Breaking Down Suruga Bank Ltd. Financial Health: Key Insights for Investors

Investors eyeing regional banks will want to dive into Suruga Bank Ltd. (8358.T) after the lender posted a fiscal-year revenue of ¥78.73 billion (FY ending Mar 31, 2025), an 7.61% rise from ¥73.16 billion, with quarterly revenue of ¥24.46 billion (Q ended Jun 30, 2025; +8.52% YoY) and TTM revenue of ¥80.64 billion as of Oct 24, 2025; profitability shows strength too, with net income jumping to ¥20.18 billion (FY2025, +31.23% YoY) and EPS of ¥136.55 (TTM), while valuation metrics sit at a P/E of 12.56 and a P/B of 0.82x against a market cap of ¥262.89 billion; balance-sheet details reveal total assets and deposits of ¥3,110.101 billion, loans and bills discounted of ¥2,269.389 billion, cash and cash equivalents of ¥481.329 billion and securities of ¥383.126 billion, dividend per share ¥44.00 (yield 2.52%), revenue per employee ~¥57.40 million across 1,405 staff, and a notable 139.2% YoY increase in comprehensive income for the six months ending Sep 30, 2025-read on for a granular breakdown of liquidity, capital structure, valuation and the risks and growth levers that matter for shareholders and analysts.

Suruga Bank Ltd. (8358.T) - Revenue Analysis

Suruga Bank's recent top-line performance shows steady growth across fiscal, quarterly and trailing twelve-month horizons, alongside productivity and valuation metrics that investors should weigh when assessing the bank's revenue quality and market pricing.

• Fiscal year (ending 2025-03-31) revenue: ¥78.73 billion (+7.61% YoY vs ¥73.16B)
• Quarter (ending 2025-06-30) revenue: ¥24.46 billion (+8.52% YoY)
• TTM revenue (as of 2025-10-24): ¥80.64 billion (+4.55% YoY)
• Revenue per employee: ≈ ¥57.40 million (1,405 employees)
• Market capitalization: ¥262.89 billion
• Price-to-sales (P/S) ratio: 3.26

• Growth dynamics: FY and quarterly growth rates point to accelerating near-term revenue momentum, while TTM growth moderates to mid-single digits.
• Productivity: Revenue per employee (~¥57.4M) provides a compact measure of staff efficiency relative to peers in regional banking.
• Valuation context: At a P/S of 3.26, the market is pricing the bank at a premium to one times revenue, implying expectations for sustained earnings or strategic upside.
• Investor reference: Exploring Suruga Bank Ltd. Investor Profile: Who's Buying and Why?

Suruga Bank Ltd. (8358.T) Profitability Metrics

Key indicators for Suruga Bank's profitability show improvement in fiscal 2024-2025, supported by higher net income, steady ROE targets, and shareholder returns through dividends.

• Net income (FY ending Mar 31, 2025): ¥20.18 billion (+31.23% YoY from ¥15.38 billion)
• Return on equity (ROE, FY2024): 6.8%; target: average ≥6% from FY2026 and long-term target ≥8%
• Price-to-earnings (P/E) ratio: 12.56
• Earnings per share (TTM EPS): ¥136.55
• Dividend per share (DPS): ¥44.00 - dividend yield: 2.52%
• Comprehensive income (6 months ended Sep 30, 2025): +139.2% YoY

Investor-focused implications and considerations can be cross-referenced with the bank's strategic statements: Mission Statement, Vision, & Core Values (2026) of Suruga Bank Ltd.

Suruga Bank Ltd. (8358.T) - Debt vs. Equity Structure

• Funding profile: deposits equal total assets (¥3,110.101bn), indicating strong deposit funding relative to assets on the reported date.
• Credit exposure: loans and bills discounted represent ~72.9% of total assets (2,269.389 / 3,110.101), showing heavy balance-sheet exposure to lending.
• Market valuation: P/B of 0.82x and market cap ¥262.89bn imply the market values the bank below reported book value.
• Capital signals: equity-to-asset ratio is reported as improving, but lack of exact equity, total liabilities/equity and capital adequacy figures prevents precise leverage or regulatory-capital assessment.

Suruga Bank Ltd. (8358.T) - Liquidity and Solvency

• Cash and cash equivalents (as of September 30, 2025): ¥481.329 billion - a strong liquidity buffer for deposit outflows and short-term obligations.
• Total investments / securities (as of September 30, 2025): ¥383.126 billion - a material investment portfolio supporting interest income and liquidity management.
• Gross loans (most recent): ¥2,563.772 billion - the main earning asset base and credit exposure.
• Net income (fiscal year ended March 31, 2025): ¥20.18 billion - indicating positive profitability for the fiscal year.
• Comprehensive income (six months ended September 30, 2025): +139.2% year-on-year - signaling improved overall financial performance and valuation effects.
• Equity-to-asset ratio: modestly improved - reflecting gradual balance sheet strengthening.

