April 4, 2024

Company name: Suruga Bank, Ltd.
Representative:
Kosuke Kato, President(Code: 8358, Prime Market of the Tokyo Stock Exchange)
Inquiries:
Fujio Sato, Senior Executive Officer,
General Manager of General
Management Planning Headquarters
Tel: +81-3-3279-5536

Notice Regarding Revisions to Mid-Term Business Plan KPIs
Suruga Bank, Ltd. hereby announces that at the Board of Directors meeting held today, revisions have been
made to the KPIs in the mid-term business plan “Re:Start 2025 Phase 2” released on April 21, 2023.

1. Background to the mid-term business plan KPI revisions
Since the mid-term business plan "Re:Start 2025 Phase 2" was formulated on April 21, 2023, the businessenvironment surrounding Suruga Bank has changed. For example, the Bank has entered into a capital andbusiness alliance* with Credit Saison Co., Ltd., and as such, the Bank has decided to revise the KPIs in the
mid-term business plan.
The four main factors that have led to the revisions are as follows:
1.1 Steady progress with Credit Saison alliance
1.2 Growth in new loan disbursements
1.3 Stabilizing actual credit costs at low levels through higher credit quality
1.4 Greater human capital investment (increased personnel and other costs)
2. Revision details
Please refer to the attached document for details of the revisions to the mid-term business plan KPIs. There
are no changes to the plan duration (April 2023 to March 2026), the three management strategies, the fivepriority measures to achieve the management strategies, or key words. Going forward, we will evolve ourcapital and business alliance with Credit Saison and steadily implement our mid-term business plan, aiming
to contribute to the community and society as well as increase our corporate value.

* Please refer to the “Announcement Regarding the Establishment of a Quota for the Repurchase of Treasury Stock”
and the “Notice Concerning the Capital and Business Alliance Between Credit Saison Co., Ltd. and Suruga Bank, Ltd.”
released on May 18, 2023

Suruga Bank Mid-term Business Plan

Re:Start 2025 Phase 2
FY2023 - FY2025
Mid-Term Business Plan KPI Revisions© 2024 SURUGA Bank, Ltd. All rights reserved.

Contents

1. Mid-Term Business Plan KPI Revisions
Mid-Term Business Plan KPI Revisions
Four Factors Leading to Mid-Term Business Plan KPI Revisions
1.1 Steady Progress with Credit Saison Alliance
1.2 Growth in New Loan Disbursements
1.3 Stabilizing Actual Credit Costs at Low Levels Through Higher Credit Quality
1.4 Greater Human Capital Investment (Increased Personnel and Other Costs)

2. Initiatives to Achieve P/B Ratio Above 1.0
Understanding Issues and Setting Targets to Achieve P/B Ratio Above 1.0
Framework and Main Initiatives to Achieve P/B Ratio Above 1.0
2.1 Planned Capital Policy in Accordance with Basic Shareholder Returns Policy
2.2 Evolution of Credit Saison Alliance (Neo Finance Solutions Company)
2.3 Business Impact and Risk Assessment for a World with Interest Rates
2.4 Reducing Ratio of Cross-Shareholdings

Definition of the terms in this document
Credit Saison Co., Ltd.

Credit Saison, Saison

1Mid-Term Business Plan KPI Revisions
ActualInitial Projections

Forecast/Revised Projections*

Main KPIs

Notes

FY2022

FY2023

FY2025

FY2023

FY2025

Ordinary
profit￥11.2bn￥11.5bn￥13.0bn￥17.0bn￥17.0bn

Net income￥10.5bn￥8.5bn￥11.0bn￥12.0bn￥13.5bn

・Profit attributable to owners of parent

11.39%―

10%+(effective)―

10%+(effective)

・Any unrealized loss on securities isdeducted from core capital―More than￥19.0bn

・Revenue from goods and services issued
on or after April 2020・Based on core business gross profit(excluding gains on cancellation of
investment trusts)￥36.0bn

Less than￥34.0bn(Consolidated)

Capitaladequacy
ratio (Finalized

Key action indicators forachieving main KPIs

Secondary KPIs

Basel III basis)

