Meeting the Challenge of New Banking Competing on a different level with innovative financial services Presentation to investors on interim period ended September 30, 2005

Suruga Bank Ltd. December 6, 2005

Business concept

Fundamental Concept and Business Design Concept of offering value

Business design Main customers and markets

1. Offering heartfelt hospitality and superior service

Three-pronged approach

By seeking the causes of customer satisfaction, SURUGA can give peace of mind to its customers

Direct Banking

Personal Bank

Active nationwide

The Greater Tokyo Area

Core business

Targeted segments

Five-pillar approach 1. Mortgage loans

Working Women

2. From sales agency to customer advocacy concierge

2. Personal loans Expanding into card and personal loans on the back of mortgage loans

Providing optimal products and services from a long-term perspective

3. Credit cards

Newly Affluent

Wealth 4. management support

Active Seniors

Community Bank Numazu, Shonan, Shizuoka

3. Rising above price competition to add value Interest and commissions based on the financial service provided (Exchange of high-end value)

Using Suruga's alliance strategy as a springboard to increase scale and product line-up

Meeting card and loan needs on the back of wealth management support

5. Small, medium enterprises

Organizational support infrastructure

Values

Compliance program

Round-up system

Management BSC goal quality management improvement system program

Retail culture

Human Knowledge resource Self A learning management assessment development organization system program

Concierge academy

1

Business concept

The Evolving Retail Business

Entering an era of marketing innovation The technology era Early 1990s

The marketing innovation era

The operations era Late 1990s

The tools for a new banking industry become available

Creating quantifying tools

Increase in Bank efficiency, skill and customer quality

SURUGA’s Dramatic reform of bank marketing position

Cutting costs

Generating revenue Retail- 3rd stage

Retail- 2nd stage Retail- 1st stage

Bolstering core skills

Marketing innovation

Improving productivity

Dramatic reform of bank marketing

Diversification of profit structure

Retail tools furnished

The technology era Equipped with hardware and analytical tools

From retail banking to... The end of conventional sales-agency retail banks

The operations era Rigorous cost control Product line-up bolstered

The marketing innovation era New approaches to generating profit!

Financial services in a retail environment Becoming a concierge outlet with full customer advocacy 2

Marketing Concept

Marketing Innovation 1 Increasing access to information has shifted power to customers.Superior retailing and offering financial products and services from a customer standpoint will ensure SURUGA comes out on top of an increasingly competitive financial services market. Advocacy marketing

Advocacy pyramid

Changes in corporate-customer relationships - The IT revolution and the spread of the Internet has bridged the information gap between companies and their customers. Conventional Push/pull marketing using the media is losing its effectiveness. - The Internet is having a huge impact by shifting power to customers: 1. Information 2. Market structure 3. Increased power to the customer through changes in the way people do business

A marketing approach based on customer advocacy - Transparent, open, straight-forward and complete information must be provided to customers in order to build relationships built on trust - Trust from customers heightens loyalty to companies and enhances brand power, which leads to improved profitability Market structure Business structure

Information Power-shift to customers Providing complete information

Building trust

Enhanced brand power leads to improved profitability

Customer Advocacy CRM Relationship Marketing

TQM Total Quality Management

CS Customer Satisfaction

- Complete information means including information on competitors as well as SURUGA’s products and services for quality management and ensuring customer satisfaction - Building customer relationships with an intermediary approach from a company standard for customer management

The 7 rules for advocacy marketing 1. Advocate for your customers 2. Invset heavily in product superiority 3. Create value 4. Work together to design products 5. Make fulfillment flawless 6. Be loyal to your customers 7. Measure the long-run strength of relationship with your customers Source: Don’t Just Relate-ADVOCATE, Glen L. Urban, Professor of Marketing Chairman, Center for eBusiness at MIT

3

Customer segmentation

Marketing Innovation 2 Third tier affluent grouping “LOHAS and Lexus”—segmentation and approach