• High cash balance (~¥481.3b) relative to short-term needs reduces immediate funding risk and supports depositor confidence.
• The securities portfolio (¥383.1b) provides secondary liquidity and potential capital gains/interest income, but market sensitivity remains a factor for comprehensive income volatility.
• Loan book size (¥2,563.8b) means credit risk management and NPL trends are key to sustaining solvency-current profitability (¥20.18b) supports capital accumulation.
• A 139.2% YoY rise in six-month comprehensive income suggests either improved core earnings or favorable valuation/revaluation gains; this lift strengthens equity cushions if retained.
• Incremental improvement in the equity-to-asset ratio implies a slowly strengthening capital position, but continued monitoring of risk-weighted assets and regulatory capital ratios is essential.

Suruga Bank Ltd. (8358.T) - Valuation Analysis

• P/E of 12.56 with EPS ¥136.55 implies a market-implied share price around ¥1,715.53, anchoring valuation expectations to current earnings power.
• P/B at 0.82x indicates the market is pricing Suruga Bank Ltd. (8358.T) below its book value, implying either persistent profitability concerns or a potential value opportunity if asset quality is sound.
• Market cap ¥262.89 billion versus implied total book value ≈¥320.60 billion underscores the below-book market pricing.
• Dividend of ¥44 and a 2.52% yield provides income but is moderate relative to the bank's valuation discount; yield consistency vs payout sustainability should be monitored.
• Comprehensive income growth of 139.2% (6 months to 30 Sep 2025) is a material operational swing that can justify re-rating if sustained.

• Key ratios to watch going forward:
  • Trend in P/B - whether market moves toward book value as profitability normalizes.
  • EPS trajectory and loan-loss provisions affecting future P/E.
  • Dividend coverage and payout ratio versus earnings stability.

Suruga Bank Ltd. (8358.T) - Risk Factors

Key balance-sheet and market metrics provide a snapshot of Suruga Bank Ltd.'s current risk profile. The following figures are central to evaluating capital adequacy, market valuation, profitability and shareholder return.

• Capital adequacy risk - while the equity-to-asset ratio has inched up, the improvement is slight; any deterioration in asset quality or unexpected loan losses could quickly expose capital strain.
• Valuation risk - a P/B of 0.82x implies the market values assets conservatively; persistent discounts may reflect concerns about asset quality, loan portfolio concentration, or legacy liabilities.
• Earnings sensitivity - a P/E of 12.56 and EPS of ¥136.55 tie investor expectations to continued earnings stability; adverse macro conditions or margin compression could reduce EPS and pressure the share price.
• Market-cap liquidity and investor appetite - with market capitalization of ¥262.89 billion, large trades can move the stock; limited free float or concentrated ownership increases volatility risk.
• Dividend sustainability - ¥44.00 per share (2.52% yield) provides income, but dividends depend on earnings and regulatory constraints; weaker profits or higher capital requirements may force cuts.
• Regulatory and macro risk - Japanese banking oversight, interest-rate shifts, and economic shocks can impact net interest margins, provisioning needs and compliance costs.

• Funding and liquidity risk - regional banks can face deposit concentration and wholesale funding pressures; stress scenarios could amplify liquidity costs.
• Credit concentration - localized loan exposure or sectoral concentration raises the stakes if regional economic conditions deteriorate.
• Reputation and legal risk - any legacy issues, litigation, or customer trust erosion could lead to financial and franchise damage.

For further investor context and shareholder composition details, see: Exploring Suruga Bank Ltd. Investor Profile: Who's Buying and Why?

Suruga Bank Ltd. (8358.T) - Growth Opportunities

• Robust income acceleration: comprehensive income for the six months ending September 30, 2025, rose 139.2% year‑on‑year, signaling improved noninterest income and valuation gains.
• Profit recovery and sustainability: net income for the fiscal year ending March 31, 2025, reached ¥20.18 billion, up 31.23% from ¥15.38 billion the prior year, supporting retained earnings and capital buffers.
• Per‑share returns: trailing twelve‑month EPS is ¥136.55, with a dividend per share of ¥44.00 (dividend yield 2.52%), balancing payout and reinvestment capacity.
• Valuation gap: P/E of 12.56 and P/B of 0.82x suggest the market prices the bank below book value, potentially attractive for value‑oriented investors and strategic buyers.

• Retail deposit mobilization and cross‑sell of fee‑based products to improve net interest margin and noninterest income.
• Targeted SME and mortgage lending expansion, leveraging improved capital from higher net income.
• Cost rationalization and branch rationalization combined with digital channel investment to lift operating leverage.
• Asset quality improvement and NPL resolution to free capital for growth and reduce credit costs.
• Selective M&A or strategic partnerships to capture scale while P/B remains below 1.0x.