February 9, 2023

SURUGA bank, Ltd.
Consolidated financial results for the nine months ended December 31, 2022
<under Japanese GAAP>
Stock exchange listings: Tokyo (code: 8358)
URL:
https://www.surugabank.co.jp
Representative:
Kosuke Saga, President(Amounts and percentages are rounded down to the nearest million yen and first decimal places, respectively.)

1. Consolidated financial results for the nine months ended December 31, 2022
(1) Consolidated operating results(% represents the change from the same period in the previous fiscal year)

Ordinary income
Nine months ended
December 31, 2022
December 31, 2021

Profit attributableto owners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

73,064
69,226

5.5(8.3)

23,142
13,95165.8(13.0)

20,881
9,584

117.8
1.7

(Note) Comprehensive income: (a) Nine months ended December 31, 2022: ¥307 million [(97.0)%](b) Nine months ended December 31, 2021: ¥10,348 million [(9.9)%]
Earnings per share(diluted)

Earnings per share

Nine months ended
December 31, 2022
December 31, 2021

Yen

Yen

110.86
41.36-(Note) Earnings per share for the nine months ended December 31, 2021 and 2022 is not provided because there are no potentially shares.

(2) Consolidated financial position
Total assets
As ofDecember 31, 2022
March 31, 2022

Total net assets

Net assets ratio

Millions of yen

Millions of yen

3,621,327
3,589,982

263,425
264,229

%

7.2
7.3

(Reference) Shareholders’ equity: (a) As of December 31, 2022: ¥ 263,328 million; (b) As of March 31, 2022: ¥ 264,129 million(Note) Net assets ratio = (Total net assets - Non-controlling interests) / Total assets × 100
This ratio is not calculated based on the “Capital Adequacy Ratio Notification”.

2. Dividends on common stock
Dividends per sharest

1 quarter-end

2 quarter-end

3rd quarter-end

Fiscal year-end

yen

yen
0.00
0.00

yen

yen
6.00

yen
6.00

6.00

6.00

Fiscal year
ended March 31, 2022
ending March 31, 2023
ending March 31, 2023 (forecast)

nd

―
―

―
―

Total

(Note) Revision of dividend forecast from the latest announcement: No

3. Consolidated earnings forecast for the fiscal year ending March 31, 2023(% represents the change from the previous fiscal year)

Ordinary income
Fiscal year ending
March 31, 2023

Millions of yen

86,000

Profit attributableto owners of parent

Ordinary profit% Millions of yen(6.5)

11,000(Note) Revision of earnings forecast from the latest announcement: Yes%

3.8

Millions of yen

9,000

Earnings per share
%

yen

13.0

47.77

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries that caused changes in the scope of
consolidation): No(2) Adoption of any particular accounting methods for quarterly consolidated financial statements: Yes(Note) For details, please refer to page 6 of the appendix “2. Consolidated financial statements and notes, (3) Notes regarding consolidated
financial statements, (Adoption of any particular accounting methods for quarterly consolidated financial statements)”.
(3) Changes in accounting policies, changes in accounting estimates and restatements(A) Changes in accounting policies due to revision of accounting standards: Yes(B) Changes in accounting policies due to reasons other than (A): No(C) Changes in accounting estimates: Yes(D) Restatements: No(4) Number of issued shares (common stock)(A) Number of issued shares
As of Dec. 31, 2022
(including treasury shares):(B) Number of treasury shares:

As of Dec. 31, 2022

232,139,248 shares

As of Mar. 31, 2022

232,139,248 shares

43,768,506 shares

As of Mar. 31, 2022

43,818,103 shares

Nine months ended
Nine months ended
188,344,452 shares
231,687,731 sharesDec. 31, 2022
Dec. 31, 2021
(Note1) This report is outside the scope of the external auditor’s quarterly review procedure.
(Note2) Explanation on appropriate use of forecast and other special items
The performance forecasts and other forward-looking statements in this report are based on information currently available to thecompany and on certain assumptions deemed to be reasonable, and are not intended to guarantee future performance. Actual
performance may differ materially depending on various factors.
(C) Average number of shares:

Suruga bank, Ltd.

