May 15, 2019

SURUGA bank, Ltd.
Consolidated financial results for the fiscal year ended March 31, 2019
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Michio Arikuni, 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 fiscal year ended March 31, 2019(1) Consolidated operating results(% represents the change from the previous fiscal year)
Profit attributable
Ordinary profit
to owners of parent

Ordinary income

Fiscal year ended
Millions of yen%
Millions of yen%
March 31, 2019
139,635(10.6)(74,342)
March 31, 2018
156,278
7.2
10,525(81.9)(Note) Comprehensive income: (a) Fiscal year ended March 31, 2019: ¥(99,947) million [- %](b) Fiscal year ended March 31, 2018: ¥9,646 million [(77.4) %]Earnings per share(diluted)

Earnings per share

Return on
net assets

Millions of yen%(97,146)
6,988(83.6)

Ordinary profit
on total assets

Fiscal year ended
yen
yen
%
March 31, 2019(419.36)(33.2)March 31, 2018
30.17
30.16
2.0
(Reference) Equity in gains (losses) of affiliates: (a) Fiscal year ended March 31, 2019: ¥1 million(b) Fiscal year ended March 31, 2018: ¥4 million

Ordinary profit
on ordinary income

%

%

(1.8)
0.2

(53.2)
6.7(2) Consolidated financial position
Total assets
Total net assets
Net assets ratio
Net assets per share
As ofMillions of yen
Millions of yen%
Yen
March 31, 2019
3,428,327
242,308
7.0
1,040.42
March 31, 2018
4,461,576
344,7637.6
1,479.36(Reference) Shareholders’ equity: (a) As of March 31, 2019: ¥241,015 million; (b) As of March 31, 2018: ¥342,667 million(Note) Nets assets ratio = {(Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets} × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2019
March 31, 2018

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at year-end

Millions of yen

Millions of yen

Millions of yen

Millions of yen(547,470)
32,724(1,087)
16,984(2,507)(5,262)

417,679
968,741

2. Dividends on common stock
1st
quarter-end
Fiscal year
ended March 31, 2018
ended March 31, 2019
ending March 31, 2020
(forecast)

Dividends per share
2nd
3rd
Fiscalquarterquarter
year
-end
-end
-end

Total

yen

yen

yen

yen

yen

-

10.50
0.00

-

10.50
0.00

21.00
0.00

-

-(not
decided)--(notdecided)-(notdecided)Total
dividends

Dividend
payout ratio(Consolidated)

Millions of yen

4,864
-

Dividend on
net assets
ratio(Consolidated)

%

%

69.6

1.4

-

-

-(not decided)

3. Consolidated earnings forecast for the fiscal year ending March 31, 2020(% represents the change from the same period in the previous fiscal year)
Profit attributable
Ordinary profit
Earnings per shareto owners of parent

1H, FY3/2020
FY3/2020

Millions of yen%

Millions of yen

%

Yen

8,000
16,000-5,000
10,500

-

21.58
45.32

(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: No(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: No(D) Restatements: No(3) Number of issued shares (common stock)(A) Number of issued shares
As of Mar. 31, 2019
(including treasury shares):(B) Number of treasury shares:

As of Mar. 31, 2019

(C) Average number of shares:

Fiscal year ended
Mar. 31, 2019

232,139,248 shares

As of Mar. 31, 2018

232,139,248 shares

488,242 shares

As of Mar. 31, 2018507,295 shares

231,648,714 sharesFiscal year ended
Mar. 31, 2018

231,619,388 shares(Reference) Summary of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2019(1) Non-consolidated operating results(% represents the change from the previous fiscal year)
Ordinary profit
Net income

Ordinary income
Fiscal year ended
March 31, 2019
March 31, 2018

Millions of yen%

Millions of yen%

Millions of yen%

127,407
141,533(9.9)
5.3(74,985)8,670(84.8)(97,016)5,223(87.4)

Earnings per share

Fiscal year ended
March 31, 2019
March 31, 2018

Earnings per share(diluted)

Yen

yen

(418.80)
22.55

22.54

(2) Non-consolidated financial position
Total assets
Total net assets
Net assets ratio
Net assets per share
As ofMillions of yen
Millions of yen%
yen
March 31, 2019
3,412,017
227,9476.6
983.95
March 31, 2018
4,451,689
332,7117.4
1,436.30(Reference) Shareholders’ equity: (a) As of March 31, 2019: ¥227,935 million; (b) As of March 31, 2018: ¥332,694 million(Note) Net assets ratio = {(Total net assets - Subscription rights to shares) / 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, 2020
Ordinary profit(% represents the change from the same period in the previous fiscal year)
Net income
Earnings per share

Millions of yen

1H, FY3/2020
FY3/2020

7,500
15,000%-Millions of yen

5,000
10,000

%

-

yen

21.58
43.16

(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
The performance forecasts and other forward-looking statements in this report are based on information currently available
to the company and on certain assumptions deemed to be reasonable, and are not intended to guarantee future performance.
Actual performance may differ materially depending on various factors.

SURUGA bank, Ltd.

(Appendix)
Table of contents

1. Overview of operating results, etc. ····································································· 2(1) Overview of operating results ······································································· 2(2) Overview of financial position ······································································ 3(3) Future outlook ························································································· 4
2. Basic approach to the selection of accounting standards ············································ 4
3. Consolidated financial statements and notes ·························································· 5(1) Consolidated balance sheets ········································································· 5(2) Consolidated statements of income and Consolidated statements of comprehensive income ··········· 7(3) Consolidated statements of changes in net assets ················································ 9(4) Consolidated statements of cash flows ··························································

11(5) Notes to consolidated financial statements ······················································

12(Notes on going-concern assumption) ·····························································

12(Changes in accounting policies, changes in accounting estimates and restatements) ·····

12(Segment information) ···············································································

13(Per share data)························································································

14(Significant subsequent events)·····································································

14

4. Non-consolidated financial statements ······························································

15(1) Non-consolidated balance sheets ·································································

15(2) Non-consolidated statements of income ·························································

17(3) Non-consolidated statements of changes in net assets ·········································

18* Financial results for the fiscal year ended March 31, 2019 supplementary information- 1-

SURUGA bank, Ltd.

1. Overview of operating results, etc.
(1) Overview of operating results
In the fiscal year ended March 31, 2019, consolidated ordinary income decreased by ¥16.643 billion
year-on-year to ¥139.635 billion. This was mainly due to the decline in interest income reflecting the drop ininterest on loans and bills discounted. Meanwhile, ordinary expenses increased by ¥68.226 billion year-on-yearto ¥213.978 billion, mainly due to an increase in credit costs related to share house loans, etc. As a result,ordinary profit decreased by ¥84.867 billion year-on-year to a loss of ¥74.342 billion, and profit attributable toowners of parent decreased by ¥104.134 billion year-on-year to a loss of ¥97.146 billion.
Non-consolidated operating results were as follows:(A) Gross operating profit
Gross operating profit decreased by ¥15.176 billion year-on-year to ¥99.995 billion on the back of thedrop (¥14.420 billion) in net interest income.
(B) Expenses
Expenses increased by ¥0.135 billion year-on-year to ¥46.877 billion.
(C) Net operating profit
Core net operating profit decreased by ¥15.532 billion year-on-year to ¥52.616 billion, mainly due to adrop in net interest income.
Net operating profit increased by ¥4.478 billion year-on-year to ¥26.408 billion, mainly due to adecrease in provision for general allowance for loan losses.
(Note) Core net operating profit = Net operating profit + Provision for general allowance for loan losses- Gains (losses) on bonds(D) Ordinary profit
Ordinary profit decreased by ¥83.655 billion year-on-year to a loss of ¥74.985 billion, mainly due to anincrease in net credit costs.
(E) Net income
Net income decreased by ¥102.239 billion year-on-year to a loss of ¥97.016 billion, mainly due to areversal of allowance for executive retirement benefits (¥2.311 billion) and an impairment loss of fixed
assets(2.829 billion).
(F) Net credit costs
Provision for general allowance for loan losses decreased by ¥19.789 billion year-on-year. Disposal of
non-performing loans increased by ¥91.485 billion year-on-year to ¥110.349 billion. As a result, net credit
costs increased by ¥71.697 billion year-on-year to ¥137.060 billion.
Actual credit costs increased by ¥72.342 billion year-on-year to ¥136.358 billion.
(Note) Net credit costs = Provision for general allowance for loan losses+ Disposal of non-performing loans - Reversal of allowance for loan losses(Note) Actual credit costs = Net credit costs - Recoveries on written-off claims- 2-

SURUGA bank, Ltd.

