February 9, 2024

SURUGA bank, Ltd.
Consolidated financial results for the nine months ended December 31, 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 nine months ended December 31, 2023
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Nine months ended
December 31, 2023
December 31, 2022

Profit attributableto owners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

67,41673,064(7.7)
5.5

17,73323,142(23.3)
65.8

13,497
20,881(35.3)
117.8(Note) Comprehensive income: (a) Nine months ended December 31, 2023: ¥20,912 million [-%](b) Nine months ended December 31, 2022: ¥307 million [(97.0)%]
Earnings per share(diluted)

Earnings per share

Nine months ended
December 31, 2023
December 31, 2022

Yen

Yen

65.40
110.86-(Note) Earnings per share for the nine months ended December 31, 2022 and 2023 is not provided because there are no potentially shares.

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

Total net assets

Net assets ratio

Millions of yen

Millions of yen

3,543,662
3,639,910

291,213271,040

%

8.2
7.4

(Reference) Shareholders’ equity: (a) As of December 31, 2023: ¥291,108 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 sharest

1 quarter-end

2 quarter-end

3rd quarter-end

Fiscal year-end

yen

yen
0.00
7.00

yen

yen
9.00

yen
9.00

7.00

14.00

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

nd

―
―

―
―

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
Fiscal year ending
March 31, 2024

Millions of yen

87,500

Profit attributableto owners of parent

Ordinary profit% Millions of yen(5.3)

17,500(Note) Revision of earnings forecast from the latest announcement: Yes

%

31.9

Millions of yen

12,000Earnings per share
%

yen

13.4

59.50

*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 Dec. 31, 2023
(including treasury shares):(B) Number of treasury shares:

As of Dec. 31, 2023

232,139,248 shares

As of Mar. 31, 2023

232,139,248 shares

30,461,413 shares

As of Mar. 31, 2023

43,768,676 shares

Nine months ended
Nine months ended
206,379,691 shares
188,344,452 sharesDec. 31, 2023
Dec. 31, 2022
(Note) The number of treasury shares at the end of the period includes the Company's shares held by the employee stock ownership plantrust (hereinafter "ESOP Trust") (As of Dec. 31, 2023: 257,900 shares, As of Mar. 31, 2023: - shares).
The average number of the Company's shares held by the ESOP Trust is included in the number of treasury stock that are deducted in
calculation of the average number of shares during the period (As of Dec. 31, 2023: 124,729 shares, As of Dec. 31, 2022: - shares).
(C) Average number of shares:(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 nine months ended December 31, 2023 supplementary information ........... 8－1－

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, 2023, ordinary income
decreased by ¥5.648 billion year-on-year to ¥67.416 billion. This was mainly due to a decline in interest income
reflecting the drop in interest on loans and bills discounted. Meanwhile, ordinary expenses decreased by ¥0.239
billion year-on-year to ¥49.682 billion, mainly due to a decrease in recording of losses on redemption of bonds.
As a result, ordinary profit decreased by ¥5.409 billion year-on-year to ¥17.733 billion.
Profit attributable to owners of parent decreased by ¥7.384 billion year-on-year to ¥13.497 billion.

(2) Details of financial position
As for the consolidated major account balances as of December 31, 2023, loans and bills discounted came inat ¥2,052.470 billion, decreased by ¥37.857 billion from March 31, 2023, mainly due to a decrease of ¥108.092
billion in consumer loans (non-consolidated).
Securities amounted to ¥329.429 billion, increased by ¥31.546 billion from March 31, 2023.
Deposits amounted to ¥3,228.816 billion, decreased by ¥120.815 billion from March 31, 2023, and a decreaseof ¥27.641 billion in individual deposits.

