May 12, 2016

SURUGA bank, Ltd.
Consolidated Financial Results for Fiscal Year 2015, ended March 31, 2016
<under Japanese GAAP>
Stock exchange listing: Tokyo (code: 8358)
URL:
http://www.surugabank.co.jp
Representative:
President Mitsuyoshi Okano
Date of payment of fiscal year-end dividends: June 1, 2016
(Japanese yen amounts of less than one million and the first decimal place have been rounded down.)

1. Consolidated financial results for fiscal year 2015 (from April 1, 2015 to March 31, 2016)(1) Consolidated operating results(％ represents the change from the previous fiscal year)

Ordinary income

Fiscal year ended￥ Million％￥ Million
March 31, 2016
139,430
6.3
56,395
March 31, 2015
131,1148.0
53,405(Note) Comprehensive income: (a) Fiscal year 2015: \29,272 million [(35.8) %]Net income
per share(diluted)

Net income
per share
Fiscal year ended￥
March 31, 2016
156.15
March 31, 2015
138.82(Reference) Equity in gains (losses) of affiliates:

Profit attributableto owners of parent

Ordinary profit％

Net incomeon own capital￥￥ Million％

5.5
36,717
11.6
15.8
32,891
19.1(b) Fiscal year 2014: \45,662 million [49.1%]
Ordinary profit
on total assets％

156.02
12.4
138.6412.1(a) Fiscal year 2015: \18 million

Ordinary profit
on ordinary income

％

％

1.3
40.4
1.2
40.7
(b) Fiscal year 2014: \65 million(2) Consolidated financial position
Total assets
As ofMarch 31, 2016
March 31, 2015
(Reference) Own capital:

Total net assets￥ Million

Own capital ratio￥ Million

Net assets per share％￥

4,390,146
302,237
6.8
1,296.14
4,284,990
292,1286.7
1,222.40(a) As of March 31, 2016: \300,031 million (b) As of March 31, 2015: \290,056 million(Note) Own capital 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, 2016
March 31, 2015

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at fiscal
year-end￥ Million￥ Million￥ Million￥ Million

134,240
98,740(13,029)(893)(19,163)(3,301)

894,075
792,033

2. Dividends on common stockst

1
Quarter-end
Fiscal year
ended March 31, 2015
ended March 31, 2016
ending March 31, 2017
(forecast)

Annual cash dividends per share
2nd
3rd
FiscalQuarter
Quarter
Year
-end
-end
-end

￥

￥

￥

AnnualTotal
cash
dividends

Dividend
payoutratio

Dividends
on netassets(Annual)(Consolidated)(Consolidated)￥￥￥ Million

％

％

4,743
4,685

14.4
12.8

1.7
1.5

―
―

8.50
9.50

―
―

11.50
10.50

20.00
20.00

―

10.00

―

10.00

20.00

12.4

(Note) Breakdown of fiscal year-end dividend per share for fiscal year 2014:(a) Ordinary dividend: \10.50(b) Commemorative dividend: \1.00

3. Consolidated earnings forecasts for fiscal year 2016 (from April 1, 2016 to March 31, 2017)(％ represents the change from the corresponding period of the previous fiscal year)

Ordinary income
Six months ending Sep. 30, 2016
Fiscal year ending Mar. 31, 2017

Profit attributableto owners of parent

Ordinary profit

Net income
per share￥ Million％￥ Million％￥ Million％￥

69,000141,000(0.6)
1.1

26,40056,500(8.8)
0.1

17,60037,200

(7.3)
1.3

76.03
160.70※Notes(1) Changes in significant consolidated subsidiaries during the fiscal year: No(2) Changes in accounting policies, accounting estimates and restatements.
① Changes in accounting policies due to revision of accounting standards: Yes② Changes in accounting policies due to reasons other than above ①: No③ Changes in accounting estimates: No④ Restatements: No(3) Number of common stock issued① Number of shares issued(including treasury shares):

As of Mar. 31, 2016

232,139,248 shares

As of Mar. 31, 2015

258,139,248 shares② Number of treasury shares:

As of Mar. 31, 2016

659,080 shares

As of Mar. 31, 2015

20,855,687 shares③ Average number of shares issued
during the fiscal year:

Fiscal year 2015

Fiscal year 2014

236,928,205 shares

235,134,205 shares(Reference) Summary of non-consolidated financial results

1. Non-consolidated financial results for fiscal year 2015 (from April 1, 2015 to March 31, 2016)(1) Non-consolidated operating results(％ represents the change from the previous fiscal year)

Ordinary income
Fiscal year ended
March 31, 2016
March 31, 2015

Ordinary profit

Net income￥ Million％￥ Million％￥ Million％

127,267
121,773

4.5
7.7

54,43251,8504.9
14.2

35,80732,135

11.4
16.6

Net income per share(diluted)

Net income per share
Fiscal year ended
March 31, 2016
March 31, 2015￥￥

152.28135.63152.16135.45(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2016
March 31, 2015
(Reference) Own Capital:

Total net assets￥ Million

Own capital ratio￥ Million

Net assets per share％￥

4,381,220
293,482
6.6
1,267.58
4,272,054
282,4506.6
1,189.87(a) As of March 31, 2016: \293,421 million (b) As of March 31, 2015: \282,337 million(Note) Own capital 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 forecasts for fiscal year 2016 (from April 1, 2016 to March 31, 2017)(％ represents the change from the corresponding period of the previous fiscal year)

Ordinary income
Six months ending Sep. 30, 2016
Fiscal year ending Mar. 31, 2017

Ordinary profit

Net income
per share

Net income￥ Million％￥ Million％￥ Million％￥

63,500130,000(0.6)
2.1

26,00055,000(6.7)
1.0

17,50037,000

(5.6)
3.3

75.60
159.84（Note on implementation status of audit procedures）
This report is not subject to the audit procedures, which are based on the Financial Instruments and Exchange Law.
The audit procedures of consolidated and non-consolidated financial statements have not been completed at the time of the disclosure ofthis report.

(Explanation regarding appropriate use of forward-looking statements, and other notes)
The description of future performance in this report is based on information, which is presently available and certain assumptions, which areconsidered to be reasonable, and it does not guarantee future performance. Actual performance may differ from the forecasts due to various
factors.

SURUGA bank, Ltd.

【Appendix】○ Contents of Appendix
1. Analysis of operating results and financial position ······································································· 2(1) Analysis of operating results ············································································································ 2(2) Analysis of financial position ············································································································ 3(3) Dividend policy and dividends for fiscal year 2015 and 2016 ··············································· 4
2. Management policy ····································································································································· 5(1) Principal management policy ············································································································ 5(2) Targeted management indices ········································································································· 5(3) Medium-to long-term management strategy ············································································· 5(4) Issues to be addressed ······················································································································· 5
3. Basic approach to the selection of accounting standards ·························································· 6
4. Consolidated financial statements ······································································································· 7(1) Consolidated balance sheets ············································································································ 7(2) Consolidated statements of income and consolidated statements of comprehensive income ····· 9(3) Consolidated statements of changes in net assets ······························································· 11(4) Consolidated statements of cash flows ····················································································· 13(5) Notes to consolidated financial statements ············································································· 14(Notes on going-concern assumption) ·························································································· 14(Changes in accounting policies) ····································································································· 14(Segment information) ························································································································· 15(Per share data) ····································································································································· 16(Significant subsequent events) ······································································································· 16(Other note) ············································································································································· 17
5. Non-consolidated financial statements ···························································································· 18(1) Non-consolidated balance sheets ································································································ 18(2) Non-consolidated statements of income ··················································································· 20(3) Non-consolidated statements of changes in net assets ····················································· 21※ SUPPLEMENTARY INFORMATION for Fiscal Year 2015, ended March 31, 2016
－1－

SURUGA bank, Ltd.

1. Analysis of operating results and financial position(1) Analysis of operating results
Japanese economy witnessed signs of moderate recovery in the early stages in the first half of the
fiscal year ended March 31, 2016, on the back of the improvement in corporate earnings and theemployment situation, among other factors. The economy then came to a standstill, as reflected in thedeterioration of the business sentiment especially among exporting companies. This was primarily due tothe appreciation of the yen caused by the volatility in the global financial markets, driven by downside
risks in the emerging markets such as China and concerns around the rising interest rates in the U.S.
Under such business conditions, consolidated ordinary income increased by \8.316 billion comparedwith the previous fiscal year, to \139.430 billion. This was mainly due to the growth in interest income,reflecting an increase in interest on loans and discounts. Meanwhile, ordinary expenses increased by\5.327 billion compared with the previous fiscal year, to \83.035 billion. This was mainly due to theincrease in fees and commissions payments, as well as other expenses. As a result, ordinary profit
increased by \2.990 billion compared with the previous fiscal year, to \56.395 billion. Profit attributable toowners of parent increased by \3.826 billion compared with the previous fiscal year, to \36.717 billion.
The status of operating results on a non-consolidated basis was as follows.
① Gross operating profit
Gross operating profit increased by \5.880 billion compared with the previous fiscal year, to\105.332 billion mainly due to an increase in net interest income by \7.200 billion.
② Expenses
Expenses increased by \0.329 billion compared with the previous fiscal year, to \45.929 billion.
③ Net operating profit
Core net operating profit increased by \5.905 billion compared with the previous fiscal year, to\58.765 billion mainly due to an increase in net interest income by \7.200 billion.
Net operating profit increased by \5.551 billion compared with the previous fiscal year, to \59.403
billion mainly due to an increase in core net operating profit by \5.905 billion.
※ Core net operating profit ＝ Net operating profit ＋ Provision for general allowance for loan
losses － Gains (losses) related to bonds④ Ordinary profit
Ordinary profit increased by \2.582 billion compared with the previous fiscal year, to \54.432 billion
mainly due to an increase in net operating profit by \5.551 billion.
⑤ Net income
Net income increased by \3.672 billion compared with the previous fiscal year, to \35.807 billion
mainly due to an increase in income before income taxes by \3.171 billion and a decrease in total
income taxes by \0.501 billion.
⑥ Net credit costs
Disposal of non-performing loans increased by \1.502 billion compared with the previous fiscal year,
to \5.713 billion. Allowance for loan losses is reversed, however, reversal of allowance for loan losses
decreased by \1.801 billion compared with the previous fiscal year, to \0.684 billion. As a result, net
credit costs increased by \3.303 billion compared with the previous fiscal year, to \5.029 billion.
Actual credit costs increased by \3.432 billion compared with the previous fiscal year, to \4.411
billion.
※Net credit costs ＝ Provision for general allowance for loan losses ＋ Disposal of non-performing
loans － Reversal of allowance for loan losses※Actual credit costs ＝ Net credit costs － Recoveries of written-off claims－2－

SURUGA bank, Ltd.