(2) Overview of financial position
As for consolidated major account balances, loans and bills discounted came in at ¥2,904.387 billion, downby ¥343.772 billion year-on-year. Securities amounted to ¥133.186 billion, up by ¥1.649 billion year-on-year.
Deposits amounted to ¥3,159.604 billion, down by ¥920.368 billion year-on-year.
Non-consolidated major account balances were as follows:(A) Loans and bills discounted
Loans and bills discounted came in at ¥2,898.864 billion, down by ¥347.114 billion year-on-year.
Consumer loans amounted to ¥2,664.854 billion, down by ¥261.137 billion year-on-year. The averagebalance of loans and bills discounted in the fiscal year amounted to ¥3,054.760 billion, down by ¥175.016
billion year-on-year.
(B) Securities
Securities amounted to ¥136.166 billion, down by ¥0.656 billion year-on-year.
(C) Deferred tax assets (liabilities)
Deferred tax assets amounted to ¥13.774 billion, down by 2.012 billion year-on-year.
(D) Deposits
Deposits amounted to ¥3,165.680 billion, down by ¥923.969 billion year-on-year. Individual deposits
amounted to ¥2,501.642 billion, down by ¥684.296 billion year-on-year. The average balance of deposits inthe fiscal year amounted to ¥3,504.213 billion, down by ¥542.804 billion year-on-year.
As for consolidated cash flows, cash flow from operating activities was a net outflow of ¥547.470 billion(compared to a net inflow of ¥32.724 billion in the previous fiscal year), given that outflows mainly due to adecrease in deposits exceeded inflows mainly due to a decrease in loan and bills discounted. Cash flow frominvesting activities was a net outflow of ¥1.087 billion (compared to a net inflow of ¥16.984 billion in theprevious fiscal year), mainly due to purchase of securities. Cash flow from financing activities was a net
outflow of ¥2.507 billion (compared to a net outflow of ¥5.262 billion in the previous fiscal year), mainly due todividend payments. As a result, cash and cash equivalents as of March 31, 2019 amounted to ¥417.679 billion,
down by ¥551.061 billion year-on-year (compared to ¥968.741 billion as of March 31, 2018).

- 3-

SURUGA bank, Ltd.

(3) Future outlook
Earnings forecast for the fiscal year ending March 31, 2020 is as follows:
Consolidated

Ordinary profit
Profit attributable toowners of parent
Non-consolidatedCore net operating profit
Net operating profit
Ordinary profit
Net income(Billions of yen)
FY3/2020 (Forecast)First half
Full year
8.0
16.0
5.0

10.5

(Billions of yen)
FY3/2020 (Forecast)First half
Full year
17.0
34.0
16.5
33.0
7.5
15.0
5.0
10.0

Actual credit costs
ROE (Net income basis)

9.5

19.0

4.62 %

4.63 %(Note) The performance forecasts and other forward-looking statements in this report are based on
information currently available to the company and on certain assumptions deemed to bereasonable, and are not intended to guarantee future performance. Actual performance may differ
materially depending on various factors.

2. Basic approach to the selection of accounting standards
The Suruga Bank group intends to apply Japanese accounting standards for the foreseeable future, taking into
consideration the comparability of consolidated financial statements across reporting periods and companies. As
for the adoption of International Financial Reporting Standards (IFRS), we will respond appropriately to thevarious developments in Japan and overseas.

- 4-

SURUGA bank, Ltd.

3. Consolidated financial statements and notes(1) Consolidated balance sheets
As ofMarch 31, 2018
AssetsCash and due from banks
Call loans and bills bought
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Lease receivables and investment assets
Other assets
Tangible fixed assets
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Goodwill
Leased assets
Software in progress
Other intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Borrowed money
Foreign exchanges
Other liabilities
Provision for bonuses
Provision for directors' bonuses
Net defined benefit liability
Provision for directors' retirement benefits
Provision for reimbursement of deposits
Provision for contingent losses
Deferred tax liabilities
Acceptances and guarantees
Total liabilities- 5-（Millions of yen）
As of
March 31, 2019

973,397
2,141
86
1,571
131,537
3,248,159
2,514
5,995
65,07652,12013,83525,712
9
143
12,41927,111
24,533
1,812
6
371
387
10,50916,6952,877(78,218)
4,461,576

424,073
561
167
515
133,186
2,904,387
2,407
6,368
62,49348,311
12,77023,93416
180
11,41024,601
22,299
1,683
3
236
378
15,376
13,4002,551(210,076)
3,428,327

4,079,972
1,085
23
28,300
699
182
265
2,507
365
137
396
2,877
4,116,813

3,159,604
740
16
20,999
482
295
246
398
111
572
2,551
3,186,019

SURUGA bank, Ltd.

As of
March 31, 2018
Net assets
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities

Deferred gains (losses) on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets- 6-30,043489
292,841(582)
322,791
18,489(15)
1,402
19,876
172,078
344,763
4,461,576（Millions of yen）
As of
March 31, 2019

30,043
1,202
193,263(560)
223,948
13,352(35)
3,750
17,06712
1,280
242,308
3,428,327

SURUGA bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2018
March 31, 2019
Ordinary income
156,278
139,635
Interest income
130,751
111,901
Interest on loans and bills discounted
125,367
109,933
Interest and dividends on securities
4,107
1,383
Interest on call loans and bills bought
32
21Interest on deposits with banks
814
538
Other interest income
429
23
Fees and commissions
13,283
11,902Other operating income
4,118
4,068
Gains on sales of bonds
05
Gains on redemption of bonds
396
594
Other
3,720
3,468
Other income
8,125
11,763
Recoveries on written-off claims
1,793
1,141
Gains on sales of stocks and other securities
5,465
9,801
Equity in gains of affiliates
4
1
Other
861
819
Ordinary expenses
145,752
213,978
Interest expenses
3,670
2,033
Interest on deposits
3,439
1,706
Interest on call money and bills sold0
Interest on borrowings and rediscounts
10
8
Other interest expenses
220
317
Fees and commissions payments
14,981
13,992Other operating expenses
3,302
3,062
Losses on sales of bonds
1
Losses on redemption of bonds
116
96
Other
3,186
2,964
General and administrative expenses
51,94551,326
Other expenses
71,853
143,562
Provision for allowance for loan losses
60,546134,216
Write-off of loans
5,938
4,649
Losses on sales of stocks and other securities
0
198
Losses on devaluation of stocks and other securities
10
16
Other
5,357
4,481
Ordinary profit
10,525(74,342)- 7-

SURUGA bank, Ltd.

Extraordinary gains
Gains on disposal of non-current assets
Reversal provision for directors' retirement benefits
Extraordinary losses
Losses on disposal of non-current assets
Impairment loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 8-

For the fiscal year
ended
March 31, 2018
64
64
484
484
10,10519,927(17,020)
2,906
7,198
209
6,988

（Millions of yen）
For the fiscal year
ended
March 31, 2019
2,469
157
2,311
3,186
356
2,829
(75,059)
17,474
4,647
22,122(97,181)(35)(97,146)

SURUGA bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）
For the fiscal year For the fiscal year
ended
ended
March 31, 2018
March 31, 2019
7,198
(97,181)

ProfitOther comprehensive income
Net unrealized gains (losses) on available-for-sale securities

Deferred gains (losses) on hedges
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

- 9-

1,432
46
969
2,448
9,646

(5,092)(20)
2,347(2,765)(99,947)

9,340
306

(99,955)
7

SURUGA bank, Ltd.

(3) Consolidated statements of changes in net assets
For the fiscal year ended March 31, 2018
（Millions of yen）
Shareholders' equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043Retainedearnings
4

Dividends of surplus

Total
shareholders'equityTreasuryshares291,063(606)(5,211)

Change in ownership interest ofparent due to transactions
with non-controlling interests(5,211)

484

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares

320,504

484
6,988

6,988

0

(5)

(5)

29

30

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period

-

485

1,777

23

2,286

30,043489

292,841(582)

322,791

Accumulated other comprehensive income
Net unrealized
Remeasuregains (losses) Deferred gains
ments ofon available(losses) on
definedfor-salehedgesbenefitplans
securities

Balance at beginning ofcurrent period
Changes of items during
period17,153

(61)

433

Total
accumulated
othercomprehensive income
17,525

Subscription
rights toshares24

Noncontrollinginterests

2,325

Total net
assets340,379

Dividends of surplus(5,211)

Change in ownership interest ofparent due to transactions
with non-controlling interests

484

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period

6,988
(5)
30
1,335

46

969

2,351

(6)

(247)

2,097

1,335

46

969

2,351

(6)

(247)

4,384

18,489

(15)

1,402

19,876

172,078

344,763- 10 -SURUGA bank, Ltd.

