Suruga Bank, Ltd.
Financial Results for the 1st Half of FY3/24

November 22, 2023
0 Table of contents
page

Ⅰ Summary of Financial Results for the 1st Half of FY3/24

Ⅲ TOPICS

page

・1st Half Results for FY3/24; Comparison with Initial Plan

1

ESG／SDGs initiatives

・Status of Loans, Etc.

2・Environment

19・Earnings forecast for FY3/24

3・Social20

・Governance23

Ⅱ Business Performance Plan and Strategy for FY3/24

Business alliance

Priority Measure 1: Reorganizing from a Sales Headquarters System to FourAutonomous Profit Centers

・Capital and Business Alliance with Credit Saison Co., Ltd.

24

・Progress of Capital and Business Alliance with Credit Saison Co., Ltd.

25

・Outlook for New Business Gross Profit

4・Community Bank

5・Direct Bank

6

Reference Materials

・Greater Tokyo/Wide-Area Bank

7

Finances・Market Finance

9・Actual Results for 1H, FY3/24 (Comparison with 1H, FY3/23)

26

・Interest Margin, Etc.

27

・Actual Credit Costs and Non-Performing Loans Based on the Financial
Reconstruction Law

28

・Balance of loans, etc., yields, delinquency rate, YoY

29Priority Measure 2: Completing Cost Structure Reform・Cost Structure Reform

11

Priority Measure 3: Minimizing and Stabilizing Actual Credit Costs Through Higher
Credit Quality
・Status of Single Building Income Loans

12

Mid-Term Business Plan

・Status of Investment Real Estate Loans and Organizational Negotiation
Partners

13

・Overview

30

・Initiative Policies

31

・Management strategy I: Evolving the retail and solution businesses

32・Management strategy II: Building a sustainable revenue structure

33

Priority Measure 4: Pursuing Cloud Computing and DX in IT Platforms
・Pursuing Cloud Computing and DX in IT Platforms

14

Priority Measure 5: Vector Alignment with Stakeholders
・Initiatives to Enhance Corporate Value

15

・Management strategy III: Risk-taking and risk diversification

34

・Portfolio Structure

17・Phase 2 KPIs

35

・Status of Shareholders' Equity, etc. and Shareholder Return Policy

18

・Vector Alignment with Stakeholders

36© 2023SURUGA bank, Ltd. All rights reserved.

Ⅰ Summary of Financial Results for the 1st Half of FY3/24

Ⅱ Business Performance Plan and Strategy for FY3/24
Priority Measure 1: Reorganizing from a Sales Headquarters System to Four Autonomous Profit Centers
Priority Measure 2: Completing Cost Structure Reform
Priority Measure 3: Minimizing and Stabilizing Actual Credit Costs Through Higher Credit Quality
Priority Measure 4: Pursuing Cloud Computing and DX in IT Platforms
Priority Measure 5: Vector Alignment with Stakeholders

Ⅲ TOPICS（ⅰ）ESG／SDGs initiatives（ⅱ）Business alliance 1st Half Results for FY3/24; Comparison with Initial Plan
• Core gross operating profit increased 2 billion yen versus the earnings forecast to 29.5 billion yen, mainly due to an increase in net interest income(1.3 billion yen) and an improvement in net fees and commissions (0.8 billion yen).
• Expenses were 18.2 billion yen, 0.3 billion yen lower than the forecast, due to cost reductions resulting from progress in structural reforms, despite
the recording of expenses related to the alliance with Credit Saison Co., Ltd. (hereinafter "Credit Saison").
• Actual credit costs decreased by 5.7 billion yen from the forecast to -1.2 billion yen.
• Interim net income (non-consolidated) is expected to increase 6.8 billion yen to 9.3 billion yen, mainly due to the above factors.
＜Non-consolidated (interim period)＞(*) Earnings forecast: Earnings forecast announced on May 12(Billions of yen)

Earnings
forecast(A)Results(B)＜Factors causing variation in ordinary profit＞[Non-consolidated, Forecast and actual difference]

Progress rate(B)/(A)

Core net operating profit(excluding gains [losses] on
cancellation of investment trusts)

27.5

29.5

107%

Expenses

18.5

18.2

98%

Actual credit costs

4.5

(1.2)

－

Gains (losses) on securities

－

0

－

Ordinary profit

4.5

12.5

277%

Net income

2.5

9.3

372%

＜Consolidated (interim period)＞

Net interest income

・Increase in interest on loans and bills discounted: +1.0 billion yen(Flat balance factor: +0.2 billion yen, Yield factor: +0.8 billion yen)

Net fees andcommissions

・Decrease in group credit life insurance premiums (Improve income
and expenditure)

Expenses

Reason for increase: Expenses related to alliance with Credit Saison
Reason for decrease: Decrease in property expenses due to progressin structural reforms

Actual credit costs

・Increase in income from recovery of bad debts, decrease in disposalof nonperforming claims, and decrease in precautionary allowance(see table below)＜Actual Credit Costs [Non-consolidated]＞ (Billions of yen)

Actual credit costs

Earnings
forecast(A)Results(B)

Progress rate(B)/(A)

NormalamountActual credit costs arising from loans without
special factors(Including share house-relatedloans)

Preventive
allowances

Allowance for loan losses on subject loans below

Earnings
forecast

Results

4.5

(1.2)

(1.5)

(3.4)

6.0

2.2

Consolidated ordinary income

39.0

43.9

112%

Consolidated ordinary profit

4.5

12.8

284%

Allowance for investment real estate loan customers who have
newly suspended repayments triggered by organizational
negotiations

0.5

(0.1)

Profit attributableto owners of parent

2.5

9.5

380%

Allowance for claims with relaxed lending terms and conditions
that are unlikely to be recovered in the future

5.5

2.3

© 2023SURUGA bank, Ltd. All rights reserved.

1 Status of Loans, Etc.
• Loan disbursements for the first half of FY3/24 progressed 110% YoY to 102.5 billion yen. Excluding collaboration loans, etc. (previously referred to as
monetary claims bought/claims purchased), the progress was 176% YoY.
• While collaboration loans fell short of the projection as a result of careful selection of projects in line with the policy at the beginning of the fiscal year,
the solutions business, investment property loans, and structured finance posted results significantly above the projection due to the absence of ashadow in the market environment and steady inquiries from customers.
• The full-year plan for the disbursement amount for the FY3/24 remains unchanged from the initial plan for the solutions business, investment realestate loans, and structured finance, taking into account the uncertain environment of the financial market. The initial plan for collaboration loans, etc.
was 50 billion yen, but was lowered to 35 billion yen due to the unachieved amount in the first half of the fiscal year. As a result, the full-year plan forloans, etc. will be changed from 210 billion yen to 195 billion yen, but the impact on full-year results will be limited due to steady growth in the
disbursement amount in the 1st half of the fiscal year.
(Billions of yen)
1H results
For FY3/23（A）

1H results
For FY3/24（B）

Growth rate(B)/(A)

Full-year plan(C)

Progress rate(B)/(C)

Solution business

14.3

22.0

153%

45.0

48%

Investment real estate loans

17.6

35.3

200%

60.0

58%

Structured finance

20.4

35.1

172%

55.0

63%

Collaboration loans, etc.

39.9

10.0

25%

35.0

28%

Total

92.4

102.5

110%

195.0

52%

* New loans of the areas to be promoted under the “Re:Start 2025” Mid-term Business Plan and thereafter* Solution business :Housing loans, unsecured loans, etc.
* Investment real estate loans include investment real estate loans to asset management companies.
* Structured finance includes specified bonds, etc., and collaboration loans, etc., include monetary claims bought, etc.
* Full-year plan: Based on November 6 forecast© 2023SURUGA bank, Ltd. All rights reserved.

2 Earnings forecast for FY3/24• Core gross operating profit increased by 2.0 billion yen to 56.0 billion yen, taking into account the increase in net interest income in the 1st half ofthe fiscal year.
• Actual credit costs are expected to decrease by 2.5 billion yen to 4.0 billion yen, as we expect that the trends in borrowers, etc. incorporated in theinitial plan will become more evident from the third quarter onward.
• Net gains/losses on securities decreased by 2.5 billion yen to -2.5 billion yen, incorporating the reduced valuation losses in an attempt to improve
the quality of the securities portfolio.
• Net income (non-consolidated) increased by 1.5 billion yen to 10.0 billion yen due to the above factors.
(*) "Notice Concerning Revision of Earnings Forecast" disclosed on November 6, 2023.

＜Non-consolidated (interim period)＞(Billions of yen)

Announcement
on August 10(A)

Announcementon November 6(B)(excluding gains [losses] on
cancellation of investment trusts)

54.0

56.0

+2.0

Expenses

36.0

36.0

±0

Actual credit costs

6.5

4.0

(2.5)

Gains (losses) on securities

－

(2.5)

(2.5)

＜Actual credit cost assumptions (Non-consolidated)＞

Change(B)-(A)(Billions of yen)

Announcement
on August 10

Announcementon November 6

6.5

4.0

(2.0)

(3.0)

Core net operating profit
Actual credit costs
NormalamountActual credit costs arising from loans without
special factors(Including share house-relatedloans)

Preventive
allowances

Allowance for loan losses on subject loans below

8.5

7.0

1.0

0.5

7.5

6.5

Ordinary profit

11.5

14.0

+2.5

Allowance for investment real estate loan customers who have
newly suspended repayments triggered by organizational
negotiations

Net income

8.5

10.0

+1.5

Allowance for claims with relaxed lending terms and conditions
that are unlikely to be recovered in the future

Announcement
on August 10(A)

Announcementon November 6(B)

Consolidated ordinary income

77.5

81.0

+3.5

Consolidated ordinary profit

12.0

14.5

+2.5

8.5

10.0

+1.5

＜Consolidated (interim period)＞

Profit attributableto owners of parent

Change(B)-(A)© 2023SURUGA bank, Ltd. All rights reserved.

