Suruga Bank, Ltd.

Summary of Financial Results for Q3 FY3/24

February 9, 2024
0

■ Q3 Results for FY3/24: Comparison with Forecasts• Core gross operating profit was 44.3 billion yen, up 79% on the full-year forecast, mainly due to steady progress in new loan disbursements andimproved net fees and commissions.
• Actual credit costs were reversed by 2.3 billion yen, mainly due to decrease in preventive allowances.
• As previously announced, gains and losses on securities were recorded at -2.2 billion yen due to recording losses on sales mainly of yen bonds.
• Net income (non-consolidated) was 13.2 billion yen, 132% higher than the full-year forecast due to the above factors.
<Non-consolidated>(billion yen)

Full year
earnings
forecast (A)Q3results (B)* Full-yearearnings forecast: Previous earnings forecast announced on November 6, 2023

Factors causing variation in ordinary profit(non-consolidated, difference on forecast)

Progress rate(B)/(A)

Core gross operating
profit(Excluding gains/losses
on cancellation of
investment trusts)

56.0

44.3

79%

Expenses

36.0

27.0

75%

Actual credit costs

4.0

(2.3)

－

Gains (losses) on
securities

(2.5)

(2.2)

－

Ordinary profit

14.0

17.3

124%

Net income

10.0

13.2

132%

Net interest income

・Increase in interest on loans and bills discounted mainly due to steady trend
in execution of new loans, etc.

Net fees andcommissions

・Decrease in group credit life insurance premiums (improved income andexpenditure)

Expenses・Decrease in property expenses due to progress in structural reforms

Actual credit costs

・Increase in recoveries of written-off claims, decrease in non-performing
claims, and decrease in preventive allowances (see table below)

Actual credit costs (non-consolidated)

Actual credit costs total<Consolidated>
Full year
earnings
forecast (A)Q3results (B)Progress rate(B)/(A)

Consolidated ordinary
income81.0

Consolidated ordinary
profit

14.5

17.7

122%

Profit attributable toowners of parent

10.0

13.4

134%

67.4

© 2024 Suruga Bank Ltd. All rights reserved.

83%(billion yen)

Earnings
forecast

Actualresults

4.0

(2.3)

Normal amount

Actual credit costs arising from loans without
special factors(including share house-related loans)

(3.0)

(4.3)

Preventive
allowances

Allowances for applicable claims (as below)

7.0

2.0

Allowance for new suspension of repayments by someinvestment real estate loan customers triggered by organizational
negotiations

0.5

(0.3)

Allowance for restructured loans for which normalization ofrecovery is unlikely

6.5

2.3

1

■ Revisions to Earnings Forecast for FY3/24• Based on Q3 results, the assumptions regarding actual credit costs and securities investment have been updated, leading to a revision of the earnings
forecast for FY3/24.
• Non-consolidated: Ordinary income up by 6.5 billion yen to 79.5 billion yen. Core gross operating profit up by 1.5 billion yen to 57.5 billion yen. Ordinary
profit up by 3 billion yen to 17 billion yen.
• Net income (non-consolidated) up by 1.5 billion yen to 11.5 billion yen. Net income (consolidated) is expected to increase by 2 billion yen to 12 billion
yen.
* February 9, 2024disclosure “Notice Regarding Recording of Loss due to Sale of Securities and Revision of Full-year Earnings Forecast for the fiscal year ending March 2024”<Consolidated><Non-consolidated>
Full-year
earnings forecast
announced Nov 6(A)

Full-year
earnings forecast
announced Feb 9(B)

Ordinary income

73.0

79.5

+6.5

Core gross operating profit

56.0

57.5

+1.5

Expenses

36.0

36.0

±0

Actual credit costs

4.0

(1.0)

(5.0)

Gains (losses) on securities

(2.5)

(6.0)

(3.5)

Ordinary profit

14.0

17.0

Net income

10.0

11.5

© 2024 Suruga Bank Ltd. All rights reserved.