For the fiscal year ended March 31, 2019
（Millions of yen）
Shareholders' equity
CapitalsurplusCapital stock
Balance at beginning ofcurrent period
Changes of items during
period30,043Retainedearnings
489

Dividends of surplus

Total
shareholders'equityTreasuryshares292,841(582)(2,432)

Change in ownership interest ofparent due to transactions
with non-controlling interests(2,432)

714

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares322,791714(97,146)(97,146)

(0)

(0)

(0)

23

22

Net changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period-713(99,578)

22(98,842)

30,043

1,202

193,236(560)

223,948

Accumulated other comprehensive income
Net unrealized
Remeasuregains (losses) Deferred gains
ments ofon available(losses) on
definedfor-salehedgesbenefit planssecurities

Balance at beginning ofcurrent period
Changes of items during
period18,489

(15)

1,402

Total
accumulated
othercomprehensive income
19,876

Subscription
rights toshares17

Noncontrollinginterests

2,078

Total net
assets344,763

Dividends of surplus(2,432)

Change in ownership interest ofparent due to transactions
with non-controlling interests

714

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders' equity

Total changes of items during
periodBalance at end of current
period(97,146)(0)
22(5,136)

(20)

2,347

(2,809)

(5)

(798)

(3,613)(5,136)

(20)

2,347

(2,809)

(5)

(798)

(102,455)

13,352

(35)

3,750

17,06712

1,280

242,308- 11 -SURUGA bank, Ltd.

(4) Consolidated statements of cash flows

Cash flows from operating activities
Income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for reimbursement of deposits

Increase (decrease) in provision for contingent losses

Interest income
Interest expenses
Losses (gains) on securities
Losses (gains) on money held in trust
Losses (gains) on disposal of non-current assets
Net decrease (increase) in trading account securities
Net decrease (increase) in loans and bills discounted

Net increase (decrease) in deposit
Net increase (decrease) in borrowed money (excluding subordinated borrowings)

Net decrease (increase) in deposit (excluding deposit paid to Bank of Japan)

Net decrease (increase) in call loans
Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities
Net decrease (increase) in lease receivables and investment assets
Net decrease (increase) in cash collateral paid for financial instruments assets

Interest received
Interest paid
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Increase in money held in trust
Decrease in money held in trust
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at year-end- 12 -For the fiscal year
ended
March 31, 2018

（Millions of yen）
For the fiscal year
ended
March 31, 201910,1056,958
129
58,912(15)
9(1,505)
(772)
77
(32)
(130,751)
3,670(5,735)
12
420
(13)
5,564
(15,537)(455)(1,437)
135
370
(17)
(515)
(10,897)
130,486(3,527)
3,139
48,777(16,052)
32,724(75,059)
6,861
2,829
129
131,857(216)(182)(1,796)(2,260)32(26)(111,901)
2,033(10,087)
24
198
(81)
343,772(920,367)(345)(1,737)
1,579
106
(6)
(373)
(65)
111,654(5,572)
1,317(525,682)(21,788)(547,470)(91,584)
14,418100,410(434)(3,452)246(2,619)16,984(48,315)
26,69622,852
1,030(1,699)190(1,842)(1,087)(5,211)(5)
23(68)(5,262)(4)
44,440924,300
968,741(2,432)(0)
16(91)(2,507)3(551,061)
968,741
417,679SURUGA bank, Ltd.

(5) Notes to consolidated financial statements(Notes on going-concern assumption)
Not applicable.

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

- 13 -SURUGA bank, Ltd.

(Segment information)
1. Summary of reportable segment
The reportable segments of the Suruga Bank group are components for which discrete financial
information is available, and that are subject to regular review to allocate management resources and toevaluate their results.
The group consists of Suruga Bank, which mainly engages in the banking business, and its consolidated
subsidiaries that engage in businesses such as money lending, leasing, clerical agency services, credit card
services and credit guarantee. Of the reportable segments, Suruga Bank represents the “banking” segment,
which includes businesses such as deposits, loans, exchange and credit card services.
2. Method of calculating ordinary income, profit or loss, assets and other items by reportable segment
Segment profit is reported on an ordinary profit-basis.
Inter-segment internal ordinary income is based on arm’s length prices.
3. Information on ordinary income, profit or loss, assets and other items by reportable segment
For the fiscal year ended March 31, 2019
Reportablesegment
Others

Total

Banking(Millions of yen)Amountrecorded in the
consolidated
Adjustments
financialstatements

Ordinary income
Ordinary income toexternal customers

124,603

15,031

139,6341

139,635

2,803

1,904

4,708

(4,708)-

127,407(74,985)
3,412,017

16,936
1,532
45,456

144,343(73,452)
3,457,474(4,707)(889)(29,146)

139,635(74,342)3,428,327

Depreciation

6,623

238

6,861

-

6,861

Impairment losses

2,829

-

2,829

-

2,829

Increase in tangible
fixed assets andintangible fixed assets

3,234

307

3,542

-

3,542

Inter-segment internal
ordinary income
Total
Segment profit
Segment assets
Other items(Note1) Ordinary income is equivalent to net sales reported by companies in other industries.
(Note2) “Others” consists of businesses operated by consolidated subsidiaries (such as money lending, leasing,clerical agency services, credit card services and credit guarantee) which are not included in thereportable segments.
(Note3) “Adjustments” are as follows:(1) The adjustment of ¥1 million in ordinary income to external customers consists of the following:
equity in gains of affiliates (¥1 million).
(2) The negative adjustment of ¥889 million in segment profit consists of the following: amortizationof goodwill (- ¥129 million), equity in gains of affiliates (¥1 million) and deduction ofinter-segment transactions (- ¥761 million).
(3) The negative adjustment of ¥29,146 million in segment assets consists of the following: deductionof inter-segment transactions (- ¥34,580 million), adjustment of net defined benefit assets (¥5,380
million) and adjustment of shares in equity-method affiliates (¥52 million).
(Note4) Segment profit is adjusted to ordinary profit as reported in the consolidated statements of income.
- 14 -SURUGA bank, Ltd.

(Per share data)

Net assets per shareyen
Earnings per shareyen
Earnings per share (diluted)
yen(Note) The basis for calculation is as shown in the tables below.

For the fiscal year ended
March 31, 2019
1,040.42(419.36)-

1. Net assets per share
Total net assets
Amount deducted from total net assetsof which, Subscription rights to sharesof which, Non-controlling interests
Net assets attributable to common stock at
the fiscal year-end
Number of common stock at the fiscal
year-end used for the calculation of net
assets per share

Millions of yen
Millions of yen
Millions of yen
Millions of yen

As of March 31, 2019242,308
1,292
12
1,280

Millions of yen

241,015

Thousands ofshares

231,651

2. Earnings per share
For the fiscal year ended
March 31, 2019
Earnings per share
Profit attributable to owners of parent
Amount not attributable to commonshareholders
Profit attributable to commonshareholders of parent
Average number of common stock forthe fiscal year

Millions of yen(97,146)

Millions of yen-

Millions of yen(97,146)

Thousands ofshares

231,648

3. Although there are dilutive shares, diluted net income per share is not provided, because net loss wasrecorded for the consolidated fiscal year under review.

(Significant subsequent events)
Not applicable.

- 15 -SURUGA bank, Ltd.

4. Non-consolidated financial statements(1) Non-consolidated balance sheets
As ofMarch 31, 2018
AssetsCash and due from banks
Cash
Due from banks
Call loans
Trading account securities
Trading government bonds
Trading municipal bonds
Money held in trust
Securities
Municipal bonds
Corporate bonds
StocksOther securities
Loans and bills discounted
Bills discounted
Loans on bills
Loans on deeds
Overdrafts
Foreign exchanges
Due from foreign banks (our accounts)
Foreign bills bought
Foreign bills receivable
Other assets
Prepaid expenses
Accrued income
Initial margins of futures markets
Derivatives other than for trading - assets
Other
Tangible fixed assets
Buildings, net
Land
Leased assets, net
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Software in progress
Other intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets- 16 -

972,082
31,326
940,755
2,141
86
2
84
1,571
136,82258,283
4,567
51,311
22,6593,245,978
2,060
20,6042,860,414
362,898
2,514
1,130
0
1,383
56,990
2,615
9,933
200
100
44,13950,963
13,252
25,186517
143
11,86424,85524,178
298
378
8,497
15,786
3,487(70,089)
4,451,689（Millions of yen）
As of
March 31, 2019423,646
39,521
384,124
561
167
20
146
515
136,166
81,196
5,537
34,21815,213
2,898,864
2,326
17,9952,608,942
269,600
2,407
1,327
0
1,080
54,445
2,210
8,127
200
22
43,88447,082
12,14523,408410
179
10,93822,54622,012
164
370
9,995
13,7742,551(200,708)
3,412,017

SURUGA bank, Ltd.

As of
March 31, 2018
Liabilities
Deposits
Current deposits
Ordinary deposits
Saving deposits
Deposits at noticeTime deposits
Other deposits
Foreign exchanges
Foreign bills sold
Foreign bills payable
Other liabilities
Income taxes payable
Accrued expenses
Unearned revenue
Deposits received from employees
Lease obligations
Derivatives other than for trading - liabilities
Other
Provision for bonuses
Provision for directors' bonuses
Provision for directors' retirement benefits
Provision for reimbursement of deposits
Provision for contingent losses
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for advanced depreciation of non-current assets

General reserve
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities

Deferred gains (losses) on hedges
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets- 17 -（Millions of yen）
As of
March 31, 2019

4,089,649
58,891
1,345,693
17,441
172,0452,455,082
40,49423
22
021,977
11,971
6,830
68
780
518
66
1,741
648
182
2,506
365
137
3,487
4,118,977

3,165,680
67,194
1,287,567
13,75022,8291,709,301
65,03716
13
3
14,632
7,556
3,234
67
691
434
95
2,553
434
245
398
111
2,551
3,184,070

30,043
18,59018,585
4
267,090
30,043
237,04759
103,032
133,955(582)
315,141
17,563(10)
17,552
17332,711
4,451,689

30,043
18,58918,585
3
167,641
30,043
137,598
59
103,032
34,506(560)
215,714
12,250(29)
12,221
12
227,947
3,412,017

SURUGA bank, Ltd.