Newbusinessgross profit￥7.7bn￥9.8bnMore than￥16.0bn

Expenses￥36.2bn￥36.0bn

Less than￥32.5bn

30 bpsApprox.
15 bpsActual credit
cost ratio-５bps-5 bpsApprox.
10 bps* FY2023 figures are forecasts announced on February 9, 2024. FY2025 figures are revised medium-term business plan KPIs announced on April 4, 2024.
Note: All figures and indicators are Suruga Bank non-consolidated unless otherwise stated・Intended pace for FY2025 and beyond
・Actual credit costs / Loans and bills
discounted (average balance) × 10000(Loans and bills discounted = Loans +Monetary claims bought)

2

Four Factors Leading to Mid-Term Plan KPI Revisions
Mid-Term Plan KPIs (FY2025)

Main KPIs

Ordinary profit

Net income(Consolidated)

Capital adequacy
ratio

Secondary KPIs

Key action indicators forachieving main KPIs

(Finalized Basel III basis)

New businessgross profit

InitialProjections

Revised
Projections￥13.0bn￥17.0bn￥11.0bn

10%+(effective)

More than￥16.0bn￥13.5bn

10%+(effective)

More than￥19.0bn

Expenses

Less than￥32.5bn

Less than￥34.0bn

Actual credit cost
ratio

Approx.
15 bpsApprox.
10 bpsNote: All figures and indicators are Suruga Bank non-consolidated unless otherwise stated

1.1 Steady progress with Credit
Saison alliance
1.2 Growth with new loan
disbursements
1.3 Stabilizing actual credit costs at
low levels through higher credit
quality
1.4 Greater human capital
investment(increased personnel and othercosts)

3

1.1 Steady Progress with Credit Saison AllianceJointdevelopmentof real estate
financeNov 2023

Start of joint provisionof collaboration loans

Collaboration in
the housing loanbusiness

Oct 2023

Launch of housing loans with
Credit Saison guarantees at
Suruga Bank

 Progress of two preceding measuresNew loan initiatives in FY2023
Annualized pace: approx. ￥55.0bn/year

 Forecast of impact on new business gross

Non-BankBank- Channel management capabilities- Quick screening capability- Ability to interact directly with customers- Custom-made screening capabilities

profit combined with various other measuresMore than +￥2.0bn (FY2025)

over ￥350.0bn

Aiming forin new loan disbursements
over next five years (FY2023 to FY2027) in all sectors

Joint commercializationof Saison Platinum
Business American
Express Card

Apr 2024

Establishment ofCredit Saison
Branch at
Suruga Bank

On hold due toresetting priority
areas

4

1.2 Growth with new loan disbursements
The amount of new loans originating from Suruga Bank* is expected to grow by 35% compared to previous year

New Loan Disbursements
236.2(billion yen)

25.0

77.0

163.8

82.0
67.9

51.0

FY2020

FY2021

FY2022

FY2023 growth rate forecast (vs. FY2022)
and revised projections for FY2025

235.0

FY2023Growth Rate

FY2025
Revised
Projections

Solutions Business

40％

65.0

Investment real estate
loans

72％

70.0

Structured finance

7％

60.0

Collaboration loans,
etc.**

-69％

65.0

Total

-0.4％

260.0

Collaboration loans, etc.

Structured finance

Investment real estateloans

Solutions business(housing loans, unsecuredloans, etc.)* Areas other than collaboration loans, etc.
** Loans (loan participations, purchases of corporate loans, etc.)
made jointly or in partnership with other companies (Credit Saisonand others)

FY2023
Forecast5

1.3 Stabilizing actual credit costs at low levels through higher credit quality
Initiatives to improve quality of loan receivables in order to stabilize actual credit costsat low levels (around 10 bps from FY2025)

Organizational negotiation
partners

Amount of disclosed claims*1(billion yen)Mar. 31 2020

Share houserelated
loans

175.5

Apamanorganizational
negotiation
partners

Earnings perbuilding
Real estate loan
(excludingorganizational
negotiation
partners)

―

132.5

Mar. 31, 2023―
(With completion of lump-sumtransfer of receivables, remaining
receivables will be transferred tosame management system as otherreceivables)

89.4

102.6

Uncovered amount (Dec. 31 2023)

Dec. 31 2023
(A)―

Appraised collateral*2 Allowances/guarantees
(B)
(C)

―

―

Uncovered amountA - (B + C)―

• Share house lump-sum transfer scheme
completed in September 2022
• Negotiations regarding Apaman'sorganizational negotiation partners are
ongoing with aim for early resolution

87.1

92.3

33.8

37.6

52.8

27.0

0.4

27.7

 The uncovered amount is limited
due to preventative allowances, etc.
As such, financial soundness isadequately ensured.