⑦ Earnings forecasts for the fiscal year ending March 31, 2017
Japan recently witnessed signs of an economic slowdown, such as the decline in the diffusion index
of business sentiments among large manufacturers in the March 2016 “short-term economic survey ofenterprises in Japan (Tankan)”. Looking forward, however, the Japanese economy is expected to turnaround given the continued favorable employment situation, as well as the anticipated recovery inprivate consumption driven by real income growth. The Bank of Japan’s negative interest rate policy
should also exert positive effects on real economy, by stimulating housing and capital investments.
Moreover, the Japanese government’s policy actions based on its growth strategy is also expected tohave a positive impact on the economy.
In light of such business conditions, Suruga Bank, as a life and business navigator (“DREAM
NAVIGATOR”), will strive to offer further value-added products and services to customers. At thesame time, we will make efforts to improve on our profitability and sound financial position.
Taking into account the above, earnings forecasts for the fiscal year ending March 31, 2017 are as
follows.
＜Non-consolidated＞

Ordinary income
Net operating profit
Ordinary profit
Net income

Six months ending
September 30, 2016
(forecast)
63.5
28.5
26.0
17.5

(Unit: Billions of Yen)
Fiscal year ending
March 31, 2017
(forecast)
130.0
60.5
55.0
37.0

Actual credit costs

2.3

4.5

Six months ending
September 30, 2016
(forecast)
69.0
26.4

(Unit: Billions of Yen)
Fiscal year ending
March 31, 2017
(forecast)
141.0
56.5

17.6

37.2

＜Consolidated＞

Ordinary income
Ordinary profit
Profit attributable toowners of parent(Note) The description of future performance in this report is based on information, which ispresently available and certain assumptions, which are considered to be reasonable, and it
does not guarantee future performance. Actual performance may differ from the forecasts
due to various factors.

(2) Analysis of financial position
As for the status of major accounts on a consolidated basis, the balance of loans and bills discounted asof March 31, 2016 increased by \126.416 billion from the position as of March 31, 2015, to \3,137.164
billion. This was mainly due to the steady growth in the balance of consumer loans as a result of continuing
to engage primarily in the retail banking business. The balance of securities as of March 31, 2016
increased by \1.326 billion from the position as of March 31, 2015, to \230.078 billion. The balance of
deposits as of March 31, 2016 increased by \96.648 billion from the position as of March 31, 2015, to\4,049.494 billion.
The status of major accounts on a non-consolidated basis was as follows.
① Loans and bills discounted
The balance of loans and bills discounted as of March 31, 2016 increased by \126.304 billion fromthe position as of March 31, 2015, to \3,137.614 billion. This was mainly due to the growth in thebalance of consumer loans. The balance of consumer loans as of March 31, 2016 increased by\162.093 billion from the position as of March 31, 2015, to \2,772.298 billion. The average balance ofloans and bills discounted during the fiscal year ended March 31, 2016 increased by \120.206 billion
compared with the previous fiscal year, to \3,004.008 billion.
－3－

SURUGA bank, Ltd.

② Securities
The balance of securities as of March 31, 2016 increased by \1.187 billion from the position as ofMarch 31, 2015, to \234.032 billion.
③ Deferred tax assets (liabilities)
Deferred tax assets of \2.477 billion were recorded mainly due to a decrease in unrealized gains andlosses on securities.
④ Deposits
The balance of deposits as of March 31, 2016 increased by \97.285 billion from the position as ofMarch 31, 2015, to 4,056.482 billion. The balance of individual deposits increased by \196.486 billion, to\3,085.907 billion. The average balance of deposits during the fiscal year ended March 31, 2016
increased by \199.461 billion compared with the previous fiscal year, to \4,012.610 billion.
As for the status of cash flows on a consolidated basis, cash flows from operating activities were a net
inflow of \134.240 billion (A net inflow of \98.740 billion in the previous fiscal year). This was due to thatthe amount of inflows arising mainly from a net decrease in call loans and a net increase in deposits
exceeded the amount of outflows arising mainly from a net increase in loans and bills discounted. Cashflows from investing activities were a net outflow of \13.029 billion (A net outflow of \0.893 billion in theprevious fiscal year). This was mainly due to purchase of securities. Cash flows from financing activities
were a net outflow of \19.163 billion (A net outflow of \3.301 billion in the previous fiscal year). This was
mainly due to purchase of treasury shares and payment of cash dividends. As a result, the balance of cash
and cash equivalents as of March 31, 2016 increased by \102.042 billion from \792.033 billion as of March
31, 2015, to \894.075 billion.