3

Ⅰ Summary of Financial Results for the 1st Half of FY3/24

Ⅱ Business Performance Plan and Strategy for FY3/24
Priority Measure 1: Reorganizing from a Sales Headquarters System to Four Autonomous Profit Centers
Priority Measure 2: Completing Cost Structure Reform
Priority Measure 3: Minimizing and Stabilizing Actual Credit Costs Through Higher Credit Quality
Priority Measure 4: Pursuing Cloud Computing and DX in IT Platforms
Priority Measure 5: Vector Alignment with Stakeholders

Ⅲ TOPICS（ⅰ）ESG／SDGs initiatives（ⅱ）Business alliance Outlook for New Business Gross Profit

Measure1

Measure2

Measure3

Measure4

Measure5• Core gross operating profit from the new portfolio is expected to increase by 2.7 billion yen YoY to 10.4 billion yen(+0.6 billion yen compared to the figures announced on May 26)• Core gross operating profit from the new portfolio for the 1st half is expected to be steady progress, at 4.9 billion yen.

New Business Gross Profit (Core Gross Operating Profit, New Portfolio)(Billions of yen)

FY3/23Results(A)

1st half results

FY3/24
Outlook*3(B)

Change(B)-(A)

Retail/Solution Businesses

2.3

1.8

4.1

+1.8

Solution Business*1

0.8

0.6

1.5

+0.7

Investment real estate loans

1.5

1.1

2.6

+1.1

5.4

3.1

6.3

+0.9

Structured finance

2.3

1.8

3.7

+1.4

Market operations, etc.*2

3.0

1.3

2.6

(0.4)

New Business Gross Profit [New Portfolio] Total

7.7

4.9

10.4

+2.7

Reference : Old Portfolio Gross Profit

52.4

24.7

45.6

(6.8)

Market Finance*1 Solution Business includes asset consulting, housing loans, unsecured loans, etc.
*2 Market operations, etc. includes claim purchases*3 Partially revised from the figures announced in the IR presentation material on May 26, in accordance with the revision of the earnings
forecast on November 6.
 New Portfolio: Revenue from goods and services issued on or after April 2020
 Old Portfolio: Revenue from goods and services contracted on or before March 2020

© 2023SURUGA bank, Ltd. All rights reserved.

4 Community Bank

Measure1

Measure2

Measure3

Measure4

Measure5• In order to build long-term relationships with customers and become a lifelong partner who stands by their side, we are promoting a 100-person
program in the individual solutions business from the current fiscal year to establish account-based sales. The corporate solutions business willcontinue to focus on helping local companies solve their business issues and building a foundation for the future by leveraging collaboration withothers such as the group, partner companies, and experts.
• We will serve as a profit center through sales activities tailored to the characteristics of each area in Shizuoka and Kanagawa.

Community Bank Strategy

Community bank initiatives

Personal Solutions Businesses - Direction -As the second phase of the Mid-Term Business Plan begins, FAs and FACs in eacharea will be assigned to 100 customers under the 100 Person Program to enhancetheir understanding of what each customer is unhappy with and make optimal
proposals to resolve them.

First Pillar
Second Pillar
Expanding share withcustomers

 The 100 Person Program

Understanding "AID"・Communication sheets
・Utilizing CRM

Third Pillar
Securing originality
for target segments

Creating contact
points, mainly
outboundEliminating "AID",
making optimal proposals

Customers
Corporate Solutions Businesses - Strengthen support -Financial

Management
support Internet banking and other fundmanagement services
 Cashless payment support
 Streamlining settlement operations withbusiness cards, etc.

 Business financing with appropriate
assessment
 Utilizing public institutional loans
such as SDGs guarantees
 Improving cash flow throughfactoring and leasing, etc.

P

A
FAs/FACs

D Proposal process

C Interest-free and unsecured loans by community banks(as of September 30, 2023)
Percentage of interest-free andunsecured loans (balance basis)

Percentage of interest-free and unsecuredloans in subrogation (cumulative amount basis)

Approx. 5%

Approx. 2%

Continuation
management
 Business succession, M&A
 Matching for human resources
support and development Support for foreign employment andretention, etc.

Corporate loans (other than interest-free and unsecured
法人融資（ゼロゼロ融資以外）
loans)
Interest-free and unsecured loans
ゼロゼロ融資Amount of subrogation payments
代位弁済額
その他
Other

*Delinquency rate for interest-free and unsecured loans: 0% (delinquent for 3 months or more)© 2023SURUGA bank, Ltd. All rights reserved.

5 Direct Bank

Measure1

Measure2

Measure3

Measure4

Measure5• We are expanding the customer base nationwide through the development of smart accounts and Internet branches, a collaborative platform withalliance companies. Currently, we are promoting a wide range of transactions through returning value to customers and cross-selling proposals forbank transfer/balance charging/other transactions.
• In the area of FI (Financial Inclusion), we will continue to strengthen our product design and promotion strategy optimized for each target segment
by developing loans for various uses (auto, education, dental) and providing lifestyle accounts and auto loans to foreign customers.
• We support our customers' enriched lifestyles with a wide range of purpose-specific loans for various uses of funds.

Direct Bank Strategy
Targeting

Unique Suruga Value Provided

Timely proposals tailored to lifestyle andconsumer behavior

Non-Japanese
residents

Younger generations
seeking value for
money

Trends in the number of direct bank contracts signed

Elderly

Well-being-conscious
customers

etc.

Product lineup• Smart accounts• musu-bi• Accounts exclusively for non-Japanesecustomers without permanent residency• Auto loans for non-Japanese customers, etc.
Loans by purpose• Auto loans, educational loans, bridal loans• Dental loans, animal healthcare loans• Road bike purchase loans, golfer's loans
Musical instrument/audio equipment purchaseloans, etc.

Business Areas

Foreign Customer-related Tie-ups

Enhancing customer contact points
through the use of digital technology,
including collaboration with companies inother industries

We launched collaboration with One
Terrace in 2022 to start high-level foreign
personnel placement business mainly forour corporate clients in Shizuoka andKanagawa Prefectures.

ANA Branch
Recruit Branch
T Point Branch
D Bank BranchDream Direct
Branch20,000 Proposed corporate clients: 9 companies(including 6 corporate clients with confirmed
offers)） Matching of 14 high-level professionals,
mainly from Vietnam and Myanmar, wassuccessfully completed.

subject(Left axis) Number of cumulative direct bankaccounts opened over time*1

800(Right axis) Cumulative number of contracts forforeigner-related products*2

15,000600

10,000

400

5,000

200

0

0

*¹ Cumulative number of main Internet branch accounts within direct banks opened since October 2022*² Cumulative number of savings accounts and auto loans established and signed since October 2022

Anti-money laundering and crime prevention measures

Digital(Main branches)

10 branches

subject

CustomerManagement© 2023SURUGA bank, Ltd. All rights reserved.

The online identity verification "proost" from ACSiON Corporation has been inplace since 2021 to detect unauthorized account opening by spoofing, and toprovide highly accurate identity verification through online completion.

By enabling the provision of account opening online to foreign nationals, themanagement of information such as status of residence and expiration date has
become more accurate and efficient.
We are also able to confirm each customer's status of residence after renewal of
the expiration date.

6 Greater Tokyo/Wide-Area Bank - Housing Loans -Measure1

Measure2

Measure3

Measure4

Measure5• The approach to customers based on area characteristics set forth in the Mid-Term Business Plan is gradually gaining ground. In particular,
consultations other than primary acquisition, such as use by high-income earners and business owners to change residences or purchase a base fortwo locations, are increasing, and we will pursue consulting services suited to each individual customer and provide products tailored to thecharacteristics of the area.
• Due in part to growing needs for non-face-to-face interaction, the number of web-based housing loan applications increased by approximately 30%
year-on-year.

Housing Loan Strategy
TargetingConsulting tailoredto each customer

High-income
earners

Change ofresidence

Business owners

Lives in two
locations

Proposals

Business Areas
Nationwide business through a network oflocations across five major metropolitan
areas and direct services●

31%

UnderstandingneedsHigh income earners(annual income of 10 million yen or more)

Exploring issues

Business owners

Number of Web Applications

Credit expertise+approx. 30%

Credit decisions based on longcultivated data and expertise

1,789

1,364

＋
9 locations

Product lineup
●

●

35%

Dialogueetc.

Direct housing
loan center

Share by number of loans

One to One Support

Targeting according to area
characteristics

Non-Japanese
residents

High-income earners/Business owners

●

●
●
●
●●

Full lineup of interest rates
ranging from 0.5% to 3%.
First half of FY2022© 2023SURUGA bank, Ltd. All rights reserved.

First half of FY2023

7 Greater Tokyo/Wide-Area Bank - Investment Real Estate Loans -Measure1

Measure2

Measure3

Measure4

Measure5• Both organic and inorganic areas are performing well, with 35.3 billion yen in new loans in the first half of the year (58% of annual plan progress).
• We will seek to expand transactions by building a track record through tailor-made responses by a dedicated team of knowledgeable andexperienced professionals. At the same time, we aim to increase our presence in the market by developing and revising products as needed tomeet customer needs.