(3) Details of forecast information, including earnings forecast
The Bank has revised its earnings forecast for the fiscal year ending March 31, 2024 from that announced on
November 6, 2023. For details, please refer to the document disclosed separately today (February 9, 2024) titled“Announcement regarding Losses on Sales of Securities Holdings, etc. and Revision of Full-Year Earnings
Forecasts for the Fiscal Year Ending March 31, 2024”.
Consolidated(Billions of yen)
Fiscal year ending March 31, 2024
Ordinary profit

17.5

Profit attributable to owners of parent

12.0

Non-consolidated(Billions of yen)
Fiscal year ending March 31, 2024
Core gross operating profit

57.5

Net operating profit

21.5

Ordinary profit

17.0

Net income

11.5

Actual credit costs(1.0)(Note) Core gross operating profit: The forecast for the full fiscal year ending March 31, 2024, does not anticipate
the recording of gains/losses from the redemption of investment trusts.
(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 notintended 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
Retirement 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)
Retirement 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
Dec. 31, 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

929,220
80,595130,23139
99
329,429
2,052,470
5,541
4,909
43,96332,117
14,152
20,79012,251
1,349(113,499)
3,543,662

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

3,228,816
41
20,895
17
－
276
574
164
51
262
1,349
3,252,449

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

30,043
4,579
265,312(18,229)
281,706
7,857
2
1,541
9,402
104
291,2133,543,662

Suruga bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the nine months
ended
Dec. 31, 2022
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 (loss) attributable to non-controlling interests
Profit attributable to owners of parent

73,064
51,76549,223
699
5,409
2,613
13,27549,921
1,078
999
7,975
5,295
29,5206,051
23,142
51
51
322
306
16
22,871
1,993
20,878(2)
20,881－4－

For the nine months
ended
Dec. 31, 2023
67,41650,27046,367
1,042
5,457
2,301
9,387
49,682
877
860
7,144
4,334
29,127
8,198
17,733
90
90
901
400
501
16,921
3,421
13,5002
13,497

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 nine months
ended
Dec. 31, 2022
20,878For the nine months
ended
Dec. 31, 2023
13,500(20,072)15(513)(20,570)
307

7,689
3
(281)
7,412
20,912310(2)20,9092

Suruga bank, Ltd.

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

(Notes for material changes in shareholders’ equity)(1) Disposal of treasury shares
At the Board of Directors meeting held on May 18, 2023, the Company resolved to dispose treasury sharesthrough a third-party allotment based on the capital and business alliance concluded with Credit Saison Co., Ltd.
On July 3, 2023, the Company disposed of treasury shares to which Credit Saison Co., Ltd. is the allottee. As aresult, capital surplus increased by ¥2,603 million and treasury stock decreased by 14,519 million yen during
the third quarter consolidated cumulative period.
(2) Acquisition of treasury shares
At the Board of Directors meeting held on May 18, 2023, the Company resolved matters pertaining to theestablishment of a share repurchase limit pursuant to Article 156-1 of the Companies Act in accordance with
Article 33 of the Company's Articles of Incorporation under Article 459-1-1 of the Companies Act. The share
repurchase limit was thus implemented on August 17, 2023. As a result, treasury stock increased by ¥14,493
million during the third quarter consolidated cumulative period.
Mainly due to (1) and (2) above, capital surplus was ¥4,579 million and treasury stock was ¥(18,229) million
yen as of the end of the third quarter consolidated accounting period.

(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, 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 third 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)
Not applicable.

(Changes in accounting estimates)
Not applicable.

(Additional information)(Accounting estimates for coronavirus impact)
With regard to financial estimates that relate to impact from the coronavirus pandemic in the third 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 (Additional information) section of the securities report ofthe 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 fiscal year ending March, 2024.

－6－

Suruga bank, Ltd.

(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 toJuly 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.

