November 12, 2021

SURUGA bank, Ltd.
Consolidated financial results for the six months ended September 30, 2021
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Kosuke Saga, President
Dividend payment date: ―(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the six months ended September 30, 2021
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income

Six months ended
Millions of yen％
Millions of yen
September 30, 2021
54,142
6.3
21,327
September 30, 2020
50,916(20.5)
10,460(Note)Comprehensive income:(a) Six months ended Sep. 30, 2021: ¥18,626 million [167.7%](b) Six months ended Sep. 30, 2020: ¥6,957 million [(38.8)%]％

Millions of yen

％

103.8
(47.9)

17,8055,482

224.7(65.6)

Earnings per share(diluted)

Earnings per share
Six months ended
September 30, 2021
September 30, 2020

Profit attributableto owners of parent

Ordinary profit

yen

yen

76.86
23.66

-

(Note) Earnings per share for the six months ended September 30, 2020 and 2021 are not provided because there are no potentially shares.

(2) Consolidated financial position
Total assets
Total net assets
Net assets ratio
As ofMillions of yen
Millions of yen%
September 30, 2021
3,607,892
303,199
8.4
March 31, 2021
3,550,415
285,770
8.0(Reference) Shareholders’ equity:(a) As of September 30, 2021: ¥303,098 million; (b) As of March 31, 2021: ¥285,665 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
1st quarter -end

2nd quarter -end

Dividends per share
3rd quarter -end Fiscal year -end

Fiscal year
yen
yen
ended March 31, 2021
0.00
ending March 31, 2022
0.00
ending March 31, 2022 (forecast)(Note) Revision of dividend forecast from the latest announcement: No

yen

Total

yen

yen

-

5.00

5.00

-

5.00

5.00

3. Consolidated earnings forecast for the fiscal year ending March 31, 2022(% represents the change from the previous fiscal year)

Ordinary income

Ordinary profit

Fiscal year ending
Millions of yen%
Millions of yen%
March 31, 2022
87,000(12.8)
8,000(65.3)(Note) Revision of earnings forecast from the latest announcement: No

Profit attributableto owners of parent

Earnings per share

Millions of yen

%

yen

7,000

(67.3)

30.21

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of
consolidation): No(2) Changes in accounting policies, changes in accounting estimates and restatements(A) Changes in accounting policies due to revision of accounting standards: Yes(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: Yes(D) Restatements: No(3) Number of issued shares (common stock)(A) Number of issued shares
As of Sep. 30, 2021
(including treasury shares):(B) Number of treasury shares:

As of Sep. 30, 2021

(C) Average number of shares:

Six months ended
Sep. 30, 2021

232,139,248 shares

As of Mar. 31, 2021

232,139,248 shares

403,965 shares

As of Mar. 31, 2021

490,315 shares

231,663,833 shares

Six months ended
Sep. 30, 2020

231,649,801 shares(Summary of non-consolidated financial results)
1. Non-consolidated financial results for the six months ended September 30, 2021
(1) Non-consolidated operating results(% represents the change from the same period in the previous fiscal year)
Ordinary income
Ordinary profit
Net income
Six months ended
Millions of yen%
Millions of yen%
Millions of yen%
September 30, 2021
49,69310.0
20,875
139.3
17,594319.2
September 30, 2020
45,146(20.9)
8,723(55.0)
4,196(73.1)
Earnings per share
Six months ended
September 30, 2021
September 30, 2020

Yen

75.94
18.11

(2) Non-consolidated financial position
Total assets
Total net assets
Net assets ratio
As ofMillions of yen
Millions of yen%
September 30, 2021
3,584,932
282,813
7.8
March 31, 2021
3,527,376
265,162
7.5(Reference) Shareholders’ equity:(a) As of September 30, 2021: ¥282,813 million; (b) As of March 31, 2021: ¥265,162 million(Note) Net assets ratio = Total net assets / Total assets × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

2. Non-consolidated earnings forecast for the fiscal year ending March 31, 2022(% represents the change from the previous fiscal year)

Ordinary income
Fiscal year ending
March 31, 2022

Ordinary profit

Net income

Earnings per share

Millions of yen%

Millions of yen%

Millions of yen%

yen

78,000(12.5)

7,000(64.9)

6,000(68.3)

25.89(Note) This report is outside the scope of audit procedures by certified public accountants or audit firms.
(Note) Explanation on appropriate use of forecast and other special items
1. The company is a “Specified business company” under the Article 17-15-2 of the “Cabinet Office Ordinance regarding Disclosure of
Corporate Information, etc.” and prepares its interim consolidated and interim non-consolidated financial statements for the six months
ended September 30, 2021.
2. 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 consolidated earnings forecast ··················· 2
2. Consolidated financial statements and notes ························································· 3(1) Consolidated balance sheets········································································ 3(2) Consolidated statements of income andConsolidated statements of comprehensive income ············································ 4(3) Consolidated statements of changes in net assets ··············································· 6(4) Notes regarding consolidated financial statements ·············································· 8(Notes on going-concern assumption)····························································· 8(Changes in accounting policies) ·································································· 8(Changes in accounting estimates) ································································ 8(Additional information) ············································································ 8
3. Non-consolidated financial statements ······························································· 9(1) Non-consolidated balance sheets ·································································· 9(2) Non-consolidated statements of income ························································· 11(3) Non-consolidated statements of changes in net assets ········································* Financial results for the six months ended September 30, 2021 supplementary information

－1－

12

Suruga bank, Ltd.

1. Qualitative information on financial results(1) Details of operating results
As for the consolidated operating results for the six months ended September 30, 2021, ordinary
income increased by ¥3.226 billion year-on-year to ¥54.142 billion. This was mainly due to therecording of a reversal of allowance for loan losses, despite a decrease in interest income due to adecrease in interest on loans and bills discounted. Meanwhile, ordinary expenses decreased by¥7.641 billion year-on-year to ¥32.814 billion, mainly due to the fall in credit costs.
As a result, ordinary profit increased by ¥10.867 billion year-on-year to ¥21.327 billion. Profit
attributable to owners of parent increased by ¥12.323 billion year-on-year to ¥17.805 billion.

(2) Details of financial position
As for the consolidated major account balances as of September 30, 2021, loans and bills
discounted came in at ¥2,259.033 billion, down by ¥60.527 billion from March 31, 2021. This wasprimarily due to the decrease (¥95.091 billion) in consumer loans (non-consolidated).
Securities amounted to ¥410.344 billion, rose by ¥142.998 billion from March 31, 2021.
Deposits amounted to ¥3,284.838 billion, rose by ¥38.898 billion from March 31, 2021, mainly
due to an increase (¥28.574 billion) in individual deposits.

(3) Details of forecast information, including consolidated earnings forecast
The earnings forecast for the fiscal year ending March 31, 2022 remains unchanged from thatannounced on May 14, 2021.
Consolidated

Ordinary income
Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income(Billions of yen)

Fiscal year ending
March 31, 2022
87.0
8.0
7.0
(Billions of yen)

Fiscal year ending
March 31, 2022
78.0
23.0
23.0
7.0
6.0

Actual credit costs(Note)

16.0

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（Millions of yen）
As of
Mar. 31, 2021
AssetsCash and due from banks
Call loans and bills 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
Sep. 30, 2021

953,932
19,000103
99
267,346
2,319,560
3,324
5,507
49,08434,68920,43922,442
11,331
1,565(158,011)
3,550,415

917,625
20,00096
99410,3442,259,033
2,875
5,247
44,74335,376
19,51922,8599,934
1,938(141,801)
3,607,892

3,245,940
5
14,754
492
41
272
183
305
89
994
1,565
3,264,644

3,284,838
28
15,546
485
－
280
161
256
93
1,062
1,938
3,304,692

30,043
2,045
238,863(561)
270,391
8,954
(20)
6,341
15,274
104285,770
3,550,415

30,043
1,976
255,441(461)
286,999
10,329(17)
5,786
16,098100
303,199
3,607,892

Suruga bank, Ltd.