(Appendix)

Table of contents
1. Qualitative information on financial results .......................................................................................... 2(1) Details of operating results ............................................................................................................ 2(2) Details of financial position .......................................................................................................... 2(3) Details of forecast information, including earnings forecast ....................................................... 2
2. Consolidated financial statements and notes ......................................................................................... 3(1) Consolidated balance sheets.......................................................................................................... 3(2) Consolidated statements of income and Consolidated statements of comprehensive income ............... 4(3) Notes regarding consolidated financial statements ...................................................................... 6(Notes on going-concern assumption) ............................................................................................ 6(Notes for material changes in shareholders’ equity) ..................................................................... 6(Adoption of any particular accounting methods for quarterly consolidated financial statements) .......... 6(Changes in accounting policies) .................................................................................................... 6(Changes in accounting estimates).................................................................................................. 6(Additional information) ................................................................................................................. 6* Financial results for the nine months ended December 31, 2022 supplementary information ........... 7－1－

Suruga bank, Ltd.

1. Qualitative information on financial results(1) Details of operating results
As for the consolidated operating results for the nine months ended December 31, 2022, ordinary income
increased by ¥3.838 billion year-on-year to ¥73.064 billion. This was primarily due to the recording of a reversalof allowance for loan losses, despite a decline in interest income reflecting the drop in interest on loans and bills
discounted. Meanwhile, ordinary expenses decreased by ¥5.354 billion year-on-year to ¥49.921 billion, mainly
due to the decline in provision of allowance for loan losses.
As a result, ordinary profit increased by ¥9.191 billion year-on-year to ¥23.142 billion.
Profit attributable to owners of parent increased by ¥11.297 billion year-on-year to ¥20.881 billion.

(2) Details of financial position
As for the consolidated major account balances as of December 31, 2022, loans and bills discounted came inat ¥2,076.166 billion, decreased by ¥71.913 billion from March 31, 2022, mainly due to a decrease of ¥136.031
billion in consumer loans (non-consolidated).
Securities amounted to ¥452.211 billion, decreased by ¥11.221 billion from March 31, 2022.
Deposits amounted to ¥3,334.353 billion, increased by ¥27.046 billion from March 31, 2022, mainly due toan increase of ¥25.632 billion in individual deposits.

(3) Details of forecast information, including earnings forecast
The Bank has revised its earnings forecast for the fiscal year ending March 31, 2023 from that announced on
November 11, 2022. For details, please refer to the document disclosed separately today (February 9, 2023)
titled “Announcement regarding Losses on Sales of Securities Holdings, etc. and Revision of Full-Year Earnings
Forecasts for the Fiscal Year Ending March 31, 2023”.
Consolidated(Billions of yen)Previous forecast (B)ChangeCurrent forecast(A)
Ordinary income
Ordinary profit
Profit attributable to(A)-(B)
86.0
11.0

86.0
11.0

-

9.0

10.0

(1.0)

owners of parent

Non-consolidated(Billions of yen)Previous forecast (B)ChangeCurrent forecast(A)(A)-(B)

Ordinary income
Core net operating profit
Net operating profit
Ordinary profit
Net income

77.0
22.5
8.0
10.0
8.5

77.0
22.0
17.5
10.0
9.5

0.5
(9.5)
(1.0)

Actual credit costs

1.0

10.0

(9.0)

Normal credit costs

(3.0)

3.5

(6.5)

Share house-related loans

(3.5)

(3.0)

(0.5)

Preventive allowance

7.5

9.5

(2.0)

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

2. Consolidated financial statements and notes(1) Consolidated balance sheets（Millions of yen）
As of
Mar. 31, 2022
AssetsCash and due from banks
Call loans and bills bought
Monetary claims bought
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Lease receivables and investment assets
Other assets
Property, plant and equipment
Intangible assets
Retirement benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Foreign exchanges
Other liabilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Retirement benefit liability
Provision for share-based compensation
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets
－3－

As of
Dec. 31, 2022

874,184
40,24459,73982
99463,432
2,148,079
2,292
5,066
45,24135,227
18,47420,50914,751
1,474(138,917)
3,589,982

938,53140,00094,3268099452,2112,076,166
4,772
4,752
45,53434,47916,57321,09814,981
1,317(123,598)
3,621,327

3,307,307
41
14,479
486
41
292
205
247
75
1,102
1,474
3,325,753

3,334,353
31
21,106
17
－
298
297
207
61
211
1,317
3,357,902

30,043
1,976
245,595(18,131)259,484
1,324
(3)
3,324
4,645
100
264,2293,589,982

30,043
1,974
265,347(18,111)279,253(18,748)
11
2,810(15,925)97
263,425
3,621,327

Suruga bank, Ltd.