Investment Real Estate Loan Strategy

Share of Loans by Customer Segment (By Amount Disbursed)*Segment selection period: April 1, 2023 to September 30, 2023

• Polished, professional sales structure with a dedicated team• Flexible product development capabilities tailored to diverse
needs and property locations• Tailor-made support cultivated in the housing loan business

Organic
areas• Alliances through deepening transactions with partner companies• Expanding transaction volume through stronger relationships withpartner companies• Expanding scope by developing new partner companies

Inorganicareas

Unique value
proposition• Providing optimal services based on a customer-oriented
approach• Proprietary screening system combining factors such as asset
background, property value, etc.
• Upgrading talent capabilities to improve solution skills

Loan Results by Promotion Structure

By amount
Masssegment

By number of loansMasssegmentSuperaffluent/affluent
37%

Super
affluent/affluent
21%
Approx.
52%

Upper mass

Approx.
65%

Upper mass

Emerging
affluent
28%
Super affluent/affluent

Emerging affluent

Emerging
affluent
31%

Upper mass

Mass segment

Reference: Segments are based on NRI research and classified by financial assets held at the time of the research

Number of Web Applications+approx. 40%
Inorganic
41％

824

584

Organic

59％
First half of FY2022

First half of FY2023© 2023SURUGA bank, Ltd. All rights reserved.

First half of FY2023

8 Market Finance - Structured Finance -Measure1

Measure2

Measure3

Measure4

Measure5• Although the number of competing players has been on the rise recently, sales activities have remained strong as a result of efforts to train
employees to strengthen their ability to identify and handle situations. Although the current execution rate is slightly decreasing as a result of more
selective deal selection, we are maintaining a middle-risk/medium-return portfolio, which is our goal.
• New loans amounted to 35.1 billion yen in the first half of the current fiscal year. Loan balance at the end of September 2023 is 145.8 billion yen,with a yield of 2.31%.

Trends in financing amount / Forecast

Balance composition ratio by category (as of September 30, 2023)(Billions of yen)

Disbursed(2H)80

Disbursed (1H)60

0Residential

29.1

25%

20.6
9.7
FY3/21

20.1

20.4

1%
FY3/22

FY3/23

Balance(Billions of yen)

2.28%

Yield
2.37%

2.27%

160

Renewables
Corporate

Composition by Property Region (as of September 30, 2023)
3%

2.50%

120

*Total for real estate loans only

7%

2.31%
2.25%

126.4

40

6% 10%

FY3/24

145.8

12%

2.00%

Greater Tokyo area

14%

68.9

80

Logistics
Business Use

35.1

Balance of loans receivable/Yield
200

Offices

41%

51.7

40
20

17%

55 billion yen(annual plan)

1.75%

33.5

65%

Shizuoka/Kanagawa
Kansai area
Chubu area

0

1.50%
March 2021

March 2022

March 2023

September 2023
© 2023SURUGA bank, Ltd. All rights reserved.

Other

9

 Market Finance - Securities Management -Measure1

Measure2

Measure3

Measure4

Measure5• Amid uncertain market conditions in Japan and globally, we took a cautious investment stance during the first half of the period, in line with our policy at the
beginning of the period. The capital and business alliance with Saison increased our stock investment balance, and stock valuation gains increased,
maintaining positive overall valuation gains as of the end of September 2023.
• We will continue to gradually transition to a stable profit structure, taking into account the market environment. In addition, our policy is to reduce valuation
losses by replacing issues in the yen bond portfolio, etc. at appropriate times with the aim of improving the quality of the portfolio.

Securities portfolio
Domestic bonds

Domestic stocks

Unrealized gains (losses) on securities
・Valuation difference on available-for-sale securities

Other

Mar.31 2023
Multi-asset funds(Billions of yen)

444.4
413.2
357.8
242.4
117.2
5.4
211.9
11.6

60.2

5.8
7.3

Sep.30 2023

Fair valueNet
unrealized
gains (losses)

Fair valueNet
unrealized
gains (losses)

Other securities

292.0

(1.2)

347.2

0.7

Shares

15.5

7.7

39.0

15.6

Bonds

154.7

(0.3)

187.9

(3.1)

Multi-asset fund

120.3

(8.6)

117.2

(11.7)

1.3

(0)

2.9

(0)

Other

240.7

(Billions of yen)

*As of September 30, 2023: Overall portfolio 100BPV: -16.3 billion yen

・Multi-asset fund investment asset classes [As of Sep. 30, 2023]

47.1

24.7
25.1

23.4

187.9
140.0

Fair value
117.2 billion
yen

171.3

116.5

Japanese government bonds, etc.
Advanced countries’government bonds, etc.

20/9

21/9

22/9

23/9

© 2023SURUGA bank, Ltd. All rights reserved.

Domestic stocks
Foreign stocks

10 Cost Structure Reform

Measure1

Measure2

Measure3

Measure4

Measure5• Cost structure reforms, which have been underway since the Mid-Term Business Plan Re:Start 2025, progressed as planned, and despite therecording of expenses related to the capital and business alliance with Credit Saison (240 million yen), the amount for the 1st half was 18.2 billion
yen, down 500 million yen YoY.
• The full-year forecast remains unchanged from the beginning of the fiscal year, based on the assumption of additional human capital investment in
the 2nd half.
• In network reorganization, we plan to continue the consolidation and relocation of five locations from Q3 onward.

Cost Structure Reform

Expenses Trend(Billions of yen)Completed cost structure reforms, cutting by 30% vs. FY2018 to build
a sustainable revenue structure

Expenses

FY2018Results

FY2022
Results

FY2025Plan

Phase 2
Reduction

46.8 billionyen

36.2 billion
yen

32.5 billion
yen-3.7 billion
yen

50

46.8

40

Reorganization according
to area characteristics

Front shift of human resources
Downsizing of headquarter staff
Digitalization and streamlining of operations

Network

Human resource allocation

Reorganization

Improving operational efficiency

30

23.8

20

18.7

18.2

FY2022

FY2023[Full year : forecast]

100
FY2025[Final year of second phase]

Number of staffed locations

End of Mar.2023

IT Costs,
DX Promotion

101 locations
Strategic IT investment

32.5[Forecast][Plan]FY2018Three pillarsof coststructurereform-30%
compared to
FY18

Full year

36

36.2

-30％
Reorganization of sustainable locations

1st half

No. of locations to be consolidated
or relocated*.
1st half

2nd half

4 locations

5 locations

March 31, 2024
(forecast)

92 locations

IT cost reductions

Promotion according to IT roadmap*Relocation: Refers to relocation to a branch-in-branch and is counted as one location.
© 2023SURUGA bank, Ltd. All rights reserved.

11 Status of Single Building Apartment Loans

Measure1

Measure2

Measure3

Measure4

Measure5• The substantial level of protection against the claims to parties other than the organizationally negotiated counterparties, etc. among the Financial
Reconstruction Law claims, which has been emphasized since the second phase of the Mid-Term Business Plan as part of efforts to improve credit quality,
was maintained at about 70%.
• The balance of single building income loans was 897.1 billion yen, of which 871.3 billion yen was free of delinquencies ((b)/(a)≒97% in the table below).
• In FY2023, we will continue to conduct periodic investigations and provide unique support for property management, including reporting to customers on the
management status of properties identified in the investigations, as well as referring specialists, with the aim of maintaining and increasing the rank forclassifications of obligors.
Disclosed Claims Under the Financial Reconstruction Law and Coverage Status (as of March 31, 2023)(Billions of yen)
Coverage ratio

Disclosed claims under the
Financial Reconstruction Act(A)

Appraised collateral value*1

Organizational negotiation partners

88.2

34.0

53.6

99.3％

Non-organizational negotiation partners*2

93.5

37.2

28.2

69.9％

(B)

Allowances/guarantees (C)Coverage ratio(B+C)/A*1 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%.

*2 Non-organizational negotiation partners" shows the total for single building income loans

Balance and delinquency status by borrower category (excluding systematically negotiated loans, etc.)(as of September 30, 2023)

Occupancy rate of single building apartments (periodic survey)(Billions of yen)

90.0%
Borrower classification

Normal clients
Clients requiring special attention*3
Clients requiring corrective action
Clients at high risk of bankruptcy
Virtual bankruptcy lients/bankruptcy
Total

88.3%

89.0%
Credit claims such asloans＊4

Balance of single
building apartment
loans*5

1,258.6
555.6
60.2
40.4
30.6
1,945.6

322.8
472.2
51.0
26.6
24.4
（a）897.1

Not delinquent

88.0%
87.0%

322.8
470.5
49.1
24.4
4.3
（b）871.3＊3 Loans are classified as requiring special attention if tax return documents are not received or the loan property has negative cash flow even if not delinquent＊4 Credit claims such as loans: Loans and bills discounted, customers’ liabilities for acceptances and guarantees, foreign exchanges, securities lent, suspense

payments equivalent to loans and bills discounted, accrued interest on loans and bills discounted

86.0%
85.0%
FY3/21

FY3/22

FY3/23

1st half of
FY3/24

Survey content:
Covers customer properties with a single building income loan balance of
50 million yen or more
(Approx. 8,200 properties, 90% of total outstanding balance)＊5 Includes corporate investment real estate loans© 2023SURUGA bank, Ltd. All rights reserved.

