses.
As a result, ordinary profit increased by ¥0.478 billion year-on-year to ¥4.780 billion.
Profit attributable to owners of parent decreased by ¥0.550 billion year-on-year to ¥3.510 billion.

(2) Details of financial position
As for the consolidated major account balances as of June 30, 2023, deposits amounted to ¥3,351.362 billion,rose by ¥1.731 billion from March 31, 2023, mainly due to an increase of ¥5.140 billion in individual deposits.
Loans and bills discounted came in at ¥2,069.550 billion, down by ¥20.777 billion from March 31, 2023,
mainly due to a decrease of ¥37.549 billion in consumer loans (non-consolidated).
Securities amounted to ¥322.190 billion, rose by ¥24.307 billion from March 31, 2023.

(3) Details of forecast information, including earnings forecast
The earnings forecast for the fiscal year ending March 31, 2024 remains unchanged from that announced on
May 12, 2023.
Consolidated(Billions of yen)

FY3/2024 (Forecast)First half
Ordinary income
Ordinary profit
Profit attributable to owners of parent

Full year
39.0
4.5
2.5

77.5
12.0
8.5

Non-consolidated(Billions of yen)

FY3/2024 (Forecast)First half

Full year

Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income

35.0
9.0
13.0
4.5
2.5

69.0
18.0
24.5
11.5
8.5

Actual credit costs

4.5

6.5

(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 be reasonable, 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（Millions of yen）
As of
Mar. 31, 2023
AssetsCash and due from banks
Call loans and bills bought
Monetary claims bought
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Lease receivables and investment assets
Other assets
Property, plant and equipment
Intangible assets
Net defined benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Net defined benefit liability
Provision for share-based compensation
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets
－3－

As of
Jun. 30, 2023

1,044,263
60,293
131,51785
99
297,883
2,090,327
4,805
4,698
44,17233,33916,00920,12615,311
1,271(124,295)
3,639,910

1,061,611
50,318
127,69670
99
322,1902,069,550
4,459
4,754
39,80432,995
15,484
20,344
14,823
1,497(123,790)
3,641,912

3,349,631
41
16,340
461
38
293
303
223
51
211
1,271
3,368,869

3,351,362
40
13,532
16
－
285
399
196
75
255
1,497
3,367,661

30,043
1,974
255,042(18,111)
268,949
167
(0)
1,823
1,990
101
271,040
3,639,910

30,043
1,974
256,857(18,109)
270,766
1,658
(3)
1,729
3,383
99
274,250
3,641,912

Suruga bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent－4－

For the three months
ended
Jun. 30, 2022

For the three months
ended
Jun. 30, 2023

20,681
17,432
16,635
300
1,756
776
716
16,379
359
342
2,408
727
10,055
2,828
4,302
48
48
56
56
－
4,294
236
4,057
(2)
4,060

20,96317,013
15,727
362
1,799
723
1,427
16,183
299
293
2,373
666
10,330
2,514
4,780
－
－
431
88
342
4,348
840
3,508
(2)
3,510

Suruga bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）

ProfitOther comprehensive income
Valuation difference 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－

For the three months
ended
Jun. 30, 2022
4,057

For the three months
ended
Jun. 30, 2023
3,508

(13,161)4(171)(13,328)(9,270)

1,490
(2)
(93)
1,393
4,902

(9,268)
(2)

4,904
(2)

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 three months ended June 30, 2023 with the reasonably estimated effective tax rate after
applying tax effect accounting to income before income taxes for the fiscal year ending March 31, 2024,
including the current first quarter.
In addition, in the case that calculating income taxes using the estimated effective tax rate significantly lacks
rationality, income taxes are calculated by using the statutory effective tax rate.

