Suruga Bank

Research evidence excerpt

Suruga Bank

Global Markets Research

14 July 2026Suruga Bank

8358.T 8358 JP / EQUITY: JAPAN BANKS

We expect improvement in earnings and shareholder returns Rating

From Suspended Buyas settlements progress

Target price JPY 3,000We look for share buybacks, reversals of credit and tax costs From N/A

We assign a Buy rating, forecast growth in earnings and shareholder returns Closing price 10 July 2026 JPY 2,569We assign a Buy rating to Suruga Bank. We see scope for growth in earnings and share

buybacks in excess of guidance and the targets in the medium-term business plan. With Implied upside +16.8%the resolution in March 2026 of all mediation cases related to the Apaman issue

(discussed below) and subsequent progress on settlements, we see a higher probability of

profit growth from ongoing reversals of credit costs and tax expenses. Given the bank's

shareholders' equity ratio target and past buyback track record, we expect this profit Relative performance chart

growth to also translate into a high level of share buybacks.

Share price scenario: With few near-term catalysts for bank stocks, we expect the

stock to attract attention

With a lack of catalysts for bank stocks in the immediate wake of the BOJ rate hike, we

think attention could focus on Suruga Bank, which has company-specific share price

catalysts in its near-term earnings prospects. Our financials team does not expect the BOJ

to hike interest rates until December, and with Q1 results announcements rarely bringing

much in terms of events, we see few catalysts for the banking sector as a whole in the

near future. In the past, the stock has tended to outperform during correction phases in the

overall banking sector because of its low interest rate sensitivity, and we see scope for it