12 Status of Investment Real Estate Loans andOrganizational Negotiation Partners
Status of efforts to dateUnder
negotiation/dispute

Party to collective
bargaining

Released May 15, 2019
"Report on Survey of All Properties Concerning
Investment Real Estate Loans"
Real estate properties covered by survey

Borrowers continuing
repayment(Including repayment support
agreement partners)

Measure1

Measure2

Measure3

Measure4

Measure5

After approximately four years of repayment support
and consultation efforts, more than 40% of the 37,907
properties surveyed have a loan balance of zero, andmore than 50% are maintaining loan repayment.
Meanwhile, we are in organizational negotiations with
864 properties* (2.3% of 37,907 properties), and we willcontinue to work toward a proper resolution of theseissues.

37,907
No balance(paid, etc.)*64 properties have been removed from the organizational negotiations from the end of
September 2022 to the end of September this year due to voluntary sales and other

As of Sep. 30, 2023

factors.

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, and we arealso 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 isnecessary to consider the unique circumstances of each case individually when determining whether and to 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"released on November 22, 2023.
© 2023SURUGA bank, Ltd. All rights reserved.

13

 Pursuing Cloud Computing and DX in IT Platforms

Measure1

Measure2

Measure3

Measure4

Measure5• DX is promoted through digital shift of non-face-to-face and face-to-face channels to provide new customer experiences and business reforms.
• In strategic areas (customer digital contact points such as smartphone apps), we will provide flexible and speedy services through in-housedevelopment.

• In order to start using generated AI, we have established a specialized environment and guidelines for its use, and plan to start using it for all
employees in FY2024.
Non-face-to-face and face-to-face digital channel enhancement
・Start of AI chatbots providing foreign language support service
・Significantly expanding the period during which transactions can be viewed via theapplication to promote the elimination of bankbooks

Expansion of
online applications

・ Shift to advanced identity verification through eKYC for opening accounts at
Internet branches
・Improved card loan application procedures and improved UIPromotingdigitalization of
branches・Sequentially expanding services available on tablet devices (SMA-Navi) for
customers
・Consolidating cashless branch operations into the branch support center (ESC)

Upgrading data
analysis
infrastructure

・Building a flexible and agile next-generation IT infrastructure that utilizes cloudtechnology
・Expansion of sales support and communication functions

 Effects

Overview

Strengthening
smartphone apps

Generative AI Initiatives

Shifting branches todigitalUpgrading data
analysis infrastructure

Moving to cloudtechnologies
Cultivating talent in
new IT techPhase 2Phase 1
2020

2023

Beyond Phase 2
2025

begin trials

generative AI learn internal information

Application examples

Phase 1

Expanding web
applications• Establish a dedicated environment for use in FY2023 and• Improve accuracy of responses to inquiries by having the

Cloud computing
for accounts

Enhancingsmartphone app

 Plan• Expand use to all employees in FY2024

Beyond Phase 2
Phase 2

Generative AI can be used to improve operational efficiency
and productivity and allocate resources to higher value-added
tasks.

Planning andidea
generation

・Creation of plans and ideas, and taking them to the next level
・Creation of FAQs, manuals, etc.

Writing andsummarizing

・Writing, correction, proofreading
・Preparation of minutes from audio recordings of meetings, etc.

Sales andmarketing・Catch copy creation for products and services
・Sales and call center call analysis

Answeringinquiries

・Automation of in-house chatbots
・Creation of response plans for call center inquiries, etc.

2027

© 2023SURUGA bank, Ltd. All rights reserved.

14 Initiatives to Enhance Corporate Value 1

Measure1

Measure2

Measure3

Measure4

Measure5• To enhance corporate value (increase shareholder value), we will work to improve ROE in excess of cost of capital and aim to exceed a price bookvalue ratio of 1.0 in the medium to long term.
• In particular, to improve ROE, which is recognized as an issue, we aim to steadily implement the strategies set forth in the Mid-Term Business Plan
Re:Start2025 Phase 2.

Current status analysis
ROE
PBR

1
0.75

23/9
0.50x

0.5

23/9
3.07％

10%

[Market assessment]

5%
0.25
0

0%
19/3

20/3

21/3

22/3

23/3

19/3

20/3

21/3

22/3

◆Comparison with listed regional banks

PER
23/9
16.30x

20

10

23/3
Sep.30, 2023 Unit: Ratio/percentage

PBR

PER

ROE

Suruga Bank

0.50

16.30

3.07

Average of listed regional
banks

0.38

11.36

3.35

Source: QUICK, public Suruga Bank materials

0
19/3

20/3

21/3

22/3

23/3

Graph legend: — PBR and PER are on a consolidated basis.
ROE is calculated based on the above indicators (ROE=PBR÷PER)● ROE (actual results, on a non-consolidated basis as announced by Suruga Bank)、
Actual results for FY 3/19 are off the graph at -30.6%.

Awareness of Issues
・Improvement of ROE is essential to enhance corporate value (increase
shareholder value and improve PBR)
・Promoting the Mid-Term Business Plan to improve ROE© 2023SURUGA bank, Ltd. All rights reserved.

15 Initiatives to Enhance Corporate Value 2

Measure1

Current status of our initiatives

Cost structurereformCost reduction

improvement

Measure3

Measure4

Measure5

Plan growth by 2.2 times compared to FY2022 in new business gross profit
through evolution of retail solutions business.

Profitability
enhancement

ROE

Measure2

Stabilizing actual
credit cost at low
level

Capital control

Priority
measure (1)Create a Neo Finance Solution Company that transcends the conventional imageof a financial institution by maximizing the retail expertise of both companies andseamlessly collaborating with each other to address all kinds of problems andinefficiencies.

Capital andbusiness alliancewith Credit Saison.

Implement and complete cost structure reforms following Phase 1 of the Mid-TermBusiness Plan.
*Expenses: 36.2 billion yen (FY2022) → 32.5 billion yen (planned for FY2025)

Priority
measure (2)Proactively implement measures to improve credit quality and stabilize actual credit
costs at a low level.
*Actual credit costs: Approx. 9 billion yen (FY2020-2022 average)→ Average of less than 3 billion yen/year from FY2025 onward

Priority
measure (3)・Equity ratio: 10%* or higher
・We will strive to enhance shareholder returns after considering the optimum
balance between capital health and investment for growth.

Priority
measure (5)Pursue "Creation of Difference" starting from what our customers are unhappy with,and get our customers to think, "I’m glad you’re here... I’m glad we met..."Management
Strategy I

Promote in-house production in strategic areas through the shift of IT platforms to
cloud computing and the promotion of DX, and establish a foundation for flexible
and speedy realization of "Creation of Difference".

Priority
measure (4)・Organize management issues from the perspective of human capital and develop
measures that contribute to sustainable improvement of corporate value.
・Introduce a share remuneration plan for executives in addition to directors andcorporate officers.

Priority
measure (5)Establish a sustainable profit structure by counteracting the reduction in core grossoperating profit due to the old portfolio by using the three strategic measures.

Management
Strategy II

In accordance with the RAF, repeat active risk-taking and verification in selectedareas, and promote diversification from the traditional risk structure concentrated in
specific real estate areas.

Management
Strategy III

Enhancement ofcorporate value(shareholder value)

Improvingexpected growthrate

Creating a
difference
Investing inhuman capital

Capital cost
reduction

Business risk
control

Sustainablebusiness model
Risk appetite
framework*Based on Basel III Endgame. In the case of net unrealized losses on securities, such losses are deducted from core capital.

© 2023SURUGA bank, Ltd. All rights reserved.

16 Portfolio Structure

Measure1

Measure2

Measure3

Measure4

Measure5• Loans, which account for the majority of assets under management, have a floating interest rate of approximately 90%, and an increase in yen
interest rates is expected to have a positive impact on our earnings.
• As for funding, we have secured highly sticky deposits, mainly in Shizuoka and Kanagawa Prefectures, which are our home prefectures.
Loans and bills discounted[Composition by base interest rate]

4%

Balance sheet

Deposits

As of t Sep. 2023 3,547.8 billion yen

Fixed term deposit ratio
Fixed term
deposit54％

7%

1%

Floating
interest rate
88％

14%

9%

18%

(Fixed-term) Less than 6 months(Fixed-term) 6 months-1 year

74%
Short-term projections

Loans and bills
discounted
57％

Market-linked, etc.
(Fixed-term)Less than 3 years(Fixed-term)3 years or more
Other

※円貨、固定金利は金利更改残存期間別(Fixed term) 3 years or more

Deposits
92％(76％ of which
are insured
deposits)

Securities (% of Yen Bonds)

17%

Liquidity deposit (without interest)

2%*Yen and fixed term deposits are by interest rate renewal and remaining maturity.

Balance by location*By branch location

19%

73%

Liquidity deposit (with interest)

Securities
10％

8%

3%
JGBs
Municipal bonds
Other yen bonds

As of September 30, 2023 (yen bonds)
Duration:6.62 year 100BPV：-12.0 billion yen

16%

38%

(Fixed-term) 1 year-3 years

16%

Bank of Japan
current account
27％

48%
Other assets 1％

Other assets 6％

Net assets
7％

Investment
management

Procurement© 2023SURUGA bank, Ltd. All rights reserved.

OnlandLocation84％

33%

Shizuoka Prefecture
Tokyo Metropolitan Area, Wide-area

Kanagawa PrefectureInternet Branch17 Status of Shareholders' Equity, etc. and Shareholder
Return Policy

Measure1

Shareholder Equity and Capital Adequacy Ratio <Non-consolidated>

9.23%

11.04%

11.96％(trial calculation)

13.54%

13.59%

Basic Shareholder Returns Policy•

14.91%

Dividends
Our basic policy is to maintain stable dividends, targeting
a dividend payout ratio of around 30%•

Acquisition of treasury stock
We will flexibly implement shareholder return measures that
contribute to the improvement of capital efficiency, taking into
account business performance, capital conditions, growthinvestment opportunities, and market conditions including thestock price.