• Proactive efforts to improve credit
quality through periodic occupancy rate
surveys and improvement proposals aswell the use of assessment sheets, etc.
resulted in a disclosed claims decreaseof ¥10.2bn
 Uncovered amount decreased by￥5.0bn(compared to end of March 2023)

Notes:
1. Disclosed claims under the Financial Reconstruction Act
2. Normally, 90% of the total valuation method amount is used for collateral valuation of loans and other credit-related claims, but figures here use 100% of the total valuation method amount
Note that in the past, the ratio of the amount of claims transferred to the collateral valuation for income-producing properties for investment real estate loan financing has exceeded 200%.

6Reference: Status of Apaman Organizational Negotiation Partners
Status of efforts to dateUnder
negotiation/dispute

Organizational
negotiation partners

After approximately four years of repayment support andconsultation efforts, more than 50% of the 37,907 properties
surveyed have a loan balance of zero, and more than 40% are

Number of real estate properties
covered by the Report on Survey of
All Properties Concerning
Investment Real Estate Loans(May 15, 2019)

maintaining loan repayments.
However, organizational negotiations are being conducted with
Suruga Bank on 845* properties (2.2% of 37,907), and we will

37,907
Borrowers continuing
repayment(including those agreeing to
repayment support)

continue to take appropriate measures to resolve these issues.
No balance(paid in full, etc.)

As of Feb.29, 2024

* Due to voluntary sales and other factors, from the end of September 2022 to the end of
February this year, 83 properties were no longer in organizational negotiations.

Basic approach to future action

1

From the viewpoint of striking early settlements, we are actively cooperating in clarifying loan circumstances incertain types of cases where the bank is likely to be found liable in tort in a lawsuit.

2

In addition, there have been several cases in which the sale of investment real estate has led to full repayment, andwe are also moving forward with proposals to consider voluntary sales of real estate.

3

With regard to investment real estate loan cases, each case has its own very individual qualities, and we believe
it is necessary to consider the unique circumstances of each case individually when determining whether andto what degree there is an obligation to compensate for damages.

* For details of our response, please refer to the Status of Our Response to Loans for Investment Real Estate Other Than Shared Housing, releasedon April 4, 2024.

7

1.4 Greater Human Capital Investment (Increased Personnel and Other Costs)
Step 1: Introduction of stockcompensation plan for
executives (April)Compensation measures

Step 2: Payment of allowance for inflation (June)
Work-style measures

Step 3: Payment of special bonus (June)

Step 4: Launch of MIRAI-Management
School Lite training program(Diversity promotion, September)
Step 5: Establishment of a new Senior
FA* system
Reskilling support (September)

Step 6: Increase to the performance-based bonus fund
Payment of special bonus (December)
Step 7: Increase to starting salary (January)(Unit: billion yen)

FY2022(Actual)Expenses

Of which,personnel
expenses

FY2025InitialProjections

Current
Projections

36.2

32.5

34.0

13.7

12.5

14.0

* Financial Advisor (employees engaged in asset consulting activities)

Step 8: Launch of career vision meetings(Proactive career communication, March)
Step 9: Create an environment where employees canwork until the age of 70(Activities to support older employees, March)
Step 10: Doubling the number of recruitments (April)

8Building a Sustainable Revenue Structure (Updated Projections)
New business gross profit (core gross operating profit, new portfolio)• Through Management Strategy I (Evolving the Retail and Solutions
Businesses), new business gross profit is projected to grow by 2.5 times
compared to FY2022
Breakdown of new
business gross profit

FY2025
Revised Plan

Retail/Solution Businesses

7.5

2.3

+5.2

3.0

0.8

+2.2

4.5

1.5

+3.0

11.5

5.4

+6.1

Structured finance

5.0

2.3

+2.7

Market operations, etc.*2

6.5

3.0

+3.5

19.0

7.7

+11.3

Solution Business*1

Investment real estate loans

Market Finance

New Portfolio Total

FY2022
Actual

2.5X

ChangeBuilding a Sustainable
Revenue Structure withthe “Three Arrows”(Unit: billion yen)

1 Solution Business includes asset consulting, housing loans, unsecured loans, etc.
2 Market operations, etc. include collaboration loans, etc.