(Stock compensation plan for executives)
Effective from the current third quarter consolidated accounting period, the Company has introduced a stockcompensation plan based on a stock-granting ESOP trust (hereinafter referred to as the “Plan”) for executive
employees consisting of the heads of the Bank's branches and each division among other executives (excluding
non-residents in Japan; hereinafter referred to as “executive employees”). The purpose of this Plan is toincrease engagement and share interests with shareholders to raise awareness of the need to contribute toimproving corporate value from a long-term perspective while extracting value from our human resources.
Regarding the accounting treatment related to the trust agreement, the Company has applied the “Practical
Solution on Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts” (PITF No.
30, March 26, 2015).
(1) Transaction summary
Under this Plan, the Company's shares acquired by the ESOP Trust with money contributed by the Company
will be delivered and paid to executives who fulfill certain requirements at the time of their retirement inaccordance with the predetermined share delivery rules, in an amount equivalent to the Company's shares andthe cash proceeds from the conversion of the Company's shares.
(2) Company shares remaining in Trust
The Company's shares remaining in the Trust are recorded as treasury stock under net assets at the bookvalue in the Trust (excluding the amount of incidental expenses). The book value and number of sharesremaining in the Trust at the end of the current third quarter consolidated accounting period were ¥148 million
and 257 thousand shares, respectively.

－7－

Suruga bank, Ltd.

Financial Results for the nine months ended December 31, 2023
- Supplementary Information (1)Operating results for the nine months ended December 31, 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

Nine months ended Nine months ended
Dec. 31, 2023
Dec. 31, 2022(a)(b)
42,05943,07946,62549,170(2,326)(3,225)(2,240)(2,865)((2,260)(2,862)
44,31945,94227,01027,916
10,065
10,323
14,57915,123

ChangeFY3/2023(a) - (b)(1,020)(2,545)899
625
602(1,623)
(906)
(258)
(544)

43,42264,673(4,417)(16,833)(16,823))
60,24536,20913,657
19,91017,30818,025(717)

24,03517,30818,025(717)

24,035

Actual net operating profit (Note3)
Provision for general allowance for loan
losses (Note4)

15,04815,162

(114)

7,212

-

-

-

-

Net operating profit

15,04815,162

(114)

7,212

Non-recurring gains (losses)
Gains (losses) on stocks

2,322
6

6,405
2,539

(4,083)(2,533)

4,055
2,421

Ordinary profit

17,371

21,568(4,197)

11,267Extraordinary gains (losses)
Income before income taxes
Income taxes (Note5)(810)
16,5603,295(269)
21,299958(541)(4,739)2,337(1,225)
10,042504

Net income

13,264

20,340(7,076)

9,537Core net operating profit (Note2)
Excluding gains (losses) on
cancellation of investment trusts(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 of written-off claims
Actual credit costs (Note7)

2,072(1,384)

3,456

1,905

-

-

-

-

6,411

4,154

2,257

5,952

4,339

5,539

(1,200)

4,047

4,436

2,152

2,284

3,084

(2,364)(3,536)

1,172(1,178)(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) The net amount of provision for general allowance for loan losses and provision for specific allowance for loan losses isrecorded in reversal of allowance for loan losses.
(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 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 of written-off claims.
－8－Suruga bank, Ltd.

(A) Core gross operating profit： ¥44.3 billion･Core gross operating profit decreased by ¥1.6 billion year-on-year.
･Net interest income decreased by ¥2.5 billion year-on-year, mainly due to a decrease in interest on loans and bills discounted.

Core gross operating profit

Net interest income(Billions of yen)(Billions of yen)

62.0

65.0
48.5

54.3

45.9

57.4

52.1

49.1

46.6

1-3Q,
FY3/21

1-3Q,
FY3/22

1-3Q,
FY3/23

1-3Q,
FY3/24

44.3

1-3Q,
1-3Q,
1-3Q,
1-3Q,
1-3Q,
FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

1-3Q,
FY3/20(B) Expenses; OHR (Based on core gross operating profit (excluding gains (losses) on cancellation of investment trusts): 60.9 %･Expenses decreased by ¥0.9 billion year-on-year.
･OHR rose to 60.9% year-on-year.
(OHR (%) = Expenses / Core gross operating profit (excluding gains (losses) on cancellation of investment trusts) × 100)

Expenses

OHR(Billions of yen)

53.1%

61.5%

56.3%

60.7%

60.9%

32.9

30.5

29.8

27.9

27.0

1-3Q, FY3/20

1-3Q, FY3/21

1-3Q, FY3/22

1-3Q, FY3/23

1-3Q, FY3/24(C) Core net operating profit: ¥17.3 billion, Net operating profit: ¥15.0 billion･Core net operating profit decreased by ¥0.7 billion year-on-year, mainly due to a decrease in net interest income.
･Net operating profit decreased by ¥0.1 billion year-on-year.