(2) Non-consolidated statements of income

Ordinary income
Interest income
Interest on loans and bills discounted
Interest and dividends on securities
Interest on call loans
Interest on deposits with banks
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchanges

Other fees and commissions
Other operating income
Gains on foreign exchange transactions
Gains on trading account securities transactions
Gains on sales of bonds
Gains on redemption of bonds
Other income
Recoveries on written-off claims
Gains on sales of stocks and other securities
Gains on money held in trust
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest on call money
Interest on borrowings and rediscounts
Interest on interest swaps
Other interest expenses
Fees and commissions payments
Fees and commissions on domestic and foreign exchanges

Other fees and commissions
Other operating expenses
Losses on trading account securities transactions
Losses on sales of bonds
Losses on redemption of bonds
General and administrative expenses
Other expenses
Provision for allowance for loan losses
Write-off of loans
Losses on sales of stocks and other securities
Losses on devaluation of stocks and other securities
Losses on money held in trust
Other
Ordinary profit- 18 -For the fiscal year
ended
March 31, 2018
141,533
122,017
116,660
4,080
32
814
429
0
11,417
2,434
8,983
459
62
0
396
7,638
1,346
5,465
47
779
132,862
3,682
3,439
7
235
14,925912
14,012116
0116
47,596
66,541
58,778
3,827
0
10
59
3,865
8,670

（Millions of yen）
For the fiscal year
ended
March 31, 2019
127,407
105,975
101,500
3,891
21
538
23
0
9,510
2,181
7,328
635
35
0
5
594
11,284
702
9,801
9
771
202,392
2,059
1,707
0
0
3
348
13,969932
13,03698
1
96
46,420139,844
132,167
2,661
198
1,978
33
2,804
(74,985)SURUGA bank, Ltd.

Extraordinary gains
Gains on disposal of non-current assets
Reversal provision for directors' retirement benefits
Extraordinary losses
Losses on disposal of non-current assets
Impairment loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income- 19 -For the fiscal year
ended
March 31, 2018
59
59
474
474
8,256
19,328(16,296)
3,032
5,223

（Millions of yen）
For the fiscal year
ended
March 31, 2019
2,469
157
2,311
3,172
342
2,829
(75,688)
16,9984,330
21,328(97,016)SURUGA bank, Ltd.

(3) Non-consolidated statements of changes in net assets
For the fiscal year ended March 31, 2018
（Millions of yen）
Shareholders' equity
Retained earnings
Other retained earnings

Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

4

Reserve for
Total capital Legal retained advanced
surplusearnings
depreciationof non-current
assets
18,59030,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

133,943

Dividends of surplus(5,211)

Net income

5,223

Purchase of treasury
shares
Disposal of treasury
shares00

Net changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
period

-

-

0

0

-

-

-

12

30,043

18,585

4

18,59030,043

59

103,032

133,955

Shareholders' equity
Valuation and translation adjustments
Retained
Total
Net unrealized Deferred gains
Total
earnings
valuation andTreasurygains (losses) on(losses) on
shareholders' available-fortranslation
sharesTotal retained
hedgesequitysale securities
adjustments
earnings

Subscription
rights toshares267,078(606)

315,104

16,480(58)

16,422

24

Total net
assets331,551

Dividends of surplus(5,211)(5,211)(5,211)

Net income

5,223

5,223

5,223

(5)

(5)

(5)

29

30

30

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period

1,082

47

1,130

(6)

1,123

12

23

36

1,082

47

1,130

(6)

1,160

267,090(582)

315,141

17,563(10)

17,552

17332,711- 20 -SURUGA bank, Ltd.

For the fiscal year ended March 31, 2019
（Millions of yen）
Shareholders' equity
Capital surplus

Balance at beginning ofcurrent period
Changes of items during
periodCapital stock

Legal capitalsurplus

Other capitalsurplus30,043

18,585

4

Retained earnings
Other retained earnings
Reserve for
Total capital Legal retained advanced
surplusearnings
depreciationof non-current
assets
18,59030,04359

Retainedearnings
brought
forwardGeneralreserve

103,032

133,955

Dividends of surplus(2,432)

Net income(97,016)

Purchase of treasury
shares
Disposal of treasury
shares(0)(0)

Net changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
periodBalance at beginning ofcurrent period
Changes of items during
period

-

-

(0)

(0)

-

-

-

(99,448)

30,043

18,585

3

18,58930,043

59

103,032

34,506

Shareholders' equity
Valuation and translation adjustments
Retained
Total
Net unrealized Deferred gains
Total
earnings
valuation andTreasurygains (losses) on(losses) on
shareholders' available-fortranslation
sharesTotal retained
hedgesequitysale securities
adjustments
earnings

Subscription
rights toshares267,090(582)

315,141

17,563(10)

17,552

17

Total net
assets332,711

Dividends of surplus(2,432)(2,432)(2,432)

Net income(97,016)(97,016)(97,016)

(0)

(0)

(0)

23

22

22

Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders' equity

Total changes of items
during period
Balance at end of current
period(5,312)(19)(5,331)(5)(5,337)(99,448)

22(99,427)(5,312)(19)(5,331)(5)(104,764)

167,641(560)

215,714

12,250(29)

12,221

12

227,947- 21 -

Financial Results
For the fiscal year ended March 31, 2019

- Supplementary Information -SURUGA bank, Ltd.

Table of contents
Ⅰ. Financial highlights for the fiscal year ended March 31, 2019
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, 2020

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

Ⅱ. Financial data for the fiscal year ended March 31, 2019
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

15
16

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

・・・・・・・・

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)

Non-consolidated, Consolidated

Ⅴ. Retirement benefits
1. Retirement benefit expenses

Non-consolidated, Consolidated

SURUGA bank, Ltd.

Ⅰ. Financial highlights for the fiscal year ended March 31, 2019
1. Financial results (Non-consolidated)
FY3/2019(a)99,995
103,916(4,458)35
99,49446,87752,616501
53,11826,71026,408110,349702
7,623(74,985)
2,311
(185)
2,829
(97,016)Gross operating profit
Net interest income
Net fees and commissions
Net other operating income (Note1）
Core gross operating profit
Expenses (-)
Core net operating profit （Note2）
Gains (losses) on bonds
Actual net operating profit (Note3）
Provision for general allowance for loan losses (-)
Net operating profit
Disposal of non-performing loans (-)
Recoveries on written-off claims
Gains (losses) on stocks
Ordinary profit
Reversal provision for directors’ retirement benefits
Gains (losses) on disposal of non-current assets
Impairment loss
Net income(a) - (b)(15,176)(14,420)(951)(26)(15,396)135(15,532)220(15,311)(19,789)
4,478
91,485(644)
2,169(83,655)
2,311
229
2,829
(102,239)(Millions of yen)
FY3/2018(b)
115,171
118,336(3,507)
61
114,890
46,742
68,148281
68,42946,49921,93018,864
1,346
5,454
8,670
(414)
5,223

Net credit costs
137,060
71,69765,363
Actual credit costs（Note4）
136,358
72,34264,016(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) Actual credit costs = Net credit costs (Provision for general allowance for loan losses + Disposal of non-performing loans)- Recoveries on written-off claims(1) Gross operating profit: ¥99.9 billion
・Net interest income decreased by ¥14.4 billion year-on-year, mainly due to a decrease ininterest on loans and bills discounted.
・Loan-deposit income decreased by ¥13.5 billion year-on-year.
・Core gross operating profit decreased by ¥15.3 billion year-on-year, mainly due to a decrease in net interest income.
・Gross operating profit decreased by ¥15.1 billion year-on-year.

Net interest income(Billions of yen)

100.3

107.5

112.9

Yen loan-deposit income(Billions of yen)

118.3
103.9

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

96.9

102.6

109.3

113.2

99.7

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19- 1-

SURUGA bank, Ltd.

(2) Expenses; OHR: 46.8%
・Expenses increased by ¥0.1 billion year-on-year.
・OHR worsened year-on-year to 46.8%, mainly due to a decrease in a gross operating profit.
(OHR(%) = Expenses / Gross operating profit × 100)

Gross operating profit

Expenses

OHR(Billions of yen)

105.3

99.4 45.8%
45.6

43.6%
45.9

FY3/15

FY3/16

115.1

110.8
42.6%

40.5%

47.2

46.7

FY3/1799.9 46.8%
46.8

FY3/18

FY3/19(3) Core net operating profit: ¥52.6 billion, Net operating profit: ¥26.4 billion
・Core net operating profit decreased by ¥15.5 billion year-on-year, mainly due to a decrease in net interest income.
・Net operating profit increased by ¥44.0 billion year-on-year, mainly due to a decrease inprovision for general allowance for loan losses.