(2) Consolidated statements of income and Consolidated statements of comprehensive income
Consolidated statements of income（Millions of yen）
For the nine months
ended
Dec. 31, 2021
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

69,22656,40854,714
1,012
5,887
2,773
4,156
55,275
1,133
1,115
8,942
2,187
30,945
12,066
13,951
3
3
1,378
789
588
12,576
2,999
9,577
(7)
9,584

－4－

For the nine months
ended
Dec. 31, 2022
73,064
51,76549,223
699
5,409
2,613
13,27549,921
1,078
999
7,975
5,295
29,5206,051
23,142
51
51
322
306
16
22,871
1,993
20,878(2)
20,881

Suruga bank, Ltd.

Consolidated statements of comprehensive income（Millions of yen）

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains(losses) on hedges
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests－5－

For the nine months
ended
Dec. 31, 2021
9,577

For the nine months
ended
Dec. 31, 2022
20,878

1,600
3
(832)
771
10,348(20,072)15(513)(20,570)307

10,356
(7)

310
(2)

Suruga bank, Ltd.

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

(Notes for material changes in shareholders’ equity)
Not applicable.

(Adoption of any particular accounting methods for quarterly consolidated financial statements)(Calculation of income taxes)
Income taxes reported by the company and its subsidiaries are calculated by multiplying income before
income taxes for the nine months ended December 31, 2022 with the reasonably estimated effective tax rate
after applying tax effect accounting to income before income taxes for the fiscal year ending March 31, 2023,
including the current third quarter.
In addition, in the case that calculating income taxes using the estimated effective tax rate significantly lacks
rationality, income taxes are calculated by using the statutory effective tax rate.

(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance
No.31, June 17, 2021) was adopted from the beginning of the first quarter of the current fiscal year. In addition,in accordance with the transitional treatment stipulated in Paragraph 27-2 of the Implementation Guidance on
Accounting Standard for Fair Value Measurement, the Bank decided to adopt a new accounting standard
stipulated by the Implementation Guidance on Accounting Standard for Fair Value Measurement in the future.
There was no impact on the quarterly consolidated financial statements.

(Changes in accounting estimates)
Previously, the bank had set the amortization period of actuarial gains and losses in accounting for retirement
benefits to 12 years. However, because the average remaining service life of employees was reduced, theamortization period has been revised to 10 years since the first quarterly consolidated financial statements.
There was minimal impact on the quarterly consolidated financial statements.

(Additional information)
With regard to financial estimates that relate to impact from the coronavirus pandemic in the third quarter ofthe current consolidated fiscal year, and assumptions that were used for these estimates, there have been nomaterial changes from the information listed in the (Additional information) section of the securities report ofthe previous consolidated fiscal year.
As such assumptions have a high level of uncertainty, if circumstances concerning the spread of thecoronavirus pandemic and its impact on the economy vary from the original assumptions, financial results
could be impacted from the fiscal year ending March, 2023.

－6－

Suruga bank, Ltd.

Financial Results for the nine months ended December 31, 2022
- Supplementary Information (1)Operating results for the nine months ended December 31, 2022 (Non-consolidated)(Millions of yen)

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income(Gains (losses) on bonds)
Core gross operating profit (Note1)
Expenses
Personnel expenses
Non-personnel expenses

Nine months ended Nine months ended
Dec. 31, 2022
Dec. 31, 2021(a)(b)
43,07948,91949,17052,153(3,225)(3,645)(2,865)411((2,862)379
45,942
48,54027,91629,862
10,323
10,74915,123
16,379ChangeFY3/2022(a) - (b)(5,840)(2,982)419(3,277)(3,241)(2,598)(1,945)(426)(1,255)65,302
69,417(4,704)589
544)
64,75839,722
14,224
22,522