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

(Additional information)(Accounting estimates for coronavirus impact)
With regard to financial estimates that relate to impact from the coronavirus pandemic in the first quarter ofthe current consolidated fiscal year, and assumptions that were used for these estimates, there have been nomaterial changes from the information listed in the (Significant accounting estimates) section of the securities
report of the previous consolidated fiscal year.
As such assumptions have a high level of uncertainty, if circumstances concerning the spread of thecoronavirus pandemic and its impact on the economy vary from the original assumptions, financial results
could be impacted from the second quarter of the fiscal year ending March, 2024.
(Disposal of treasury shares through third-party allotment based on the capital and business alliance with Credit
Saison Co.)
Credit Saison Co., Ltd. has completed payment for the disposal of treasury shares through third party
allotment resolved at the Board of Directors meeting of Suruga Bank Ltd. held on May 18, 2023
Overview of the Disposal of Treasury Shares
1. Disposal date
2. Type and number of shares disposed
3. Disposal value
4. Total disposal value
5. Disposal method
6. Allotted to7. Number of treasury shares after disposal

July 3, 2023
35,089,000 shares of common stock
488 yen per share
17,123,432,000 yen
Third-party allotment
Credit Saison Co., Ltd.
8,675,018－6－

Suruga bank, Ltd.

Financial Results for the three months ended June 30, 2023
- Supplementary Information (1)Operating results for the three months ended June 30, 2023 (Non-consolidated)(Millions of yen)

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

Three months ended Three months ended
Jun. 30, 2023
Jun. 30, 2022(a)(b)
14,978
15,10015,766
15,970
(782)
(871)
(5)
1
((12)
(9)
14,99015,110
9,610
9,503
3,406
3,504
5,209
5,072

ChangeFY3/2023(a) - (b)
(122)
(204)
89
(6)
(3)
(120)
107
(98)
137

43,42264,673(4,417)(16,833)(16,823))
60,24536,20913,657
19,910

5,380

5,606

(226)

24,035

5,380

5,606

(226)

24,035

5,367

5,596

(229)

7,212

(1,438)

(561)

(877)

-

Net operating profit

6,805

6,158

647

7,212

Non-recurring gains (losses)
Gains (losses) on stocks(2,189)(0)(2,011)
(2)

(178)
2

4,055
2,421

Ordinary profit

4,616

4,147

469

11,267Extraordinary gains (losses)
Income before income taxes
Income taxes (Note5)

(431)
4,184
790

(7)
4,139
186

(424)
45
604

(1,225)
10,042504

Net income

3,393

3,953

(560)

9,537

Core net operating profit (Note2)
Excluding gains (losses) on
cancellation of investment trusts
Actual net operating profit (Note3)
Provision of general allowance for loan
losses (Note4)(Millions of yen)
Net credit costs (Note6)
Provision of general allowance for loan
losses (Note4)
Disposal of non-performing loans
Reversal of allowance for loan losses(Note4)
Recoveries of written-off claims
Actual credit costs (Note7)

1,864

1,882

(18)

1,905

(1,438)

(561)

(877)

-

3,303

2,444

859

5,952

-

-

-

4,047

1,235

554

681

3,084

629

1,328

(699)

(1,178)(Note1) Core gross operating profit = Gross operating profit - Gains (losses) on bonds(Note2) Core net operating profit = Net operating profit + Provision of general allowance for loan losses- Gains (losses) on bonds(Note3) Actual net operating profit = Net operating profit + Provision of general allowance for loan losses(Note4) For the fiscal year ended Mar. 31, 2023, 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 period.
(Note5) The amount of Income taxes for the fiscal year ended March 31, 2023 is that of Total income taxes.
(Note6) Net credit costs = Provision of general allowance for loan losses + Disposal of non-performing loans - Reversal of
allowance for loan losses(Note7) Actual credit costs = Net credit costs - Recoveries of written-off claims.
－7－Suruga bank, Ltd.

(A) Gross operating profit： ¥14.9 billion･Net interest income decreased by ¥0.2 billion year-on-year, mainly due to a decrease in interest on loans and bills discounted.
･Gross operating profit decreased by ¥0.1 billion year-on-year.

