Suruga Bank (8358): FY3/26 briefing: Positives of NP/buyback upside/lifting administrative action remain

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Suruga Bank (8358): FY3/26 briefing: Positives of NP/buyback upside/lifting administrative action remain

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Suruga Bank (8358)

FY3/26 briefing: Positives of NP/buyback

upside/lifting administrative action remain

Maintain Rating: BUY | PO: 2,850 JPY | Price: 2,302 JPY

28 May 2026

May 28, 15:00 - Suruga Bank held its FY3/26 full-year earnings briefing. FY3/27 NP

Equityguidance has upside potential in net interest income and the effective tax rate, and

there also appears to be room for additional buybacks at the 3Q results. We believe the Shinichiro Nakamura >>

timing for the lifting of the FSA administrative action is also approaching, and Research Analyst

BofAS Japan

considering the potential for additional investment by Credit Saison, positive factors still +81 3 6225 8824

remain. Relative attractiveness also remains in P/B-ROE valuation and total shareholder shinichiro.nakamura@bofa.com

return yield, and we maintain Buy rating. Key management messages are as follows. Yuji Kobayashi >>

Research Analyst

BofAS Japan(1) FY3/27 NP guidance of ¥32bn appears to have upside +81 3 6225 8791

potential in net interest income and the effective tax rate yuji.kobayashi@bofa.com

FY3/27 core gross profit guidance of +¥4.2bn YoY is almost entirely net interest income,

with a guidance assuming +¥1.5-1.7bn from a BoJ rate hike (assumed in October). As the

new loan execution plan (YoY -22%) is conservative, we believe there is ultimately high Stock Data

upside potential. Bond loss cutting is assumed to be zero in the plan, but even if several

Price 2,302 JPY

billion yen occurs, it could likely be offset by upside in the plan for equity gains of ¥5bn.

Price Objective 2,850 JPY

The effective credit cost guidance (¥6bn of reversals) is not inconsistent, but as it