(2)Consolidated statements of income and Consolidated statements of comprehensive income(2)Consolidated statements of income
For the six months
ended
Sep. 30, 2020
50,91642,504
41,667
428
4,411
2,114
1,885
40,455
791
741
5,921
1,595
22,1509,997
10,460
364
364
293
281
11
10,531
4,005
1,045
5,051
5,480
(2)
5,482

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 - current
Income taxes - deferred
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent－4－（Millions of yen ）For the six months
ended
Sep. 30, 2021
54,142
38,24037,008
809
4,015
1,990
9,894
32,814
761
749
5,830
1,476
20,958
3,788
21,327
3
3
1,076
487
588
20,255
1,343
1,109
2,453
17,802(3)
17,805

Suruga bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）

ProfitOther comprehensive income
Net unrealized gains(losses) on available-for-salesecurities
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 six months
ended
Sep. 30, 2020
5,480

For the six months
ended
Sep. 30, 2021
17,802

1,518
(7)
(33)
1,477
6,957

1,375
2
(554)
823
18,6266,960(2)18,629(3)

Suruga bank, Ltd.

For the six months ended September 30, 2020
（Millions of yen）
Shareholders' equity
Capital stock
Balance at beginning of current
period30,043

CapitalsurplusRetainedearnings

2,045

218,587

Total
shareholders'equityTreasuryshares(561)

250,115

Changes of items during period
Dividends of surplus(1,158)(1,158)Net income

5,482

5,482

Purchase of treasury shares
Disposal of treasury shares

(0)

(0)

(0)

0

0

Net changes of items other thanshareholders' equity

Total changes of items during
periodBalance at end of current
periodBalance at beginning of current
period

-

(0)

4,324

(0)

4,323

2,045

222,911(561)

254,439

Accumulated other comprehensive income
Total
Net unrealized
RemeasureDeferred
accumulated
gains(losses)
ments ofon available- gains(losses)
otherdefinedforon hedges
comprehenbenefit plans
salesecurities
sive income

Noncontrollinginterests

30,043

6,276

(23)

412

6,665

111

Total net
assets

256,892

Changes of items during period
Dividends of surplus(1,158)Net income

5,482

Purchase of treasury shares(0)

Disposal of treasury shares0

Net changes of items other thanshareholders' equity

Total changes of items during
periodBalance at end of current
period

1,518

(7)

(33)

1,477

(2)

1,475

1,518

(7)

(33)

1,477

(2)

5,799

7,795

(31)

379

8,143

108

262,691－6－Suruga bank, Ltd.

For the six months ended September 30, 2021
（Millions of yen）
Shareholders' equity
Capital stock
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

30,043

CapitalsurplusRetainedearnings

2,045

238,863

Total
shareholders'equityTreasuryshares(561)(69)
30,043

2,045

238,794

270,391
(69)

(561)

270,321

Changes of items during period
Dividends of surplus(1,158)(1,158)Net income

17,80517,805Purchase of treasury shares
Disposal of treasury shares

(69)

(0)

(0)

99

30

Net changes of items other thanshareholders' equity

Total changes of items during
periodBalance at end of current
periodBalance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

-

(69)

16,64799

16,678

1,976

255,441(461)

286,999

Accumulated other comprehensive income
Total
Net unrealized
RemeasureDeferred
accumulated
gains(losses)
ments ofon available- gains(losses)
otherdefinedforon hedges
comprehenbenefit plans
salesecurities
sive income

Noncontrollinginterests

30,043

8,954

(20)

6,341

15,274

104

Total net
assets285,770
(69)

8,954

(20)

6,341

15,274

104285,700

Changes of items during period
Dividends of surplus(1,158)Net income

17,805Purchase of treasury shares(0)

Disposal of treasury shares

30

Net changes of items other thanshareholders' equity

Total changes of items during
periodBalance at end of current
period

1,375

2

(554)

823

(3)

820

1,375

2

(554)

823

(3)

17,498

10,329

(17)

5,786

16,098100

303,199－7－

Suruga bank, Ltd.

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

(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition)
The “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan(ASBJ) Statement No.29, March 31, 2020) was adopted from the beginning of the first half of thecurrent fiscal year and recognized revenue when control of promised products or services istransferred to customers in an amount that is expected to be received in exchange for those
products or services.
The bank follows the transitional treatment stipulated in the provisions of Paragraph 84 of the
Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective
application, assuming the new accounting policy had been applied to periods prior to thebeginning of the first half of this year, was added to or reduced from the beginning balance ofretained earnings of the first half of this fiscal year.
There was minimal impact on the quarterly consolidated financial statements.
(Application of Accounting Standard for Fair Value Measurement)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, July 4, 2019)
was adopted from the beginning of the first half of the current fiscal year. In addition, in
accordance with the transitional treatment stipulated in Paragraph 19 of the Accounting Standard
for Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for Financial
Instruments(ASBJ Statement No.10,July 4, 2019), the Bank decided to adopt a new accounting
standard stipulated by the Accounting Standard for Fair Value Measurement in the future. There
was no impact on the interim consolidated financial statements.

(Changes in accounting estimates)
Previously, the bank had set the amortization period of actuarial gains and losses in accounting
for retirement benefits to 13 years. However, because the average remaining service life of
employees was reduced, the amortization period has been revised to 12 years since the first half of
this fiscal year.
There was minimal impact on the interim consolidated financial statements.

(Additional information)
With regard to financial estimates that relate to impact from the coronavirus pandemic in thefirst quarter of the current consolidated fiscal year, and assumptions that were used for theseestimates, there have been no material changes from the information listed in the (Additional
information) 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
the coronavirus 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, 2022.

－8－

Suruga bank, Ltd.

3.Non-consolidated financial statements(1)Non-consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2021
AssetsCash and due from banks
Call loans
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Other
Property, plant and equipment
Intangible assets
Prepaid pension costs
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Income taxes payable
Lease obligations
Other
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share-based compensation
Provision for reimbursement of deposits
Provision for contingent loss
Acceptances and guarantees
Total liabilities

－9－

As of
Sep. 30, 2021

953,210
19,000103
99
270,439
2,310,982
3,324
41,444
41,44433,682
18,712
13,357
13,284
1,565(151,831)
3,527,376

916,942
20,00096
99413,249
2,249,695
2,875
37,682
37,682
34,367
17,754
14,569
11,775
1,938(136,114)
3,584,932

3,250,483
5
9,091
－
233
8,858
449
41
183
305
89
1,565
3,262,214

3,289,338
28
9,870
1,458
199
8,212
430
－
161
256
93
1,938
3,302,118

Suruga bank, Ltd.

（Millions of yen）
Asof
Mar.31,2021
Net assets
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry of non-current assets
General reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Valuation and translation adjustments
Total net assets
Total liabilities and net assets－10－

30,043
18,58918,585
3
209,899
30,043
179,856
59
103,032
76,764(561)
257,970
7,211
(20)
7,191
265,1623,527,376

Asof
Sep.30,2021
30,043
18,585
18,585－226,201
30,043
196,157
59
103,032
93,066(461)
274,368
8,462
(17)
8,445
282,8133,584,932

Suruga bank, Ltd.

(2)Non-consolidated statements of income
For the six months
ended
Sep. 30, 2020
45,14639,31438,507
398
3,823
519
1,489
36,423
790
741
5,900
94
20,515
9,122
8,723
364
364
271
271
－
8,816
3,913
705
4,619
4,196

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 - current
Income taxes - deferred
Income taxes
Profit－11－（Millions of yen ）For the six months
ended
Sep. 30, 2021
49,69336,12734,920
783
3,556
437
9,572
28,817
761
749
5,753
38
19,4542,810
20,875
3
3
1,035
446
588
19,844
1,272
977
2,249
17,594

Suruga bank, Ltd.