Brand-product centered Developing

Customer segments

Mature

Deluxe style group Mega banks

City-slicker Lexus Group Foreign company PB

Innovative city-living group

Comfort-based LOHAS group

Internet banks

Regional banks

Advanced lifestyle performance group

Other industry banks New foreign banks

Traditional orthodox group

Basic run-of-the-mill group Wannabe noticed active group

Group-mentality traditional group Conservative

Innovative

Lifestyle-focused

©2005 WATER STUDIO

Latent customer segments

- Strong feeling for the environment

and health - Living in green urban areas, regards lifestyle as important

Aoyama, Shirogane, Takanawa, Denenchofu City resorts Fuji, Hakone, Izu National Park, Karuizawa City resorts

- IT-literate, trendsetters, sensitive

to fashions - Living in inner city apartments, enjoys city life

Hills

Innovative city-living group

new age feeling - Living in inner city apartments, inquisitive and aware

LOHAS

Comfort-based LOHAS group

- Socially approved quality and

Active areas

LEXUS

Customer approach

City-slicker Lexus group

Customer segment image

Main channels Salon de Concierge Net branches Dream Plaza Net branches

Minato Ward

Net branches

Net community

Salon de Concierge

SURUGA’s Value Proposition Financial concierges use CRM and ongoing one-on-one meetings to determine individual needs and offer proposals Highly specialized concierges propose new lifestyles based on housing Offering market-leading products and services ahead of competitors to suit customer needs at a high level

4

Debit cards

Iceland and the Advantages of a Cashless Society Reduction of social cost

Transmission cost reduction

- Country: Republic of Iceland - Area: 103,000 sq km - Population: 294,000 - GDP (per capita): $41,865 - Economic growth: 7.7%

Cash distribution cost reduction

IT infrastructure in place

Credit card usage in Japan is still at an undeveloped level compared to worldwide trends

IT infrastructure development and cashless societies

1. Transmission cost reduction - IT usage 3rd in world - 90% of population connected to the Internet - 92% of internet connections are broadband DSL - 95% of the population use mobile phones

2. Financial transaction brought about by lower transmission costs - 65% bank from home - 99% of retailers are VISA merchants Merchant VISA commission Credit: 0.9% - 2.5% Debit: 0.3% - 0.7%

3. Customer merits from electronic transactions

Indonesia

- Reduction of cash handling costs - Cost reductions lead to better customer service - Card usage expanded Credit: from 16 years old Debit: from 12 years old

5

Debit card

Offering Value through Card Payments 1 A payment system complementing a controllable card service SURUGA VISA DEBIT Far superior than cash Self management Easy access Stress-free Customer behavior changes and economical advantages

Decrease of ATM usage Less time and hassle of going to banks or convenience stores Less ATM bank fees

Incentives Cash benefits according to amount used

Usage can be confirmed by passbook and website 24 access 365 days a year to dedicated telephone & web service Confirmation email sent when used

Improving customer convenience comes at a cost

Problems with a convenient ATM network - Convenience Store ATMs see increasing use - Small amounts for each ATM use - Security issues for own ATMs

Financial institutions see cost burden increase - Other bank ATM transaction costs - Own ATM maintenance costs

Paradigm shift of the bank business

Decrease of ATM transaction costs & Commission from transactions Changing incurring costs to a source of income

User costs increase - After hours ATM bank fees

Stagnant Japanese bank marketing - Free use of ATMs - Bank transfer fees waived

Increased costs

Cannot escape downward profit spiral

6

Credit card

Offering Value through Card Payments 2 A payment system complementing a controllable card service SURUGA VISA CREDIT Self-management Easy access Stress-free

Free payment catering to diverse needs Decide the amount to pay after receiving the statement 24-hour access via PC, mobile phone or telephone to decide amount No need to specify payment method

True revolving credit improves profit opportunities Current payment methods Monthly Installments

Commission from interest on installments which overlap.