Core net operating profit

Net operating profit(Billions of yen)

50.7
29.0

24.6

1-3Q, FY3/20

23.7
1-3Q, FY3/21

37.7
18.6
1-3Q, FY3/22

18.0

15.1

1-3Q, FY3/23

17.3

15.0

1-3Q, FY3/24(D) Ordinary profit: ¥17.3 billion, Net income: ¥13.2 billion･Ordinary profit decreased by ¥4.1 billion year-on-year.
･Net income decreased by ¥7.0 billion year-on-year, mainly due to a decrease in ordinary profit.

(E) Actual credit costs: ¥(2.3) billion･Net credit costs increased by ¥3.4 billion year-on-year, mainly due to an increase (¥2.2 billion) in disposal of non-performing
loans and a decrease (¥1.2 billion) in reversal of allowance for loan losses.
･Actual credit costs, calculated as net credit costs (¥2.0 billion) minus the amount of recoveries of written-off claims (¥4.4
billion) amounted to ¥(2.3) billion.
－9－

Suruga bank, Ltd.

(2) Loans and deposits (Non-consolidated)(A) Loans and bills discounted･Loans and bills discounted (period-end balance) decreased by ¥23.4 billion year-on-year.
･Yield on loans and bills discounted dropped by 9 basis points year-on-year to 2.82%.
(Billions of yen）
Dec. 31, 2023(a)Dec. 31, 2022(b)(a) – (b)Mar. 31, 2023

Loans and bills discounted(period-end balance)

2,042.6(23.4)

2,066.1

2,080.1

Consumer loans

1,562.3(140.1)

1,702.5

1,670.4

Corporate investment realestate loans

90.0

44.9

45.0

57.4

Structured finance

150.8

53.4

97.3

126.4

Loans and bills discounted(average balance)

2,050.0(45.0)

2,095.0

2,085.5

Results of new loans
Nine months ended
Dec. 31, 2023
(a)(Billions of yen)
Nine months ended
Dec. 31, 2022(b)(a) - (b)New consumer loans

61.3

22.1

39.2

New corporate investment real estate loans

34.1

21.2

12.9

Subtotal

95.4

43.2

52.2

New structured finance

49.7

9.9

39.8

New collaboration loans, etc.

15.4

(24.5)

39.9

Grand total

160.7

28.7

132.0

(Note) New loans of the areas to be promoted under the “Re:Start 2025” Mid-term Business Plan and thereafter.
Structured finance includes specified bonds, etc. and collaboration loans, etc. includes monetary claims bought.

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

Yield on loans and bills discounted(Billions of yen)

2,579.0
2,379.3
2,401.9
2,216.8
2,166.0
2,042.6
1,937.7 2,066.1
1,702.5
1,562.3

Dec. 19

Dec. 20

Dec. 21

Dec. 22

Dec. 23

－10－

3.20%

3.12%

3.02%

2.91%

2.82%

Dec. 19

Dec. 20

Dec. 21

Dec. 22

Dec. 23

Suruga bank, Ltd.

Consumer loans
Outstanding balance, yield, delinquency rate by loan category
Dec. 31, 2023
Loan category
Secured loans
Housing loans
Investment property loans
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans
Consumer loans(A)(Billions of yen)Dec. 31, 2022
Delinquency Period-end
Delinquency
Yield
rate
balancerate
7.18%
1,571.5
3.06%
6.82%
0.36%
435.0
2.73%
0.32%
3.17%
9.60%
10.30%
1,103.8
0.28%
32.5
4.33%
0.21%
1.81%
131.0
10.46%
2.45%
0.71%
90.2
11.77%
0.84%
7.56%
6.02%
4.66%
40.7
6.78%
1,702.5
3.63%
6.49%

Period-end
balance
1,446.3
422.3
992.3
31.6
116.0
83.5
32.4
1,562.3

2.97%
2.60%
3.09%
4.10%
10.49%
11.66%
7.49%
3.53%

1,465.8-

1.42%

1,598.6-

1.52%

Consumer loans(excluding organizational negotiation
partners)

Yield

Corporate investment real estate loans

(B)

90.0

1.71%

-

45.0

1.81%

-

Structured finance

(C)

155.4

2.27%

-

97.3

2.24%

-

Collaboration loans, etc.