18,025

18,678(653)

25,03618,025

18,678(653)

25,036

Actual net operating profit (Note3)
Provision of general allowance for loan
losses (Note4)

15,162

19,057(3,894)25,580-(18,660)

18,660(10,569)

Net operating profit

15,162

37,718(22,555)

36,149Non-recurring gains (losses)
Gains (losses) on stocks

6,405
2,539

(24,096)(22)

30,501
2,561(26,055)(22)

Ordinary profit

21,568

13,622

7,946

10,093Extraordinary gains (losses)
Income before income taxes
Income taxes (Note5)(269)
21,299958(1,305)
12,317
2,894

1,035
8,981
(1,936)(1,481)
8,612
757

Net income

20,340

9,422

10,918

7,854Core net operating profit (Note2)
Excluding gains (losses) on
cancellation of investment trusts(Millions of yen)
Net credit costs (Note6)
Provision of general allowance for loan
losses (Note4)
Disposal of non-performing loans
Reversal of allowance for loan losses(Note4)
Recoveries of written-off claims(1,384)

10,277(11,662)

20,989-(18,660)

18,660(10,569)

4,154

28,938(24,784)

31,558

5,539

-

5,539

-

2,152

3,664

(1,512)

4,957

Actual credit costs (Note7)(3,536)

6,613(10,150)

16,032(Note1) Core gross operating profit = Gross operating profit - Gains (losses) on bonds(Note2) Core net operating profit = Net operating profit + Provision of general allowance for loan losses- Gains (losses) on bonds(Note3) Actual net operating profit = Net operating profit + Provision of general allowance for loan losses(Note4) For the nine months ended December 31, 2022, the net amount of provision for general allowance for loan losses andprovision for specific allowance for loan losses is recorded in reversal of allowance for loan losses.
(Note5) The amount of Income taxes for the fiscal year ended March 31, 2022 is that of Total income taxes.
(Note6) Net credit costs = Provision of general allowance for loan losses + Disposal of non-performing loans(Note7) Actual credit costs = Net credit costs - Recoveries of written-off claims.

－7－Suruga bank, Ltd.

(A) Gross operating profit： ¥43.0 billion･Net interest income decreased by ¥2.9 billion year-on-year, mainly due to a decrease in interest on loans and bills discounted.
･Loan-deposit income decreased by ¥5.5 billion year-on-year.
･Gross operating profit decreased by ¥5.8 billion year-on-year.

Loan-deposit income

Net interest income(Billions of yen)(Billions of yen)

80.8

1-3Q,
FY3/19

76.7

65.0

57.4

52.1

49.1

1-3Q,
FY3/201-3Q,
FY3/21

1-3Q,
FY3/22

1-3Q,
FY3/23

64.2

56.2

50.5

45.0

1-3Q,
1-3Q,
1-3Q,
1-3Q,
1-3Q,
FY3/19 FY3/20 FY3/21 FY3/22 FY3/23(B) Expenses: OHR: 64.8 %･Expenses decreased by ¥1.9 billion year-on-year.
･OHR rose to 64.8% year-on-year.
(OHR (%) = Expenses / Gross operating profit × 100)

Gross operating profit

Expenses(Billions of yen)

78.2

62.2
35.4

32.9

1-3Q, FY3/19

1-3Q, FY3/20

54.8

30.5

1-3Q, FY3/21

64.8%

61.0%

55.8%

53.0%

45.2%

OHR

48.9

29.8

43.0 27.9

1-3Q, FY3/22

1-3Q, FY3/23(C) Core net operating profit: ¥18.0 billion, Net operating profit: ¥15.1 billion･Core net operating profit decreased by ¥0.6 billion year-on-year, mainly due to a decrease in net interest income.
･Net operating profit decreased by 22.5 billion yen year-on-year, mainly due to a change in the accounting item (refer to Note 4
on 7 page) for provision of allowance for loan losses.

Core net operating profit

Net operating profit(Billions of yen)

50.7

42.3
13.1
1-3Q, FY3/19

29.0

24.6

1-3Q, FY3/20

23.7
1-3Q, FY3/21

18.6

37.7

1-3Q, FY3/22

18.0

15.1

1-3Q, FY3/23(D) Ordinary profit: ¥21.5 billion, Net income: ¥20.3 billion･Ordinary profit increased by ¥7.9 billion year-on-year.
･Net income increased by ¥10.9 billion year-on-year, mainly due to an increase in ordinary profit.