Decrease in core gross operating profit from old portfolio

Expenses

52.5 billion yen → 33.5 billion yen• As part of ManagementStrategy II (Building a Sustainable Revenue Structure),
we plan to complete cost structure reformsandincrease human capital
investment*Expenses: ￥36.2bn (FY2022) ⇒ ￥34.0bn (FY2025)(-2.2 billion yen)

(FY2022)(FY2025)(-19.0 billion yen)
Definition of New/Old Portfolios• New Portfolio: Revenue from goods and services contracted in or after April 2020
Old Portfolio: Revenue from goods and services contracted in or before March 2020

Actual credit costs• Plan to stabilize actual credit costs at low levelsby proactively taking measures toimprove credit quality of single building income loans (other than those for sharehouses)*Actual credit costs: Approx. ￥9.0bn (FY2020-2022 average)→ Average under 2.0 billion yen per year from FY2025• The turning point towards a sustainable revenue structure isfast approaching due to accelerated growth in new businessgross profit, etc.

(Approx. -7.0 billion yen)9

Reference: Revenue Structure toDate (Before Updated Projections)
New business gross profit (core gross operating profit, new portfolio)• We forecast that Management Strategy I (Evolving the retail and solution
business) will grow new business gross profit by around two fold over
FY2022.
Breakdown of new
business gross profit

FY2025Plan

FY2022
ActualChange

6.5

2.3

+4.2

3.0

0.8

+2.2

3.5

1.5

+2.0

9.5

5.4

+4.1

Structured finance

4.5

2.3

+2.2

Market operations, etc.*2

5.0

3.0

+2.0

16.0

7.7

+8.3

Retail/Solution Businesses
Solution Business*1

Investment real estate loans

Market Finance

New Portfolio Total

Approx. 2X

Building a Sustainable
Revenue Structure withthe “Three Arrows”(Unit: billion yen)

1 Solution Business includes asset consulting, housing loans, unsecured loans, etc.
2 Market operations, etc. include collaboration loans, etc.

Expenses
Decrease in core gross operating profit from old portfolio• Continuing from Phase 1, we plan to implement and complete cost structurereforms as part of Management Strategy II (building a sustainable revenue
structure).
*Expenses: 36.2 billion yen in FY2022 ⇒ 32.5 billion yen in FY2025

52.4 billion yen → 32.5 billion yen(FY2022 Actual)(FY2025)(Approx. -4.0 billion yen)(Approx. -20.0 billion yen)

Actual credit costs• We plan to stabilize actual credit costs at a low level by proactively taking
measures to improve credit quality of single building income loans (other thanthose for share houses).

Definition of New/Old Portfolios• New Portfolio: Revenue from goods and services contracted in or after April 2020
Old Portfolio: Revenue from goods and services contracted in or before March 2020

*Actual credit costs: approx. 9.0 billion yen (average of FY2020-2022 results)→ Average under 3.0 billion yen per year from FY2025(Approx. -6.0 billion yen)

10

Contents

1. Mid-Term Business Plan KPI Revisions
Mid-Term Business Plan KPI Revisions
Four Factors Leading to Mid-Term Business Plan KPI Revisions
1.1 Steady Progress with Credit Saison Alliance
1.2 Growth in New Loan Disbursements
1.3 Stabilizing Actual Credit Costs at Low Levels Through Higher Credit Quality
1.4 Greater Human Capital Investment (Increased Personnel and Other Costs)

2. Initiatives to Achieve P/B Ratio Above 1.0
Understanding Issues and Setting Targets to Achieve P/B Ratio Above 1.0
Framework and Main Initiatives to Achieve P/B Ratio Above 1.0
2.1 Planned Capital Policy in Accordance with Basic Shareholder Returns Policy
2.2 Evolution of Credit Saison Alliance (Neo Finance Solutions Company)
2.3 Business Impact and Risk Assessment for a World with Interest Rates
2.4 Reducing Ratio of Cross-Shareholdings11Understanding Issues and Setting Targets to Achieve P/B Ratio Above 1.0
Current analysis
Comparison with listed regional banks

8
PBR

PER

Suruga Bank ROE

Unit: %

Dec. 31, 2023 (Ratio / %)

7.9

ROE

6
Suruga Bank
Listed regional
banks
average

0.54

13.24

Capital cost estimations

10.64

6% level

Estimates based on PBR andROE

7 - 8%

4.09

4
0.47

Estimates based on CAPM

4.4

3.9

4.45

2

Source: QUICKPBR and PER are on a consolidated preferred basis
ROE is calculated based on the above indicators (ROE=PBR÷PER)2.8