(billion yen)

Full-year
earnings forecast
announced Nov 6(C)

Full-year
earnings forecast
announced Feb 9
(D)

81.0

87.5

+6.5

+3.0

14.5

17.5

+3.0

+1.5

10.0

12.0

+2.0

Change(B)-(A)

Change(D)-(C)2

■ Main Assumptions for Revisions to Earnings Forecast for FY3/24
・Assumptions for actual credit costs forecast for FY3/24
Updated full-year forecast based on results up to the third quarter(billion yen)

Full-year
forecast
announced
Nov 6

Q3
results

Actual credit costs total

Full-year
forecast
announced
Feb 9

(2.3)

4.0

(1.0)

Normal amount

Actual credit costs arising from loans without
special factors(including share house-related loans)

(4.3)

(3.0)

(5.0)

Preventive
allowances

Allowances for applicable claims (as below)

2.0

7.0

4.0

(0.3)

0.5

0

2.3

6.5

4.0

Allowance for new suspension of repayments by some investment
real estate loan customers triggered by organizational
negotiations

Allowance for restructured loans for which normalization ofrecovery is unlikely

・Assumptions for securities investment<Valuation difference on available-for-sale securities><Additional assumptions>Mar. 31, 2023

1. Regarding measures to improve the quality of the securities portfolio
implemented up to Q3, we plan to implement additional reductions mainly
in multi-asset funds with unrealized losses
2. We plan to sell some of the shares in accordance with crossshareholding policy(billion yen)
Q3
results
Gains (losses) on securities*(2.2)

Full year
forecast(6.0)

Change(3.7)* Total gains/losses on bonds, such as government bonds, and gains/losses on stocks, etc.

Fair
value

(billion yen)Sep. 30, 2023

Dec. 31, 2023

Valuation
gain/loss

Fair
value

Valuation
gain/loss

Fair
value

Valuation
gain/loss

Other securities

292.0

(1.2)

347.2

0.7

324.6

9.8

Shares

15.5

7.7

39.0

15.6

41.5

18.1

Bonds

154.7

(0.3)

187.9

(3.1)

164.0

(0.6)

Multi-asset funds

120.3

(8.6)

117.2

(11.7)

115.8

(7.6)

1.3

(0)

2.9

(0)

3.3

(0)

Others Duration of securities held as of December 31, 2023: 5.8 years
 Interest rate risk on securities held as of December 31, 2023 (100BPV): -14.3 billion yen© 2024 Suruga Bank Ltd. All rights reserved.

3

■ Status of Loans, etc.
• The disbursement of loans, etc. in Q3 of FY3/24 was 121% compared to the same period last year, amounting to 160.7 billion yen.
Excluding collaboration loans, etc., progress was 157% compared to the same period last year.
• Collaboration loans, etc., made less progress than planned as a result of carefully assessing projects in accordance with our initial policy.
However, the solution business, investment real estate loans, and structured finance posted results that significantly exceeded projections, as the market
environment remained stable and inquiries from customers remained strong.
• The economic environment remains highly uncertain, and as such we continue to promote loans while keeping on eye on market trends.
(billion yen)

Q3 FY3/23(A)

Q3 FY3/24(B)

Growth(B)/(A)

Full-year Plan(C)

Progress rate(B)/(C)

Solution business

24.0

37.2

154%

45.0

82%

Investment real estate loans

28.1

58.2

206%

60.0

97%

Structured finance

39.8

49.7

124%

55.0

90%

Collaboration loans, etc.

39.9

15.4

38%

35.0

44%

Total

132.0

160.7

121%

195.0

82%

* New loans disbursement (acquired) by portfolio area in the mid-term business plan Re:Start 2025
* Solution business: Housing loans, unsecured loans, etc.
* Investment real estate loans includes those for asset management companies* Structured finance includes specified corporate bonds, etc. while collaboration loans, etc. include monetary claims bought, etc.
* Full-year plan: This is the plan published in the company briefing materials on November 22, 2023, and is the execution plan that is the basis for the earnings forecasts
announced on November 6, 2023 and February 9, 2024

© 2024 Suruga Bank Ltd. All rights reserved.

4

■ Loan Balance, Yield, and Delinquency Rate <YoY/Non-consolidated>• As of December 31, 2023, the balance of the entire portfolio area in the mid-term business plan is 1,943.4 billion yen, with a yield of 3.25% (total (E)).
• The delinquency rate for personal loans is 6.78% (A), partly since some customers with investment real estate loans have suspended repayment
triggered by organized negotiations. However, excluding these special factors, the delinquency rate is 1.42% (F).
• In order to improve the delinquency rate, we are not only supporting repayments by changing conditions, etc., but we are also providing feedback to
customers on information of concerns such as damage and management conditions to real estate found in our own periodic surveys.
Our support also continues to include potentially changing management companies.
(billion yen)Dec. 2022