(D)

135.6

2.18%

0.02%

94.3

2.06%

-

Total
(A)+(B)+(C)+(D)1,943.4
3.25%
5.45%
1,939.2
3.44%
5.69%(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 finance includes specified bonds, etc.
Collaboration loans, etc. are loans made jointly or in partnership with other companies (loan participations, purchases ofcorporate loans, etc.)(Note4) 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)ItemDec. 31, 2023
Actual credit costs

Allowance

Investment property loans

(1.1)

96.3

Housing loans

(0.1)

1.9

Unsecured loans

0.0

2.2

Collaboration loans, etc.

(0.0)

0.2

Business financing loans, etc.

(1.0)

7.5

Total

(2.3)

108.3

(Note) Investment property loans: Studio apartment loans, Single building apartment loans, Other secured loans－11－Suruga bank, Ltd.

(B) Deposits･Deposits (period-end balance) decreased by ¥106.1 billion year-on-year.
･Yield on deposits was 0.03%（Billions of yen）
Dec. 31, 2023(a)Dec. 31, 2022(b)(a) – (b)Mar. 31, 2023

Deposits (period-end balance)

3,235.0(106.1)

3,341.2

3,355.7

Individual deposits

2,650.8(62.9)

2,713.7

2,678.5

Deposits (average balance)

3,295.1(44.3)

3,339.4

3,339.4

Deposits (period-end balance)

Yield on deposits

Individual deposits (period-end balance)(Billions of yen)
3,341.2
3,300.0
3,235.0
3,217.1
3,148.9
2,697.0
2,713.7
2,650.8
2,621.6
2,503.7

Dec. 19

Dec. 20

Dec. 21

Dec. 22

Dec. 23

－12－

0.04%

0.04%

0.04%

Dec. 19

Dec. 20

Dec. 21

0.03%

0.03%

Dec. 22

Dec. 23

Suruga bank, Ltd.

(3) Interest margins (Non-consolidated)･Loan-deposit margin (after deduction of expenses, overall) shrunk by 6 basis points year-on-year to 1.70%, mainly due to thedecline in the yield on loans and bills discounted.
･Net interest margin (overall) shrunk by 2 basis points year-on-year to 0.73%.

Overall(%)
Nine months ended
Dec. 31, 2023
(a)Nine months ended
Dec. 31, 2022(b)(a) - (b)FY3/2023

Yield on loans and bills discounted

2.82(0.09)

2.91

2.92

Yield on deposits

0.03

0.00

0.03

0.03

Loan-deposit margin(after deduction of expenses)

1.70(0.06)

1.76

1.80

Net interest margin

0.73(0.02)

0.75

0.77

Domestic(%)
Nine months ended
Dec. 31, 2023
(a)Nine months ended
Dec. 31, 2022(b)(a) - (b)FY3/2023

Yield on loans and bills discounted

2.82(0.09)

2.91

2.92

Yield on deposits

0.03

0.00

0.03

0.03

Loan-deposit margin(after deduction of expenses)

1.70(0.09)

1.79

1.81

Net interest margin

0.74(0.03)

0.77

0.79

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

3.16%

1.74%
1.19%
1-3Q, FY3/20

3.07%

2.98%

1.80%

2.87%

2.79%

1.77%

1.76%

1.70%

0.95%

0.78%

0.75%

0.73%

1-3Q, FY3/21

1-3Q, FY3/22

1-3Q, FY3/23－13－

1-3Q, 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 ¥ 21.3 billion year-on-year.
･Non-performing loan ratio declined by 91 basis points year-on-year to 9.92%.
(Millions of yen)Dec. 31, 2023

Dec. 31, 2022

Mar. 31, 2023

Claims against bankrupt and substantiallybankrupt obligors

113,141

116,601

118,845

Claims with collection risk

42,37350,66047,205

Claims for special attention

48,153

57,79853,255

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

203,668

225,059

219,307

Non-performing loan ratio

9.92%

10.83%

10.48%

Total coverage

170,158

180,017

180,037

Coverage ratio

83.54%

79.98%

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
14.41%

Dec.1915.78%

Dec.2015.25%

Dec.21－14－

10.83%

9.92%

Dec.22

Dec.23

Suruga bank, Ltd.