(3) Dividend policy and dividends for fiscal year 2015 and 2016
Under our basic policy, we will seek to enhance shareholder returns through cash dividends, taking into
consideration the company’s overall financial results and business environment, among other factors.
Meanwhile, we intend to accumulate retained earnings with the objective of reinforcing our growthpotential and competitiveness in order to enhance our corporate value.
For the fiscal year ended March 31, 2016, the company has decided to pay a year-end dividend of \10.5
per share and an annual dividend of \20.0 per share (note that an annual divided of \20.0 per share,including an ordinary dividend of \19.0 per share and a commemorative dividend of \1.0 per share, waspaid in the fiscal year ended March 31, 2015), based on the company’s financial results and other factors.
For the fiscal year ending March 31, 2017, the company is forecasting an annual dividend of \20.0 per
share (including an interim dividend of \10.0 per share).

－4－

SURUGA bank, Ltd.

２．Management policy(1) Principal management policy
The Suruga Bank group’s mission is to assist our customers in making their dreams come true on aclear timeline. In light of this mission, we are striving to offer value-added products and services at thevarious stages in our customers’ lives. Also, we aim to maximize the corporate value of the group as awhole by building a robust earnings base and financial position, and by engaging actively in new businesses.

(2) Targeted management indices (Non-consolidated)
Financial targets for the fiscal year ending March 31, 2017 are as follows

Targeted management indices
Net income
ROE (Net income basis)
EPS (Net income per share)

Financial targets
for the fiscal year
ending March 31, 2017\37.0 billion
13.44％\ 159.84(3) Medium-to long-term management strategy
In April 2016, Suruga Bank launched a new management vision, namely “Aim 25”, for the period between
fiscal years 2016 and 2025. In response to the rapid changes in the environment surrounding ourcustomers, under “Aim 25”, we aim not only to address the apparent needs of our customers, but also toprovide more active and proactive assistance in making our customers’ dreams come true. In other words,
we will attempt to be the life and business navigator (“DREAM NAVIGATOR”) at the various stages of ourcustomers’ business and personal lives.
In light of this vision, we will allocate management resources efficiently across our five core businesses:
personal loans, housing loans, asset management support, life support, and small and medium-sizedcorporate lending. We will also endeavor to further expand our operating base and to offer moreconvenient products and services.

(4) Issues to be addressed
Every financial institution is required to fulfill its role in facilitating financing as an operator of financial
infrastructure. Against this backdrop, it is becoming increasingly critical for financial institutions toestablish a flexible system to provide credit, to boost capital to strengthen management stability, and toformulate unique management strategies to enhance profitability. As for our company, which is primarily
engaged in the retail banking business, we aim to contribute to the development of the national economy
by providing financing for personal consumption. Furthermore, we are focused on offering support andadvice to help our customers enrich their lives, and on proposing new lifestyles through initiatives such as“d-labo”, a platform that offers customers the opportunity to “change my life”, “think of my life” and“enjoy my life”.
The Suruga Bank group acts in compliance with the applicable laws and regulations. We will endeavor toaddress our customers’ needs that evolve with the times, and to offer value-added products and services
at the various stages of our customers’ lives as a life and business navigator (“DREAM NAVIGATOR”)
that makes our customers’ dreams come true. Moreover, we will work to enhance the profitability and tobuild the sound financial position of the group as a whole, while striving as a group to offer “high quality
services that exceed our customers’ expectations” and to become a partner that assists in “making ourcustomers’ dreams come true on a timeline”.

－5－

SURUGA bank, Ltd.

3. 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 the various developments in Japan and overseas.

－6－

SURUGA bank, Ltd.

4. Consolidated financial statements(1) Consolidated balance sheets（Unit: Millions of Yen）
As of
March 31, 2015
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 loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities

－7－

As of
March 31, 2016

794,594
127,102
107
1,114
228,752
3,010,748
2,563
5,458
46,173
49,954
11,49625,4680591
12,39730,74327,780
2,201
―
346
415
6,288
440
3,620
(22,673)
4,284,990

897,074
3,006
50
1,046
230,078
3,137,164
3,534
5,531
43,19650,84913,09725,4279
235
12,07930,00727,308
2,071
11
231
384
5,276
2,120
3,476
(22,265)
4,390,146

3,952,846
2,535
3
25,847
707
140
249
3,099
327
342
3,142
3,620
3,992,862

4,049,494
2,085
13
27,653
716
153
258
3,248
276
262
271
3,476
4,087,908

SURUGA bank, Ltd.

（Unit: Millions of Yen）
As of
March 31, 2015
Net assets
Capital stock
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
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

30,04321,013229,924(16,110)
264,870
21,673(101)
3,613
25,185
112
1,959
292,1284,284,990

－8－

As of
March 31, 2016
30,043―
253,182(750)
282,475
16,121(83)
1,517
17,55661
2,144
302,237
4,390,146

SURUGA bank, Ltd.