(E) Actual credit costs: (¥3.5) billion･ Net credit costs decreased by ¥11.6 billion year-on-year, mainly due to a decrease (¥24.7 billion) in disposal of
non-performing loans, an increase (¥18.6 billion) in provision of general allowance for loan losses and a record (¥5.5 billion)
in reversal of allowance for loan losses.
･Actual credit costs, calculated as net credit costs ((¥1.3) billion) minus the amount of recoveries of written-off claims (¥2.1
billion) amounted to (¥3.5) billion.
－8－

Suruga bank, Ltd.

(2) Loans and deposits (Non-consolidated)(A) Loans and bills discounted･Loans and bills discounted (period-end balance) decreased by ¥150.7 billion year-on-year.
･Yield on loans and bills discounted dropped by 11 basis points year-on-year to 2.91%.
(Billions of yen）
Dec. 31, 2022(a)Dec. 31, 2021(b)(a) – (b)Mar. 31, 2022

Loans and bills discounted(period-end balance)

2,066.1(150.7)

2,216.8

2,138.5

Consumer loans

1,702.5(235.2)

1,937.7

1,838.5

Asset management company
loans for property investment

45.0

17.4

27.6

33.5

Structured finance

97.3

38.5

58.8

68.9

Loans and bills discounted(average balance)

2,095.0(167.2)

2,262.2

2,244.3

Results of new loans
Nine months ended
Dec. 31, 2022(a)(Billions of yen)
Nine months ended
Dec. 31, 2021(b)(a) - (b)New consumer loans

39.2

15.6

23.6

New asset management company loans for property investment

12.9

0.0

12.9

Subtotal

52.2

15.7

36.5

New structured finance

39.8

7.3

32.5

Total

92.0

23.0

69.0

New monetary claims bought

39.9

10.0

29.9

Grand total

132.0

33.0

99.0

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

Yield on loans and bills discounted(Billions of yen)
2,968.7
2,726.1 2,579.0
2,401.9 2,379.3
2,166.0 2,216.8
2,066.1
1,937.7
1,702.5

Dec. 18

Dec. 19

Dec. 20

Dec. 21

Dec. 22

－9－

3.35%

3.20%

3.12%

3.02%

2.91%

Dec. 18

Dec. 19

Dec. 20

Dec. 21

Dec. 22

Suruga bank, Ltd.

Consumer loans
Outstanding balance, yield, delinquency rate by loan category
Dec. 31, 2022
Loan category
Secured loans
Housing loans
Studio apartment loans
Single building apartment loans(including share house loans)
Other secured loans
Unsecured loans
Card loans
Unsecured certificate loans
Consumer loans

Period-end
balance
1,571.5
435.0
124.5

Yield
3.06%
2.73%
3.35%

(Billions of yen)Sep. 30, 2022
Delinquency Period-end
Delinquency
Yield
rate
balancerate
6.82%
1,606.0
3.08%
6.68%
0.32%
441.8
2.75%
0.28%
2.82%
2.91%
130.0
3.36%

979.3

3.14%

10.44%

1,001.2

3.14%

10.24%

32.5
131.0
90.2
40.7
1,702.5

4.33%
10.46%
11.77%
7.56%
3.63%

0.21%
2.45%
0.84%
6.02%
6.49%

32.8
135.5
92.8
42.6
1,741.5

4.41%
10.46%
11.78%
7.59%
3.65%

0.46%
2.51%
0.94%
5.94%
6.36%

1,598.6-

1.52%

1,636.2-

1.50%

Asset management company loans for(B)property investment

45.0

1.81%

-

40.3

1.82%

-

Structured finance

(C)

97.3

2.24%

-

82.7

2.24%

-

Monetary claims bought

(D)

94.3

2.06%

-

97.0

1.95%

-

(A)

Consumer loans(excluding organizational negotiation
partners)

Total(A)+(B)+(C)+(D)1,939.2
3.44%
5.69%
1,961.6
3.47%
5.65%(Note1) Delinquency rate＝Loans past due 3 months or more / Loans(Note2) Yield: Yield for customers (excluding guarantee fee, accrued interest), period-end balance basis(Note3) Yield and delinquency rate of Studio apartment loans, secured loans and consumer loans are calculated based on originals
claims before securitization.
(Note4) Organizational negotiation partners are customers who have suspended repayment as a result of structured negotiations(excluding share house loans).