VISA Brand Evolves Newly desiged cards from Jan 06

Leading to more growth Debit, prepaid Processing Expansion of Authentication business field services Payment by mobile phone

Opportunities for VISA brand to grow

Launch of new transaction methods

Paid off on due date each month

VISA - more than just a card Unified corporate and product trademark

Strengthening brand communication

7

Card business

Revenue Forecasts for the Card Business Forecast of Cardholders New credit cardholders

Existing credit cardholders

(Unit: 10,000)

40 39

36

44

48 48 52

Revenue forecast for card business

Debit cardholders

5.0

New card business revenue

52 55

Existing card business revenue

3.5

(Billion yen)

2.0 20

FY2006

-0.2

FY2007

Cardholder profiling

Age group

FY2008

FY2009

FY2010

Credit cards

FY2006

FY2007

Debit cards

Senior Middle-aged Young

Main grouping aged between 25 and 45

Eligible users (over 16)

0.0

Main grouping over 16

FY2008

FY2009

FY2010

New users for debit cards

Active seniors Housewives Students

(aged between 16 and 18)

8

Wealth management

Affluent Market Spread of Japan’s affluent markets Mega private banking

60,000 households 38 trillion yen

Over

500 million yen

Over

100 million yen

Other

35%

SURUGA’s core target

215 trillion yen

4%

U.K.

6%

Over 50 million yen

6,140,000 households

With net assets over $1 million excluding lived-in real estate

China

720,000 households 125 trillion yen 2,460,000 households 160 trillion yen

Financial Assets

Distribution of World’s Wealth

Over 30 million yen

38,820,000 households 519 trillion yen

U.S. 30%

Japan

16%

Germany

9%

High-end tax payers for major Japan prefectures Tokyo Kanagawa Osaka Aichi Saitama Hyogo Chiba Fukuoka Hokkaido

Includes only prefectural cities and wards with a population of over 500,000 (people)

9

Active seniors

Approaching the Active Senior Market Understanding the senior market

SURUGA’s stance in the market

Unique and sophisticated market

Mentality Mentality

Ambitious to achieve goals

Living life to the full Active Seniors

Wanting to choose according to likes and way of thinking Never wanting to retire Proud, wanting to stay young

The old mindset

Paradigm shift Senior market

Traditional values mixed with new values

Boring, gray Sickly

Wanting to achieve dreams and do things they could not do in their youth While wanting to save money, willing to spend it on things of value Always feeling young, disliking being thought of as old Having own unique outlook on life

Remarkable growth of the active senior market Active seniors Total 225 trillion yen market

Timid Weak

Current financial assets (1947-49)

Feeble

130 trillion yen 0

100

Retirement Inheritance payment (5 years) (estimate)

45

(10 trillion yen/year)

trillion yen

50

trillion yen

200

SURUGA breaks the conventional thinking of the elderly as a feeble, aged group and instead offers tailor-made flexible marketing to the active senior market which has diverse needs and values

Over 50s or the senior generation

(trillion)

10

Active senior market

Product Series for Active Seniors The active senior generation want to achieve their new personal dreams in their second stage of life. Dreams which are unique, frivolous and fun.

Product structure of the Dream Life series Asset utilization Dream Life Support (Reverse mortgage)

Dream life plan M-type (Secured, personal loans)

SURUGA offers unique value propositions An approach maximizing SURUGA’s specialty: Consumer loans

SURUGA is customizing loan products that were conventionally aimed at young families to active seniors to support the realization of their dreams in a special product series.

Dream life card

(Secured, card loans)

Housing purchases Dream life mortgage loans (Mortgage loans)

Resorts, holiday houses Dream life assets (Second mortgage)

Approval based on life achievements Not going on customer future potential (income, workplace, social status) but evaluating customers on their life history and achievements to support the realization of dreams in the second stage of life.

Freedom Dream life plan

(Unsecured, personal loans)

Dream life quick

(Unsecured, card loans)

11

Active senior market

SURUGA’s Reverse Mortgage: Dream Life Support Product overview High-end products with the Dream Life series 1. Customers: Over 55, under 75 2. Finance: Overdrafts 3. Using property as collateral customers can borrow up to 100 million yen 4. Repayment by capital or sale of home upon death 5. Guarantor unnecessary except for spouse

Support functions Diverse support functions for senior customers 1. Biosecurity accounts 2. Volunteer guardian program 3. Utilizing will trusts

Aim - To give seniors the chance to live the second stage of their lives to the full - Reduced stress of repayment or getting a guarantor

Aim - Prevention of fraudulent borrowing by imposters - Response in advent of senility - Total support for passing on assets

Market latency - 84% of active seniors own their own home - 70% of assets are in property (2003, Ministry of Internal Affairs and Communications) - 94% do not want to rely on their family or others for support in their old age (2004, Nomura Research Institute) - Most active seniors are in good health