For the six months ended September 30, 2020
（Millions of yen）
Shareholders' equity
Capital surplus

Balance at beginning of current
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

3

Retained earnings
Other retained earnings
Reserve for
Total capital Legal retained advanced
surplusearnings
depreciationof non-current
assets
18,58930,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

58,981

Changes of items during period
Dividends of surplus(1,158)Net income

4,196

Purchase of treasury shares
Disposal of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity

Total changes of items during
periodBalance at end of current period

-

-

(0)

(0)

30,043

18,585

3

18,589

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning of current
period192,116--

30,04359(561)

103,032

Valuation and translation adjustments

Net unrealized
Total
Total
gains(losses)
Deferredvaluation andshareholders' on available- gains(losses)
translation
equityforon hedges
adjustments
salesecurities

Treasuryshares-240,187

5,054

(23)

5,030

Total net
assets245,218

Changes of items during period
Dividends of surplus(1,158)(1,158)(1,158)Net income

4,196

4,196

4,196

Purchase of treasury shares

(0)

(0)

(0)

Disposal of treasury shares

0

0

0

Net changes of items other thanshareholders' equity

1,157

(7)

1,150

1,150

Total changes of items during
period

3,038

(0)

3,038

1,157

(7)

1,150

4,188

Balance at end of current period

195,154(561)

243,226

6,211

(31)

6,180

249,406

－12－

3,038
62,019Suruga bank, Ltd.

For the six months ended September 30, 2021
（Millions of yen）
Shareholders' equity
Capital surplus

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Capital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

3

Retained earnings
Other retained earnings
Reserve for
Total capital Legal retained advanced
surplusearnings
depreciationof non-current
assets
18,58930,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

76,764(69)

30,043

18,585

3

18,58930,043

59

103,032

76,695

Changes of items during period
Dividends of surplus(1,158)Net income

17,594Purchase of treasury shares
Disposal of treasury shares

(3)

(3)

(65)

Net changes of items other thanshareholders' equity

Total changes of items during
periodBalance at end of current period

-

-

(3)

(3)

30,043

18,585

3

18,585

Shareholders' equity
Retainedearnings
Total retained
earnings
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

209,899-

30,04359

Treasuryshares(69)

257,970

7,211

(20)

7,191

103,032

257,901

Total net
assets265,162
(69)

(69)
(561)

-

Valuation and translation adjustments

Net unrealized
Total
Total
gains(losses)
Deferredvaluation andshareholders' on available- gains(losses)
translation
equityforon hedges
adjustments
salesecurities(561)

209,830

-

7,211

(20)

7,191

265,092

Changes of items during period
Dividends of surplus(1,158)(1,158)(1,158)Net income

17,594

17,594

17,594Purchase of treasury shares

-

(0)

(0)

(0)

Disposal of treasury shares

(65)

99

30

30

Net changes of items other thanshareholders' equity

Total changes of items during
period16,37099

Balance at end of current period

226,201

(461)

1,251

2

1,254

1,254

16,466

1,251

2

1,254

17,720274,368

8,462

(17)

8,445

282,813－13－

16,37093,066

Financial Results
For the six months ended September 30, 2021

- Supplementary Information -SURUGA bank, Ltd.

Table of contents
Ⅰ. Financial highlights for the six months ended September 30, 2021
1. Financial results

Non-consolidated

・・・・・・・・

2. Major accounts

Non-consolidated

・・・・・・・・

3. Management indicesNon-consolidated

・・・・・・・・

4. Own capital

Non-consolidated

・・・・・・・・

5. Unrealized gains (losses) on securities

Non-consolidated

・・・・・・・・

6. Earnings forecast for the fiscal year ending March 31, 2022

1
3
7
8
9

Non-consolidated, Consolidated

7. Asset quality

Non-consolidated

・・・・・・・・

8. Credit costs

Non-consolidated

・・・・・・・・

10
11

9. Dividends

Non-consolidated

・・・・・・・・・・・・・・・・

12
13

・・・・・・・・

14

15
16

Ⅱ. Financial data for the six months ended September 30, 2021
1. Details of financial results

Non-consolidated
Consolidated

2. Net operating profit

Non-consolidated

3. Interest margins

Non-consolidated

4. ROA and ROE

Non-consolidated

5. Gains (losses) on securities

Non-consolidated

6. Capital adequacy ratio (domestic standard)

Non-consolidated, Consolidated

・・・・・・・・

7. Composition of own capital (domestic standard)

Non-consolidated, Consolidated

・・・・・・・・

Non-consolidated

・・・・・・・・

1. Risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

2. Allowance ratio for risk-monitored loans

Non-consolidated, Consolidated

・・・・・・・・

17
18
19

3. Allowance for loan losses

Non-consolidated, Consolidated

・・・・・・・・

20

・・・・・・・・

21

Non-consolidated, Consolidated

・・・・・・・・

22

Non-consolidated, Consolidated

・・・・・・・・

22

Ⅲ. Status of Loans, etc.
Comparison of asset disclosure by standard

4. Non-performing loans based on the Financial Reconstruction Law
5. Status of coverage of non-performing loans based on
the Financial Reconstruction Law

Non-consolidated
Non-consolidated

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry

Non-consolidated(2) Breakdown of risk-monitored loans by industry

Non-consolidated(3) Consumer loans

Non-consolidated(4) The ratio of loans to small- and medium-sized enterprises, etc.

Non-consolidated

7. Loan breakdown by country(1) Loans to specific foreign countries

Non-consolidated(2) Loans to Asian countries

Non-consolidated

8. Deposits and loans

Non-consolidated

9. Number of branches

Non-consolidated

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Ⅴ. Retirement benefits
1. Retirement benefit expenses

Suruga bank, Ltd.

Ⅰ. Financial highlights for the six months ended September 30, 2021
1. Financial results (Non-consolidated)
Six months ended
Sep. 30, 2021(a)
33,56735,366(2,197)20
33,18820,218
12,97012,970379
13,34913,349
2,630
6,384
2,942
(24)
20,875(442)
588
17,594Gross operating profit
Net interest income
Net fees and commissions
Net other operating income (Note1）
Core gross operating profit
Expenses (-)
Core net operating profit （Note2）
Excluding gains (loss) on cancellation of investment trusts
Gains (losses) on bonds
Actual net operating profit (Note3）
Provision for general allowance for loan losses (-)(Note4)
Net operating profit
Disposal of non-performing loans (-)
Reversal of allowance for loan losses(Note4)
Recoveries of written-off claims
Gains (losses) on stocks
Ordinary profit
Gains (losses) on disposal of non-current assets
Impairment loss (-)
Net income(Millions of yen)Six months ended
Sep. 30, 2020(b)
36,871
38,524(2,076)15
36,462
20,532
15,93015,859409
16,339(21,638)
37,97730,575
1,144
(0)
8,723
92
4,196

(a) - (b)(3,304)(3,158)(121)
5(3,274)(314)(2,960)(2,889)(30)(2,990)21,638(24,628)(27,945)
6,384
1,798
(24)
12,152(534)
588
13,398Net credit costs(3,753)(12,690)
8,937(6,695)
Actual credit costs（Note5）(14,487)
7,792(Note1) Excludes 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 six months ended Sep. 30, 2021, 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) Actual credit costs = Net credit costs (Provision for general allowance for loan losses + Disposal of non-performing loans- Reversal of allowance for loan losses) - Recoveries of written-off claims(1) Gross operating profit: ¥33.5 billion
・Net interest income decreased by ¥3.1 billion year-on-year, mainly due to a decrease in interest on loans and bills discounted.
・Loan-deposit income decreased by ¥3.6 billion year-on-year.
・Core gross operating profit decreased by ¥3.2 billion year-on-year, mainly due to a decrease in net interest income.
・Gross operating profit decreased by ¥3.3 billion year-on-year.

Net interest income(Billions of yen)
58.3
55.5

55.9
44.0

1H,
FY3/181H,
FY3/19(Billions of yen)

1H,
FY3/2038.5

1H,
FY3/21

Loan-deposit income

51.9
43.5

35.3

1H,
FY3/22

1H,
FY3/18－1－

1H,
FY3/191H,
FY3/2037.7

1H,
FY3/2134.1

1H,
FY3/22

Suruga bank, Ltd.

