February 6, 2015
2015

SURUGA Bank LTD.
Consolidated Financial Results for Third Quarter of Fiscal Year Ending March 31,
31, 2015
2015<under Japanese GAAP>
Stock Exchange:
URL:
Representative:

Tokyo (code: 8358)
http://www.surugabank.co.jp
President Mitsuyoshi Okano(Japanese yen amounts of less than one million and the first decimal place have been rounded down.)

1. Consolidated Financial Results for the third quarter (from April 1, 2014 to December 31, 2014)(1) Operating Results(Unit: Millions of Yen, %: Changes from corresponding period of the previous fiscal year)

Ordinary Income

Ordinary Profit

Net Income

Third Quarter
Ended Dec. 31, 2014

95,6498.5%

38,352

12.4%

24,023

15.1%

Ended Dec. 31, 2013

88,145

7.5%

34,113

31.4%

20,86035.1%(Note1) Comprehensive Income: Third quarter ended Dec. 30, 2014:\29,859 million (14.6%); Third quarter ended Dec. 31, 2013:\26,052 million (54.9%)(Note2) Percentages shown in Ordinary Income, Ordinary Profit and Net Income and Comprehensive Income are the increase (decrease) from the same period
pervious year.

Net Income per ShareNet Income per Share(Diluted)

Third Quarter
Ended Dec. 31, 2014

\101.43\101.29

Ended Dec. 31, 2013\88.24\88.13(2) Financial Position(Unit: Millions of Yen, except percentages)
Total Assets

Total Net Assets

Own Capital Ratio

Dec. 31, 2014

4,170,423

275,992

6.5%

March 31, 2014

4,098,552

251,816

6.0%(Reference) Own Capital: Dec. 31, 2014: \273,876 million; March 31, 2014: \249,595 million(Note) Own Capital Ratio = (Total Net Assets – Subscription Rights to Shares – Minority Interests) / Total Assets * 100

2. Dividend on Common Stock
Annual Cash Dividends par Sharestnd

1 Quarter-End

2 Quarter-End

3rd Quarter-End

Fiscal Year-End

Fiscal year ended March 31, 2014

―

\7.50

―

\9.50

\17.00Fiscal year ending March 31, 2015
Fiscal year ending March 31, 2015
(Forecasts)

―

\8.50

―
\8.50

\17.00Total(Note) Revision of forecasts for dividends for quarter in review: No

3. Earnings Forecasts (for the fiscal year ending March 31, 2015)

Fiscal year
Ending March 31, 2015

Ordinary Income

Ordinary Profit

124,000

46,000

2.2%

△0.2%

(Unit: Millions of Yen, except per share data)
Net Income per
Net Income
Share28,6003.5%\120.65(Note1) Percentages shown in Ordinary Income, Ordinary Profit and Net Income are the increase (decrease) from the same period pervious year.
(Note2) Revision of earnings forecasts for quarter in review: No※Note(1) Changes in the scope of consolidated significant subsidiaries during the nine months ended Dec. 31, 2014: No(2) Adoption of simplified accounting methods for the preparation of quarterly consolidated financial statements: Yes
Note: For details, please refer to the “Adoption of particular accounting methods for quarterly consolidated financial statements” in the section 2. Items
regarding summary information (notes) on page 3.

(3) Changes in accounting policies, accounting estimates, and restatements.
(A) Changes due to revision of accounting standards:
Yes(B) Changes due to reasons other than (A):No
(C) Changes in accounting estimates:
No(D) Restatements:
No
Note: For details, please refer to the “Adoption of particular accounting methods for quarterly consolidated financial statements” in the section 3. Items
regarding summary information (notes) on page 3.

(4) Number of common shares issued at the end of period(A) Number of stocks issued (including treasury stocks):

Dec. 31, 2014

258,139,248 shares

March 31, 2014

(B) Number of treasury stocks:

Dec. 31, 2014

21,106,449 shares

March 31, 2014

258,139,248 shares
21,557,594 shares(C) Average outstanding stocks for the three months ended:

Dec. 31, 2014

236,842,566 sharesDec. 31, 2013

236,386,832 shares（Statement relating to the status of the quarterly review procedures）
This quarterly report is not subject to the quarterly review procedures, which are based on the Financial Instruments and Exchange Law.
The audit procedures are not finished at the time of release of these financial statements.