273.4
261.7

245.3

Measure5

Our policy is to strive to enhance shareholder returns after
considering
the optimal balance between capital soundness and investment
for growth(billion yen)

Returns

275.2

Measure4

We will return profits to stakeholders after taking into consideration
our Group's corporate philosophy and long-term vision.
•

After application of Basel III endgame
and full share repurchase

Measure3

Shareholder Returns Policy

Capital adequacy ratio

Shareholder equity

Measure
2

•

228.9

Promotion of ESG/SDGs
We will promote them on a Group-wide basis, focusing on thefour themes set forth as materialities (see 36).

 Acquisition of treasury stock *Disclosed May 18, 2023
Type of shares acquired

Common stock

Total number of shares acquired

35,000 thousand shares (maximum)

Total acquisition cost

22 billion yen (maximum)

Acquisition period

July 4, 2023 to March 31, 2024

After the acquisition of treasury stock is completed, the Company expects to utilize theshares for stock-based compensation plans, etc.
Treasury stock in excess of the number of shares will be retired, in principle.

19/9

20/9

21/9

22/9

23/9

(Share buyback status as of October 31, 2023)
Number of shares acquired：11,719 thousand shares (Progress rate 33.5％)
Acquisition cost：7.2 billion yen (Progress rate 33.1％)© 2023SURUGA bank, Ltd. All rights reserved.

18

Ⅰ Summary of Financial Results for the 1st Half of FY3/24

Ⅱ Business Performance Plan and Strategy for FY3/24
Priority Measure 1: Reorganizing from a Sales Headquarters System to Four Autonomous Profit Centers
Priority Measure 2: Completing Cost Structure Reform
Priority Measure 3: Minimizing and Stabilizing Actual Credit Costs Through Higher Credit Quality
Priority Measure 4: Pursuing Cloud Computing and DX in IT Platforms
Priority Measure 5: Vector Alignment with Stakeholders

Ⅲ TOPICS（ⅰ）ESG／SDGs initiatives（ⅱ）Business alliance ESG/SDG Initiatives - Environment Contributions to Environmental Preservation - Suruga Bank Group's Materiality Shizuoka Prefecture, where our group is based, has abundant forests, marine resources, and tourism resources such as Mt. Fuji and the Suruga Bay. However, weface many environmental challenges, including the decline of forests' public interest functions, the decrease of fishery resources, the waste problem, and the marine
plastic problem. We will actively promote initiatives that contribute to solving these issues for the sustainable development of the region and our group companies.

Local Environmental Preservation

Reduction of own CO2 emissions■Introduction of CO2-free electricity■Support for the Shizuoka Prefecture SDGs Business Awards

Introduction of Shizuoka Green Electricity provided by Chubu
Electric Power Miraiz Co., Inc.
CO2 emissions of installed facilities

194.1

April 2022

20.6

（t-CO2）
FY2021(before implementation)

May 2023

FY2022(after implementation)

Introduction of Green Basic Plan and Uchicchi Electricity
provided by TEPCO Energy Partner to 26 facilities（t-CO2）

7,478
45.8% reduction
compared to FY2013

5,834

6,000

4,879
4,051

In cooperation with Shizuoka Prefecture, the organizer of the event, Suruga Bank
will support the spread and expansion of environmental businesses undertakenby the adopted organizations.

■Participation in Mt. Fuji Cleanup ProjectGreenhouse gas (CO2) emissions (Scope1+Scope2)
8,000

The award was established in 2021 to recognize
environmental businesses that are creating thefuture. The award is open to corporations that are
involved in environmental business or would liketo become involved in environmental business,and is looking for a wide range of business ideasthat will contribute to solving environmental issues
in Shizuoka Prefecture.

“As a member of the Mt. Fuji Beautification Foundation, employees in the Gotemba
area participated in the Mt. Fuji Cleanup Project conducting cleanup activities
focusing on the trailhead of Mt. Fuji.

Target: 46.0%
reductioncompared to
FY2013

4,000
2,000
0
FY2013

FY2020

FY2021

FY2022

FY2030© 2023SURUGA bank, Ltd. All rights reserved.

19 ESG/SDG Initiatives - Social Creation of an Environment in Which Employees Can Thrive and Grow - Suruga Bank Group's Materiality The goal of our corporate philosophy is to be a company that our employees think, "I’m glad you’re here... I’m glad we met..." as well. In order for the Suruga Bank
Group to meet the expectations of external stakeholders and fulfill its responsibilities, we believe that it is important to create an environment in which employees canwork with motivation as well as a sense of fulfillment and growth as they go about their daily tasks, for the benefit of all stakeholders.

Promoting diversity

Creating a fulfilling workplace■Employee Motivation Questionnaire■Future Management School Lite
As part of our efforts to promote diversity and women's activities, we launched thetwo-year training program, MIRAI-Management School Lite in October 2023 with theaim of fostering career awareness among a wide range of female employees andbroadening the base of female professionals who aspire to become executives.
Through this training course, we will help participants build an internal network andsupport their career development by strengthening mutual understanding.

In order to examine and implement measures to improve employee motivation, asurvey of all employees is conducted each fiscal year (In FY2022, the following topics
were covered).
Survey topics
・Overall satisfaction (1 question)[Overall satisfaction*]・Employee feelings and attitudes (31 questions)・Awareness of actual conditions in the workplace (20 questions)
・Evaluation and awareness of the company (16 questions)・Other (22 questions)

5%

24%

21%

Less than 5 years

FY20212021年度FY20212022年度FY2025
2025年度*Overall satisfaction: In the question, "How satisfied are you with your current job/company/workplace in terms of overallsatisfaction?", the percentage of respondents who selected "Satisfied" out of the options of "Satisfied," "Undecided," or "Dissatisfied"

6-10 years■Introduction of senior financial advisor (FA) positions

11-15 years
16-20 years

29%

57.8%

・Evaluation system/education and training (16 questions)[Years of employment of participating employees]

21%

56.2%

Target: 60% or more

21 years or more

[Training details (tentative)]

In order to strategically allocate human resources to the financial advisor (FA) area
and to support the success of employees over 55 years of age, we have establishedthe Senior FA Professional
The employees who are certified as Senior FA Professionals are engaged in FA and
FA counter duties, and are paid a bonus in addition to their annual salary according totheir performance.

Training topics (tentative)<External evaluation: Kurumin Certification>

Lecture by currently active female executives

Kurumin Certification was granted by the Ministry of Health, Labour and Welfare inrecognition of companies that provide support for child raising.

Study session on social conditions surrounding banks
Lectures from senior management*The Kurumin Certification is a system based on the Law for Measures to Support the Development of
the Next Generation, under which companies that have formulated a general business owner action
plan, achieve the goals set forth in the plan, and meet certain criteria may apply to receive certification.

Sessions with executives
Lectures from female managers at other companies*Period: October 2023 - September 2025
(Scheduled to be held once every 2-3 months)

Kickoff Meeting
Friday, October 27, 2023

We will continue our efforts to create a vibrant and comfortable work
environment where each and every employee, including women, candemonstrate their abilities to the fullest.

© 2023SURUGA bank, Ltd. All rights reserved.

20 ESG/SDG Initiatives - Social Building a sustainable local economy and society- The Suruga Group's Materiality -Japan's declining birthrate and aging population will continue to advance, and there are concerns that various social issues will become even more prominent due to the decline of local
economies caused by the shrinking population. Meanwhile, the business environment surrounding financial institutions is changing with the development of DX and Fintech. The Groupwill continue to pursue and realize a "customer-oriented" approach that meets the needs of the times while taking into account changes in the environment surrounding local communities
and customers, as well as fulfill its responsibilities as a regional financial institution and retail bank, and contribute to building sustainable local economies and societies.

Partnership Agreements on Bicycle Promotion

Agreements on Bequests
As the population ages, we are promoting cooperation with local governments, universities,
and other organizations in order to respond to customers‘ requests for consultation on how
they would like to use their inheritance for the benefit of the community in the future. In thefirst half of FY2023, we concluded "Agreements on Bequests" with Shizuoka University and
Kakegawa City.
Since the start of our inheritance-related services in 2007, we have been supporting bequests(donations) made by local customers by utilizing the knowledge we have accumulated in thecourse of consulting with them.

 Signed an agreement with Shizuoka University (Apr 28, 2023)

We have concluded the Partnership Agreement on Bicycle Promotion with many
local governments, organizations, general business corporations, and others withthe aim of creating new tourism value and revitalizing local communities through thepromotion of cycle tourism in cooperation with local tourism resources. In the firsthalf of FY2023, we concluded this agreement with three new municipalities andorganizations.
Based on the agreement, we will continue to support the local service and tourism
industries by providing detailed tourism information utilizing the mobility of bicycles.

 Signed an agreement with Chigasaki City, Kanagawa Prefecture(May 8, 2023)
 Signed an agreement with the Shonan Area Bicycle Tourism
Promotion Council (May 31, 2023)
 Signed an agreement with Fukuroi City, Shizuoka Prefecture(Sep 26, 2023)

Right: Hizume, President of
Shizuoka University
Left: Toya, Director at Suruga
Bank Agreement with Kakegawa City, Shizuoka Prefecture (Aug 2, 2023)
Agreement on Bequests (as of October 31, 2023)
Municipalities: Mishima City, Numazu City and Kakegawa City in Shizuoka
Prefecture
Educational Institution: Shizuoka University
Medical institution: Japanese Red Cross Society East Shizuoka

Right: Sato, Mayor of Chigasaki City
Left: Toya, Director at Suruga Bank

© 2023SURUGA bank, Ltd. All rights reserved.