Actual credit costs and Allowance for loan losses(Billions of yen)ItemDec. 31, 2022
Actual credit costs

Allowance

Share house-related loans

(3.4)

13.9

Investment property loans

(0.6)

88.8

Housing loans

(0.1)

2.6

Unsecured loans

(0.0)

3.0

Monetary claims bought

0.0

0.2

Business financing loans, etc.

0.8

9.2

Total

(3.5)

117.9

(Note) Investment property loans: Studio apartment loans, Single building apartment loans, Other secured loans－10－Suruga bank, Ltd.

(B) Deposits･Deposits (period-end balance) increased by ¥41.2 billion year-on-year.
･Yield on deposits dropped by 1 basis points year-on-year to 0.03%（Billions of yen）
Dec. 31, 2022(a)Dec. 31, 2021(b)(a) – (b)Mar. 31, 2022

Deposits (period-end balance)

3,341.2

41.2

3,300.0

3,312.1

Individual deposits

2,713.7

16.7

2,697.0

2,688.1

Deposits (average balance)

3,339.4

52.6

3,286.8

3,291.5

Deposits (period-end balance)

Yield on deposits

Individual deposits (period-end balance)(Billions of yen)
3,300.0
3,217.1
3,341.2
3,228.6
3,148.9
2,697.0
2,713.7
2,621.6
2,588.7
2,503.7
0.05%

Dec. 18

Dec. 19

Dec. 20

Dec. 21

Dec. 22－11－

Dec. 18

0.04%

0.04%

0.04%

Dec. 19

Dec. 20

Dec. 210.03%

Dec. 22

Suruga bank, Ltd.

(3) Interest margins (Non-consolidated)･Loan-deposit margin (after deduction of expenses, overall) shrunk by 1 basis points year-on-year to 1.76%, mainly due to thedecline in the yield on loans and bills discounted.
･Net interest margin (overall) shrunk by 3 basis points year-on-year to 0.75%.

Overall(%)
Nine months ended
Dec. 31, 2022(a)Nine months ended
Dec. 31, 2021(b)(a) - (b)FY3/2022

Yield on loans and bills discounted

2.91(0.11)

3.02

3.02

Yield on deposits

0.03(0.01)

0.04

0.04

Loan-deposit margin(after deduction of expenses)

1.76(0.01)

1.77

1.77

Net interest margin

0.75(0.03)

0.78

0.78

Domestic(%)
Nine months ended
Dec. 31, 2022(a)Nine months ended
Dec. 31, 2021(b)(a) - (b)FY3/2022

Yield on loans and bills discounted

2.91(0.12)

3.03

3.02

Yield on deposits

0.03(0.01)

0.04

0.04

Loan-deposit margin(after deduction of expenses)

1.79(0.02)

1.81

1.80

Net interest margin

0.77(0.05)

0.82

0.81

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

3.30%

1.99%
1.49%

1-3Q, FY3/19

3.16%

1.74%
1.19%
1-3Q, FY3/20

3.07%

2.98%

2.87%

1.80%

1.77%

1.76%

0.95%

0.78%

0.75%

1-3Q, FY3/21

1-3Q, FY3/22－12－

1-3Q, FY3/23

Suruga bank, Ltd.