Core net operating profit

Net operating profit(Billions of yen)

52.8 53.8

58.7 59.4

63.4 63.6

68.1
52.6
26.4

21.9
FY3/15

FY3/16

FY3/17

FY3/18

FY3/19(4) Ordinary profit: (¥74.9) billion
・Ordinary profit decreased by ¥83.6 billion year-on-year, mainly due to an increase in net credit costs.

(5) Net income: (¥97.0) billion
・Net income decreased by ¥102.2 billion year-on-year, mainly due to a decrease in ordinary profit.
(6) Actual credit costs: ¥136.3 billion
・Net credit costs increased by ¥71.6 billion year-on-year, mainly due to an increase (¥91.4 billion) in disposal of
non-performing loans.
・Actual credit costs, calculated as net credit costs (¥137.0 billion) minus the amount of recoveries on written-off claims(¥0.7 billion) amounted to ¥136.3 billion.

- 2-

SURUGA bank, Ltd.

2. Major accounts (Non-consolidated)(1) Loans and bills discounted
・Loans and bills discounted decreased by ¥347.1 billion, or 10.6% year-on-year.
・The balance of consumer loans as of March 31, 2019 decreased by ¥261.1 billion, or 8.9% year-on-year.
・Yield on loans and bills discounted (overall) dropped by 29 basis point year-on-year to 3.32%.

(Billions of yen)Mar. 31, 2019(a)Dec. 31, 2018(a) – (b)Nov. 30, 2018

Jun. 30, 2018

Mar. 31,(b)(b) – (c)(c)(c) - (d)(d)(d) – (e)2018 (e)Loan and bills discounted(period-end balance)

2,898.8(69.9)

2,968.7(117.1)

3,085.8(64.6)

3,150.4(95.5)

3,245.9

Consumer loans

2,664.8(61.3)

2,726.1(64.7)

2,790.8(66.5)

2,857.3(68.6)

2,925.9

Secured loans

2,424.4(53.5)

2,477.9(55.4)

2,533.3(60.0)

2,593.3(61.2)

2,654.5

Unsecured loans

240.3

(7.8)

248.1

(9.4)

257.5

(6.5)

264.0

(7.4)

271.4

3,054.7(39.0)

3,093.7(41.1)

3,134.8(37.6)

3,172.4(57.3)

3,229.7

Loans and bills discounted(average balance)

FY3/2019(a)
New consumer loans

37.3(a) - (b)(316.0)(Billions of yen)
FY3/2018(b)353.3(a) - (b)(16.1)(Billions of yen)
FY3/2018(b)
35.6（Reference）
FY3/2019(a)Business alliance with Japan Post Bank
New housing loans (cumulative total)

19.5

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

Yield on loans and bills discounted (overall)

3,245.9
3,085.8
3,150.4
2,968.7
2,898.8
2,925.9
2,790.8
2,857.3
2,726.1
2,664.8

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

3.61%

3.45%

3.36%

3.35%

3.32%

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19(Note) Yield is based on cumulative period.

- 3-

SURUGA bank, Ltd.

Consumer loans
Outstanding balance, yield, delinquency rate by loan category(Billions of yen)Mar. 31, 2019

Dec. 31, 2018

Period-end
balance

Yield

Delinquency
rate

Period-end
balance

Yield

Delinquency
rate

2,424.4

3.24%

4.31%

2,477.9

3.31%

3.90%

Housing loans

618.6

2.89%

0.27%

636.7

2.89%

0.26%

Studio apartment loans

329.4

3.44%

0.85%

345.1

3.45%

0.66%

1,226.9

3.51%

1.58%

1,245.0

3.61%

1.15%

Share house loans

201.9

1.99%

39.76%

202.0

2.13%

38.71%

Other secured loans

47.6

4.88%

0.62%

48.9

4.89%

0.55%

Unsecured loans

240.3

10.09%

1.50%

248.1

10.05%

1.26%

Card loans

157.2

11.37%

0.59%

161.5

11.32%

0.52%

Unsecured certificate loans

83.1

7.68%

3.21%

86.6

7.68%

2.65%

2,664.8

3.86%

4.05%

2,726.1

3.92%

3.66%

Loan category
Secured loans

Single building apartment
loans

Consumer loans※Delinquency rate ＝ Loans past due 3 months or more / Loans※Yield: Yield for customers (excluding guarantee fee, accrued interest), period-end balance basis※”Report (investigation of all investment real estate loans)” separately released on May 15 shows the results of investigationon the “number of cases where misconduct such as falsification or fabrication was identified”, As of March 2019:
・Out of share house loans,the delinquency rate of “cases where misconduct such as falsification or fabrication was identified”
was 38.47%; and・Out of investment property loans other than share house loans (studio apartment loans, single building apartment loans, andother secured loans), the delinquency rate of “cases where misconduct such as falsification or fabrication was identified”
was 2.02%.

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

Total

Subtotal

Claims against
bankrupt andsubstantiallybankrupt obligors

Claims withcollection risk

(Non-performing
Claims forloans)
special attention

NormalassetsSep. 30, 2018

253.7

31.8

101.6

56.8

190.3

63.4

Dec. 31, 2018

251.5

69.5

65.0

76.2

210.9

40.5

Mar. 31, 2019

250.3

86.5

51.0

88.0

225.6

24.6
(Billions of yen)

Total
A

Collateral or
guarantees, etc.

UnsecuredportionAllowance

Coverage
ratio

B

C

D

(B＋D)／A

Share house claims

Sep. 30, 2018

253.7

203.4

95.2

158.4

136.2

91.25%

Dec. 31, 2018

251.5

202.2

94.9

156.5

136.9

92.21%

Mar. 31, 2019

250.3

201.9

91.4

158.8

139.3

92.20%※Based on obligors of share house loans※Covered amount: Estimated amount, calculated by multiplying the covered amount including collateral, etc.
with a certain ratio.
※Total credit balance, share house loan receivables: Loans and bills discounted, suspense payments equivalent to loans andbills discounted, and accrued interest on loans and bills discounted.
- 4-

SURUGA bank, Ltd.

Actual credit costs and Allowance for loan losses(Billions of yen)
Item

Actual credit costs

Allowance

Share house-related loans

97.7

139.3

Investment property loans ※

22.2

41.7

Housing loans

1.7

1.9

Unsecured loans

0.7

0.8

Loans to founder-affiliated companies

13.4

13.4

Business financing other than loans tofounder-affiliated companies, etc.

0.3

3.3

136.3

200.7

Total

※ Investment property loans: Studio apartment loans, Single building apartment loans, Other secured loans※ Out of loans described in the above table, with regard to actual credit costs and the balance of allowances for loan losses
related to investment property loans, the Bank has additionally posted approximately ¥900 million as allowance for
doubtful accounts by classifying part of the “cases where misconduct such as falsification or fabrication was identified,”“cases where misconduct such as falsification or fabrication is suspected,” and “cases where an agent is suspected ofmaking replacement payments for borrowers according to the ancillary investigation” as loans to “Obligors requiringcaution” on a conservative basis.
If repayment ability is confirmed at the time of self-assessment conducted going forward, these loans will be upgraded toloans to “Normal obligors.”- 5-

SURUGA bank, Ltd.

(2) Deposits
・Deposits decreased by ¥924.0 billion, or 22.5% year-on-year.
・Individual deposits decreased by ¥686.1 billion, or 21.4% year-on-year.
・Yield on deposits (overall) dropped by 4 basis points year-on-year to 0.04%.
(Billions of yen)Mar. 31, 2019(a)Dec. 31, 2018(a) – (b)Nov. 30, 2018

Jun. 30, 2018

Mar. 31,(b)(b) – (c)(c)(c) - (d)(d)(d) – (e)2018 (e)Deposits (period-end balance)

3,165.6(63.0)

3,228.6(187.3)

3,415.9(455.6)

3,871.5(218.1)

4,089.6

Individual deposits

2,505.7(83.0)

2,588.7(154.6)

2,743.3(299.8)3,043.1(148.7)

3,191.8

Deposits (average balance)

3,504.2(109.2)

3,613.4(177.9)3,791.3(151.2)

3,942.5(104.5)

4,047.0

Deposits (period-end balance)
Yield on deposits (overall)
Individual deposits (period-end balance)

4,089.6
3,871.5
3,415.9
3,228.6
3,165.6
3,191.8
3,043.1
2,743.3
2,588.7
2,505.7

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

0.08%

Mar. 18

0.05%

0.05%

0.05%

Jun. 18

Sep. 18

Dec. 18(Note) Yield is based on cumulative period.
(3) Net fees and commissions
・Net fees and commissions decreased by ¥0.9 billion year-on-year, mainly due to a decrease (¥1.9 billion) in
fees and commissions.