Note: On a consolidated(financial) basis

0
21/3

22/3

23/3

24/3
Forecast•

Our perceived cost of capital at this time isabout 6% - 8%

FY26
Onwards

Awareness of issues•

Our most important issue is to improve ROE to achieve a P/B ratio above 1.0•

ROE bottomed out at the end of FY2021 and is improving, but is still somewhat off target level•

While we believe that the minimum level of the cost of shareholders' equity is 6%, we recognize the need toaccelerate restructuring of the revenue structure to reach 6% or higher as soon as possible

ROE target for P/B ratio above 1.0

ROE from FY2026 onwards (after rebuilding revenue structure under current medium-term plan) is
on average 6% or more, aiming for over 8% in the long term

12Framework and Main Initiatives to Achieve P/B Ratio Above 1.0
Framework for a P/B Ratio Above 1.0
Building asustainable
revenuestructure Building a sustainable revenue structure in linewith mid-term plan
 KPIs: New business gross profit of at least￥19.0bn, expenses within ￥34.0bn,
actual credit cost ratio of about 10 bps

Improved
ROE
Improved
shareholder
value

Capitalmanagement

 Planned capital policy in accordance withbasic shareholder returns policy
 KPI: Capital adequacy ratio 10%* or higher(effective)

Improved expected
growth rate

 Differentiation through “Creating a difference”
 Create unique value from customer's
perspective with keywords of ‘Agile’ and‘Kyo-so’ unrestricted by conventional
regional bank model

Reduced capitalcosts

 Ensure resilience against business risks
 Along with repeating a cycle of active risktaking and verification in selected areas,
aim to diversify risks in line with RAF(PBR
above 1.0)

Main Initiatives• Driving growth in new business gross profit throughfour autonomous profit centers• Completing cost structure reform• Minimizing and stabilizing actual credit costs throughhigher credit quality• Maintain stable dividends with dividend payout ratio of around30%• Treasury stock acquisition: Flexibly implement shareholder
return measures that contribute to the improvement of capitalefficiency, taking into account business performance, capitalconditions, growth investment opportunities, and market
conditions including the stock price• Provide solutions from Suruga's unique perspective
starting from what our customers are unhappy with• Creating a Neo Finance Solution Company together by
evolving the Credit Saison alliance• Specific real estate: Reduce occupancy through customer
dialogue• Securities: Transition to more stable revenue structure• Business impact and risk inspection for a world with interest rates• Reduce ratio of cross-shareholdings

Strategic investor relations/better disclosure* Finalized Basel III basis. Any unrealized loss on securities is deducted from core capital.
** Risk Appetite Framework132.1 Planned Capital Policy in Accordance with Basic Shareholder Returns Policy

Basic Shareholder Returns Policy
Our policy is to strive to enhance shareholder returns after considering the optimal balance between capital soundness and investment for growth

Dividends
Policy - Our basic policy is to maintain stable dividends, targeting a dividend payout ratio of around 30%
FY2023 Forecast
FY2021Dividends per share
Profit attributable to owners of parent
Dividend payout ratio

FY2022

Announced at
beginning of FY2023

Revised Forecast

6 yen

9 yen

14 yen21 yen￥7.9bn￥10.5bn￥8.5bn￥12.0bn

17％

16％

31％

33%

Acquisition of treasury stock
Policy - We will flexibly implement shareholder return measures that contribute to the improvement of capital efficiency, taking into account businessperformance, capital conditions, growth investment opportunities, and market conditions including the stock price
Reference - Mid-term plan KPIs: Capital adequacy ratio 10% or higher(effective) (Finalized Basel III basis. Any unrealized loss on securities is deducted fromcore capital)
FY2023 (Actual)

FY2024 Plan (Limit)

Shares acquired

30,660,000*

6,000,000

Acquisition cost

￥21.9bn**

7.0bn yen

Acquisition period

August 17, 2023 to March 1, 2024

May 13, 2024 to September 30, 2024

* 35 million shares to be retired in April 2024 (including treasury stock held from before FY2023)** ￥4.8bn return in FY2023 after deducting disposal of treasury stockthrough third-party allotment to Credit Saison (￥17.1bn)

14

2.2 Evolution of Credit Saison Alliance (Neo Finance Solutions Company)•

Saison branch office scheduled for opening this year now on hold after reexamination of priorities and resource
constraints such as IT•