(Notes for using forecasts information etc,)
The description of future performance of this report is based on information, which is presently available and certain assumptions which are considered to bereasonable, and it does not guarantee future performance. Please take note that future performance may differ from forecasts. Regarding the assumptions forfinancial forecasts of this report, please refer to page2 of attached documents.

SURUGA bank LTD.

[Appendix][Appendix]○ Contents of the appendix

１．Qualitative information on the third quarter financial statement................................................................
...................................................................
...................................2...2(1) Description of business performance ................................................................
................................................................................................
................................................................................
................................................2................2(2) Description of financial position................................................................
................................................................................................
............................................................................................
............................................................2............................2(3) Description of forwardforward-looking information such as consolidated
consolidated earnings forecast .................2.................2
２． Items regarding summary information (notes)................................................................
................................................................................................
......................................................................
......................................3......3(1) Adoption of particular accounting methods for quarterly consolidated financial
statements ................................................................
................................................................................................
................................................................................................
................................................................................................
........................................................................
........................................3........3(2) Changes in accounting policies,
policies, accounting estimates, and restatements.......................................
.......................................3.......3
３． Quarterly
Quarterly consolidated financial statements ................................................................
................................................................................................
........................................................................
........................................4........4(1) Quarterly consolidated balance sheets................................................................
................................................................................................
.............................................................................
.............................................4.............4(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ................................................................
................................................................................................
................................................................................................
..............................................................................
..............................................5..............5(3) Notes for the assumption of going concern................................
concern................................................................
................................................................................................
....................................................................
....................................7....7(4) Note for Material
Material Changes in Shareholders’ Equity................................................................
...................................................................................
...................................................7...................7
Reference data ................................................................
................................................................................................
................................................................................................
................................................................................................
.............................................................................
.............................................8.............81

SURUGA bank LTD.

１．Qualitative information on the third quarter financial statement(1) Description of business performance
consolidated
ted basis ordinary income
With regard to the profit and loss situation on a consolida
increased by ¥ 7.50
7.5 0 4 billion from the same period of the previous fiscal year to ¥ 95.649 billion
owing to factors such as gains from increase in interest on loans and discounts.
Ordinary expenses totaled ¥57.296¥ 57.296 billion, increased by \ 3.265billion
3.265 billion yearyear - on - year , due tofactors such as increase in general and administra tive expense.
As a result, ordinary profit increased by \ 4.239 billion compared with the same period of
the previous fiscal year to \ 38.352 billion.
Net income during the period increased by \ 3.163 billion year - onon - year, to \ 24.023 billion.

(2) Description
Description of financial position
With regard to our main accounts on a consolidated basis at the end of the period, b alance of
deposits increased by \ 51.023 billion to 3.860681 trillion from the end of previous fiscal year,
as the balance of individual deposits gre w \ 148.239 billion.
B alance of loans and bills discounted totaled ¥2.962789¥ 2.962789 trillion increased by \ 84.066 billion
compared with the same period of previous fiscal year, as personal loan balance(non(non - consolidated) increased by \ 112.310 billion.
Balance of securities
s ecurities totaled ¥226.68¥ 226.680
226.68 0 billion increased by 7.790
7.79 0 billion from the end of theprevious fiscal year.

(3) Description of forwardforward-looking information such as consolidated earnings forecast
There is no change in forecasts for the year ending
ending March 31, 2015
2015 from the figures published on Nov.
Nov. 7, 2014.

Consolidated
Millions of Yen
Fiscal year ending
March 31, 2015
Ordinary income
Ordinary profit

124,000
46,000Net income

28,600

NonNon-consolidated

Fiscal year ending
March 31, 2015
Ordinary income
Net business profit

116,000
116,000
48,500Ordinary profit
Net income

45,50028,500CreditCredit-related expenses in real terms

1,000(Note) The earnings
earnings forecast were created based on the information available as of the date of this announcement
and actual results
results may differ from the forecast figures owing to various factors in the future.