Net interest income

Core gross operating profit(Billions of yen)(Billions of yen)

21.5

18.3

16.5

15.1

14.9

1Q,
FY3/201Q,
FY3/21

1Q,
FY3/22

1Q,
FY3/23

1Q,
FY3/24

22.2

19.6

17.7

15.9

15.7

1Q,
1Q,
1Q,
1Q,
1Q,
FY3/20 FY3/21 FY3/22 FY3/23 FY3/24(B) Expenses: OHR (Based on core gross profit (excluding gains (losses) on cancellation of investment trusts): 64.1%･Expenses increased by ¥0.1 billion year-on-year.
･OHR rose to 64.1% year-on-year.
(OHR (%) = Expenses / Core gross operating profit (excluding gains (losses) on cancellation of investment trusts) × 100)

Expenses(Billions of yen)

OHR
62.8%

61.4%

56.8%

53.7%

64.1%

11.5

10.4

10.1

9.5

9.6

1Q, FY3/20

1Q, FY3/21

1Q, FY3/22

1Q, FY3/23

1Q, FY3/24(C) Core net operating profit: ¥5.3 billion, Net operating profit: ¥6.8 billion･Core net operating profit decreased by ¥0.2 billion year-on-year, mainly due to a decrease in net interest income.
･Net operating profit increased by ¥0.6 billion year-on-year, mainly due to a decrease in provision of general allowance for loan
losses.

Core net operating profit

Net operating profit(Billions of yen)

9.9

6.9

1Q, FY3/20

7.9

13.4

12.6

1Q, FY3/21

6.3
1Q, FY3/22

5.6

6.1

1Q, FY3/23

5.3

6.8

1Q, FY3/24(D) Ordinary profit: ¥4.6 billion, Net income: ¥3.3 billion･Ordinary profit increased by ¥0.4 billion year-on-year.
･Net income decreased by ¥0.5 billion year-on-year, mainly due to an increase in income taxes.

(E) Actual credit costs: ¥0.6 billion･Net credit costs levelled off year-on-year, mainly due to a decrease (¥0.8 billion) in provision of general allowance for loan
losses and an increase (¥0.8 billion) in disposal of non-performing loans.
･Actual credit costs, calculated as net credit costs (¥1.8 billion) minus the amount of recoveries of written-off claims (¥1.2
billion) amounted to ¥0.6 billion.
－8－

Suruga bank, Ltd.

(2) Loans and deposits (Non-consolidated)(A) Loans and bills discounted･Loans and bills discounted (period-end balance) decreased by ¥69.7 billion year-on-year.
･Yield on loans and bills discounted dropped by 7 basis points year-on-year to 2.86%.
(Billions of yen）
Jun. 30, 2023
(a)Jun. 30, 2022(b)(a) – (b)Mar. 31, 2023

Loans and bills discounted(period-end balance)

2,059.3(69.7)

2,129.0

2,080.1

Consumer loans

1,632.8(166.3)

1,799.1

1,670.4

Corporate investment realestate loans

65.7

30.4

35.3

57.4

Structured finance

138.7

62.7

76.0

126.4

Loans and bills discounted(average balance)

2,074.1(51.2)

2,125.3

2,085.5

Results of new loans
Three months ended
Jun. 30, 2023
(a)(Billions of yen)Three months ended
Jun. 30, 2022(b)(a) - (b)New consumer loans

16.4

6.6

9.8

New corporate investment real estate loans

8.7

6.0

2.7

Subtotal

25.1

12.6

12.5

New structured finance

20.7

11.1

9.6

Total

45.8

23.7

22.1

-

-

-

45.8

23.7

22.1

New monetary claims boughtGrand total(Note) New loans of the areas to be promoted under the “Re:Start 2025” Mid-term Business Plan and thereafter (structured financeincludes specified bonds, etc.).