Gaining market share through meticulous product planning and providing total advice 12

New management system

Adding Value with SURUGA’s New Management System Customers SURUGA’s mission Core competence supporting SURUGA’s superiority

Helping customers give shape and a timeframe to their dreams

Proposals

Speed

Planning

Unique products and cutting-edge quality services offered timely before competitors

Reform points Marketing strategy Loyalty program Channel strategy more sophisticated Channel strategy more sophisticated

Managerial information management

Product strategy Interest rate and commission functions strengthened

Multi-products and services

Tie-ups for external Repayment condition functions strengthened products stengthened

Better proposals to customers Better convenience for customers

Timely proposals for new products and services

Organization

New customers from new products and services

Organization setting to allow management on all levels

Better marketing by team management

Judgment calls from branches

Organization and account setting to allow management on all levels

Flexible response to mergers, spin-offs and contracting

Uniform management of various data Expansion of types of data stored Effective use of information Offering accounting management fine-tuned to finances

13

New management system

New Management System Structure Branch terminals (SMILE)

ATM

Digitization of business reports (Paperless)

Forex

Finance aproval

Mutual funds

Online Tie-up Online connection Telephone banking

Batch Tie-up

Customer information

Remittance

Stand-in receipt and drawing

Deposits

Public bonds

Batch administration

Finance

Money

Tallying, daily balancing

Current interface

Telemarketing

Operation and management (operation/monitoring/security)

Development and testing trials

Current interface

Crisis management

- VISA (credit/debit) - JCB - BSC - Personnel information - Issuing - Profit management systems - Asset management systems - Auto calling systems - Automated screening systems etc.

Newly developed interface

Connections to external locations

- Other banks - Integrated ATMs - CAFIS

Internet banking

Newly developed interface

CRM

DWH (Information tool)

Paperless business reports

Legal reports

DWH (Database model)

Asset building simulations

Total accounts accounting support

Transfers

14

Alliances

Structured Approach to Alliances Approach flow to new alliances Large

1,100 industries D E

rank

rank

B

rank

C

rank

Second step

Customer Financial segmentation needs Company values

Industry structure

Win-win relationships with alliance companies

Evaluate synergy potential of each company

Customer contact

Global businessmen

Technical compatibility

First step

Customer numbers

rank rank

A

150 potential industries

F

Opinion leaders

Technicians SE Online traders

Students

Opinion leaders 15%

Young and trendy

SOHO

Tech-savvy seniors Women

Early majority 34%

Small businesses

Private investors

Enjoying life Early majority

Small Business

Society

Late majority and other 51%

15

Direct banking

Direct Banking Overview As of Sep 30, 2005

Direct banking accounts Ordinary branches

Softbank branch

498,375 accounts

Other net branches

Loan & deposit balances

Dream Direct branch

(Billion yen)

235.3

Deposits Loans

100%=584,169 accounts Sep 2004

Performance of net branches

187.0 152.4 149.2 129.6 120.4 93.1

177.4

Direct One branch

Number of hits to direct banking website Ordinary branches

Other net branches

Sep 02

So-net branch

100%=609,058 hits

Sep 05 (Billion yen)

(Managed accounting basis)

Soft Bank branch

Sep 2004 573,395 hits

Direct One branch

Sep 04

Ordinary profit

Average monthly hits on top page

ANA branch

Sep 03

1.2

1.3

Sep 02

Sep 03

1.5

1.8

Dream Direct branch Sep 04

Sep 05 16

Status of Interest Margins (Overall) Average balance and yield of outstanding loans Average balance of outstanding loans

(Billion yen)

2,080.9

Average balance and yield on deposits

Loan-deposit margin

Average balance on deposits

2,700.4

Yield on deposits

Yield on outstanding loans

(Billion yen)

2,673.4

2,028.2 2,035.5

2,649.9

1,986.5

2,598.5

Sep 02 Sep 03 Sep 04 Sep 05

Sep 02 Sep 03 Sep 04 Sep 05

Net interest margin

ROA (Interim basis)

Sep 02 Sep 02 Sep 03 Sep 04 Sep 05

Sep 03

Sep 04

Sep 05 Sep 02 Sep 03 Sep 04 Sep 05

17

Status of Interest Margins and Yield (Domestic) Status of yield and expense ratio