(2) Consolidated statements of income
and consolidated statements of comprehensive income
Consolidated statements of income（Unit: Millions of Yen）
Fiscal Year 2014
(from April 1, 2014
to March 31, 2015)
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans and bills boughtInterest on deposits with banks
Other interest income
Fees and commissions
Other ordinary income
Gains on sales of bonds
Gains on redemption of bonds
Other
Other income
Reversal of allowance for loan losses
Recoveries of written off claims
Gain on sales of stocks and other securities
Share of profit of entities accounted for using equity method

Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest on call money and bills soldInterest on borrowings and rediscounts
Other interest expenses
Fees and commissions payments
Other ordinary expenses
Loss on sales of bonds
Loss on redemption of bonds
Other
General and administrative expenses
Other expenses
Provision of allowance for loan losses
Written-off of loans
Losses on devaluation of stocks and other securities
Other
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on reversal of subscription rights to shares
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent－9－

131,114
109,458
105,953
2,535
153
712
103
12,544
5,145
15
1,097
4,032
3,965
1,592
1,036
387
65
883
77,708
4,039
3,948
0
23
67
13,667
3,434
0
121
3,312
48,372
8,194
―
3,820
609
3,764
53,405
30
10
20
1,075
1,075
―
52,36017,537
1,848
19,38532,97583
32,891

Fiscal Year 2015
(from April 1, 2015
to March 31, 2016)
139,430
118,650
113,552
3,989
112
830
164
13,022
4,932
39
797
4,095
2,824
―
923
187
18
1,696
83,035
4,685
4,557
―
21
106
14,915
3,703
―
199
3,503
48,94010,791
879
4,744
0
5,167
56,395
26
26
―
509
489
19
55,912
19,426(387)
19,03936,873
156
36,717

SURUGA bank, Ltd.

Consolidated statements of comprehensive income（Unit: Millions of Yen）
Fiscal Year 2014
(from April 1, 2014
to March 31, 2015)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests－ 10 －

Fiscal Year 2015
(from April 1, 2015
to March 31, 2016)

32,97536,873

10,779(88)
1,996
12,68745,662(5,523)18(2,095)(7,600)29,27245,517
145

29,087185

SURUGA bank, Ltd.

(3) Consolidated statements of changes in net assets
Fiscal Year 2014 (from April 1, 2014 to March 31, 2015)（Unit: Millions of Yen）
Shareholders' equity

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

Capital stock

Capital surplus

30,043

20,278Retainedearnings

Total
Treasury shares shareholders'equity203,340(16,626)(2,046)30,043

20,278201,294

237,035(2,046)(16,626)

234,989

Changes of items during period
Dividends of surplus(4,261)(4,261)

Profit attributable to ownersof parent

32,89132,891

Purchase of treasury shares
Disposal of treasury shares
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period

735

(42)

(42)

558

1,294

―

735

28,629515

29,88030,04321,013229,924(16,110)

264,870

Accumulated other comprehensive income

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

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges10,955(13)

Total
RemeasureSubscription Non-controlling
accumulated
ments ofrights to sharesinterests
otherdefined benefit
comprehensive
plansincome1,617

12,560406

1,813

Total net
assets251,816(2,046)

10,955

(13)

1,617

12,560406

1,813

249,770

Changes of items during period
Dividends of surplus(4,261)

Profit attributable to ownersof parent

32,891

Purchase of treasury shares(42)

Disposal of treasury shares

1,294

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period10,717

(88)

1,996

12,625(294)

145

12,477

10,717

(88)

1,996

12,625(294)

145

42,35821,673

(101)

3,613

25,185

112

1,959

292,128－ 11 －SURUGA bank, Ltd.

Fiscal Year 2015 (from April 1, 2015 to March 31, 2016)（Unit: Millions of Yen）
Shareholders' equity
Capital stock
Balance at beginning of current
period30,043

Capital surplus
21,013Retainedearnings

Total
Treasury shares shareholders'equity229,924(16,110)

264,870

Changes of items during period
Dividends of surplus(4,983)(4,983)

Profit attributable to ownersof parent

36,71736,717Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
sharesNet changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period92(14,364)(14,364)

143

235(21,106)(8,474)29,581――(21,013)

23,25815,36017,60430,043―

253,182(750)

282,475

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

21,673

(101)

Total
RemeasureSubscription Non-controlling
accumulated
ments ofrights to sharesinterests
otherdefined benefit
comprehensive
plansincome3,613

25,185112

1,959

Total net
assets292,128

Changes of items during period
Dividends of surplus(4,983)

Profit attributable to ownersof parent

36,717Purchase of treasury shares(14,364)

Disposal of treasury shares

235

Retirement of treasury
sharesNet changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current
period―(5,552)18(2,095)(7,629)(51)

185(7,495)(5,552)18(2,095)(7,629)(51)

185

10,10916,121

(83)

1,517

17,55661

2,144

302,237－ 12 －SURUGA bank, Ltd.