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

Yield on loans and bills discounted(Billions of yen)

2,726.2
2,508.7 2,459.4
2,261.2 2,278.5
2,059.3
2,025.9 2,129.0
1,799.1
1,632.8

Jun. 19

Jun. 20

Jun. 21Jun. 22

Jun. 23

－9－

3.19%

3.16%

3.08%

2.93%

2.86%

Jun. 19

Jun. 20

Jun. 21Jun. 22

Jun. 23

Suruga bank, Ltd.

Outstanding balance, yield, delinquency rate by loan category(Billions of yen)Jun. 30, 2023
Mar. 31, 2023
Period-end
Delinquency Period-end
Delinquency
Yield
Yield
balanceratebalancerate
1,509.0
3.04%
7.15%
1,542.6
3.05%
7.02%
426.0
2.67%
0.35%
430.5
2.69%
0.27%
112.5
3.32%
2.94%
120.5
3.33%
2.97%

Loan category
Secured loans
Housing loans
Studio apartment loans
Single building apartment loans(including share house loans)
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans
Consumer loans(A)

Consumer loans(excluding organizational negotiation
partners)

938.1

3.13%

10.98%

959.0

3.14%

10.79%

32.2
123.8
87.1
36.7
1,632.8

4.19%
10.47%
11.71%
7.52%
3.60%

0.23%
2.41%
0.90%
6.01%
6.79%

32.4
127.8
89.0
38.7
1,670.4

4.26%
10.47%
11.74%
7.54%
3.62%

0.34%
2.36%
0.88%
5.77%
6.66%

1,533.7-

1.61%

1,569.3-

1.60%

Corporate investment real estate loans

(B)

65.7

1.76%

-

57.4

1.77%

-

Structured finance

(C)

143.3

2.36%

-

126.4

2.37%

-

Monetary claims bought

(D)

127.6

2.23%

-

131.5

2.08%

-

Total
(A)+(B)+(C)+(D)1,969.6
3.36%
5.62%
1,985.8
3.38%
5.60%(Note1) Delinquency rate＝Loans past due 3 months or more / Loans(Note2) Yield: Yield for customers (excluding guarantee fee, accrued interest), period-end balance basis(Note3) Classified by the areas to be promoted under the “Re:Start 2025” Mid-term Business Plan and thereafter. Corporate
investment real estate loans include investment real estate loans for asset management companies, etc. Structured financeincludes specified bonds, etc.
(Note4) Yield and delinquency rate of Studio apartment loans, secured loans and consumer loans are calculated based on originals
claims before securitization on Mar. 31, 2023.
(Note5) Organizational negotiation partners are customers who have suspended repayment as a result of structured negotiations(excluding share house loans).

Actual credit costs and Allowance for loan losses(Billions of yen)
ItemJun. 30, 2023
Actual credit costs

Allowance

Investment property loans

0.3

103.6

Housing loans

0.1

2.4

Unsecured loans

0.0

3.3

Monetary claims bought

(0.0)

0.2

Business financing loans, etc.

0.0

8.7

Total

0.6

118.4

(Note) Investment property loans: Studio apartment loans, Single building apartment loans, Other secured loans－10－Suruga bank, Ltd.

(B) Deposits･Deposits (period-end balance) decreased by ¥39.7 billion year-on-year.
･Yield on deposits dropped by 1 basis point year-on-year to 0.03%.
（Billions of yen）
Jun. 30, 2023
(a)Jun. 30, 2022(b)(a) – (b)Mar. 31, 2023

Deposits (period-end balance)

3,355.6(39.7)

3,395.3

3,355.7

Individual deposits

2,683.6(28.8)

2,712.4

2,678.5

Deposits (average balance)

3,350.1

24.2

3,325.9

3,339.4

Deposits (period-end balance)

Yield on deposits

Individual deposits (period-end balance)(Billions of yen)
3,395.3
3,302.2
3,271.1
3,355.6
3,141.8
2,712.4
2,666.9
2,683.6
2,568.0
2,476.9
0.03%

Jun. 19

Jun. 20

Jun. 21Jun. 22

Jun. 23－11－

Jun. 19

0.04%

0.04%

0.04%

Jun. 20

Jun. 21Jun. 220.03%

Jun. 23

Suruga bank, Ltd.