Net interest and loan-deposit margin

Yield on outstanding loans

Loan-deposit margin

Yield on deposits

Net interest margin

Expense ratio

Sep 02

Sep 03

Sep 04

Sep 05

Sep 02

Sep 03

Sep 04

Sep 05 18

Gross Operating Income and Yen Loan-deposit Income Gross Operating Income Income from mortgage loan sales Other operating income*

Yen loan-deposit income (Billion yen)

(Billion yen)

*except income from mortgage loan sales

36.2 33.7 0.8 33.4 0.07 2.3 1.5 1.6 29.4 1.20.8 1.2 33.0 31.9 29.8 28.5

Net fees and commissions Net interest income

-0.2

Sep 02

Sep 03

Sep 04

Sep 05

25.9

Sep 02

27.5

Sep 03

29.0

Sep 04

30.4

Sep 05 19

Core Net Operating Income and Interim Net Income Core Net Operating Income

Interim Net Income (Billion yen)

Income from sales of mortgage loan assets Parenthesis indicate income after sale of mortgage loan sales

14.1

(Billion yen)

Record-breaking income

16.9

Record-breaking income

6.7

15.3 5.6

(12.6)

1.5 4.6

4.6

Sep 03

Sep 04

11.0

Sep 02

Sep 03

Sep 04

Sep 05

Sep 02

Sep 05 20

Status of Consumer Loans 1 Consumer loan balance and ratio (Billion yen)

Personal loans Mortgage loans

1,524.8

1,418.7 1,329.0 181.2 1,237.6 167.5 170.0 170.4 1,343.6 1,251.2 6.1 0 1,159.0 1 + 1,067.1 9.7 Consumer loan ratio

.4 +91

Sep 02

New loans (Billion yen)

235.3

117.0

228.2 213.9

116.4

New consumer loans second half New consumer loans first half

113.2

+8

118.3

Sep 03

Sep 04

Sep 05

Mar 03

111.7

Mar 04

100.7 107.9

Mar 05

Sep 05 21

Status of Consumer Loans 2 Consumer loans breakdown and average rates

Personal loans breakdown and average rates

100%=1,524.8 billion yen (3.6%) As of Sep 30, 2005

100%=181.2 billion yen (7.8%)

Personal loans

181.2 billion yen (7.8%)

Mortgage loans

630.6

Super home loan

billion yen

713.0 billion yen

(2.8%)

Secured personal loans

116.1 billion yen (4.6%)

(3.3%)

Unsecured card loans

58.4 billion yen (14.4%)

Unsecured loans on deed

6.5 billion yen (7.0%)

Note: Percentages in parenthesis denote average interest rate 22

Status of Mortgage Loans Mortgage loan ratio by region Other

Shizuoka

Kanagawa

Greater Tokyo Area

Balance of mortgage loans for women and number of borrowers Balance (billion yen) Number of borrowers

76.0 68.0 58.6 49.5 Sep 02

Sep 03

Sep 04

Sep 05

Sep 02

Sep 03

Sep 04

Sep 05

(Interim basis)

23

Consumer Loan Delinquency and Final Disposal Ratio Repayment delinquency ratio

Final disposal ratio

Personal loans

Personal loans

Mortgage loans

Mortgage loans

Sep 03

Mar 04

Sep 04

Mar 05

Sep 05

Repayment delinquency ratio = amount 3 months or more overdue / remaining average amount of loan

Sep 03

Mar 04

Sep 04

Mar 05

Sep 05

(per annum conversion)

Final disposal ratio = default ratio x (1- recovery ratio)

24

Fees and Commissions - Status of Wealth Management Products Commission from mutual funds and insurance products

Breakdown of wealth management products

(Million yen)

(Billion yen)

Private annuity insurance commission

Private annuity insurance

Fire insurance commission

Mutual funds

Mutual funds sales commission

Safe custody of JGBs

Mutual funds trust commission

Foreign currency deposits

184.9 140.4 75.2

[Before tax half-yearly basis]