(2) Expenses; OHR: 60.2%
・Expenses decreased by ¥0.3 billion year-on-year.
・OHR rose year-on-year to 60.2%.
(OHR(%) = Expenses / Gross operating profit × 100)

Gross operating profit(Billions of yen)

57.0

Expenses

60.2%

55.6%

52.8%

53.9 44.1%

41.7%

OHR

42.4

36.8

33.5

23.8

23.8

22.4

20.5

20.2

1H,FY3/18

1H,FY3/19

1H,FY3/20

1H,FY3/21

1H,FY3/22(3) Core net operating profit: ¥12.9 billion, Net operating profit: ¥13.3 billion
・Core net operating profit decreased by ¥2.9 billion year-on-year, mainly due to a decrease in net interest income.
・Net operating profit decreased by ¥24.6 billion year-on-year, mainly due to a decrease in provision for general allowance forloan losses.

Core net operating profit

Net operating profit(Billions of yen)

33.0 33.1

1H,FY3/18

37.9

29.6
3.3

19.8 18.3

1H,FY3/19

1H,FY3/20

15.9

12.9 13.3

1H,FY3/21

1H,FY3/22(4) Ordinary profit: ¥20.8 billion
・Ordinary profit increased by ¥12.1 billion year-on-year, mainly due to a decrease in disposal of non-performing loans.

(5) Net income: ¥17.5 billion
・Net income increased by ¥13.3 billion year-on-year, mainly due to an increase in ordinary profit.

(6) Actual credit costs: (¥6.6) billion
・Net credit costs decreased by ¥12.6 billion year-on-year, mainly due to a decrease (¥27.9 billion) in disposal of non-performing
loans, an increase (¥21.6 billion) in provision for general allowance for loan losses and a record (¥6.3 billion) in reversal of
allowance for loan losses.
・Actual credit costs, calculated as net credit costs ((¥3.7) billion) minus the amount of recoveries of written-off claims(¥2.9 billion) amounted to (¥6.6) billion.

－2－

Suruga bank, Ltd.

2. Major accounts (Non-consolidated)(1) Loans and bills discounted
・Loans and bills discounted decreased by ¥168.8 billion, or 6.9% year-on-year.
・Yield on loans and bills discounted dropped by 7 basis points year-on-year to 3.05%.

(Billions of yen)Sep. 30, 2021(a)
Loans and bills discounted(period-end balance)
Consumer loans
Asset management company
loans for property investment
Structured finance
Loans and bills discounted(average balance)

Sep. 30, 2020(b)(a) – (b)Mar. 31, 2021

2,249.6(168.8)2,418.4

2,310.9

1,980.4(230.4)2,210.8

2,075.5

22.2

17.5

4.7

15.1

50.8

37.7

13.1

33.5

2,277.8(179.2)

2,457.0

2,414.7(Reference)
Sep. 30, 2021
(a)(Billions of yen)Sep. 30, 2020(b)(a) – (b)New consumer loans

14.0

5.3

8.7

New asset management company loans for property investment

7.3

2.8

4.5

Subtotal

21.4

8.2

13.2

New structured finance

20.1

10.4

9.7

Total

41.5

18.6

22.9

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

Yield on loans and bills discounted(Billions of yen)
3,286.0
3,085.8
2,671.6
2,963.4
2,790.8
2,418.4
2,249.6
2,455.4
2,210.8
1,980.4

3.58%

Sep.17

Sep.17

Sep.18

Sep.19Sep.20

Sep.21－3－

3.36%

Sep.18

3.21%

3.12%

3.05%

Sep.19Sep.20

Sep.21

Suruga bank, Ltd.

Consumer loans
Outstanding balance, yield, delinquency rate by loan category

Loan category

Period-end
balance
1,823.6475.1
155.0
1,054.3
104.2
34.8
156.8
104.5
52.2
1,980.4

Sep. 30, 2021
Delinquency
Yield
3.07%
2.82%
3.39%
3.24%
1.40%
4.66%
10.37%
11.75%
7.59%
3.64%

7.05%
0.27%
1.75%
4.70%
73.33%
0.34%
2.28%
0.85%
5.14%
6.68%

Period-end
balance
1,863.0
486.3
161.3
1,073.7
105.9
35.7
162.8
108.2
54.5
2,025.9

1,848.8-

2.74%

Asset management company loans forproperty investment (B)

22.2

1.87%

Structured finance (C)

50.8

2.34%

Secured loans
Housing loans
Studio apartment loans
Single building apartment loans
Share house loans
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans
Consumer loans (A)Consumer loans(excluding share house-related loans)rate(Billions of yen)Jun. 30, 2021
Delinquency
Yield
rate

3.07%
2.83%
3.39%
3.24%
1.40%
4.70%
10.35%
11.73%
7.62%
3.65%

5.44%
0.27%
1.51%
3.46%
58.12%
0.56%
2.30%
0.81%
5.27%
5.19%

1,891.9

-

2.10%

-

17.9

1.92%

-

-

40.6

2.37%

-

Total (A)+(B)+(C)2,053.5
3.59%
6.45%
2,084.4
3.61%
5.05%(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)Yield and delinquency rate of Studio apartment loans, secured loans and consumer loans are calculated based on
originals claims before securitization.

Share house loans (Non-performing loans based on the Financial Reconstruction Law)
(Billions of yen)(Non-performing loans)
Total

Sep. 30, 2020
Dec. 31, 2020
Mar. 31, 2021
Jun. 30, 2021
Sep. 30, 2021

189.1
187.3
135.7
133.9
131.6

Total

Claims against
bankrupt andsubstantiallybankrupt obligors
56.1
80.6
53.3
60.6
73.0

Claims withcollection risk

Claims for
special attention

58.3
43.6
31.5
36.9
38.0

62.4
52.2
40.1
28.1
14.9

Collateral or
guarantees, etc.
B
71.8
72.2
52.5
51.9
61.7

Unsecuredportion
C
117.3
115.1
83.1
81.9
69.8

Subtotal

177.0
176.4
124.9
125.7
126.0

Normalassets
12.1
10.8
10.7
8.1
5.6

(Billions of yen)
Coverage
Allowance
ratioD(B＋D)／A
106.5
94.31%
106.1
95.20%
76.7
95.24%
77.3
96.55%
67.7
98.36%

Share house claims
A
Sep. 30, 2020
189.1
153.5
Dec. 31, 2020
187.3
152.5
Mar. 31, 2021
135.7
107.2
Jun. 30, 2021
133.9
106.0
Sep. 30, 2021
131.6
104.2
(Note1)Based on obligors of share house loans(Note2)Covered amount: Estimated amount, calculated by multiplying the covered amount including collateral, etc.
with a certain ratio.(Change the ratio from the first half of the fiscal year ending March 31, 2022)(Note3)Total credit balance, share house loan receivables: Loans and bills discounted, suspense payments equivalent to loans
and bills discounted, and accrued interest on loans and bills discounted.

－4－Suruga bank, Ltd.

Actual credit costs and Allowance for loan losses

Sep. 30, 2021

(Billions of yen)
Item

Actual credit costs

Allowance

Share house-related loans

(6.8)

67.7

Investment property loans

0.5

54.1

Housing loans

(0.8)

3.3

Unsecured loans

0.0

2.4

Business financing loans, etc.

0.3

8.4

Total

(6.6)

136.1

(Note)Investment property loans: Studio apartment loans, Single building apartment loans, Other secured loans－5－Suruga bank, Ltd.