Right: Ohba, Mayor of Fukuroi City
Left: Oishi, Executive Officer at Suruga Bank

21

 ESG/SDG Initiatives - Social Building a sustainable local economy and society- The Suruga Group's Materiality -Cycling Event - Cycling Project -Efforts to Revitalize Local Communities

Together with local governments, organizations, and private companies, we are working to
expand the interaction among people and revitalize the community by organizing cycling
events.

City Promotion - Cycling Project We are implementing projects to communicate the attractiveness of the region via oursocial media and online in collaboration with local governments and private companies,
including those with which we have concluded partnership agreements.
In FY2023, we are implementing five new promotions.
RegionNameCentral partof Shizuoka

Edapota(Fujieda City)

City promotion, etc.

Shizuoka University x Suruga Bank
E-BIKE Tour of Izu Peninsula Geopark 4 km

Numazu City x Suruga Bank
90 km Cycle Ball Kanoichi course!

Hot Spring Gourmet Exploration by General Manager Ii

Westernpart of
Shizuoka

Domannaka
Fukuroi Cycling(Fukuroi City)・Chigasaki
Cycling(Chigasaki City)
ShonanAll overShizuokaandKanagawa
Prefectures

・Shonan Shared
Cycle
Tokaido Trip

Tokyu Hotels
Bicycle Trip

As part of the community contribution activities, we
provide information on hot spring facilities, restaurants,
and sightseeing spots in Shizuoka and Kanagawa
prefectures (mainly Izu and Hakone) to the entire country
in the “Onsen x Gourmet Exploration by General
Manager Ii" section of our website.
Since the start of our activities in 2013, we have
gradually added reports and have already introduced
more than 350 great places to visit in the area. It has
become the largest database of tourist information in thearea.
＜Iiyudane Profile＞
Iiyudane is an employee of Suruga Bank with over 30 years of service. We
believe that he is probably the only bank employee in Japan with the title of"General Manager of the Hot Springs Department". Iiyudane is, of course,
just a pseudonym, but he also has an official business card. He enjoys
visiting hot springs all over Japan and has visited more than 1,000 hot
spring resorts so far, making him an undeniable top ranking hot spring
enthusiast within Suruga Bank. He is a member of the Onsen Tatsujinkai
and holds many onsen-related certifications, including onsen sommelier
ambassador.

© 2023SURUGA bank, Ltd. All rights reserved.

Iiyudane22 ESG/SDG Initiatives - Governance Establishing a Solid Governance Foundation- The Suruga Group's Materiality -In order to embody our corporate philosophy and Compliance Charter, to be a company that people think, "I’m glad you’re here... I’m glad we met...," and to fulfill our responsibilities as aregional financial institution, we must strive to improve governance. The Group will strive to further improve its governance, with "establishing a solid foundation for governance" as its
materiality.

■Corporate Governance Structure Chart■Establishing an Internal Whistleblowing System

The Chairperson of the Board of Directors, the Chairperson of the Audit
Committee and the Chairperson of the Nomination and Compensation
Committee are independent outside directors to ensure sound and transparent
decision-making at Suruga Bank.

Internal Directors
Outside Directors

Audit Committee Member
Reporting Desk

Independent membersof the Board of Directors
5 of 12Instructions forinvestigation

Audit Committee

Board of Directors

Whistleblower reporting on
directors and executive officers

OutsideDirector/Chairperson/Chairman
Nomination andCompensation Committee

Coordinate

Internal Audit
Department
Instructions forinvestigation

Whistleblowin
g report

Report（*）

Customer Consultation Center

Planning
Dept.
ReportrequestResponse

Supervisoryauthority

Japanese
Bankers
Association

Complaint, etc.

Relateddepartm
entsComplaint, etc.

Customers, partners and subcontractors*Report specific information (outside information regarding compliance violations related to the Company's
employees (including related measures))© 2023SURUGA bank, Ltd. All rights reserved.

23

Regulations for Receipt and Handling ofExternal Information

Outsourced
contractor
whistleblowing
report desk

Employees (including contract and temporary
employees, group)
Employees of business contractors

Each Department (11 Divisions)

ReportComplaint, etc.

Each Risk Committee*

Whistleblowing
reportInvestigation
response

Report（*）

ReportrequestBusiness Execution
Committee

External
whistleblowing
report contact(law firm)

ReportComplaint, etc.

Corporate Philosophy
Promotion Committee

Presentation of corrective
measures, etc.

Instructions, etc.

ReportCompliance Management Department Internal Whistleblowing Office (Receipt of whistleblowing reports,
investigation, fact-finding, corrective action, feedback to whistleblowers)

Whistleblowing report

Sustainability
Promotion Committee

Relevant departments(Human Resources
Department, etc.)

Investigation
requestPresident

Compliance Helpline Regulations

Internal Audit
Department

Reporting and recommending
measures to prevent recurrence

Compliance Committee

Reporting, advice andassistance (including
investigations)

Compliance Committee

Disciplinary Review
Committee

Board of Directors

Request for disciplinary
actionGeneral Meeting of
Shareholders

To centrally manage internal reports from employees and risk information received fromexternal sources, a specialized department, the Internal Whistleblowing Office, hasbeen established, and risk information is reported to the Compliance Committee, asubordinate body of the Board of Directors.

■ Capital and Business Alliance with Credit Saison Co., Ltd.
Through full use of the retail expertise of both companies and seamless collaboration,
creating a "Neo Finance Solution Company" transcending conventional financial institutionarchetypes and starting from resolution of troubles and other "AID."

Mutual Vision

Consumer

Consumer● Card loans● Loans by purpose● Housing loans● Investment real estate loans● Testamentary trusts● Insurance● Business for non-Japanesecustomers

Neo
Finance
Solution
Company

Regional Bank

Non-Bank● Credit cards● Flat 35 loans● Asset-building loans● Renovation loans● Real estate-secured loans● Banking agency business● Sales of real estate trust beneficiary interests● Guarantees (rent/security deposits/housing loans/etc.)

Corporate

Corporate● Business loans● Business matching (support for
management issues, etc.)● Advisory services(Business succession/M&A support)● Structured finance● Corporate cards● Real estate-secured loans● Loan for condominium management associations● Medical fee factoring● Structured finance● Leasing

New Customer
Overview of the Capital andBusiness Alliance
1. Capital Alliance Details(1) Suruga Bank acquires Credit Saison shares:(2) Credit Saison acquires Suruga Bank shares:

8,224,700 shares of common stock
35,089,000 shares of common stock(5.0% of voting rights)(15.72% of voting rights)

for approximately 15.4 billion yen
for approximately 17.1 billion yen

2. Business Alliance Details
Implementing the following:(1) Establishment of Saison Branch and acquisition of bank agency business by Credit Saison; (2) Joint commercialization of Saison Platinum Business Card;(3) Collaboration in the housing loan business; (4) Joint development of real estate financeIn addition to the above measures, discussions are underway regarding collaboration in other areas.
3. Mutual Director Dispatch
In order to further deepen the cooperation between the two companies and strengthen their respective governance systems, each company will dispatch one director to the other company.
(Dispatched directors: Kosuke Kato, President of the Company, and Naoki Takahashi, Vice President of Credit Saison)© 2023SURUGA bank, Ltd. All rights reserved.

24

■ Progress of Capital and Business Alliance with Credit Saison Co., Ltd.

< Direction being pursued >Development of new, competitive products and new customers
through the collaboration of the two companies
From December onward, the two companies will continue to promote
product development and collaboration for new markets

November 2023

October 2023

Collaborative
development of the realestate finance business

Collaborationin the mortgage business

Commence joint provision of“collaboration loans”

Commence handing of mortgages
with Credit Saison guarantees at
Suruga Bank

Fields withsynergies
Non-Bank“Extensive customer base””Credit assessment/credit screening
capabilities developed through immediate
credit granting/setting credit limits andtransactions”

Existing
business
fieldsTotal of business fields over next five years [FY2023 to FY2027]

Aim forSURUGA bankBank
“Ability to interact directly with customers””Custom-made credit assessment/credit
screening capabilities”

350.0 billion yen or more in new loans

Credit Saison

Pursue business synergies throughexchange of human resources, etc.

Spring 2024（Planned）

Co-commercialization of
Saison Platinum Business
AMEX Card© 2023SURUGA bank, Ltd. All rights reserved.