(4) Non-performing loans based on the Financial Reconstruction Law (Non-consolidated)･Non-performing loans based on the Financial Reconstruction Law decreased by ¥ 115.2 billion year-on-year.
･Non-performing loan ratio declined by 442 basis points year-on-year to 10.83%.
(Millions of yen)Dec. 31, 2022

Dec. 31, 2021

Mar. 31, 2022

Claims against bankrupt and substantiallybankrupt obligors

116,601

145,682

134,167

Claims with collection risk

50,660119,80765,861Claims for special attention

57,79874,797

71,851

Total (Non-performing loans based on the
Financial Reconstruction Law)

225,059

340,288271,880

Non-performing loan ratio

10.83%

15.25%

12.63%

Total coverage

180,017

259,008

215,200

Coverage ratio

79.98%

76.11%

79.15%(Note1) Total claims = Loans and bills discounted + Foreign exchanges + Accrued interest + Customers’ liabilities for acceptancesand guarantees + Securities lent + Suspense payment (”Claims for special attention” include only “Loans and bills
discounted”)(Note2) The figures above are based on the claim classification as defined in the Article 4 of the “Ordinance for Enforcement of the
Act on Emergency Measures for the Revitalization of Financial Functions”.
(Note3) The correspondence between classifications of obligors, etc.
(a) ”Claims against bankrupt and substantially bankrupt obligors” correspond to the claims against “Effectively bankrupt
obligors” or “Bankrupt obligors” under self-assessment.
(b) ”Claims with collection risk” correspond to the claims against “Potentially bankrupt obligors” under self-assessment.
(c) ”Claims for special attention” correspond to the claims which are against “Obligors requiring caution” underself-assessment and classified as “Loans past due 3 months or more” or “Restructured loans”.

Non-performing loan ratio
14.41%

15.78%

15.25%

10.60%

Dec.1810.83%

Dec.19Dec.20－13－

Dec.21

Dec.22

Suruga bank, Ltd.

(5) Capital adequacy ratio (domestic standard)･Capital adequacy ratio (non-consolidated) rose by 82 basis points year-on-year to 14.06%.

Non-consolidated(Millions of yen)Dec. 31, 2022

Dec. 31, 2021

Mar. 31, 2022

Capital adequacy ratio

14.06%

13.24%

12.35%

Own capital (Core capital)

265,658

266,835

245,238

Core capital: instruments and reserves

288,056

289,417

268,795

Core capital: regulatory adjustments (-)

22,397

22,582

23,557

Risk-weighted assets

1,888,416

2,014,143

1,984,271

Total required capital

74,312

77,89676,858

Consolidated(Millions of yen)Dec. 31, 2022

Dec. 31, 2021

Mar. 31, 2022

Capital adequacy ratio

14.39%

13.52%

12.68%

Own capital (Core capital)

277,487

277,947

256,800

Core capital: instruments and reserves

304,150

307,693284,838

Core capital: regulatory adjustments (-)

26,662

29,74528,038Risk-weighted assets

1,927,517

2,055,248

2,024,556

Total required capital

75,876

79,54078,470Capital adequacy ratio （non-consolidated）
Own capital (non-consolidated)(Billions of yen)

9.05%

223.6

Dec. 18

9.83%

11.40%

234.2

247.7

Dec. 19

Dec. 20－14－

13.24%

14.06%

266.8

265.6

Dec. 21

Dec. 22

Suruga bank, Ltd.