(2) Deposits
・Deposits increased by ¥102.2 billion, or 3.2% year-on-year.
・Yield on deposits was 0.04%.
(Billions of yen)Sep. 30, 2021(a)Sep. 30, 2020(b)(a) – (b)Mar. 30, 2021

Deposits (period-end balance)

3,289.3

102.2

3,187.1

3,250.4

Individual deposits

2,666.0

86.6

2,579.4

2,637.4

Deposits (average balance)

3,284.6

94.9

3,189.7

3,194.4

Deposits(period-end balance)

Yield on deposits

Individual deposits(period-end balance)(Billions of yen)
4,076.0
3,415.9
3,289.3
3,164.9
3,187.1
3,208.2
2,743.3
2,666.0
2,579.4
2,456.1
0.09%
0.05%
0.03%

Sep.17

Sep.18

Sep.19Sep.20Sep. 17

Sep.21

Sep. 18

Sep. 19

0.04%

0.04%

Sep. 20

Sep. 21(3) Net fees and commissions
・Net fees and commissions decreased by ¥0.1 billion year-on-year, mainly due to a decrease (¥0.2 billion)in fees and commissions, a decrease (¥0.1 billion) in fee and commissions payments.

Net fees and commissions(Millions of yen)

7,392
5,871

(1,521)

1H,FY3/18

Fees and commissions
7,968

7,154

5,900

5,038

(2,115)

1H,FY3/19

Fees and commissions payments

4,209(2,076)(3,758)

1H,FY3/20

－6－

5,753

3,823

1H,FY3/21

3,556(2,197)

1H,FY3/22

Suruga bank, Ltd.

(4) Individual deposit assets
・Individual deposit assets increased by ¥85.4 billion year-on-year.
・The ratio of investment products to total individual deposit assets dropped by 20 basis points year-on-year to 3.8%.
(Millions of yen)Sep. 30, 2021(a)
2,769,394
2,662,160
107,233
3,906
5,132
67,92016,565
13,708

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

3.8%

85,43586,609(1,174)(12)(1,436)
4,265(3,354)(637)

Sep. 30, 2020(b)
2,683,959
2,575,551
108,407
3,918
6,568
63,655
19,91914,345(0.2%)

4.0%(a) - (b)Mar. 31, 2021
2,743,750
2,633,381
110,369
4,111
6,035
68,05018,093
14,0784.0%

3. Management indices (Non-consolidated)(1) Interest margins
・Loan-deposit margin (after deduction of expenses) shrunk by 1 basis points year-on-year to 1.78%.
・Net interest margin shrunk by 15 basis points year-on-year to 0.81%, mainly due to the decline in yield oninterest earning assets.
(%)
Six months ended
Sep. 30, 2021
(a)
3.01

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

Six months ended
Sep. 30, 2020(a) - (b)(b)(0.06)
3.07(0.01)

1.79

1.81

0.81

(0.15)

0.96

0.94

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

2.31%

1.62%

1H, FY3/18

3.31%

3.17%

3.07%

3.01%

1.72%

1.79%

1.78%

0.96%

0.81%

1H, FY3/21

1H, FY3/22

2.06%

1.51%

1H, FY3/19

3.07

1.78

Loan-deposit margin

3.48%

FY3/2021

1.21%
1H, FY3/20－7－

Suruga bank, Ltd.

4. Own capital (Non-consolidated)・Capital adequacy ratio rose by 250 basis points year-on-year to 13.54%.

Non-consolidated(Millions of yen)Sep 30, 2021
13.54%
275,243
297,805
22,562
2,031,462
78,330Capital adequacy ratio
Own capital (Core capital)
Core capital: instruments and reserves
Core capital: regulatory adjustments (-)
Risk-weighted assets
Total required capital
Consolidated

Sep 30, 2020
11.04%
245,379
268,684
23,3042,221,267
85,552(Millions of yen)Sep 30, 2021
13.82%
286,352
316,400
30,0482,071,839
79,945

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

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

13.54%

12.70%

11.04%

8.65%

9.23%

228.9

245.3

275.2

219.7

Sep.18

Sep.19Sep.20

Sep.21

325.5

Sep.17－8－

Sep 30, 2020
11.25%
254,520
280,446
25,9262,262,296
87,193

Suruga bank, Ltd.

5. Unrealized gains (losses) on securities (Non-consolidated)
・Net unrealized gains on securities increased by ¥2.4 billion year-on-year.
(Millions of yen)Sep. 30, 2021
(a)
Available-for-salesecurities
Stocks
Bonds
Others(a) - (b)Sep. 30, 2020(b)Mar. 31, 2021

10,987

2,452

8,535

9,518

8,747
434
1,805

1,787
17
647

6,960
417
1,158

8,646
324
546

6. Earnings forecast for the fiscal year ending March 31, 2022
Consolidated

Ordinary income
Ordinary profit
Profit attributable toowners of parent
Non-consolidated

Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income
Actual credit costs(Millions of yen)
Fiscal year ending
Mar. 31, 2022
(forecast)
87,0008,000
7,000(Millions of yen)
Fiscal year ending
Mar. 31, 2022
(forecast)
78,00023,00023,0007,000
6,000
16,000(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.

－9－Suruga bank, Ltd.

7. Asset quality (Non-consolidated)(1) Non-performing loans based on the Financial Reconstruction Law
・Non-performing loans based on the Financial Reconstruction Law increased by ¥0.9 billion year-on-year.
Non-performing loan ratio rose by 42 basis points year-on-year to 14.44%.
Outstanding balance(Millions of yen, %)Sep. 30, 2021
(a)(a) - (b)(a) - (c)Mar. 31, 2021(b)

Sep. 30, 2020(c)

Claims against bankrupt andsubstantially bankrupt obligors

113,396

12,963

12,671

100,433

100,725

Claims with collection risk

126,868

35,615

8,295

91,253

118,573

Claims for special attention

86,699(47,663)(70,877)

134,362

157,576

Total

(A)

326,964916(49,911)

326,048

376,875

Total claims(B)

2,263,185(61,868)(170,187)

2,325,053

2,433,372

(A/B)

14.44

0.42

(1.04)

14.02

15.48

Non-performing loan ratio(Millions of yen, %)Status of coverage

Non-performing loans(A)

Claims against
bankrupt andsubstantiallybankrupt
obligors
113,396

Covered amount (C+D)(B)

Portion secured by collateralor guarantees, etc.
Allowance for loan losses

Claims withcollection risk

Claims for
specialattention

Total

Change from
Mar. 31, 2021

126,868

86,699326,964916

113,396

89,33644,581

247,314

14,368(C)

52,23553,95327,275

133,464

25,252(D)

61,16035,382

17,306

113,849(10,885)

100.00

70.41

51.42

75.63

4.19

(E)

61,16072,91459.424

193,500(24,336)

Allowance ratio for unsecured portion(D/E)

100.00

48.52

29.12

58.83

1.57

62,26456,481

99,091

217,836

100.00

55.58

31.36

57.26

Coverage ratio (B/A)
Unsecured portion (A-C)(Reference) As of Mar. 31, 2021
Unsecured portion
Allowance ratio for unsecured portion(2) Risk-monitored loans(Millions of yen, %)Sep.30,2021(a)Loans to bankrupt obligors(a) – (b)(a) – (c)Mar.31,2021(b)

Sep.30,2020
(c)

930

(580)

(752)

1,510

1,682

237,395

48,903

21,862

188,492

215,533

Loans past due 3 months or more

3,438

(1,320)(4,910)

4,758

8,348

Restructured loans

83,261(46,342)(65,966)

129,603

149,227

Total

325,025660(49,767)

324,365374,792

75.94

4.20

1.22

71.74

74.72

Non-accrual delinquent loans

Coverage ratio－10－Suruga bank, Ltd.

8. Credit costs (Non-consolidated)
Six months ended
Sep. 30, 2021(a)(Millions of yen, %)Six months ended
Sep. 30, 2020(b)(a) - (b)Provision for general allowance for loan losses(1)-

21,638(21,638)

Disposal of non-performing loans

(2)

2,630

(27,945)

30,575

2,457

1,687

770

-

(29,208)

29,208Losses on sales of delinquent loans

151

(477)

628

Provision for allowance for contingent losses

22

53

(31)

Write-off of loans
Provision for specific allowance for loan losses

Reversal of allowance for loan losses

(3)

6,384

6,384

-

Recoveries of written-off claims

A

2,942

1,798

1,144

(4) (=(1)+(2)-(3))(3,753)(12,690)8,937(4)- A(6,695)(14,487)

7,792

2,277,868(179,202)2,457,070

Net credit costs ratio(0.32)(1.04)

0.72

Actual credit costs ratio(0.58)(1.21)

0.63

Net credit costs
Actual credit costs

Loans and bills discounted (average balance)(Note1) Net credit costs ratio = Net credit costs / The average balance of Loans and bills discounted (annualized)(Note2) Actual credit costs ratio = Actual credit costs / The average balance of Loans and bills discounted (annualized)(Note3) For the six months ended Sep. 30, 2021 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.