2

SURUGA bank LTD.

2. Items regarding summary information (notes)(1) Adoption of particular accounting methods for quarterly consolidated financial statements
The Company calculates tax expenses
expense s for the Company and its consolidated subsidiaries
by multiplying a reasonably estimated effective tax rate by net income before taxes for thecurrent quarter.
quarter .

(2) Changes in accounting policies,
policies, accounting
accounting estimates, and restatements
Suruga Bank has adopted
ado pted the main clause of Article 35 of the accounting standard for
retirement benefits (ASBJ Statement No. 26, May 17, 2012, hereinafter referred to as the"Retirement Benefits Statement") and the main clause of Article 67 of thet he guidance on
accounting standard
stan dard for retirement benefits (ASBJ Guidance No.25, May 17, 2012)2012 ) from firstquarter ended June 30, 2014. Accordingly thet he calculation
calculati on methods of Retirement benefit
obligations and Service cost were reconsidered. The method for attributing the expected
benefitbenef it obligations was changed from the straightstraight - line basis to a benefit formula basis.
basis . T hemethod of determining the discount rate applied in the calculation of projected benefit
obligation was changed from the method using the number of year approximate to thet heemployees’
employees ’ average remaining service period to the method using the single weighted
average discount rate that reflects the estimated period and amount of benefit payment ineach period.
The Retirement Benefits Standard and other standards were applied in accordance with thetransitional treatment set forth in Article 37 of the Retirement Benefits Statement, and thet heeffecteff ect of the change in the calculation
calculati on methods of retirementr etirement benefit obligations and s ervice
cost were added to or deducted from R etained earnings
e arnings a t the beginning of nine months
ended December 31, 2014.
As a result, Net defined benefit asset decreasedde creased by \ 3.158
3.1 58 billion, Retained earnings
de creased by \ 2.046 billion asa s of the beginning of the nine months ended December 31, 2014.
In addition, both Ordinary profit and Income before income taxes increased by \ 20 million for
the nine months ended December 31, 2014.

3

SURUGA bank LTD.

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets
Millions of Yen

AssetsCash and due from banks
Call loans and bills bought
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign
Foreign exchanges
Lease receivables and investment assets
Other assets
Tangible fixed assets
Intangible fixed assets
Net defined
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
liabilities
Provision for bonus
Provision for directors' bonus
Net defined benefit liability
Provision for directors’
directors’ retirement benefits
Provision for reimbursement of deposits
Provision for contingent loss
loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation difference on availableavailable-forfor-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

4

As of Mar. 31, 20142014

As of Dec.
ec. 31
31, 20142014

700,543
183,295
39
905
218,8902,878,723
3,858
5,558
39,58048,97130,995
5,268
3,222
4,108
△25,410
4,098,552

747,214104,66770
1,077
226,680
2,962,789
2,899
5,203
55,33549,60830,979
2,816
1,250
3,791
△23,961
4,170,423

3,809,658
2,805
5
25,189
667
140
278
2,902
282
523
174
4,108
3,846,735

3,860,681
2,390
28
23,376
5
―
241
3,047
183
419
265
3,791
3,894,431

30,043
20,278203,340△16,626
237,035
10,955△13
1,617
12,560406
1,813
251,816
4,098,552

30,043
20,788221,056△16,302
255,585
16,905△38
1,424
18,291196
1,918
275,992
4,170,423

SURUGA bank LTD.