(6) Composition of own capital (domestic standard)(Millions of yen)Dec. 31, 2022
Non-consolidated
ConsolidatedCore capital: instruments and reserves(1)
Directly issued qualifying common stock or preferred stock mandatorily convertible into
common stock capital plus related capital surplus and retained earnings
Capital and capital surplus
Retained earnings
Treasury shares (-)
Earnings to be distributed (-)
Accumulated other comprehensive income included in Core capital
Remeasurements of defined benefit plans
Subscription rights to acquire common stock or preferred stock mandatorily convertible
into common stock
Adjusted non-controlling interests (amount allowed to be included in Core capital)
Reserves included in Core capital: instruments and reserves
General allowance for loan losses
Eligible non-cumulative perpetual preferred stock subject to transitional arrangement
included in Core capital: instruments and reserves
Eligible capital instrument subject to transitional arrangement included in Core capital:
instruments and reserves
Capital instrument issued through the measures for strengthening capital by public
institutions included in Core capital: instruments and reserves
45% of revaluation reserve for land included in Core capital: instruments and reserves
Non-controlling interests included in Core capital subject to transitional arrangementsCore capital: instruments and reserves(A)Core capital: regulatory adjustments(2)
Total intangible fixed assets (net of related tax liability, excluding those relating tomortgage servicing rights)
Goodwill (including those equivalent)
Other intangible fixed assets other than goodwill and mortgage servicing rights
Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (net of related tax liability)
Shortfall of eligible provisions to expected losses
Gains on sale related to securitization transactions
Gains (losses) due to changes in own credit risk on fair valued liabilities
Prepaid pension cost
Net defined benefit asset
Investments in own shares (excluding those reported in the net assets)
Reciprocal cross-holdings in relevant capital instruments issued by other financial
institutions
Investments in the capital of banking, financial and insurance entities that are outside thescope of regulatory consolidation (“Other financial institutions”), net of eligible shortpositions, where the bank does not own more than 10% of the issued share capital (amountabove the 10% threshold)Amount exceeding the 10% threshold on specified items
Significant investments in the common stock of Other financial institutions, net of
eligible short positions
Mortgage servicing rights
Deferred tax assets arising from temporary differences (net of related tax liability)
Amount exceeding the 15% threshold on specified items
Core capital: regulatory adjustments(B)
Total capital
Total capital
(A-B)
(C)
Risk-weighted assets(3)
Credit risk-weighted assets
Total of items included in risk-weighted assets subject to transitional arrangements
Amount equivalent to market risk × 12.5
Amount equivalent to operational risk × 12.5
Credit risk-weighted assets adjustments
Amount equivalent to operational risk adjustments
Total amount of risk-weighted assets(D)
Capital adequacy ratio (non-consolidated)
Capital adequacy ratio (non-consolidated)(C/D)
Capital adequacy ratio (consolidated)
Capital adequacy ratio (consolidated)
(C/D)

－15－

266,187

279,253

48,629235,669
18,111-32,017265,347
18,111
2,810
2,810

-

-

21,86821,86822,06522,065

-

-

-

-

-

-

288,05619
304,150

10,481

11,930

10,481

1,197
10,732-

5

11,916-

14,726
-

-

-

-

-

-

-

-

-

22,397

26,662

265,658

277,487

1,749,634
138,782
1,888,416

1,765,410
162,106
1,927,517

14.06%--

14.39%

Suruga bank, Ltd.

(7) Unrealized gains (losses) on securities (Non-consolidated)･Net unrealized gains (losses) on securities decreased by ¥ 18.5 billion year-on-year.
(Millions of yen)Dec. 31, 2022
Fair
Value

Sep. 30, 2022

Net unrealized gains (losses)
Gains

Available-for-sale446,244 (20,055)
securities

Losses7,890

Stocks15,644

7,669

7,880

Bonds

187,008(3,910)

Others

243,590 (23,814)

Net unrealized gains (losses)

Fair
value

27,946 432,636 (15,832)
210

Mar. 31, 2022
LossesFairvalue

Net unrealized gains (losses)

Gains
8,713

24,546454,234

Gains

Losses(1,482)

9,332

10,814

16,678

8,403

8,666

263

15,862

7,587

7,901

314

9

3,920 171,353(1,241)47

1,288

143,556

(353)

140

494

-

23,814 244,603 (22,995)-

22,995294,816(8,715)

1,290

10,005(Note1) Stocks of subsidiaries and affiliates are not included since they are not valuated with fair value.
(Note2) Unrealized gains (losses) represent the difference between the fair value as of period-ends and acquisition costs.

(8) Individual deposit assets (Non-consolidated)･Individual deposit assets increased by ¥ 10.6 billion year-on-year.
･The ratio of investment products to total individual deposit assets dropped by 30 basis points year-on-year to 3.5%.
(Millions of yen)

Individual deposit assets
Yen deposits
Investment products
Foreign currency deposits
Public bonds
Mutual funds
Personal pension plans
Single premium life insurance
The ratio of investment products tototal individual deposit assets

Dec. 31, 2022(a)2,810,381
2,711,167
99,2132,616
3,734
61,38914,17817,293
3.5%－16－

10,626
17,951(7,326)(1,219)(904)(7,684)(1,378)3,860

Dec. 31, 2021(b)
2,799,755
2,693,216
106,539
3,835
4,638
69,073
15,556
13,433(0.3)%

3.8%(a) - (b)Mar. 31, 2022
2,789,587
2,684,636
104,951
3,516
4,356
68,475
14,656
13,945
3.7%