9. Dividends
・The company has decided to not pay an interim dividends.
・For the fiscal year ending March 31, 2022, the company is forecasting an annual dividend of ¥5.0 per share.

Fiscal year ending
Mar. 31, 2022

(yen)
Fiscal year ended
Mar. 31, 2021
(result)

Annual dividend per share

5.00

5.00

Interim dividend

0.00

0.00

(Note) Annual dividend per share for the fiscal year ending March 31, 2022 is a forecast.

－11－Suruga bank, Ltd.

Ⅱ. Financial data for the six months ended September 30, 2021
1. Details of financial results (Non-consolidated)
Six months ended
Sep. 30, 2021(a)
33,567（33,18833,494（
33,11535,326(2,211)
379
（
379
73
（
73
39
13
20
（
20,218
7,207
11,073
1,938
13,34912,970Gross operating profit(excluding gains (losses) on bonds)
Domestic gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
International gross operating profit(excluding gains (losses) on bonds)
Net interest income
Net fees and commissions
Net other operating income(of which, Gains (losses) on bonds)
Expenses (excluding non-recurring losses)
Personnel expenses
Non-personnel expenses
Taxes
Actual net operating profit
Core net operating profit
Excluding gains (loss) on cancellation of
investment trust
Provision for general allowance for loan losses
Net operating profit
Gains (losses) on bonds
Non-recurring gains (losses)
Reversal of allowance for loan losses
Recoveries of written-off claims
Gains (losses) on stocks
Ordinary profit
Extraordinary gains (losses)
Gains (losses) on disposal of non-current assets
Impairment loss (-)
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income(1)Provision for general allowance for loan losses(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3) Reversal of allowance for loan losses
Provision for general allowance for loan losses
Provision for specific allowance for loan losses(4)Net credit costs (1)+(2)-(3)(5)Recoveries of written-off claims(6)Actual credit costs (4)-(5)－12－(a) - (b)(3,304)(3,274)(3,285)(3,255)(3,132)
(124)
(29)
(30)
(19)
(19)
(26)
3
4
(314)
(253)
(276)
217
(2,990)(2,960)(Millions of yen)Six months ended
Sep. 30, 2020(b)
36,871
36,462 ）36,77936,370 ）38,458(2,087)
408
409 ）
92
92 ）
65
10
16
- ）
20,532
7,460
11,3491,721
16,33915,93012,970(2,889)15,85913,349
379
7,526
6,384
2,942
(24)
20,875(1,031)(442)
588
19,844
1,272
977
2,249
17,594

21,638(24,628)(30)
36,780
6,384
1,798
(24)
12,152(1,123)(534)
588
11,028(2,641)272(2,370)13,398(21,638)
37,977409(29,254)
1,144
(0)
8,723
92
92
8,816
3,913
705
4,619
4,196

2,630
2,457
151
22
6,384
17,339(10,954)(3,753)
2,942(6,695)

21,638(27,945)
1,687(29,208)
(477)
53
6,384
17,339(10,954)(12,690)
1,798(14,487)(21,638)
30,575770
29,208
628
(31)
8,937
1,144
7,792

Suruga bank, Ltd.

Details of financial results (Consolidated)
Six months ended
Sep. 30, 2021(a)
36,17937,479(1,814)514
21,722(5,961)(24)
934
21,327(1,072)
20,255
1,343
1,109
2,453
(3)
17,805

Consolidated gross profit
Net interest income
Net fees and commissions
Net other operating income
Expenses (excluding non-recurring losses)
Actual credit costs
Gains (losses) on stocks
OthersOrdinary profit
Extraordinary gains (losses)
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent(a) - (b)(4,543)(4,233)
(305)
(5)
(445)
(14,347)(24)
643
10,867(1,142)
9,724(2,662)64(2,598)(1)
12,323(Millions of yen)Six months ended
Sep. 30, 2020(b)
40,722
41,712(1,509)519
22,167
8,386
(0)
291
10,46070
10,531
4,005
1,045
5,051
(2)
5,482

(1)Provision for general allowance for loan losses
22,258(22,258)(2)Disposal of non-performing loans
3,603(28,411)32,014
Write-off of loans
2,503
1,528
975
Provision for specific allowance for loan losses(29,104)
29,104Losses on sales of delinquent loans
1,077
(889)
1,966
Provision for allowance for contingent losses
22
53
(31)
(3) Reversal of allowance for loan losses
6,580
6,580
Provision for general allowance for loan losses
17,833
17,833
Provision for specific allowance for loan losses(11,253)(11,253)(4)Net credit costs (1)+(2)-(3)(2,977)(12,733)
9,756(5)Recoveries of written-off claims
2,983
1,614
1,369
(6)Actual credit costs (4)-(5)(5,961)(14,347)
8,386(Note) Consolidated gross profit = (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions
payments) + (Other operating income - Other operating expenses)(Reference)(Millions of yen)
Consolidated net operating profit
14,457(26,357)
40,814(Note) Consolidated net operating profit = Consolidated gross profit - Consolidated expenses - Consolidated provision for generalallowance for loan losses(Number of consolidated subsidiaries and affiliates)
Consolidated subsidiaries(2)(Companies)
8(24,628)(16,641)(Millions of yen)Six months ended
Sep. 30, 2020(b)
37,977
26,1016

2. Net operating profit (Non-consolidated)
Six months ended
Sep. 30, 2021(a)
13,3499,460

Net operating profit
Per employee (Thousands of yen)

－13－(a) - (b)Suruga bank, Ltd.

3. Interest margins (Non-consolidated)
Overall

Yield on interest earning assets(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)

(0.21)(0.07)(0.02)(0.06)
0.00(%)
Six months ended
Sep. 30, 2020
(b)
2.29
3.12
0.47
1.33
0.04

1.78

(0.01)

1.79

0.81(0.15)

0.96(0.21)(0.07)
0.02(0.06)
0.00(%)
Six months ended
Sep. 30, 2020
(b)
2.29
3.13
0.46
1.29
0.04

1.82

(0.01)

1.83

0.84(0.15)

0.99(1.45)
0.74(21.26)10.14(%)
Six months ended
Sep. 30, 2020
(b)
2.19
0.24
31.60
3.49

Six months ended
Sep. 30, 2021
(a)
2.08
3.05
0.45
1.27
0.04

(a) - (b)Domestic

Yield on interest earning assets(A)
Yield on loans and bills discounted
Yield on securities
Yield on interest bearing liabilities(B)
Yield on deposits
Loan-deposit margin(after deduction of expenses)
Net interest margin(A) - (B)Six months ended
Sep. 30, 2021
(a)
2.08
3.06
0.48
1.23
0.04

(a) - (b)4. ROA and ROE (Non-consolidated)

ROA
ROE

Net operating profit basis
Net income basis
Net operating profit basis
Net income basis

Six months ended
Sep. 30, 2021
(a)
0.74
0.98
10.34
13.63

(a) - (b)5. Gains (losses) on securities (Non-consolidated)

Gains (losses) on bonds
Gains on sales
Gains on redemptions
Losses on sales
Losses on redemptions
Losses on devaluation

Six months ended
Sep. 30, 2021
(a)
379
417
37
-

Gains (losses) on stocks
Gains on sales
Losses on sales
Losses on devaluation

(24)
3
27

－14－

(30)
(73)
(13)
(57)
-

(Millions of yen)Six months ended
Sep. 30, 2020
(b)
409
73
430
94
-

(24)
27

(0)
0

(a) - (b)Suruga bank, Ltd.