(5) Capital adequacy ratio (domestic standard)･Capital adequacy ratio (non-consolidated) rose by 31 basis points year-on-year to 14.37%.

Non-consolidated(Millions of yen)Dec. 31, 2023

Dec. 31, 2022

Mar. 31, 2023

Capital adequacy ratio

14.37%

14.06%

13.04%

Own capital (Core capital)

266,042

265,658

251,896

Core capital: instruments and reserves

289,439

288,056

276,161Core capital: regulatory adjustments (-)

23,39722,397

24,264

Risk-weighted assets

1,850,713

1,888,416

1,930,471

Total required capital

74,02874,31275,759Consolidated(Millions of yen)Dec. 31, 2023

Dec. 31, 2022

Mar. 31, 2023

Capital adequacy ratio

14.76%

14.39%

13.43%

Own capital (Core capital)

278,716

277,487

264,173

Core capital: instruments and reserves

304,999

304,150

291,739

Core capital: regulatory adjustments (-)

26,282

26,662

27,566

Risk-weighted assets

1,887,573

1,927,517

1,966,465

Total required capital

75,50275,876

77,199

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

9.83%

234.2

Dec. 19

11.40%

247.7

Dec. 20

13.24%

14.06%

14.37%

266.8

265.6

266.0

Dec. 21

Dec. 22

Dec. 23－15－

Suruga bank, Ltd.

(6) Composition of own capital (domestic standard)(Millions of yen)Dec. 31, 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)

－16－

267,909281,706

51,234
234,904
18,229-34,622
265,312
18,229
1,541
1,541

-

-

21,53021,53021,74021,740

-

-

-

-

-

-

289,43910
304,999

8,953

10,200

8,953

1,068
9,132

1,473

1,570

12,970-14,511
-

-

-

-

-

-

-

-

-

23,39726,282

266,042

278,716

1,722,464
128,249
1,850,713

1,739,322
148,250
1,887,573

14.37%--

14.76%

Suruga bank, Ltd.

(7) Unrealized gains (losses) on securities (Non-consolidated)･Net unrealized gains (losses) on securities increased by ¥ 29.9 billion year-on-year.
(Millions of yen)Dec. 31, 2023
Fair
Value
Available-for-sale324,697
securities

Dec. 31, 2022

Net unrealized gains (losses)
Gains
9,845

18,464

Stocks41,52818,18818,227

Bonds

164,039

(634)

220

Others119,129(7,708)15

LossesNet unrealized gains (losses)

Fair
value

8,618 446,244 (20,055)
39

Mar. 31, 2023
LossesFairvalue

Net unrealized gains (losses)

Gains
7,890

27,946

292,026

Gains

Losses(1,270)

8,239

9,509

15,644

7,669

7,880

210

15,598

7,741

7,841

100

855 187,008(3,910)9

3,920

154,701

(324)

397

721

7,723 243,590 (23,814)-

23,814

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 ¥ 43.4 billion year-on-year.
･The ratio of investment products to total individual deposit assets rose by 70 basis points year-on-year to 4.2%.
(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

Dec. 31, 2023
(a)2,766,956
2,648,739
118,217
2,139
4,528
66,81922,032
22,6964.2%－17－(43,425)(62,428)
19,004
(477)
794
5,430
7,854
5,403

Dec. 31, 2022(b)
2,810,381
2,711,167
99,2132,616
3,734
61,38914,17817,2930.7%

3.5%(a) - (b)Mar. 31, 2023
2,778,039
2,676,056
101,982
2,462
3,891
62,828
14,21918,581
3.6%