Going forward, evolve alliances by redefining priority areas to become a Neo Finance Solution Company

Aim to build a unique business model unrestricted by framework of traditional regional bank model,
in order to create synergies with new business gross profits of over 2 billion yen

Three priority areas to become a
Neo Finance Solution Company

Theme

Products and services
collaboration

Sophisticated marketing

Joint use of management resources

Create new value by combining products andservices of both companies

Develop a marketing approach that leverages
digital skills and databasesof both companies

Promote effective joint use of management
resources of both companies

Initiatives and ideasProvide support services for foreign
customers by combining expertise of bothcompanies with Credit Saison's rent
guarantee as key
Provide loans to SME business owners,
such as Saison lessees, andprivate business owners



Develop housing loans for Saison Card
members utilizing both companies'
databases*Launch of banking agency business fromMarch 25, 2024

Joint use of IT tools and resources

Improved efficiency through mutual use of
backyard functions

Greater human resource exchange,
and collaboration between both Group
companies

Develop new markets, including partners ofboth companies

Joint development of digital marketing
schemes15

Joint Development of Unique Business Models
Non-banks and banks are jointly developing unique business models that capture unique customer needs
by mutually leveraging their respective strengths in products, services, and customer data
■ Joint service example - Support service for foreign customers
With Japan's working-age population expected to decline in the future, there is a growing need to take on foreign workers to enhance sustainablegrowth and industrial competitiveness. However, foreign nationals often face difficulties when looking for rented accommodation in Japan, such as
language and cultural differences, guarantors, and problems opening bank accounts to pay rent. We have therefore combined Credit Saison's“Rent Guarantee" with Suruga Bank's expertise in financial inclusion to provide services for foreign customers.

Features of the Bank Account for
Foreign Customers

Features of Saison's Rent Guarantee &Foreign National Plan・Language support in mother tongue
Multilingual call center, with Chinese and Vietnamese language
capabilities, is available for applications, contracts, and other housingrelated inquiries. *Support in more languages coming soon

・Bank transactions can be done from all over Japan
Non-Japanese customers without permanent residency can also open
accounts from smartphones.
Savings accounts come with overdraft whereby money is
automatically loaned out when not enough money in account. Visa
debit cards with credit card function also available.

Refer・Same extensive warranty as Japanese nationals
Offering the same high-quality guarantee as Credit Saison’s rent
guarantee service in terms of coverage and guarantee limits.
・Applications accepted before coming to Japan
Foreign nationals can apply for a rental property from one of our affiliatedreal estate businesses even before arriving in Japan.

17

19・Full service for foreign customers◆ Telephone Interpretation service*1: Call center provides support in
multiple languages including English, Vietnamese and Chinese to help
customers feel at home in Japan.
◆ Wire transfers*2: Customers can send money to more than 200
countries and regions with the lowest fees in the industry.
・Residency management
Check renewal status before period of stay expires. Support forprocedures before returning home.

*1: Telephone interpretation service provided by Polyglot Link Inc.
*2: PayForex provided by Queen Bee Capital Co., Ltd.

Linked to rent payment accountBy seamlessly linking with the dedicated account provided by Suruga
Bank, customers can setup an account online to make rent payments

162-3 Business Impact and Risk Inspection for a World with Interest Rates•

The ratio of our loans with floating interest rates is high at 88%, but since retail loans account for about 80% of our loans, a positive contribution to earnings is expected
relatively quickly•

In terms of risk, our deposit ratio of 10% and yen interest rate risk of 3.4% relative to equity capital are at relatively low levels, limiting any negative impact when interest rates
rise. In addition, deposits are insured at a rate of 76%, with over 80% of deposits coming from local customers. Being very sticky, deposits are expected to track any rise ininterest rates on par with past results

Loans and bills discounted (Composition bybase interest rate)
1%

Balance sheet

Deposit
Balance by location

3,522.6 billion yen as of December 31, 2023

3%

*By branch location

8%
Floating
interest rate
88％

14%

16%
3%
48%

74%
Short-term prime rate
Market-linked, etc.

Other

Kanagawa Pref.

Deposit92％(Fixed) Less than 3 years(Fixed) More than 3 years

Shizuoka Pref.

Loans and bills
discounted
58％*Yen-denominated. Fixed interest rate is byremaining period of interest rate renewal.