Summer 2024（Planned)

Establishment of Saison
Branch by Suruga bank25

Reference Materials

■ ・Actual Results for 1H, FY3/24 (Comparison with 1H, FY3/23)[Non-consolidated]Core net operating profit(excluding gains [losses] on
cancellation of investment trusts)
Expenses

Personnel expenses

Finances

MTP(Billions of yen)
1H results
For FY3/23（A）

1H results
For FY3/24（B）

Year-on-year(B)‐(A)

31.5

29.5

(2.0)

＜Main factors of increase/decrease (Non-consolidated, Y on Y)＞
・Decrease in interest on loans and bills discounted: 1.5 billion yen(Flat balance factor: -7.8 billion yen, Yield factor: -7.9 billion yen)

18.7

18.2

(0.5)

6.9

6.7

(0.2)

Net interest
income・Decrease in interest and dividends on securities: 1.5 billion yen
・Increase in interest on monetary receivables purchased: +0.7 billion
yen

Actual credit costs

(5.2)

(1.2)

+3.9

(1.1)

0

+1.1

0.1

0

(0.1)

17.0

12.5

(4.4)

Extraordinary gains (losses)

(0.2)

(0.6)

(0.4)

Net income

16.1

9.3

(6.7)

Gains (losses) on securities
Other extraordinary gains(losses)
Ordinary profit

・Decrease in personnel expenses: 0.2 billion yen
Expenses・Decrease in property expenses: 0.3 billion yen

・Loss on reversal of allowance for loan losses resulting from theActual credit
costs

lump-sum transfer of share house loans: +2.7 billion yen
・Precautionary allowance for claims for restructured loans that are
unlikely to be recovered in the future: +2.3 billion yen
・Gain on redemption of multi-asset fund due to partial sale of the[Consolidated]

Gains (losses)
on securities

1H results
For FY3/23（A）

1H results
For FY3/24（B）

Year-on-year(B)‐(A)

Consolidated ordinary income

52.6

43.9

(8.7)

Consolidated ordinary profit

18.2

12.8

(5.4)

Profit attributableto owners of parent

16.3

9.5

(6.8)

fund: +3.0 billion yen
・Loss on sales of stocks: 1.8 billion yen

Extraordinary
gains (losses)© 2023SURUGA bank, Ltd. All rights reserved.

・Impairment loss on fixed assets: -0.4 billion yen

26

■ Interest Margin, etc. (Non-consolidated)

Finances

Interest Margin, etc.
Gross Loan-Deposit
Interest Margin

MTP

Yield and Average Balance of Loans and Bills Discounted

Loan-Deposit
Interest Margin

Net Interest Margin

Average Balance ofLoans and Bills
Discounted (billion yen)

2,739.3

Yield of Loans and Bills Discounted<Special factors effecting loans and bills discounted (year-on-year)>
20/9 Recovery of start-up loans, transfer of share house claims(approx. -100 billion yen)
21/9 Transfer of share house claims (approx. -44.2 billion yen)
22/9 Transfer of share house claims (approx. -60.5 billion yen)
23/9 Transfer of share house claims (approx. -16.8 billion yen)
*State the periods in which the above factors have an impact.
(This differs from actual date of the procedures, etc.)

2,457.0

3.17%

3.07%

2,277.8

3.01%
2.87%

1.72%

1.79%

1.78%

1.76%

2,112.9

2,058.1

2.80%

1.71%

3.21%

3.12%

3.05%

2.91%

2.84%

19/9

20/9

21/9

22/9

23/9

Yield and Average Balance of Deposits
Average Balance of Deposits(billion yen)

1.21%
0.96%
0.81%

0.78%

0.74%

3,284.6

Yield of Deposits

3,346.6

3,322.8

3,189.7
3,078.9

19/9

20/9

21/9

22/9

0.03%

0.04%

0.04%

0.04%

0.03%

19/9

20/9

21/9

22/9

23/9

23/9

© 2023SURUGA bank, Ltd. All rights reserved.

27

■ Actual Credit Costs and Non-Performing Loans Based on the Financial Reconstruction
Law (Non-Consolidated)
・Actual credit costs (Period Ending September 30, 2023)
Item

MTP

(billion yen)

Allowance
for loan losses

Actualcredit costs

Investment real estate loans*

(0.1)

99.1

Housing loans

(0.1)

2.0

0

2.7

Collaboration loans, etc.

(0)

0.2

Business financing, etc.

(1.0)

7.5

Total

(1.2)

111.8

Unsecured loans

Finances*Investment real estate loans ： Studio apartment loans, single building income loans, other secured loans*Collaboration loans are loans made jointly or in partnership with other companies (loan participations, purchases of corporate loans, etc.)

・Disclosed claims under the Financial Reconstruction Law (as of September 30, 2023)
Total coverageamountBalance

Coverage amountby collateral andguarantees, etc.

(billion yen)

Allowance forloan losses

Coverage ratio

Claims against bankrupt and substantiallybankrupt obligors

117.6

117.6

45.3

72.2

100%

At-risk claims

41.0

28.2

18.4

9.8

68.9%

Claims for special attention

49.0

27.6

15.9

11.6

56.3%

Total

207.6

173.5

79.7

93.7

83.5%

Ratio of disclosed amount to total credit(non-performing loan ratio)

10.1%© 2023SURUGA bank, Ltd. All rights reserved.

28

■ Balance of loans, etc., yields, delinquency rate, YoY

Finances

MTP(billion yen)Sep.2022
Balance

Yield

Sep.2023
Delinquency rate

Balance

Yield

Delinquency rate

1,606.0

3.08%

6.68%

1,474.3

3.00%

7.12%

441.8

2.75%

0.28%

422.1

2.64%

0.36%

1,131.3

3.18%

9.41%

1,020.2

3.12%

10.14%

32.8

4.41%

0.46%

32.0

4.15%

0.27%

Unsecured loans

135.5

10.46%

2.51%

120.0

10.49%

2.07%

Card loans

92.8

11.78%

0.94%

85.6

11.69%

0.85%

Unsecured certificate loans

42.6

7.59%

5.94%

34.4

7.51%

5.11%

Consumer loans (A)1,741.5

3.65%

6.36%

1,594.4

3.57%

6.74%

Personal loans (excluding organizational
negotiation partners, etc.) (F)1,636.2

1.50%

1,496.5

Corporate investment real estate loans (B)

40.3

1.82%

－

76.8

1.74%

－

Structured finance (C)

82.7

2.24%

－

145.8

2.31%

－

Collaboration loans, etc. (D)

97.0

1.95%

－

134.2

2.20%

0.02%

1,961.6

3.47%

5.65%

1,951.4

3.31%

5.51%

Secured loans
Housing loans
Investment real estate loans
Other secured loans

Total <(E=A+B+C+D)>

1.48%*Delinquency rate = Loans past due for three months or more / loan balance.
*Yield: Yield for customers (excluding guarantee fee and accrued interest), period-end balance basis.
*Classified by portfolio areas in the mid-term business plan "Re:Start 2025” and beyond
Corporate investment real estate loans includes investment real estate loans to asset management companies, etc. Structured finance includes specified corporate bonds, etc.
Collaboration loans are loans made jointly or in partnership with other companies (loan participations, purchases of corporate loans, etc.).
*”Organizational negotiation partners, etc.” refers to loans to borrowers who have submitted a request for suspension of repayments as a result of organizational negotiations(share house-related loans are excluded).
© 2023SURUGA bank, Ltd. All rights reserved.

29

■ Mid-Term Business Plan Overview

We want to be a company that makes customers feel,“I’m glad you’re here... I’m glad we met.”
Customer satisfaction

VisionMTP

Shareholder value

Employee satisfaction

Shared in Phase 1 & 2

Corporate
Philosophy

Finances

Contribution to society

・To realize our corporate philosophy, we will create a “new Suruga Bank” that delivers customer satisfaction and ensuresthat staff feel their work is meaningful. We will achieve this through a commitment to carrying out customer-oriented
business, initiatives in our core business of retail banking, and by creating unique value in ways that are distinct to our bank.
・We will also establish measures for thorough compliance and controlling appropriate risk/return, and develop

a “new sustainable business model” as a public financial institution that benefits the public.

I. Evolving the Retail and Solution Businesses
We will create sources of differentiation founded in resolving AID*1 for our customers, leading them to say“I’m glad you’re here... I’m glad we met.”*1 Anxiety, inconvenience, dissatisfaction, etc.

Phase2
Management
Strategy

II. Building a Sustainable Revenue Structure
We will counteract the decline in the top line due to the collection of existing loans and pivot to a sustainable revenue structurewith three measures. Namely, growth of new business revenue through four autonomous profit centers, cost structurereform, and minimizing and stabilizing actual credit costs through higher credit quality.
III. Risk-Taking and Risk Diversification
In accordance with the Risk Appetite Framework (RAF), we will repeat a cycle of active risk-taking and verification in selectedareas, diversifying away from our traditional risk structure concentrated in specific real estate areas*2.
*2 Single building income properties (relatively high share of older properties and properties located in regional areas) executed prior to the full-scale rollout of Phase 1© 2023SURUGA bank, Ltd. All rights reserved.

30

■ Mid-Term Business Plan Initiative Policies

Phase2
Management
Strategy

Business
Structure

MTP

I. Evolving the Retail and Solution Businesses
II. Building a Sustainable Revenue Structure
III. Risk-Taking and Risk Diversification

1.

Reorganizing from a Sales Headquarters System to Four Autonomous Profit Centers (2.2x new business revenue)• Community Bank, Direct Bank, Greater Tokyo/Wide-Area Bank, Market Finance2.

Priority Measures

Finances

Completing Cost Structure Reform (Expenses: 46.8 billion yen in FY2018 ⇒ 32.5 billion yen planned in FY2025)• Network Reorganization, Shifting Talent to the Front Office by Streamlining Headquarters Functions,

Revenue
Structure

IT Cost Structure Reform
3.

Minimizing and Stabilizing Actual Credit Costs Through Higher Credit Quality• Improvement of credit quality to a level where actual credit costs average less than 3.0 billion yen/year from FY2025
onward4.

Pursuing Cloud Computing and DX in IT Platforms

5.

Vector Alignment with Stakeholders

Infrastructure• Aligning vectors with shareholders, employees, and society to strengthen driving force behind management strategies

Phase2
Keywords

Agile

Kyo-soResilience

Speed, taking on challenges,
autonomous decentralization

Collaboration, dialogue, value creation

Recovery, flexibility,
risk diversification© 2023SURUGA bank, Ltd. All rights reserved.