106.9 84.5 69.0 23.9

Sep 03

Mar 04

Sep 04

Mar 05

Sep 05

Sep 03

46.7

33.3

26.9 30.2 13.3 15.2 4.8 5.7

Mar 04

61.5

35.6

68.1 46.5

18.8 25.1 5.6 7.1

Sep 04

Mar 05

35.2 6.3 Sep 05

25

Securities Investments and Unrealized Gains Status of Unrealized gains

Interest and dividends / return on securities (Billion yen)

Stocks

14.0

Bonds Other

12.6

Unrealized gains (losses)

4.0 0.3 -1.6

Average maturity of bonds (years)

(Billion yen)

Return on securities Interest and dividends

1.9

3.7

0.5

0.2 -0.5

-4.5 -6.6 -5.8

-0.3 -0.8 -1.0

1.4

1.6

0.9

-6.9 Sep 02

Sep 03

Sep 04

Sep 05

Sep 02

Sep 03

Sep 04

Sep 05 26

Status of Expenses and OHR (billion yen) Personnel expenses

18.7

7.1

Non-personnel expenses

18.5

18.3

18.5

7.2

6.9

6.8

10.2

10.1

10.4

Taxes OHR

63.4%

10.4

55.5%

54.3% 51.1%

1.1

1.0

1.2

Sep 02

1.2

Sep 03

Sep 04

Sep 05 27

ROA Trends ROA difference (core net operating income basis) and average loan increase ratio

ROA Trends Suruga

ROA difference for the previous 3 years

Regional bank average (outstanding loans averaging over 1 trillion yen) *ROA = Core net operating income / average balance of assets during term

0.60%

1.17%

0.40%

1.07% 1.10%

Suruga

0.20%

0.88% -25.00%

0.00% -5.00%

5.00%

15.00%

25.00%

-0.20%

0.66% 0.64%

-15.00%

0.67%

0.71% 0.71%

-0.40%

Average loan increase ratio for the previous 3 years

-0.60%

Mar 02

Mar 03

Mar 04

Mar 05

Sep 05 28

Breakdown of Problem Assets based on the Financial Rehabilitation Law (Billion yen) Debtor classification

Claims against bankrupt and substantially bankrupt obligators Claims with collection risk

Claims for special attention

Sub-total

Normal assets

Total

Sep 05 Credit balance

19.1

48.8

Proportion

Consumer/ Corporate

1,18.1

2,052.7

2,170.8

Total coverage ratio

Consumer

8.8 0.57%

6.0

4.8

1.1

68.13%

2.8

100%

100%

Corporate

10.3 1.60%

9.1

7.8

1.3

89.25%

1.1

100%

100%

Consumer

10.3 0.67%

5.2

4.2

1.0

50.77%

4.0

79.59%

89.95%

Corporate

38.4 5.97% 24.7 13.5 11.2

64.20% 11.9

86.54%

95.18%

0.88 %

2.25 %

8.1 0.53%

4.9

0.8

71.07%

0.6

26.19%

78.65%

Corporate

41.9 6.51% 16.2 16.0

0.1

38.68%

8.4

32.68%

58.72%

Consumer

27.3 1.79% 17.0 14.0

3.0

62.45%

7.4

72.86%

89.81%

Corporate

90.7 14.09% 50.1 37.4 12.6

55.25% 21.4

52.79%

78.87%

Total coverage ratio

81.41%

Consumer

50.1

Total Proportion collateral & Collateral Guarantees Coverage Reserves Reserved ratio ratio guarantees

2.31%

5.44 %

Consumer

1,499.6 98.20%

Corporate

553.1 85.90%

94.56%

Consumer

1,527.0

100%

Corporate

643.8

100%

100%

5.8

Coverage ratio: Reserved ratio:

Covered by collateral and guarantees Reserved for unsecured portion

Total coverage ratio: Covered by collateral, guarantees and reserves NOTE: The guarantee is not provided by SURUGA. The guarantee is extended by a third party, who serves as a joint-guarantor to the borrower.