(4) Consolidated statements of cash flows（Unit: Millions of Yen）
Fiscal Year 2014
(from April 1, 2014
to March 31, 2015)
Cash flows from operating activities
Profit 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 loss
Gain on fund management
Financing expenses
Loss (gain) related to securities
Loss (gain) on money held in trust
Loss (gain) 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

Proceeds from fund management
Payments for financeCompensation for damage income
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
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries resulting in change in scope of consolidation

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
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 end of period－ 13 －

Fiscal Year 2015
(from April 1, 2015
to March 31, 2016)

52,3605,830―
129(2,737)
39
―
(999)
197
45
(181)
(109,458)
4,039
(769)
(168)
1,065
(68)
(132,025)
143,188(270)
510
56,1931,294(1)
99
108,696(3,493)―(6,406)
117,109(18,369)
98,74055,912
6,261
19
129
(407)
9
13
(2,959)
149
(51)
(79)
(118,650)
4,685
(824)
182
463
57
(126,416)
96,647(450)(439)
124,095
(970)
10
(72)
118,078(3,426)
4,172(3,079)153,058(18,818)
134,240(77,444)
33,974
50,102(41)(3,962)20(3,542)―(893)(60,579)
33,49920,833(114)(3,806)26(2,880)(8)(13,029)(4,261)(42)
1,003(3,301)
15
94,560697,472
792,033(4,983)(14,364)
184(19,163)(6)
102,041
792,033
894,075SURUGA bank, Ltd.

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

(Change in accounting policies)
ASBJ Statement No. 21, “Revised Accounting Standard for Business Combinations” (released on
September 13, 2013, hereinafter the “Accounting Standard for Business Combinations”), ASBJ
Statement No. 22, “Revised Accounting Standard for Consolidated Financial Statements” (released on
September 13, 2013, hereinafter the “Consolidated Accounting Standard”), ASBJ Statement No. 7,“Revised Accounting Standard for Business Divestitures” (released on September 13, 2013, hereinafter
the “Accounting Standard for Business Divestitures”) and others have been applied effective from thefiscal year ended March 31, 2016. As a result, any change resulting from our company’s ownershipinterests in its subsidiary when our company retains control over the subsidiary is accounted for as capitalsurplus, and acquisition related costs are expensed in the year in which the costs are incurred. For any
business combinations on or after the beginning of the fiscal year ended March 31, 2016, subsequent
measurement of the provisional amount recognized based on the purchase price allocation due to thecompletion of accounting for the business combination is reflected in the consolidated financial
statements for the period to which the date of that business combination occurs. In addition, thepresentation method of net income was amended as well as “Minority interests” to “Non-controllinginterests.” To reflect these changes in presentation, adjustments have been made to the consolidated
financial statements for the fiscal year ended March 31, 2015 presented herein.
The aforementioned accounting standards are adopted on or after the beginning of the fiscal year ended
March 31, 2016 and thereafter, according to the transitional treatment provided for in Paragraph 58-2 (4)of the Accounting Standard for Business Combinations, Paragraph 44-5 (4) of the Consolidated
Accounting Standard and Paragraph 57-4 (4) of the Accounting Standard for Business Divestitures.
There is no effect of these changes on the consolidated financial statements for the fiscal year ended
March 31, 2016.

－ 14 －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, banking clerical work, credit card
services and credit guarantee. Of the reportable segments, Suruga Bank represents the “banking”
segment, which includes businesses such as deposits, loans, foreign exchange and credit card services.
2. Method of calculating ordinary income, profit or less, 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
Fiscal Year 2015 (from April 1, 2015 to March 31, 2016)(Unit: Millions of Yen)
Reportable
Amountsegment
recorded inthe
Others
Total
Adjustments
consolidated
Bankingfinancialstatements
Ordinary income
Ordinary income to external
127,027
12,662
139,689(259)
139,430
customers
Inter-segment internal
240
1,802
2,042
(2,042)―
ordinary income
Total
127,267
14,464
141,732(2,301)
139,430
Segment profit
54,432
1,662
56,095299
56,395
Segment assets
4,381,220
42,6504,423,870(33,724)
4,390,146
Other items
Depreciation
6,021
240
6,261
―
6,261
Impairment loss
19
―
19
―
19
Increase in tangible fixed
assets and intangible fixed
6,257
429
6,686
―
6,686
assets(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, banking clerical work, credit card services and credit guarantee) which are not included in
the reportable segments.
(Note3) “Adjustments” are as follows.
(1) The negative adjustment of \259 million in ordinary income to external customers consists ofthe following: reversal of unrealized profits (\406 million), equity in gains of affiliates (\18 million),and reversal of allowance for loan losses in the “banking” segment (- \684 million).
(2) The adjustment of \299 million in segment profit consists of the following: amortization of
goodwill (- \129 million), equity in gains of affiliates (\18 million), and deduction of inter-segment
transactions (\411 million).
(3) The negative adjustment of \33,724 million in segment assets consists of the following:
deduction of inter-segment transactions (-\35,867 million), adjustment of net defined benefit
assets (\2,098 million), and adjustment of shares in equity-method affiliates (\44 million).
(Note4) Segment profit is adjusted to ordinary profit as reported in the consolidated statements of income.

－ 15 －SURUGA bank, Ltd.