6. Capital adequacy ratio (domestic standard)
Non-consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital : instruments and reserves
Core capital : regulatory adjustments (-)
Risk-weighted assets
Total required capital(Millions of yen)Sep. 30, 2021
(a)
13.54%
275,243
297,805
22,562
2,031,462
78,330(a) - (b)1.41%
16,437
16,44812(101,912)(3,928)(Millions of yen)

Consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital : instruments and reserves
Core capital : regulatory adjustments (-)
Risk-weighted assets
Total required capitalMar. 31, 2021(b)
12.13%
258,806
281,357
22,5502,133,374
82,258Sep. 30, 2021(a)13.82%
286,352
316,400
30,0482,071,839
79,945－15－(a) - (b)1.43%
16,762
16,092(669)(103,301)(3,984)Mar. 31, 2021(b)
12.39%
269,590
300,308
30,7172,175,140
83,929Suruga bank, Ltd.

7. Composition of own capital (domestic standard)(Millions of yen）
September 30, 2021

Non-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 andreserves
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 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
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 sharecapital (amount above the 10% threshold)Amount exceeding the 10% threshold on specified items
Significant investments in the common stock of Other financial institutions, netof 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 transitionalarrangements
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－

Consolidated

274,368

286,999

48,629226,201(461)

32,019255,441
(461)

-

5,786
5,786

-

-

-

-

-

23,43723,437

23,584
23,584

-

-

-

-

-

-

-

-

-

30

297,805

316,400

12,392

14,035

12,392

1,359
12,675

-

57

-

-

10,169-15,956

-

-

-

-

-

-

-

-

-

-

22,562

33,048275,243

286,352

1,875,082

1,886,841

-

-

-

-

-

156,380

184,998--

2,031,462

2,071,839

13.54%--

13.82%

Suruga bank, Ltd.

Ⅲ. Status of loans, etc.
Comparison of asset disclosure by standard
Non-consolidated (As of September 30, 2021)
Classification and status of coverage by disclosure standard
Self-assessment result(by obligor classification)* Includes total claims (“Claims for special
attention” includes only loans and bills
discounted).

* Includes total claims.

Classification

Category
Creditbalance

Nonclassification

Category

Classification
Ⅱ

Classification
Ⅲ

Classification
Ⅳ

792

-

[150]

Bankrupt obligors
942
[150]
Effectively bankrupt
obligors

150

61,30951,144-112,453[61,009][61,009]

Potentiallybankrupt obligors
39,932

49,403

126,868[35,382]

Substandard
obligors
Obligors
requiring
cautionNon-performing loans based on
the Financial Reconstruction Law

37,531[35,382]-

Creditbalance
Claimsagainstbankrupt
andsubstantiallybankrupt
obligors

CollateralorAllowance
guarantees,etc.

52,235

61,160* Includes loans andbills discounted.

Coverageratio

53,95335,38270.41%

126,868

Claims for
specialattention292

107,302--27,27517,306

Category

Outstandingbalance

Loans tobankrupt
obligors

930

Non-accrualdelinquentloans

237,395

Loans pastdue 3 months
or more3,438

Restructured
loans

83,261

Total

325,025100%

113,396

Claims withcollection
risk(Millions of yen)
Risk-monitoredloans

51.42%

86,699Subtotal

107,594

133,464

113,849

75.63%

326,964

Other
obligors
requiring
caution

12,382

726,724--

739,106
Normal obligors

Normalassets1,936,220

1,176,219---

1,290,286

935,367

37,531[35,382][61,160]

1,176,219
Total
2,263,185[96,543]

Total
2,263,185(Note1) “Total claims” includes “Loans and bills discounted”, “Customers’ liabilities for acceptances and guarantees”, “Foreignexchanges”, “Securities lent”, “Suspense payment” and “Accrued interest”.
(Note2) Numbers shown in brackets under “Self-assessment result” represent the reserved amount for each category.

－17－

Suruga bank, Ltd.

1. Risk-monitored loans
The following table shows figures after partial direct write-off of loans.
The amounts of partial direct write-off of loans for the six months ended September 30, 2021 were as follows:(a) Non-consolidated: ¥9,097 million; (b) Consolidated: ¥9,097 million
Loans to “Potentially bankrupt obligors”, “Effectively bankrupt obligors” and “Bankrupt obligors” under self-assessment areplaced on non-accrual status.
Non-consolidated

Loans to bankrupt obligors
Non-accrual delinquent loans

Riskmonitored Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)
Loans to bankrupt obligors% to loans Non-accrual delinquent loans
and bills Loans past due 3 months or morediscounted Restructured loans
Total(Millions of yen, %)Sep. 30, 2021(a)
930
237,395
3,438
83,261
325,025(a) - (b)(580)
48,903(1,320)(46,342)660(a) - (c)(752)
21,862(4,910)(65,966)(49,767)

Mar. 31, 2021
(b)
1,510
188,492
4,758
129,603324,365

Sep. 30, 2020
(c)
1,682
215,533
8,348
149,227
374,792

2,249,695(61,287)(168,722)

2,310,982

2,418,417

0.04
10.55
0.15
3.70
14.44

(0.02)
2.40(0.05)(1.90)
0.41(0.02)
1.64(0.19)(2.47)(1.05)

0.06
8.15
0.20
5.60
14.03

0.06
8.91
0.34
6.17
15.49

Consolidated

Loans to bankrupt obligors
Non-accrual delinquent loans
Riskmonitored Loans past due 3 months or moreloans
Restructured loans
Total
Loans and bills discounted(period-end balance)
Loans to bankrupt obligors% to loans Non-accrual delinquent loans
and bills Loans past due 3 months or morediscounted Restructured loans
Total(Millions of yen, %)Sep. 30, 2021
(a)
1,133
241,786
3,438
83,261
329,619(a) - (b)(547)
48,974(1,320)(46,342)765(a) - (c)(1,104)
21,232(4,910)(65,966)(50,749)

Mar. 31, 2021
(b)
1,680
192,8124,758
129,603
328,854

Sep. 30, 2020
(c)
2,237
220,554
8,348
149,227
380,368

2,259,033(60,527)(164,289)

2,319,560

2,423,322

0.05
10.70
0.15
3.68
14.59

(0.02)
2.39(0.05)(1.90)
0.42(0.04)
1.60(0.19)(2.47)(1.10)

0.07
8.31
0.20
5.58
14.17

0.09
9.10
0.34
6.15
15.69

－18－

Suruga bank, Ltd.

2. Allowance ratio for risk-monitored loans
Non-Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Sep. 30, 2021(a)
325,025
133,444
113,381
34.88
75.94

(a) - (b)660
25,262(11,149)(3.51)
4.20(a) - (c)(49,767)
8,208(41,463)(6.43)
1.22(Millions of yen, %)Mar. 31, 2021
Sep. 30, 2020(b)(c)
374,792
324,365
125,236
108,182
154,844
124,530
41.31
38.39
74.72
71.74

(a) - (c)(50,749)
6,853(41,400)(6.19)
1.02(Millions of yen, %)Sep. 30, 2020
Mar. 31, 2021(b)(c)
380,368
328,854
126,613108,205
157,392
127,167
41.37
38.66
74.66
71.57

(a) - (c)(42,819)(26,855)(15,965)(Millions of yen)Mar. 31, 2021
Sep. 30, 2020(b)(c)
178,933
151,831
66,42558,173
112,508
93,657(a) - (c)(44,291)(28,383)(15,907)(Millions of yen)Mar. 31, 2021
Sep. 30, 2020(b)(c)
186,092
158,01160,90670,191
97,105
115,900(a) - (c)Mar. 31, 2021(b)(Millions of yen)Sep. 30, 2020(c)

Consolidated

Risk-monitored loans(A)
Collateral or guarantees, etc.
(B)
Allowance for loan losses(C)
Allowance ratio(C/A)
Coverage ratio(B+C)/(A)Sep. 30, 2021(a)
329,619
133,466
115,992
35.18
75.68