Net fees and commissions(Millions of yen)
13,718
11,714(2,003)

FY3/15

Fees and commissions

14,952
12,004(2,947)

FY3/16

14,327
12,002(2,324)

FY3/17- 6-

Fees and commissions payments
14,925
11,417(3,507)

FY3/18

13,9699,510(4,458)

FY3/190.04%

Mar. 19SURUGA bank, Ltd.

(4) Individual deposit assets
・Individual deposit assets decreased by ¥710.0 billion year-on-year, mainly due to a decrease in yen deposits.
・The ratio of investment products to total individual deposit assets rose by 30 basis points year-on-year to 5.0%.
(Millions of yen)Mar. 31, 2019(a)

Sep. 30, 2018(b)Mar. 31, 2018(c)

2,888,761
2,738,473

3,345,282
3,185,938

150,288

159,344(1,800)

4,844

5,908

(154)

(534)

8,457

8,837

80,437(7,691)(13,217)

88,12893,65425,402(7,977)(10,295)

33,37935,697

15,376(101)131

15,477

15,2455.0%(0.2)%(0.3)%

5.2%

4.7%

2,635,272(a) - (b)(253,489)(a) - (c)(710,010)

2,501,642(236,831)(684,296)

133,630(16,658)(25,714)

Foreign currency deposits

4,108

(736)

Public bonds

8,303

Mutual funds
Personal pension plans

Individual deposit assets
Yen deposits
Investment products

Single premium life insurance
The ratio of investment products tototal individual deposit assets

3. Management indices (Non-consolidated)(1) Interest margins
・Loan-deposit margin dropped by 25 basis points year-on-year to 3.27%.
・Net interest margin dropped by 23 basis points year-on-year to 1.45%, mainly due to the rise in return on investments.
(%)
FY3/2019(a)
Loan-deposit margin
Loan-deposit margin(after deduction of expenses)
Net interest margin

FY3/2018(b)

3.27(a) - (b)(0.25)

1.93(0.44)

2.37

1.45(0.23)

1.68

3.52

Loan-deposit margin
Loan-deposit margin (after deduction of expenses)
Net interest margin
3.39%

3.45%

3.52%

3.52%

2.19%

2.30%

2.35%

2.37%

1.35%

1.43%

1.54%

1.68%

FY3/15

FY3/16

FY3/17

FY3/18

- 7-

3.27%
1.93%
1.45%
FY3/19SURUGA bank, Ltd.

4. Own capital・Capital adequacy ratio (Non-consolidated) dropped by 25 basis points from the end of December 2018 to 8.80%.

Non-consolidated(Millions of yen)Dec. 31, 2018

Mar. 31, 2019
Capital adequacy ratio

8.80%

9.05%

Own capital (Core capital)

213,796

223,606

Core capital: instruments and reserves

243,358

246,780

Core capital: regulatory adjustments (-)

29,561

23,174

Risk-weighted assets

2,427,051

2,469,850

Total required capital

97,082

98,794

Consolidated(Millions of yen)Dec. 31, 2018

Mar. 31, 2019
Capital adequacy ratio

8.90%

9.05%

Own capital (Core capital)

220,001

227,715

Core capital: instruments and reserves

256,130

254,827

Core capital: regulatory adjustments (-)

36,12927,111

Risk-weighted assets

2,470,880

2,514,978Total required capital

98,835100,599(Note) Total required capital = Risk-weighted assets × 0.04

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

12.15%

324.7

Mar. 18

12.14%
8.65%

9.05%

8.80%

219.7

223.6

213.7

Sep. 18

Dec. 18

Mar. 19328.2

Jun. 18- 8-

SURUGA bank, Ltd.

5. Unrealized gains (losses) on securities (Non-consolidated)
・Net unrealized gains (losses) on securities decreased by ¥7.5 billion year-on-year to ¥17.2 billion.

(Millions of yen)Mar. 31, 2019(a) - (b)(a)(a) - (c)Sep. 30, 2018(b)Mar. 31, 2018(c)

Other securities

17,254(3,673)(7,564)20,927

24,818Stocks15,911(4,572)(8,693)

20,48324,604

Bonds

658

902

665

(244)

(7)

Others

683

(4)

462

687

221

6. Earnings forecast for the fiscal year ending March 31, 2020
Consolidated(Billions of yen)
FY3/2020 (forecast)
Full year
First half

Ordinary profit

8.0

16.0

Profit attributable toowners of parent

5.0

10.5

Non-consolidated(Billions of yen)
FY3/2020 (forecast)First half

Full year

17.0

34.0

Net operating profit

16.5

33.0

Ordinary profit

7.5

15.0

Net income

5.0

10.0

Actual credit costs

9.5

19.0

(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 ¥297.7 billion year-on-year.
Non-performing loan ratio rose by 1,048 basis points year-on-year to 12.68%.

Outstanding balance(Millions of yen, %)Mar. 31, 2019(a)Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention(a) - (b)(a) - (c)Sep. 30, 2018

Mar. 31, 2018

(b)

(c)

108,391

63,025

97,81845,366

10,573

136,477(17,402)88,755

153,879

47,722125,099

49,253111,22575,846

13,874

Total(A)

369,968

94,876

297,798

275,092

72,170Total claims(B)

2,916,949(187,754)(349,866)

3,104,703

3,266,815

(A/B)

12.68

3.82

10.48

8.86

2.20

Non-performing loans(A)

Claims against
bankrupt andsubstantiallybankrupt
obligors
108,391

Covered amount (C+D)
Portion secured by collateralor guarantees, etc.
Allowance for loan losses(B)

Non-performing loan ratio

Status of coverage(Millions of yen, %)Claims withcollection risk

Claims for
specialattention

Total

Change from
Mar. 31, 2018

136,477

125,099

369,968

297,798

108,391

120,067

87,967

316,426

264,475(C)

40,52869,45937,690147,678

112,743(D)

67,86250,60750,277

168,747

151,732

Coverage ratio (B/A)

100.00

87.97

70.31

85.52

13.54

Unsecured portion (A-C)(E)
Allowance ratio for unsecured portion(D/E)

67,86267,01887,408222,289

185,055

100.00

75.51

57.51

75.91

30.22

4,016

25,121

8,097

37,234100.00

42.21

29.56

45.69

(Reference) As of Mar. 31, 2018
Unsecured portion
Allowance ratio for unsecured portion(2) Risk-monitored loans(Millions of yen, %)Mar. 31, 2019(a) - (b)(a)(a) - (c)Sep. 30, 2018(b)Mar. 31, 2018(c)Loans to bankrupt obligors

4,732

2,070

2,762

2,662

1,970

Non-accrual delinquent loans

240,064

43,541

183,815

196,523

56,249Loans past due 3 months or more

5,070

2,442

3,775

2,628

1,295

Restructured loans

120,029

46,811

107,451

73,218

12,578

Total

369,897

94,865

297,803

275,032

72,09485.52(1.52)

13.41

87.04

72.11

Coverage ratio- 10 -SURUGA bank, Ltd.

8. Credit costs (Non-consolidated)(Millions of yen, %)FY3/2019

FY3/2018(b)(a) - (b)(a)
Provision for general allowance for loan losses(1)

26,710(19,789)

46,499

Disposal of non-performing loans(2)

110,349

91,485

18,864

2,661(1,166)

3,827

105,456

93,177

12,279

2,207

(538)

2,745

23

12

11

A

702

(644)

1,346

(3) (= (1) + (2) )137,060

71,69765,363(3)- A

136,358

72,34264,016

3,054,760(175,016)

3,229,776

Net credit costs ratio

4.48

2.46

2.02

Actual credit costs ratio

4.46

2.48

1.98

Write-off of loans
Provision for specific allowance for loan losses
Losses on sales of delinquent loans
Provision for allowance for contingent losses
Recoveries on written-off claims
Net credit costs
Actual credit costs
Loans and bills discounted (average balance)(Note1) Net credit costs ratio = Net credit costs / Loans and bills discounted (average balance)(Note2) Actual credit costs ratio = Actual credit costs / Loans and bills discounted (average balance)

9. Dividends
・In light of the current financial results, the company has regretfully decided not to pay year-end dividend.

(yen)
FY3/2018(result)(b)

FY3/2019(a)Annual dividend per share

0.00

22.00

Year-end dividend

0.00

10.00

(Note) Annual dividend per share for the fiscal year ending March 31, 2019 is a forecast.

- 11 -SURUGA bank, Ltd.