(3) Interest margins (Non-consolidated)･Loan-deposit margin (after deduction of expenses, overall) shrunk by 7 basis points year-on-year to 1.67%, mainly due to thedecline in the yield on loans and bills discounted.
･Net interest margin (overall) expanded by 3 basis points year-on-year to 0.71%, mainly due to the rising in the yield oninterest earning assets.

Overall(%)

Yield on loans and bills discounted

Three months ended
Jun. 30, 2023
(a)
2.86

Three months ended
Jun. 30, 2022(b)(a) - (b)FY3/2023(0.07)

2.93

2.92

Yield on deposits

0.03(0.01)

0.04

0.03

Loan-deposit margin(after deduction of expenses)

1.67(0.07)

1.74

1.80

Net interest margin

0.71

0.03

0.68

0.77

Domestic(%)

Yield on loans and bills discounted

Three months ended(a) - (b)Jun. 30, 2022(b)
(0.07)
2.93

Three months ended
Jun. 30, 2023
(a)
2.86

FY3/2023
2.92

Yield on deposits

0.03(0.01)

0.04

0.03

Loan-deposit margin(after deduction of expenses)

1.68(0.10)

1.78

1.81

Net interest margin

0.72

0.01

0.71

0.79

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

3.15%

3.11%

3.04%

1.64%

1.80%

1.79%

1.21%
1Q, FY3/20

1.00%
1Q, FY3/21

2.89%

2.82%

1.74%

1.67%

0.81%

0.68%

0.71%

1Q, FY3/22

1Q, FY3/23－12－

1Q, FY3/24

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 ¥ 51.7 billion year-on-year.
･Non-performing loan ratio dropped by 207 basis points year-on-year to 10.28%.
(Millions of yen)Jun. 30, 2023

Jun. 30, 2022

Mar. 31, 2023

Claims against bankrupt and substantiallybankrupt obligors

120,400

135,288

118,845

Claims with collection risk

43,90963,707

47,205

Claims for special attention

48,51265,54553,255

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

212,822

264,541

219,307

Non-performing loan ratio

10.28%

12.35%

10.48%

Total coverage

177,738

210,861

180,037

Coverage ratio

83.51%

79.70%

82.09%(Note1) Total claims = Loans and bills discounted + Foreign exchanges + Accrued interest + Customers’ liabilities for acceptancesand guarantees + 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” under self-assessment.
(c) ”Claims for special attention” correspond to the claims which are against “Obligors requiring caution” underself-assessment and classified as “Loans past due 3 months or more” or “Restructured loans”.

Non-performing loan ratio
14.00%

14.72%

13.96%

12.35%
10.28%

Jun.19Jun.20Jun.21－13－

Jun.22

Jun.23

Suruga bank, Ltd.

(5) Capital adequacy ratio (domestic standard)･Capital adequacy ratio (non-consolidated) rose by 104 basis points year-on-year to 13.85%.

Non-consolidated(Millions of yen)Jun. 30, 2023

Jun. 30, 2022

Mar. 31, 2023

Capital adequacy ratio

13.85%

12.81%

13.04%

Own capital (Core capital)

254,182

249,104

251,896

Core capital: instruments and reserves

278,364

272,244

276,161Core capital: regulatory adjustments (-)

24,181

23,14024,264

Risk-weighted assets

1,834,997

1,943,948

1,930,471

Total required capital

73,39975,75375,759Consolidated(Millions of yen)Jun. 30, 2023

Jun. 30, 2022

Mar. 31, 2023

Capital adequacy ratio

14.25%

13.16%

13.43%

Own capital (Core capital)