(a) - (b)765
25,261(11,175)(3.48)
4.11

3. Allowance for loan losses
Non-consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses

Sep. 30, 2021(a)
136,114
39,57096,543(a) - (b)(15,717)(18,603)2,886

Consolidated

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses

Sep. 30, 2021(a)
141,801
41,80899,993(a) - (b)(16,210)(19,098)
2,888

4. Non-performing loans based on the Financial Reconstruction Law
Non-consolidated
Sep. 30, 2021(a)
Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total

(A)

(a) - (b)113,396

12,963

12,671

100,433

100,725

126,868
86,699326,964

35,615(47,663)
916

8,295(70,877)(49,911)

91,253
134,362
326,048

118,573
157,576
376,875

5. Status of coverage of non-performing loans based on the Financial Reconstruction Law
Non-consolidated

Total coverage
Allowance for loan losses
Collateral or guarantees, etc.
Coverage ratio(B)

Sep. 30, 2021(a)
247,314
113,849
133,464(a) - (b)14,368(10,885)
25,252(a) - (c)(32,775)(40,971)
8,195

(B/A)

75.63

4.19

1.32

－19－

(Millions of yen, %)Sep. 30, 2020
Mar. 31, 2021(b)(c)
280,089
232,946
154,820
124,734
125,269
108,212
71.44

74.31

Suruga bank, Ltd.

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry (Non-consolidated)
Sep. 30, 2021(a)
Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others(Millions of yen)(a) - (b)(a) - (c)Mar. 31, 2021(b)

Sep. 30, 2020(c)

2,249,695(61,287)(168,722)

2,310,982

2,418,417

34,6984,130
71
200
12,504215
1,574
12,80430,071
23,827
82,59545,94813,134
1,987,912(7,501)
(80)
63
(63)
222
90
0
90
611
9,751
18,345
8,589
3,885(95,290)(6,957)
(211)
67
(51)
1,100
36
411
(1,758)312
3,689
43,16615,7596,615(230,902)

42,1994,210
8263
12,282125
1,574
12,71429,46014,07664,25037,3599,249
2,083,202

41,6554,341
4
251
11,404179
1,163
14,56229,75920,13839,42930,1896,519
2,218,814(2) Breakdown of risk-monitored loans by industry (Non-consolidated)
Sep. 30, 2021(a)
Domestic offices (excluding Japan
offshore banking accounts)
Manufacturing
Agriculture and forestry
Fishery
Mining, quarrying and gravel
Construction
Utilities
Information and communication
Transportation and postal service
Wholesale and retail trade
Finance and insurance
Real estate, goods rental and leasing

Services
Government and municipal government

Others(Millions of yen)(a) - (b)(a) - (c)Mar. 31, 2021(b)

Sep. 30, 2020(c)

325,025660(49,767)

324,365374,792

8,310
695
4
118
206
6,023
110
849
308,707

113
(124)
0
(2)
202
120
1
175
174

1,383
(155)
0
(3)
202
(114)
(800)
(29)
(312)
(49,939)

8,197
819
4
120
4
5,903
109
674
308,533

6,927
850
4
121
4
6,137
800
139
1,161
358,646(Note)”Others” includes real estate financing for rent to individuals.

－20－

Suruga bank, Ltd.

(3) Consumer loans (Non-consolidated)

Consumer loans
Secured loans
Housing loans
Unsecured loans
Asset management company loans forproperty investment
Structured finance, etc.
Total

(Millions of yen)(a) - (c)(230,469)(201,840)(47,676)(28,629)

Mar. 31, 2021(b)
2,075,500
1,905,484
497,982
170,015

Sep. 30, 2020(c)
2,210,878
2,025,444
522,778
185,434

7,095

17,43015,1054,770

17,337(70,658)

37,765(175,275)

33,555
2,124,160

13,1272,228,777

Mar. 31, 2021(b)

Sep. 30, 2020
(c)

97.02

97.57

Sep. 30, 2021(a)
1,980,409
1,823,604
475,102
156,805(a) - (b)(95,091)(81,880)(22,880)(13,210)

22,20050,892
2,053,502(4) The ratio of loans to small- and medium-sized enterprises, etc. (Non-consolidated)
Sep. 30, 2021
(a)
The ratio of loans to small- andmedium-sized enterprises, etc.

96.52(a) - (b)(%)(a) - (c)(0.50)(1.05)(Note)”Loans to small- and medium-sized enterprises” includes consumer loans which comprise 88.03% of this total.

7. Loan breakdown by country(1) Loans to specific foreign countries (Non-consolidated)
Not applicable.
(2) Loans to Asian countries (Non-consolidated)
Not applicable.

8. Deposits and loans (Non-consolidated)(Millions of yen)

Deposits
Loans

period-end balance
average balance
period-end balance
average balance

Sep. 30, 2021(a)
3,289,338
3,284,673
2,249,695
2,277,868(a) - (b)38,85590,185(61,287)(136,887)(a) - (c)102,206
94,908(168,722)(179,202)Mar. 31, 2021(b)
3,250,483
3,194,488
2,310,982
2,414,755

Sep. 30, 2020(c)
3,187,132
3,189,765
2,418,417
2,457,070

9. Number of branches (Non-consolidated)(Branches)

Number of branches

Sep. 30, 2021
(a)
121

－21－

(a) - (b)(a) - (c)(2)(5)

Mar. 31, 2021(b)
123

Sep. 30, 2020(c)
126

Suruga bank, Ltd.

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Non-consolidated
Sep. 30, 2021
Fair
value

Net unrealized gains(losses)

Fair
value

Gains Losses
Available-for-sale
400,818 10,987 11,770
783 258,452
securities
Stocks17,023 8,747 9,087
339 16,922
Bonds
140,088434
474
39 119,092
Others
243,706 1,805 2,208
403 122,437

Mar. 31, 2021
Net unrealized gains(losses)
Gains Losses(Millions of yen)Sep. 30, 2020
Fair
value

Net unrealized gains(losses)

Gains

Losses9,518 10,481

963 193,730

8,535

8,948

412

8,646
324
546

193 15,235
78 116,584
691 61,910

6,960
417
1,158

7,172
458
1,316

212
41
158

8,840
402
1,238

(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.
Consolidated
Sep. 30, 2021
Fair
value

Net unrealized gains (losses)(Millions of yen)Sep. 30, 2020

Mar. 31, 2021
Fair
value

Net unrealized gains (losses)

Fair
value

Net unrealized gains (losses)

Gains Losses
Gains Losses
Gains Losses
Available-for-sale963 196,874 11,459 11,871
404,388 14,337 15,120
783 261,833 12,679 13,643
412
securities
Stocks17,910 9,538 9,878
339 17,781 9,409 9,603
193 16,102 7,730 7,943
212
Bonds
140,088434
474
39 119,092324
402
78 116,584
417
458
41
Others
246,389 4,364 4,767
403 124,959 2,945 3,636
691 64,187 3,311 3,469
158(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.

Ⅴ. Retirement benefits
1. Retirement benefit expenses
Non-consolidated
Six months ended
Sep. 30, 2021
Service cost
234
Interest cost
50
Expected returns on plan assets(517)
Amortization of unrecognized net actuarial gains (losses)(794)
Others (Note)
109
Retirement benefit expenses(917)(Note) “Others” includes the contribution to a defined contribution pension plan.
Consolidated(Millions of yen)Six months ended
Sep. 30, 2020
247
51
(400)
(48)
107
(40)

(Millions of yen)Six months ended
Six months ended
Sep. 30, 2021
Sep. 30, 2020
Service cost (Note1)
258
267
Interest cost
50
51
Expected returns on plan assets
(517)
(400)
Amortization of unrecognized net actuarial gains (losses)
(794)
(48)
Others (Note2)
117
103
Retirement benefit expenses
(884)
(25)
(Note1) Retirement benefit expenses of consolidated subsidiaries adopting a simplified method are included in “Service cost”.
(Note2) “Others” includes the contribution to a defined contribution pension plan.

－22－