Ⅱ. Financial data for the fiscal year ended March 31, 2019
1. Details of financial results (Non-consolidated)

Gross 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
Net operating profit(before provision for general allowance for loan losses)(excluding gains (losses) on bonds)
Provision for general allowance for loan losses (Note)
Net operating profit
Gains (losses) on bonds
Non-recurring gains (losses)
Recoveries on written-off claims
Gains (losses) on stocks
Ordinary profit
Extraordinary gains (losses)
Gains (losses) on disposal of non-current assets
Impairment loss
Gains on revision of retirement benefit plan
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income

（
（

（
（

（

(1)Provision for general allowance for loan losses (Note)(2)Disposal of non-performing loans
Write-off of loans
Provision for specific allowance for loan losses (Note)
Losses on sales of delinquent loans
Provision for allowance for contingent losses(3)Net credit costs (1)+(2)(4)Recoveries on written-off claims(5)Actual credit costs (4)-(5)- 12 -

FY3/2019(a)99,99599,494
99,68699,183
103,664(4,482)
503
503
309
311
252
23
33
(1)
46,877
15,945
27,162
3,769(a) - (b)(15,176)(15,396)(15,090)(15,312)(14,361)
(953)
223
222
(86)
(84)
(58)
1
(29)
(1)
135
(1,892)
2,084
(117)

(Millions of yen)
FY3/2018(b)
115,171
114,890 ）
114,776
114,495 ）
118,025(3,529)
280
281 ）
395
395 ）
310
22
62
- ）
46,742
17,77725,078
3,886

53,118(15,311)

68,42952,616
26,71026,408501(101,393)
702
7,623(74,985)
(703)
(185)
2,829
2,311
(75,688)
16,9984,330
21,328(97,016)(15,532)(19,789)
4,478
220(88,135)
(644)
2,169
(83,655)
(289)
229
2,829
2,311
(83,944)(2,330)20,626
18,296(102,239)

68,14846,49921,930281(13,258)
1,346
5,454
8,670
(414)
(414)
8,256
19,328(16,296)
3,032
5,223

26,710110,349
2,661
105,4562,207
23
137,060
702
136,358(19,789)
91,485(1,166)
93,177(538)
1271,697(644)
72,342

46,49918,864
3,827
12,2792,745
1165,363
1,346
64,016SURUGA bank, Ltd.

Details of financial results (Consolidated)(Millions of yen)

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
Equity in gains (losses) of affiliates
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(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)Net credit costs (1)+(2)(4)Recoveries on written-off claims(5)Actual credit costs (3)-(4)FY3/2019(a)
108,783
109,868(2,090)1,006
51,783
141,5879,585
1
656(74,342)(716)(75,059)
17,474
4,647
22,122(35)(97,146)(a) - (b)(17,416)(17,214)
(392)
191
693
72,724
4,131
(3)
1,834
(84,867)(296)(85,164)(2,453)
21,667
19,216(244)(104,134)

FY3/2018(b)
126,199
127,082(1,698)815
51,09068,8635,454
4(1,178)
10,525(420)
10,10519,927(17,020)
2,906
209
6,988

26,843
115,884
4,649
107,372
3,838
23
142,728
1,141
141,587(20,440)
92,510(1,289)94,110(323)
1272,071(652)
72,72447,28323,374
5,938
13,2624,161
1170,657
1,793
68,863(Note) Consolidated gross profit = (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions
payments) + (Other operating income - Other operating expenses)(Reference)
Consolidated net operating profit

30,1562,331(Millions of yen)
27,825(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
Equity-method accounted affiliates

91-(Companies)
91

2. Net operating profit (Non-consolidated)(Millions of yen)
FY3/2019(a)
26,40817,305

Net operating profit
Per employee (Thousands of yen)

- 13 -(a) - (b)
4,478
2,972

FY3/2017(b)
21,93014,333

SURUGA bank, Ltd.

3. Interest margins (Non-consolidated)
Overall(%)
FY3/2019(a)

Return on investments(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)FY3/2018(b)(a) - (b)
2.84
3.32
3.13
1.39
0.04

(0.09)(0.29)(0.50)
0.15(0.04)

2.93
3.61
3.63
1.24
0.08

1.93

(0.44)

2.37

1.45(0.23)

1.68

Domestic(%)
FY3/2019(a)

Return on investments(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)FY3/2018(b)(a) - (b)
2.83
3.32
3.20
1.34
0.04

(0.09)(0.29)(0.54)
0.14(0.03)

2.92
3.61
3.74
1.20
0.07

1.97

(0.43)

2.40

1.49(0.23)

1.72

4. ROA and ROE (Non-consolidated)(%)
FY3/2019
(a)
ROA
ROE

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

FY3/2018(b)(a) - (b)0.68
(2.50)
8.33(30.62)0.19(2.61)
1.31(32.29)

0.49
0.11
7.02
1.67

5. Gains (losses) on securities (Non-consolidated)(Millions of yen)
FY3/2019(a)

FY3/2018(b)(a) - (b)Gains (losses) on bonds
Gains on sales
Gains on redemptions
Losses on sales
Losses on redemptions
Losses on devaluation

501
5
594
1
96
-

220
5
198
1
(20)
-

281
0
396
116
-

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

7,623
9,801
198
1,978

2,169
4,336
198
1,968

5,454
5,465
0
10

- 14 -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(Millions of yen)Mar. 31, 2019
(a)
8.80%
213,796(a) - (b)(3.35)%(110,976)

Mar. 31, 2018(b)
12.15%
324,772

243,358(100,012)

343,370

29,561

10,964

18,5972,427,051(244,057)

2,671,108

Consolidated

Capital adequacy ratio
Own capital (Core capital)
Core capital:
instruments and reserves
Core capital:
regulatory adjustments (-)
Risk-weighted assets(Millions of yen)Mar. 31, 2019
(a)
8.90%
220,001(a) - (b)(3.32)%(111,013)

Mar. 31, 2018(b)
12.22%
331,014

256,130(97,343)

353,473

36,12913,67022,4592,470,880(237,142)

2,708,022- 15 -SURUGA bank, Ltd.

7. Composition of own capital (domestic standard)(Millions of yen）
Mar. 31, 2019
Consolidated
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
stockAdjusted 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 to mortgage 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 bankdoes not own more than 10% of the issued share capital (amount above the 10% threshold)Amount exceeding the 10% threshold on specified items
Significant investments in the common stock of Other financial institutions, net of eligible shortpositions
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 -

215,714

223,948

48,632
167,641560-

31,245
193,263
560
3,750
3,750

12

12

27,632
27,632

27,77927,779

-

-

-

-

-

-

243,358640
256,130

15,715

17,657

15,715

1,683
15,974

-

186

6,966
-

10,717
-

-

-

6,879

7,568

-

-

6,879
29,561

7,568
36,129213,796

220,001

2,210,570
216,4812,427,051

2,222,361
248,5192,470,880

8.80%

-

-

8.90%

SURUGA bank, Ltd.

Ⅲ. Status of loans, etc.
Comparison of asset disclosure by standard
Non-consolidated (As of March 31, 2019)
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

Classification
Ⅱ

2,878

1,862

Category

Classification
Ⅲ

ClassificationⅣ

Creditbalance

Bankrupt obligors
4,740[2,692]-[2,692]

Effectively bankrupt
obligors
103,650[65,169]

65,58438,066-[65,169]

Potentiallybankrupt obligors
136,477[50,607]

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

60,871

59,195

16,410[50,607]-

Claimsagainstbankrupt
andsubstantiallybankrupt
obligors

148,393-

67,862

Coverage
ratio

Claims withcollection
risk

69,45950,607-

37,69050,277

Category

Outstandingbalance

Loans tobankrupt
obligors

4,732

Non-accrualdelinquentloans

240,064

Loans pastdue 3 months
or more5,070

Restructured
loans

120,029

Total

369,897100%

87.97%

136,47770.31%

125,099
Subtotal

148,754369,968

Other
obligors
requiring
caution40,528* Includes loans andbills discounted.

108,391

Claims for
specialattention
361

CollateralorAllowance
guarantees,
etc.

(Millions of yen)
Risk-monitoredloans

12,437 1,104,188--

1,116,626

147,678

168,747

85.52%

Normalassets2,546 ,981

Normal obligors
1,406,700

1,406,700---

1,548,833 1,351,705

16,410[50,607][67,862]

Total
2,916,949[118,470]

Total
2,916,949(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 deduction of partial direct write-off of loans.
The amounts of partial direct write-off of loans for the fiscal year ended March 31, 2019 were as follows:(a) Non-consolidated: ¥3,862 million; (b) Consolidated: ¥5,368 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, %)Mar. 31, 2019
(a)
4,732
240,064
5,070
120,029
369,897(a) - (b)2,070
43,541
2,442
46,811
94,865(a) - (c)2,762
183,815
3,775
107,451
297,803

Sep. 30, 2018
(b)
2,662
196,523
2,628
73,218275,032

Mar. 31, 2018
(c)
1,970
56,2491,295
12,57872,094

2,898,864(187,010)(347,114)

3,085,874

3,245,978

0.16
8.28
0.17
4.14
12.76

0.08
1.92
0.09
1.77
3.85

0.10
6.55
0.14
3.76
10.54

0.08
6.36
0.08
2.37
8.91

0.06
1.73
0.03
0.38
2.22

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, %)Mar. 31, 2019
(a)
6,438
246,306
5,070
120,029
377,844(a) - (b)2,37443,5102,442
46,811
95,137(a) - (c)3,451
183,960
3,775
107,451
298,637