31

■ Management strategy I: Evolving the retail and solution businesses

Finances

MTP

From the past to the present, Suruga Bank has been providing solutions
from Suruga’s unique perspective that first looks at customers’ “AID.”
Digital Infrastructure that Supports the creation of difference(Examples)

More Dreams for Customers

Time Deposits with Jumbo
Lottery Tickets
Our concept is "a financial service filledwith the joy of growing dreams” in thisera of ultra-low interest rates. A first fora Japanese bank, this product is theresult of our employees' desire todeliver dreams to customers.

Backing up womens’ dream of home ownership

Housing Loans for Women
At a time when banks' screening
procedures were not keeping pacewith diversifying lifestyles andemployment patterns, we were
inspired by the passion of women tomarket Japan’s first housing loan for
women.

Unique to Suruga

2000

We were the first to focus on the myriad nichemarkets within the housing loan market.
Our employees sensed customers' "AID” andquickly commercialized products to match.

Screening via Data Mining

Continuous provision of high quality services

Automated Screening System

Use of CRM

We used sophisticated methods toanalyze detailed data accumulated bylending to a wide variety of customers,
including data on screening andrepayment status. This sped up thescreening process.

By integrating our informational
data and accounting data, we
provided customers right services
at the right time.

Unique to Suruga

1999
Unique to Suruga
In the early days of the Internet, we opened Japan’s first
online bank branch. This allowed us to deliver dreams andpeace of mind to customers through the Internet, even asa regional bank, without building physical branches.
We were also the first Japanese financial institution towork on mobile banking.

1996

Unique to Suruga

We achieved the automation of screening
ahead of other banks by combining ourscreening know-how with a vast database
analyzed with our proprietary logic cultivatedover many years specializing in retail banking.

1999

This is the trump card of our retailstrategy. This allows continuous
relationships anytime, anywhere, at all
customer touchpoints. Our accumulated
data is the wellspring of not only ourentire organization’s retail mindset, butalso of improvements of our marketing
capabilities.

Earning miles for bank transactions

ANA Branch
We developed the world's first card that
integrates cash card, mileage, and e-money
functions. We offer a unique product that lets
customers earn miles for bank transactions.

Products and Services
Developed from Suruga's
Unique Perspective (Examples)
Unique to Suruga

Translating current trends into products and services

Smart Account / Accounts for
non-Japanese Customers
We established payment-only accounts thatprovide more savings and peace of mind
when using cashless payments, which havebecome a part of daily life.
We established accounts exclusively for nonJapanese customers.

Peace of Mind Consulting for the 100-Year Life Era

musu-bi (end of life support
services)
As part of our asset consulting services,
we help customers think about theconclusion to their lives that the truest to
the way they have lived.

2004

By combining ANA's diverse customer baseand marketing know-how with Suruga's retailbanking business, we created new markets andprovided unique high-quality value.

Unique to Suruga

2021/2022

Based on our desire to provide access tofinancial services to all, we will focus on
growth areas and non-Japanesecustomers, who have strong need forfinancial services.

© 2023SURUGA bank, Ltd. All rights reserved.

Unique to Suruga

2022

To prepare for “what if,” we provide asset
visualization, funeral insurance, introductions todifferent funeral styles, and other services thatturn anxiety into peace of mind. In this way, we
help customers live the rest of their lives inbrighter and more positive ways.

32

■ Management strategy II: Building a sustainable revenue structure

Finances

MTP

New Business Gross Profit (Core Gross Operating Profit, New Portfolio)• We forecast that Management Strategy I (Evolving the retail andsolution business) will grow new business gross profit by around
two fold over FY2022.
Breakdown of new
business gross profit

FY2025 Plan

FY2022
Results

ChangeRetail/Solution Businesses

6.5

2.3

+4.2

Solution Business*1

3.0
3.5

0.8
1.5

+2.2
+2.0

9.5

5.4

+4.1

4.5
5.0

2.3
3.0

+2.2
+2.0

16.0

7.7

+8.3

Investment real estate loans

Market Finance
Structured financeMarket operations, etc.*2

New Portfolio Total

Approx. 2X

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

*1 Solution Business includes asset consulting, housing loans, unsecured loans, etc.
*2 Market operations, etc. includes claim purchases

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)( Approx. -4.0 billion yen)

52.4 billion yen → 32.5 billion yen(FY2022 Actual)(FY2025)(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 (othern thanthose for share houses).

Definition of New/Old Portfolios• New Portfolio: Revenue from goods and services contracted in orafter 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)

© 2023SURUGA bank, Ltd. All rights reserved.

33

■ Management strategy III: Risk-taking and risk diversification

Finances

MTP

Change in composition of assets under management from FY2018 to FY2025
100%
90%

Securities Investment

80%

Structured finance (Non-RE)

Non-Real EstateBusiness financing

70%

Unsecured loans

60%

Housing loans

50%

Monetary claims bought (RE)
Structured finance (RE)40%

Balance of single building apartment loans *1

Approx.
60%

30%
20%

(New Portfolio Total)

Approx.
40%

10%

Approx.
30%

Real EstateSpecified real estate area loans*2(Old Portfolio)

0%

Assets undermanagement

End of FY2018
Results

End of FY2022
Results

End of FY2025
Plan

3,035.0 billion yen

2,519.7 billion yen

2,500.0 billion yen*1: Single building income loans + studio apartment loans + other secured loans + loans for asset managementcompany executed after the full-scale rollout of Phase 1 of the mid-term business plan
*2: Single building income loans (relatively high share of older properties and properties located in regional areas)
executed prior to the full-scale rollout of Phase 1

The ratio of conventional specified real estate areas to total assets under management is planned to decrease fromapprox. 60% (end of FY 2018) to approx. 40% (end of FY 2022) and to approximately 30% (end of FY 2025).

© 2023SURUGA bank, Ltd. All rights reserved.

34

Main KPIs

■ Phase 2 KPIs

FY2022 Results

FY2025 Plan

Ordinary profit

11.2 billion yen

13.0 billion yen

Net income

10.5 billion yen

11.0 billion yen

11.39%

10% or more
(effective)(Consolidated)

Capital adequacy ratio

Key action indicators
for achieving main KPIs

(Finalized Basel III basis)

Secondary KPIs

Finances

New business gross profit

7.7 billion yen

Expenses

36.2 billion yen

Actual credit cost ratio-5 bps

16.0 billion yen
or more

MTP

Notes

・Profit attributable to owners of parent

・Any unrealized loss on securities is deducted from core capital・Revenue from goods and services issued on or after April 2020・Based on core business gross profit (excluding gains on
cancellation of investment trusts)

32.5 billion yen
or less

Approx. 15 bps

・Intended cruising speed for FY2025 and beyond
・Actual credit costs / Loans and bills discounted(average balance) × 10,000*Figures/indicators without "consolidated" are for Suruga Bank (non-consolidated)© 2023SURUGA bank, Ltd. All rights reserved.

35

■ Vector Alignment with Stakeholders

Finances

MTP

We will realize the creation of value for stakeholders through the provision of services that
address the challenges of customers and communities.
Corporate
Philosophy
We want to be a company
that makes customers feel,“I’m glad you’re here... I’m glad we met.”
External Environment(Social Issues)
Structural Changes
in Japanese Society Polarization of thesocial structure Increased numbers of
single seniors

Global Structural Changes

Management ResourcesGroup Strengths

Financial Capital

Human Capital・Highly skilled
professionals

 Increased instability anduncertainty in interest rates

Social and relational
capitalDigitalization

・Strong customer base・Nationwide network

Shift to customeroriented business model

Intellectual capital Lifestyle and behavioral
changes due toadvancement of DX

・Unique retail banking
know-how cultivated throughdecades of experience

Accelerating ESG Trends

Natural capital Climate change problem
 Importance of reskilling・Rich nature of the region
・Abundant tourism
resources

Realizing a sustainable
society

Corporate Value Enhancement
and Sustainable Growth of theGroup Diversifying work styles

Materialities
Recognized by
the Group

Business Model / Activities
Customers

 Provision of solutions
 Helping them live richer lives

・High capital adequacy Increased geopolitical risk
 Revise and restructure theglobal supply chain

Value Provided to Stakeholders

Establishment ofa solid governancefoundation

Building sustainablelocal economies andsocieties

Phase 2 of the Mid-Term Business Plan
“Re:Start 2025” (FY2023-FY2025)■ Deliver unique value through our core business ofretail banking■ Establish measures for appropriately controllingrisk/return Sustainable corporate valueenhancement
Shareholders  Stable and sustainable
shareholder returns
 High capital adequacy andsoundness

Employees

 Job satisfaction
 Diversity promotion, work stylereforms Reskilling support

I. Evolving the Retail andSolution Businesses

Contribute toenvironmental
conservation

Society
II. Buildinga Sustainable
Revenue Structure

III. Risk-Taking and
Risk Diversification

 Community revitalization
 Realizing environmental andsocial sustainability
 Sound corporate climate andcultureCreate an environment
where employees can play
an active role and grow

Agile

Corporate
GovernanceKyo-soRiskmanagement© 2023SURUGA bank, Ltd. All rights reserved.

Contribution to the SDGs
Resilience

Compliance36

<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. Thesestatements are not intended as guarantees of any specific future performance, which is subject
to a variety of risks and uncertainties. Actual future business results may differ from forecast
values contained in the present material, due to unpredictable changes in the external businessenvironment.
© 2023SURUGA bank, Ltd. All rights reserved.