(2) Quarterly consolidated statements of income and quarterly consolidated
consolidated statements of comprehensive
incomeMillions of Yen

Ordinary income
Interest income(Interest on loans and discounts)(Interest and dividends on
on securities)
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses(Interest on deposits)
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of nonnon-current assets
Gain on reversal of subscription
subscription rights to shares
Extraordinary loss
Loss on disposal of nonnon-current assets
Income before income taxes and minority interests
Total income taxes
Income before minority interests
Minority interests in income
Net income

5

Nine months ended
Dec.
Dec. 31
31, 2013
2013

Nine months ended
Dec.
Dec. 31
31, 2014
2014

88,14574,72872,371
1,750
9,154
2,895
1,366
54,031
2,544
2,500
9,377
9,377
2,828
34,292
4,988
34,113
140
51
88
182
182
34,071
13,166
20,90544
20,86095,64981,47278,753
1,989
9,338
3,229
1,610
57,296
3,004
2,940
10,0242,517
36,908
4,841
38,352
30
10
20
699
699
37,683
13,60324,08056
24,023

SURUGA bank LTD.

Quarterly consolidated statements of comprehensive income
Millions of Yen

Nine months ended
Dec.
Dec. 31
31, 2013
2013

Nine months ended
Dec.
Dec. 31
31, 2014
2014

20,90524,080

5,142

5,998

Deferred gains or losses on hedges

5△25Remeasurements of defined benefit plans

―

△193

5,147

5,779

26,052

29,85925,97129,754

81

104

Income before minority interests
Other
Other comprehensive income
Valuation difference on availableavailable-forfor-sale securities

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

6

SURUGA bank LTD.

(3)(3) Notes
Notes for the assumption of going concern
There is no applicable item.

(4) Note for Material
Material Changes in Shareholders’Shareholders’ Equity
There is no applicable item.

7

SURUGA bank LTD.

（ Reference data）
data ）【NonNon-consolidated】
consolidated】(1) Interest margin
All operations（％）

Nine months ended
Dec.
Dec. 31
31, 2014(a) – (b)Nine months
ended
Dec.
Dec. 31
31, 2013

March. 31,
2014
2014

(a)
(b)
Yield on outstanding
outstanding loans
Yield on deposits
Loan – deposit margin
Loan – deposit margin

A
B
A-B

3.47
0.10
3.37

0.11
0.01
0.10
0.10

3.36
0.09
3.26

3.38
0.09
3.28

2.14
2.14

0.08
0.08

2.06

2.06

1.31
1.31

△0.22
0.22

1.53
1.53

1.31

(after deduction from expense ratio)

Net interest margin
Domestic operations（％）

Nine months ended
Dec. 31, 2014

Nine months ended
Dec.
Dec. 31
31, 2013(a) – (b)(a)
Yield on outstanding loans
Yield
Yield on deposits
Loan – deposit margin
Loan – deposit margin

A
B
A-B

March. 31,
2014
2014

(b)
3.48
3.48
0.10
0.10
3.38
3.38

0.10
0.01
0.09

3.38
3.38
0.09
0.09
3.29
3.29

3.40
0.09
3.30

2.15
2.15

0.08
0.08

2.07
2.07

2.08

1.34
1.34

△0.23
0.23

1.57
1.57

1.35

(after deduction from expense ratio)

Net interest margin(2) OHR（％）

Nine months ended
Dec. 31, 2014

Nine months ended
Dec. 31, 2013(a) – (b)
(a)
OHR

(b)
47.3

0.2

47.1

(3) The capital adequacy ratio

47.6

（％）

As of Dec.
Dec. 31
31,
2014
2014

As of Dec.
Dec. 31
31,
2013
2013

(a) – (b)(a)
The capital adequacy ratio(Domestic standard)

March. 31,
2014
2014

11.90
11.90

0.46
0.46

March. 31,
2014
2014

（ｂ）
11.44
11.44

11.42

The capital adequacy ratio has been calculated based on the new domestic standard from the fiscal year ended March
31, 2014.

(4)ROE(4)ROE，
ROE， ROA（％）

Nine months ended
Dec. 31 2014

(a)
ROE
ROA

Nine months ended
Dec.
Dec. 31
31, 2013(a) – (b)

13.43
0.76
0.76

＊ROE: Net income per average own capital
ROA: Net income per average total assets

8

0.17
0.03
0.03

March. 31,
2014
2014

(b)
13.26
0.73
0.73

13.22
0.72
0.72