Of which insured
deposits
76％

Securities (Composition of yen bonds)

14%
JGB
Municipal bonds

Net interest
incomeApprox. +￥1.5bn

BOJ current
account
26％

Other yen bonds

75%

As of December 31, 2023 (Yen bonds)
Duration: 5.81 years; 100 BPV: -9.3 billion yen

Other liabilities 1%

Other assets 6%

Net assets 7%

Management

Procurement

Physicalbranches
84%

Impact of rising yen interest rates
on net interest income
Policy interest rate 0.25%

Securities 10％

11%

33%

Greater Tokyo
Metropolitan Area
Internet branches

Policy interest rate 0.5%

Net interest
incomeApprox. +￥5.0bn

ROE
improvement+1%
or higher

Reference: Main assumptions
Unsecured calls O/N 0.25%
0.50％
JGB 2Y
0.35%
0.70％
JGB 5Y
0.50%
0.90％
JGB 10Y
1.00%
1.40%
Portfolio
As of end Dec 2023
Note: Impact amounts are compared respectively with those before yeninterest rate rise17

2.4 Reducing Ratio of Cross-Shareholdings
In addition to sales in FY2023, we will systematically reduce cross-shareholdings from FY2024 onward
with aim to reduce the ratio to consolidated net assets of 10% or less within the next five years
Balance of cross-shareholdings
Principle 1.4 Cross-Shareholdings(billion yen)
Ratio to consolidated net assets(including deemed shareholdings, right axis)(1) Policy Regarding Cross-Shareholdings* Taken from Corporate
Governance Report

600

20%
Ratio to consolidated net assets(Cross-shareholdings only, right axis)

・ The Company’s policy is to reduce the balance of shares held

partners.
・ The Company will hold cross-shareholdings when it is judged

450

15%

300

10%

150

5%

to contribute to the enhancement of corporate value over the
medium to long term from the perspective of facilitating andRatio to consolidated net assets“cross-shareholdings”) after sufficient dialogue with business

Balance (actual value)

for policy investment purposes (hereinafter referred to as

strengthening the building of stable, medium to long termbusiness relationships with business partners; businessalliances; alliance business development; and so forth.

00%End of FY2022

Dec. 31, 2023

End of FY2023(Forecast)Within the next 5
years

・ The Board of Directors will review the significance, economic
rationality over the medium to long term, and future prospects

Credit Saison shares

Policy stocks other than listed on the left

Deemed shareholdingsof all cross-shareholdings to determine the appropriateness ofholding these shares.

• Sales of cross-shareholdings during FY2023: ￥3.8bn(including deemed shareholdings: ￥16.0bn)

18Summary
Three vectors aligned, starting from Corporate Philosophy, together with Management Strategies + Alliance Strategy
and Initiatives to Achieve P/B Ratio Above 1.0“I’m glad you’re here...
I’m glad we met...”This perception is our goal.

Set ROE targets

No matter how much the times change or time
passes, we are committed to providing service
from the customer’s perspective, staying
closely in tune with their everyday lives
providing value, and helping our customers
lead more prosperous lives.

• Aim for ROE of at least 6% on
average in FY2026 and beyond,and at least 8% over long term

Suruga Bank
Corporate Philosophy

Improved expected
growth rate
• Differentiation through “Creating a
difference”

Reduced capital costs• Ensure resilience against business risks

I. Evolving the Retail and Solutions
Businesses

Initiatives toAchieve
P/B Ratio Above
1.0• Pursue “Creating a Difference” starting from what ourcustomers are unhappy with, sending them themessage, “I’m glad you’re here, I’m glad we met.”

II. Building a Sustainable Revenue Structure• Counteract the decline in the top line due to the collection ofexisting loans with the “three measures (arrows)” transforming
to a revenue structure that can achieve sustainable growthIII. Risk-Taking and Risk Diversification

Mid-Term Plan & 3 Management
Strategies＋
Evolving Credit Saison
Alliance• In line with RAF, we will repeat a cycle of active risk-taking andverification in selected areas, diversifying away from our
traditional risk structure concentrated in specific real estate areas

19

<Inquiries>
IR Office, SURUGA Bank, Ltd.
Tel: +81-3-3279-5536
e-mail: ir.koho@surugabank.co.jp

The foregoing material contains statements regarding future business performance. These statements are
not intended as guarantees of any specific future performance, which is subject to a variety of risks anduncertainties. Actual future business results may differ from the targets contained in the present material,
due to unpredictable changes in the external business environment.