29

Ratio of Loans Disclosed Under the Financial Rehabilitation Law Ratio of disclosed assets

Consumer/corporate ratio of disclosed assets

Ratio of disclosed assets

Corporate ratio

Ratio of disclosed assets after deduction from reserves

Consumer ratio

Ratio of disclosed assets after deduction from reserves, collateral and guarantees

Sep 02

Sep 03

Sep 04

Sep 05

Sep 02

Sep 03

Sep 04

Sep 05 30

Coverage and Credit Costs Status Coverage status

Credit costs status (Billion yen)

Coverage ratio

(Billion yen)

(Interim basis)

Reserve

Core net operating income

Collateral and guarantees Deduction of reserves, collateral and guarantees

Actual credit costs (Credit costs - Collection of claims written off)

80.13%

81.16%

193.5

78.50%

41.2

161.6

33.3 113.8 93.5

81.41%

Actual credit costs ratio (actual credit costs / average loan balance)

14.1 152.8

30.3 93.6

15.3

16.9

11.0 118.1

28.9 67.2

4.8 0.48%

38.4

34.7

28.7

21.9

Sep 02

Sep 03

Sep 04

Sep 05

Sep 02

5.8 0.57%

Sep 03

6.5 0.64%

Sep 04

6.7 0.64%

Sep 05

31

Interest Margin After Credit Costs Comparison with the main regional banks Suruga: Loan-deposit margin - Actual credit costs ratio Main regional banks average: Loan-deposit margin - Actual credit costs ratio

Loan-deposit margin after actual credit costs and average loan increase ratio Loan-deposit margin after actual credit costs

1.30%

Sep 04 Mar 05

Suruga

1.10%

1.22%

0.90% 0.70%

1.16%

0.50%

1.06%

0.30%

0.99%

0.10%

0.33% 0.30% Mar 03

0.31%

0.32%

-5.00% -0.10%0.00% -0.30%

Mar 04

Mar 05

Sep 05

5.00%

10.00%

15.00%

20.00%

25.00%

Average loan increase ratio (for the previous three years)

-0.50%

Based on flash reports

32

Status of Owned Capital Deferred tax assets / Tier I ratio (Billion yen)

Deferred tax assets

Capital adequacy ratio (Billion yen)

BIS standard (consolidated) Domestic standard (non-consolidated)

Tier I

143.8

Deferred tax assets / Tier I ratio

132.5 116.9

120.9

Tier I ratio (non-consolidated) Amount of owned capital

8.94%

44.0%

11.07%

8.54%

36.9%

10.29%

9.36% 8.93% %

10.32%

9.75%

9.70%

9.14%

152.8

8.32% 7.93%

141.3

25.6% 51.5

18.1%

44.6 34.0

Sep 02

Sep 03

Sep 04

125.9

129.8

26.1 Sep 02 Sep 05

Sep 03

Sep 04

Sep 05 33

FY2005 Interim Results and FY2005 Forecast (Billion yen)

2005 Interim results and forecast Forecasted (A)

Interim results Comparison (B) (B-A)

2004 results

2005 year-end forecast

Gross operating income

34.5

36.2

+1.7

68.0

71.0

Operating expenses

18.5

18.5

0.0

36.0

37.0

Net operating income

16.0

16.3

+0.3

34.6

33.0

Core net operating income

16.0

16.9

+0.9

31.3

33.5

Ordinary profit

10.0

10.1

+0.1

18.3

20.5

Net income

5.0

6.7

+1.7

10.4

12.5

Actual credit costs

6.0

6.7

+0.7

12.5

12.7 34

Corporate philosophy

SURUGA’s Mission and Exchange-of-value System Shareholders take part in corporate activities through investment by evaluating growth and the corporate mission

Shareholders

People wanting support for own happiness

Customers

SURUGA’s mission Corporations are social systems that support the pursuit of happiness in their chosen industries

Other stakeholders

Exchanging value to spur on growth

Growth

Helping to give shape and timeframe for customers' dreams as a life and business concierge

Employees

Participating in company activities and sharing the common goals of SURUGA

Customers, shareholders, the regional community and other stakeholders exchange value with SURUGA SURUGA defines its growth as being able to improve upon this exchange of value Rather than focusing on one stakeholder and maximizing its value, SURUGA believes in retaining a good balance and quality exchange of value will lead to continued growth 35

Toward the Future

A new form of banking is at hand... 36

For further details regarding the above, please contact

IR & PR Office, Suruga Bank Tel: +81-3-3279-5536 e-mail: [email protected]

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