266,620

260,789

264,173

Core capital: instruments and reserves

293,962

288,188291,739

Core capital: regulatory adjustments (-)

27,342

27,39927,566

Risk-weighted assets

1,870,713

1,981,493

1,966,465

Total required capital

74,82877,25577,199

Capital adequacy ratio （non-consolidated）
Own capital (non-consolidated)(Billions of yen)

8.65%

219.0

Jun. 19

10.49%

241.1

Jun. 20

13.85%

12.54%

12.81%

260.7

249.1

254.1

Jun. 21Jun. 22

Jun. 23－14－

Suruga bank, Ltd.

(6) Composition of own capital (domestic standard)(Millions of yen)Jun. 30, 2023
Non-consolidated
ConsolidatedCore 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 transitional arrangement
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 and reserves
Non-controlling interests included in Core capital subject to transitional arrangementsCore capital: instruments and reserves(A)Core capital: regulatory adjustments(2)
Total intangible fixed assets (net of related tax liability, excluding those relating tomortgage servicing rights)
Goodwill (including those equivalent)
Other intangible fixed assets other than goodwill and mortgage servicing rights
Deferred 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 other financial
institutions
Investments in the capital of banking, financial and insurance entities that are outside thescope of regulatory consolidation (“Other financial institutions”), net of eligible shortpositions, where the bank does not own more than 10% of the issued share capital (amountabove 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)
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 transitional arrangements
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－

257,085

270,766

48,629226,565
18,109-32,018
256,857
18,109
1,729
1,729

-

-

21,27821,27821,456
21,456

-

-

-

-

-

-

278,3649
293,962

9,799

11,150

9,799

1,132
10,017

1,910

1,991

12,471-

14,200
-

-

-

-

-

-

-

-

-

24,181

27,342

254,182

266,620

1,702,297
132,700
1,834,997

1,716,533
154,180
1,870,713

13.85%--

14.25%

Suruga bank, Ltd.

(7) Unrealized gains (losses) on securities (Non-consolidated)･Net unrealized gains (losses) on securities increased by ¥ 15.2 billion year-on-year.
(Millions of yen)Jun. 30, 2023
Fair
Value
Available-for-sale316,235
securities

Jun. 30, 2022

Net unrealized gains (losses)
Gains

Losses640

10,569Stocks

17,681

9,824

9,890

Bonds

176,351

49

678

Others122,202(9,234)-

Net unrealized gains (losses)

Fair
value

9,929 460,760 (14,640)
66

Mar. 31, 2023
LossesFairvalue

Net unrealized gains (losses)

Gains
9,707

24,348292,026

Gains

Losses(1,270)

8,239

9,509

16,372

8,096

8,348

251

15,598

7,741

7,841

100

628 162,585

(776)

93

870

154,701

(324)

397

721

9,234 281,802 (21,961)

1,265

23,226

121,726(8,687)-

8,687(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.

(8) Individual deposit assets (Non-consolidated)･Individual deposit assets decreased by ¥ 20.9 billion year-on-year.
･The ratio of investment products to total individual deposit assets rose by 20 basis points year-on-year to 3.8%.
(Millions of yen)

Individual deposit assets
Yen deposits
Investment products
Foreign currency deposits
Public bonds
Mutual funds
Personal pension plans
Single premium life insurance
The ratio of investment products tototal individual deposit assets

Jun. 30, 2023
(a)2,789,623
2,681,191
108,4312,467
4,014
66,41815,802
19,7283.8%－16－(20,973)(28,167)
7,193
(614)
(15)
1,181
1,507
5,134

Jun. 30, 2022(b)
2,810,596
2,709,358
101,238
3,081
4,029
65,237
14,295
14,5940.2%

3.6%(a) - (b)Mar. 31, 2023
2,778,039
2,676,056
101,982
2,462
3,891
62,828
14,21918,581
3.6%