Sep. 30, 2018
(b)
4,064
202,796
2,628
73,218282,707

Mar. 31, 2018
(c)
2,987
62,346
1,295
12,57879,2072,904,387(186,598)(343,772)

3,090,985

3,248,159

0.22
8.48
0.17
4.13
13.00

0.09
1.92
0.09
1.77
3.86

0.13
6.57
0.14
3.75
10.57

0.13
6.56
0.08
2.36
9.14

0.09
1.91
0.03
0.38
2.43

- 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)Mar. 31, 2019(a)369,897
147,660
168,694
45.60
85.52

(a) - (b)94,86546,33930,612(4.60)(1.52)(a) - (c)297,803112,766
151,602
21.90
13.41

(Millions of yen, %)Mar. 31, 2018
Sep. 30, 2018(b)(c)
275,032
72,094
101,32134,894
138,082
17,092
50.20
23.70
87.04
72.11

(a) - (c)298,637
113,018
152,103
19.95
12.54

(Millions of yen, %)Sep. 30, 2018
Mar. 31, 2018(b)(c)
282,707
79,207104,059
37,403
141,589
20,342
50.08
25.68
86.89
72.90

(a) - (c)130,619
26,710103,909(Millions of yen)Sep. 30, 2018
Mar. 31, 2018(b)(c)
186,095
70,08982,23455,403
14,685
103,860(a) - (c)131,858
26,802
105,056(Millions of yen)Sep. 30, 2018
Mar. 31, 2018(b)(c)
194,42178,21859,83286,36818,385108,052(a) - (c)Sep. 30, 2018(b)

(Millions of yen)Mar. 31, 2018(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)Mar. 31, 2019(a)377,844
150,421
172,445
45.63
85.44

(a) - (b)95,13746,36230,856(4.45)(1.45)

3. Allowance for loan losses
Non-consolidated

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

Mar. 31, 2019(a)
200,708
82,113
118,594(a) - (b)14,613(121)
14,734

Consolidated

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

Mar. 31, 2019(a)
210,076
86,634
123,441(a) - (b)15,655266
15,3894. Non-performing loans based on the Financial Reconstruction Law
Non-consolidated
Mar. 31, 2019(a)Claims against bankrupt andsubstantially bankrupt obligors
Claims with collection risk
Claims for special attention
Total

(A)

(a) - (b)108,391

63,025

97,81845,366

10,573

136,477
125,099
369,968(17,402)49,253
94,87688,755111,225
297,798

153,879
75,846275,092

47,722
13,874
72,1705. 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)Mar. 31, 2019(a)
316,426
168,747
147,678(a) - (b)76,962
30,614
46,348(a) - (c)264,475
151,732
112,743

(B/A)

85.82

(1.52)

13.54- 19 -(Millions of yen, %)Sep. 30, 2018
Mar. 31, 2018(b)(c)
239,464
51,951138,133
17,015
101,330
34,935

87.04

71.98

SURUGA bank, Ltd.

6. Loan breakdown by industry, etc.
(1) Loan breakdown by industry (Non-consolidated)
Mar. 31, 2019(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)Sep. 30, 2018(b)Mar. 31, 2018(c)(a) - (b)(a) - (c)2,898,864(187,010)(347,114)

3,084,874

3,245,97838,6454,661
35
250
12,716
1,080
1,316
9,994
31,061
27,81564,082
28,825
4,715
2,673,660(9,483)
(108)
(1)
(4)
(464)
(111)
(39)
(2,766)(551)(42,848)(3,514)(2,163)532(125,486)(15,631)
(288)
(2)
250
(2,693)79(339)(3,853)(4,791)(46,958)(5,276)(4,821)(2,580)(260,208)

48,1284,769
36
254
13,1801,191
1,355
12,76031,61270,66367,59630,9884,183
2,799,146

54,276
4,949
37
15,4091,001
1,655
13,84735,852
74,77369,35833,646
7,295
2,933,868(2) Breakdown of risk-monitored loans by industry (Non-consolidated)
Mar. 31, 2019(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 ※(a) - (b)(Millions of yen)(a) - (c)Sep. 30, 2018(b)Mar. 31, 2018(c)

369,897

94,865

297,803

275,032

72,094

1,286
33
1,206
5
125
81
2,002
7,070
41,123
1,344
315,616

(78)
(0)
25
(2)
87
7,070
22,614(167)
65,315

(263)
(312)
(5)
(12)
(599)
7,070
38,965(413)
253,371

1,364
0
33
1,181
5
125
83
1,915
18,5091,511
250,301

1,549
33
1,518
10
125
93
2,601
2,158
1,757
62,245※ “Others” includes real estate financing for rent to individuals.

- 20 -SURUGA bank, Ltd.

(3) Consumer loans (Non-consolidated)

Consumer loans
Secured loans
Unsecured loans(Millions of yen)Mar. 31, 2019(a)2,664,854
2,424,478
240,375(a) - (b)(126,030)(108,863)(17,168)(a) - (c)(261,137)(230,098)(31,039)

Sep. 30, 2018(b)
2,790,884
2,533,341
257,543(4) The ratio of loans to small- and medium-sized enterprises, etc. (Non-consolidated)
Mar. 31, 2019(a)
The ratio of loans to small- andmedium-sized enterprises, etc.

98.40(a) - (b)(%)(a) - (c)1.52

Mar. 31, 2018(c)
2,925,991
2,654,576
271,4141.75

Sep. 30, 2018(b)Mar. 31, 2018
(c)

96.88

96.65

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

Mar. 31, 2019(a)
3,165,680
3,504,213
2,898,864
3,054,760(a) - (b)(250,250)(287,108)(187,010)(80,125)(a) - (c)(923,969)(542,804)(347,114)(175,016)

Sep. 30, 2018(b)
3,415,930
3,791,321
3,085,874
3,134,885

Mar. 31, 2018(c)
4,089,649
4,047,017
3,245,9783,229,776

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

Number of branches

Mar. 31, 2019(a)131

- 21 -(a) - (b)(a) - (c)(1)(1)

Sep. 30, 2018(b)132

Mar. 31, 2018(c)132

SURUGA bank, Ltd.

Ⅳ. Unrealized gains (losses) on securities
1. Unrealized gains (losses)
Non-consolidated(Millions of yen)Mar. 31, 2019
Sep. 30, 2018
Mar. 31, 2018
Net
unrealized
gains(losses)Net
unrealized
gains(losses)Net
unrealized gains (losses)
Fair
Fair
Fair
value
value
value
Gains Losses
Gains Losses
Gains Losses

Other
117,364 17,254 17,625
371 128,203 20,927 21,381
454 116,151 24,818 25,400
securities
67 41,275 24,604 24,699
Stocks26,170 15,911 16,160
249 33,524 20,483 20,551
287 62,850
(7)
90
Bonds
86,734658
662
3 89,070
(244)
43
99
12,025221
609
Others
4,459
683
802
118
5,608
687
787
(Note1) Amounts less than one million yen are rounded down.
(Note2) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note3) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.
Consolidated

581
95
98
388

(Millions of yen)Mar. 31, 2019
Sep. 30, 2018
Mar. 31, 2018
Fair Net unrealized gains (losses) Fair Net unrealized gains (losses) Fair Net unrealized gains (losses)
value
Gains Losses value
Gains Losses value
Gains Losses

Other
454 118,214 26,659 27,241
119,768 19,436 19,808
371 130,797 23,299 23,754
securities
67 41,970 25,201 25,296
Stocks26,709 16,352 16,601
249 34,284 21,145 21,213(244)
43287 62,850
(7)
90
Bonds
86,734658
662
3 89,070
7,442
2,397
2,497
99 13,393
1,464
1,853
Others
6,325
2,424
2,543
118
(Note1) Amounts less than one million yen are rounded down.
(Note2) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note3) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.

581
95
98
388

Ⅴ. Retirement benefits
1. Retirement benefit expenses
Non-consolidated
529
109
(772)
(328)
214
(247)

(Millions of yen)
FY3/2018
553
113
(731)
(159)
233
8

566
109
(772)
(328)
226
(198)

(Millions of yen)
FY3/2018
576
113
(731)
(159)
245
44

FY3/2019
Service cost
Interest cost
Expected returns on plan assets
Amortization of unrecognized net actuarial gains (losses)
Others (non-recurring extra retirement payments, etc.) (Note1)
Retirement benefit expenses(Note1) “Others” includes contribution to a defined contribution pension plan.
Consolidated
FY3/2019
Service cost (Note1)
Interest cost
Expected returns on plan assets
Amortization of unrecognized net actuarial gains (losses)
Others (non-recurring extra retirement payments, etc.) (Note2)
Retirement benefit expenses(Note1) Retirement benefit expenses of consolidated subsidiaries adopting a simplified method are included in “Service cost”.
(Note2) “Others” includes contribution to a defined contribution pension plan.

- 22 -