Balance

Yield

Dec. 2023

Delinquency
rate

Balance

Yield

Delinquency
rate

1,571.5

3.06%

6.82%

1,446.3

2.97%

7.18%

435.0

2.73%

0.32%

422.3

2.60%

0.36%

1,103.8

3.17%

9.60%

992.3

3.09%

10.30%

32.5

4.33%

0.21%

31.6

4.10%

0.28%

Unsecured loans

131.0

10.46%

2.45%

116.0

10.49%

1.81%

Card loans

90.2

11.77%

0.84%

83.5

11.66%

0.71%

Unsecured certificate loans

40.7

7.56%

6.02%

32.4

7.49%

4.66%

1,702.5

3.63%

6.49%

1,562.3

3.53%

6.78%

1.52%

1,465.8

Secured loans
Housing loans
Investment real estate loans
Other secured loans

Personal loans (A)Personal loans (excluding organizational
negotiation partners, etc.) (F)1,598.6

1.42%

Corporate investment real estate loans (B)

45.0

1.81%

－

90.0

1.71%

－

Structured finance (C)

97.3

2.24%

－

155.4

2.27%

－

Collaboration loans, etc. (D)

94.3

2.06%

－

135.6

2.18%

0.02%

1,939.2

3.44%

5.69%

1,943.4

3.25%

5.45%

Total (E=A+B+C+D)* Delinquency rate = Loans overdue for three months or more / loan balance* Yield: Yield to customers (before guarantee fees and accrued interest), end-of-year balance basis* Classified by portfolio area in the mid-term business plan Re:Start 2025
Corporate investment real estate loans include those to asset management companies, etc. Structured finance includes specified corporate bonds, etc.
Collaboration loans, etc. are loans in the form of joint/cooperation with other companies (loan participation, purchase 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© 2024 Suruga Bank Ltd. All rights reserved.

5

Reference Materials■ Q3 Results for FY3/24: YoY Comparison<Non-consolidated>

Financial

MTP(billion yen)
Q3
FY3/23Results (A)Q3
FY3/24
Results (B)Main factors (non-consolidated, year-on-year)

YoY
comparison(B)-(A)・Recorded net interest income of 42.7 billion yen: -2.2 billion yen
Of which, decrease in interest on loans and bills discounted: -2.4

Core gross operating profit(excluding gains/losses oncancellation of investment trusts)

45.9

Expenses

27.9

27.0

(0.9)

10.3

10.0

(0.2)

Of which, HR expenses

44.3

(1.6)

Net interest income

billion yen(Flat balance factor: -0.9 billion yen, Yield factor: -1.4 billion yen)・Decrease in interest and dividends on securities: -1.3 billion yen
・Increase in interest on monetary claims bought: +0.9 billion yen

Expenses

Actual credit costs

(3.5)

(2.3)

+1.1

Gains (losses) on securities

(0.3)

(2.2)

(1.9)

Other non-recurring gains (losses)

0.3

(0)

(0.3)

Ordinary profit

21.5

17.3

(4.1)

Extraordinary gains (losses)

(0.2)

(0.8)

(0.5)

Gains (losses) on
securities

Quarterly net income

20.3

13.2

(7.0)

Extraordinary gains(losses)・Decrease in HR expenses: -0.2 billion yen
・Decrease in property expenses: -0.5 billion yen
・Normal amount without special factors: +0.8 billion yen

・Share house-related loans: +2.6 billion yen
Actual credit costs(Absence of gain on reversal of allowance for loan losses due tolump-sum transfer of share house claims)
・Preventative allowances (a)*: -2.3 billion yen
・Increase in gains/losses on bonds/other: +0.6 billion yen
・Decrease in gain on sale of stocks: -2.5 billion yen
・Impairment loss on fixed assets: -0.4 billion yen<Actual credit costs results><Consolidated>
Q3
FY3/23Results (A)Q3
FY3/24
Results (B)YoY
comparison(B)-(A)(billion yen)
Q3
FY3/23

Actual credit costs total

Q3
FY3/24
(3.5)

(2.3)

Consolidated ordinary income

73.0

67.4

(5.6)

Normal amount (including share houserelated loans)

(7.9)

(4.3)

Consolidated ordinary profit

23.1

17.7

(5.4)

Preventive allowances*

4.3

2.0

Quarterly profit attributableto owners of parent

20.8

13.4

(7.3)

* Provisions for (a) loans for suspension of repayments by some investment real estate loan customers
triggered by organized negotiations, and (b) restructured loans for which normalization of recovery is
unlikely© 2024 Suruga Bank Ltd. All rights reserved.

6

■ Actual Credit Costs and Non-Performing Loans Based on the Financial Reconstruction
Law (Non-Consolidated)
・Actual credit costs (Period Ending December 31, 2023)
Item

MTP

(billion yen)

Allowance
for loan losses

Actualcredit costs

Investment real estate loans*

(1.1)

96.3

Housing loans

(0.1)

1.9

0

2.2

Collaboration loans, etc.*

(0)

0.2

Business financing, etc.