(Per share data)

Yen
Yen
Yen

Fiscal year 2015
(from April 1, 2015
to March 31, 2016)
1,296.14
156.15156.02Millions of Yen
Millions of Yen
Millions of Yen
Millions of Yen

As of March 31, 2016
302,237
2,205
61
2,144

Millions of Yen

300,031

Thousands ofshares

231,480

Net assets per share
Net income per share
Net income per share (diluted)(Note) The basis for calculation is as follows.
1. Net assets per share
Total net assets
Amount excluded from net assetsof which: Subscription rights to sharesof which: Non-controlling interests
Net assets attributable to common stockat the fiscal year-end
Number of common stock at the fiscal
year-end used for the calculation of net
assets per share

2. Net income per share and net income per share (diluted)
Fiscal year 2015
(from April 1, 2015
to March 31, 2016)
Net income per share
Profit attributable to owners of parent
Amount not attributable to common
stockholders
Profit attributable to owners of parent
attributable to common stock
Average number of common stockduring the fiscal year
Net income per share (diluted)
Adjustment for profit attributable toowners of parent
Increase in number of common stockof which: Subscription rights tosharesOutline of dilutive shares which were notincluded in the calculation of “net income
per share (diluted)” because they do nothave dilutive effectMillions of Yen

36,717

Millions of Yen―

Millions of Yen

36,717

Thousands ofshares

235,134

Millions of Yen―

Thousands ofsharesThousands ofshares188
188―(Significant subsequent events)
Not applicable.

－ 16 －SURUGA bank, Ltd.

(Other note)(Final judgment)
Our Company has filed a lawsuit against IBM Japan to the Tokyo District Court on March 6, 2008, based
upon the reasons that the project of the new main system development we outsourced to IBM Japan had
fallen through due to the fault of IBM Japan.
Tokyo District Court rendered the judgement on March 29, 2012, in which it ruled IBM Japan to pay¥7.413 billion and delinquent charges that was equivalent to the actual damage we suffered. IBM Japan
appealed to the Tokyo High Court on March 30, 2012. The Tokyo High Court rendered the judgement on
September 26, 2013, in which it ruled IBM Japan to pay ¥4.172 billion and delinquent charges anddismissed the whole counterclaim by IBM Japan, the amount of which was equivalent to ¥12.551 billion.
While the Company and IBM Japan had filed appeals and petitions for writs of certiorari to the Supreme
Court, it dismissed all of the appeals and petitions on July 8, 2015. Accordingly, the above judgement of
the Tokyo High Court became final and the litigation ended.
The balance between the amount of the total payment by IBM Japan based upon the aforementioned
finalized judgement and the amount of the recorded temporary payment and so forth related to the lawsuit
is recorded in other expenses (¥24 million) as losses related to the lawsuit for the fiscal year ended March
31, 2016. And the amount on reversal caused by the realization of the unrealized profits, which have been
eliminated in the intercompany transactions related to the lawsuit is recorded in other income (¥406
million) for the fiscal year ended March 31, 2016.

－ 17 －SURUGA bank, Ltd.

5. Non-consolidated financial statements(1) Non-consolidated balance sheets（Unit: Millions of Yen）
As of
March 31, 2015
AssetsCash and due from banks
Cash
Due from banks
Call loans
Trading account securities
Trading government bonds
Trading local government bonds
Money held in trust
Securities
Government bonds
Local government 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－ 18 －

794,264
27,162
767,102
127,102
107
2
105
1,114
232,845
145,141
220
1,712
61,36024,4093,011,310
1,785
32,0692,631,980
345,475
2,563
763
0
1,799
37,536
2,950
9,030
200
1,372
23,982
48,613
10,87924,885589
591
11,66728,15327,377
369
406
1,467
―
4,244
(17,268)
4,272,054

As ofMarch 31, 2016
896,454
26,515869,939
3,006
50
2
48
1,046
234,032
145,059
4,159
2,003
56,282
26,526
3,137,614
1,557
27,8852,741,061
367,109
3,534
2,018
0
1,515
34,412
1,777
9,169
200
286
22,97949,463
12,43024,855538
235
11,403
27,462
26,886
201
375
3,177
2,477
4,096
(15,607)
4,381,220

SURUGA bank, Ltd.

（Unit: Millions of Yen）
As of
March 31, 2015
Liabilities
Deposits
Current deposits
Ordinary deposits
Saving deposits
Deposits at noticeTime deposits
Other deposits
Foreign exchanges
Foreign bills sold
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 retirement benefits
Provision for directors' retirement benefits
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
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
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets－ 19 －

As ofMarch 31, 2016

3,959,197
57,7301,146,701
19,175110,256
2,392,384
232,9483
3
19,915
9,918
4,419
134
786
590
788
3,279
670
140
484
3,095
327
342
1,181
4,244
3,989,603

4,056,482
59,595
1,190,612
17,626
92,7002,540,483
155,46313
13
22,452
10,744
5,775
114
795
539
1,958
2,525
674
153
78
3,246
276
262
―
4,096
4,087,737

30,04320,097
18,585
1,511
227,248
30,043
197,205
57
103,032
94,115(16,110)261,279
21,157(99)
21,058112
282,450
4,272,054

30,043
18,585
18,585―230,096
30,043200,05259
103,032
96,961(750)
277,974
15,525(78)
15,446
61
293,482
4,381,220

SURUGA bank, Ltd.