(1.0)

7.5

Total

(2.3)

108.3

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 December 30, 2023)
Total coverageamountBalance(billion yen)

Coverage amountby collateral andguarantees, etc.

Allowance forloan losses

Coverage ratio

Claims against bankrupt and substantiallybankrupt obligors

113.1

113.1

43.7

69.3

100%

At-risk claims

42.3

29.4

19.2

10.2

69.4%

Claims for special attention

48.1

27.5

16.2

11.3

57.3%

Total

203.6

170.1

79.2

90.9

83.5%

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

9.9%© 2024 Suruga Bank Ltd. All rights reserved.

7

■ 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)

2,700.7

Yield of Loans and Bills Discounted<Special factors effecting loans and bills discounted (year-on-year)>
20/12 Recovery of start-up loans, transfer of share house claims(approx. -100 billion yen)
21/12 Transfer of share house claims (approx. -44.2 billion yen)
22/12 Transfer of share house claims (approx. -77.3 billion yen)
*State the periods in which the above factors have an impact.
(This differs from actual date of the procedures, etc.)

2,436.2

3.16%

1.74%

3.07%

1.80%

2,262.2

2.98%

1.77%

2.87%

1.76%

2,095.0

2,050.0

2.79%

1.70%

3.20%

3.12%

3.02%

2.91%

2.82%

19/12

20/12

21/12

22/12

23/12

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

1.19%
0.95%
0.78%

0.75%

3,286.8

0.73%

Yield of Deposits

3,339.4

3,295.1

3,186.2
3,086.7

19/12

20/12

21/12

22/12

© 2024 Suruga Bank Ltd. All rights reserved.

0.04%

0.04%

0.04%

0.03%

0.03%

19/12

20/12

21/12

22/12

23/12

23/12

8

 Status of Shareholders' Equity, etc. and Shareholder Return Policy
Shareholder Equity and Capital Adequacy Ratio <Non-consolidated>
Shareholder equity

Capital adequacy ratio

11.98%(trial calculation)

We will return profits to stakeholders after taking into consideration
our Group's corporate philosophy and long-term vision.
Basic Shareholder Returns Policy
Our policy is to strive to enhance shareholder returns after
considering the optimal balance between capital soundness andinvestment for growth(billion yen)
•

9.83%

11.40%

13.24%

266.8

14.06%

265.6

14.37%

Returns

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.

266.0

247.7

MTP

Shareholder Returns Policy•
After application of Basel III endgame
and full share repurchase

Finances•

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

234.2

 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.

19/12

20/12

21/12

22/12

© 2024 Suruga Bank Ltd. All rights reserved.

23/12(Share buyback status as of January 31, 2024)
Number of shares acquired: 26,107 thousand shares (Progress rate 74.5%)
Acquisition cost: 18.3 billion yen (Progress rate 83.6%)9

■ 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.

Phase 2
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© 2024 Suruga Bank Ltd. All rights reserved.

10

■ Mid-Term Business Plan Initiative Policies

Phase 2
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 (Approx. 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,
IT Cost Structure Reform

Revenue
Structure3.

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 onward

Infrastructure

4.

Pursuing Cloud Computing and DX in IT Platforms

5.

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

Phase 2
Keywords

Agile

Kyo-soResilience

Speed, taking on challenges,
autonomous decentralization

Collaboration, dialogue, value creation

Recovery, flexibility,
risk diversification© 2024 Suruga Bank Ltd. All rights reserved.

11

■ 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 (other 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)

© 2024 Suruga Bank Ltd. All rights reserved.

12

Main KPIs

■ Phase 2 KPIs

Finances

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

Secondary KPIs

(Finalized Basel III basis)

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)© 2024 Suruga Bank Ltd. All rights reserved.

13

■ 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

Materialities
Recognized by
the Group

Business Model / Activities
Customers

 Provision of solutions
 Helping them live richer lives

・High capital adequacy

Human Capital Increased geopolitical risk
 Revise and restructure theglobal supply chain

・Highly skilled
professionals

 Increased instability anduncertainty in interest rates

Social and relational
capitalDigitalization

・Strong customer base・Nationwide network Shift to customer-oriented
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

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© 2024 Suruga Bank Ltd. All rights reserved.

Agile

Corporate
governanceKyo-soRiskmanagement

Contribution to the SDGs
Resilience

Compliance14

<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.
© 2024 Suruga Bank Ltd. All rights reserved.