(2) Non-consolidated statements of income（Unit: Millions of Yen）

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans
Interest on deposits with banks
Interest on interest swaps
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other ordinary income
Gains on foreign exchange transactions
Gain on trading account securities transactions
Gains on sales of bonds
Gains on redemption of bonds
Other income
Reversal of allowance for loan losses
Recoveries of written off claims
Gain on sales of stocks and other securities
Gain on money held in trust
Other
Ordinary expenses
Interest expenses
Interest on deposits
Interest on call money
Interest on interest swaps
Other interest expenses
Fees and commissions payments
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other ordinary expenses
Loss on sales of bonds
Loss on redemption of bonds
General and administrative expenses
Other expenses
Written-off of loans
Losses on devaluation of stocks and other securities
Loss on money held in trust
Other
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on reversal of subscription rights to shares
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit－ 20 －

Fiscal Year 2014
(from April 1, 2014
to March 31, 2015)
121,773
104,390
100,907
2,517
153
712
―
99
0
11,714
2,440
9,273
1,209
95
0
15
1,097
4,458
2,485
747
387
168
669
69,922
4,022
3,949
0
2
71
13,718866
12,852121
0
121
45,564
6,495
2,249
609
―
3,636
51,850
20
―
20
1,071
1,071
―
50,79916,852
1,811
18,66432,135

Fiscal Year 2015
(from April 1, 2015
to March 31, 2016)
127,267
112,248
107,171
3,968
112
830
0
164
0
12,004
2,387
9,616
911
73
0
39
797
2,103
684
618
183
―
617
72,835
4,681
4,558
―
5
117
14,952873
14,078199―
199
45,482
7,519
2,916
0
182
4,419
54,432
26
26
―
488
468
19
53,97018,672(508)
18,16335,807

SURUGA bank, Ltd.

(3) Non-consolidated statements of changes in net assets
Fiscal Year 2014 (from April 1, 2014 to March 31, 2015)（Unit: Millions of Yen）
Shareholders' equity
Capital surplus

Legal capitalsurplusCapital stock

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

30,043

18,585

Other capitalsurplusRetained earnings
Other retained earnings
Total capitalsurplus776

19,362

Legal retained
earnings

Reserve foradvanced
Retaineddepreciation of General reserve earnings brought
non-current
forwardassets30,04355

103,032

68,291(2,046)30,043

18,585776

19,36230,04355

103,032

66,244

Changes of items during period
Dividends of surplus(4,261)

Profit32,135Purchase of treasury shares
Disposal of treasury shares

735

Provision of reserve for
reduction entry
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

735
2

―

―

735

735

―

2

―

27,87030,043

18,585

1,511

20,09730,04357

103,032

94,115

Shareholders' equity
Retainedearnings
Treasury shares
Total retained
earnings
Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance(2)

201,421(16,626)(2,046)
199,375

Valuatin and translation adjustments
Totalshareholders'equityValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

10,614(12)

234,200

Subscription
Total valuation
Total net assets
and translation rights to sharesadjustments
10,602406(2,046)(16,626)

232,154245,210(2,046)

10,614(12)

10,602406

243,163

Changes of items during period
Dividends of surplus(4,261)(4,261)(4,261)

Profit32,13532,13532,135Purchase of treasury shares

(42)

(42)

(42)

Disposal of treasury shares

558

1,294

1,294

―

―

Provision of reserve for
reduction entry
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period―

10,543(86)

10,456(294)

10,162

27,873515

29,124

10,543(86)

10,456(294)

39,286227,248(16,110)261,279

21,157(99)

21,058112

282,450－ 21 －SURUGA bank, Ltd.

Fiscal Year 2015 (from April 1, 2015 to March 31, 2016)（Unit: Millions of Yen）
Shareholders' equity
Retained earnings
Other retained earnings

Capital surplus

Legal capitalsurplusCapital stock

Balance at beginning of current
period30,043

18,585

Other capitalsurplus

Total capitalsurplus

1,511

20,097

Legal retained
earnings

Reserve foradvanced
Retaineddepreciation of General reserve earnings brought
non-current
forwardassets30,04357

103,032

94,115

Changes of items during period
Dividends of surplus(4,983)

Profit35,807Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury
sharesProvision of reserve for
reduction entry
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

92

92(1,604)(1,604)
1

(1)

―

―

(1,511)(1,511)

―

1

―

2,846

30,043

18,585―

18,58530,043

59

103,032

96,961

Shareholders' equity
Retainedearnings
Treasury shares
Total retained
earnings
Balance at beginning of current
period(27,976)

227,248(16,110)

Valuation and translation adjustments
Totalshareholders'equityValuationdifference on
available-forsale securities

Deferred gains
or losses onhedges21,157(99)

261,279

Subscription
Total valuation
Total net assets
and translation rights to sharesadjustments
21,058112

282,450

Changes of items during period
Dividends of surplus(4,983)(4,983)(4,983)

Profit35,80735,80735,807Purchase of treasury shares(14,364)(14,364)(14,364)

Disposal of treasury shares

143

235

235

29,581――――Retirement of treasury
sharesProvision of reserve for
reduction entry
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period(27,976)―(5,632)20(5,611)(51)(5,663)

2,847

15,36016,695(5,632)20(5,611)(51)

11,032230,096(750)

277,974

15,525(78)

15,446

61

293,482－ 22 －