Major Estimate Revision • 15h
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2027 has been updated. 2027 EPS estimate increased from JP¥170 to JP¥188. Revenue forecast unchanged at JP¥72.4b. Net income forecast to shrink 7.9% next year vs 12% growth forecast for Banks industry in Japan . Consensus price target up from JP¥2,467 to JP¥2,550. Share price rose 3.9% to JP¥2,354 over the past week. Live News • May 21
Suruga Bank Sees Earnings Jump and Dividend Boost as Legal Battle Continues Suruga Bank reported ordinary income growth of 20.6% and a 72.1% rise in profit attributable to owners for the fiscal year ended March 31, 2026, reflecting a strong rebound in earnings.
The bank sharply raised its annual dividends for the year and indicated an intention to keep dividends at this higher level.
All four former directors, or their heirs, appealed a Shizuoka District Court ruling on alleged duty breaches tied to founder-related credit management issues, with about ¥4.76b in potential compensation now before the Tokyo High Court.
The profit rebound and higher dividend level indicate a management focus on shareholder returns, while guidance for further gains in ordinary profit suggests the current earnings structure is central to that stance.
At the same time, the ongoing governance-related lawsuit keeps legal and reputational risks on the table, which you may want to weigh against the improved profitability and dividend policy. Reported Earnings • May 19
Full year 2026 earnings: EPS and revenues exceed analyst expectations Full year 2026 results: EPS: JP¥199 (up from JP¥107 in FY 2025). Revenue: JP¥86.8b (up 10% from FY 2025). Net income: JP¥34.7b (up 72% from FY 2025). Profit margin: 40% (up from 26% in FY 2025). The increase in margin was primarily driven by lower expenses. Revenue exceeded analyst estimates by 70%. Earnings per share (EPS) also surpassed analyst estimates by 1.0%. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has increased by 66% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • May 17
Price target increased by 13% to JP¥2,467 Up from JP¥2,175, the current price target is an average from 3 analysts. New target price is 5.6% above last closing price of JP¥2,336. Stock is up 86% over the past year. The company is forecast to post earnings per share of JP¥197 for next year compared to JP¥107 last year. Announcement • May 14
Suruga Bank Ltd., Annual General Meeting, Jun 24, 2026 Suruga Bank Ltd., Annual General Meeting, Jun 24, 2026. Announcement • May 10
Suruga Bank Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Suruga Bank Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Major Estimate Revision • Apr 25
Consensus EPS estimates increase by 17% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥168 to JP¥197. Revenue forecast unchanged at JP¥64.8b. Net income forecast to grow 24% next year vs 14% growth forecast for Banks industry in Japan. Consensus price target up from JP¥2,175 to JP¥2,275. Share price was steady at JP¥2,253 over the past week. Price Target Changed • Apr 11
Price target increased by 17% to JP¥2,175 Up from JP¥1,863, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥2,270. Stock is up 96% over the past year. The company is forecast to post earnings per share of JP¥168 for next year compared to JP¥107 last year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 03 June 2026. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.7%). Announcement • Mar 15
Suruga Bank Ltd. Announces Retirement of Mr. Tomoaki Tsutsumi as CCO & General Manager of the Compliance & Risk Management Division, Effective March 31, 2026 Suruga Bank Ltd. announced that Mr. Tomoaki Tsutsumi is scheduled to retire as CCO & General Manager of the Compliance & Risk Management Division on March 31, 2026. Current position: Director & Senior Managing Executive Officer, CCO & General Manager of Compliance & Risk Management Division. Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥47.02 (vs JP¥39.00 in 3Q 2025) Third quarter 2026 results: EPS: JP¥47.02 (up from JP¥39.00 in 3Q 2025). Revenue: JP¥28.4b (up 6.1% from 3Q 2025). Net income: JP¥8.07b (up 11% from 3Q 2025). Profit margin: 28% (up from 27% in 3Q 2025). The increase in margin was driven by higher revenue. Revenue is expected to decline by 3.9% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to grow by 5.7%. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 71% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • Feb 10
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 38% to JP¥2,154. The fair value is estimated to be JP¥1,782, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.9% over the last 3 years. Earnings per share has grown by 36%. Revenue is forecast to decline by 16% in 2 years. Earnings are forecast to grow by 7.9% in the next 2 years. Price Target Changed • Jan 15
Price target increased by 9.6% to JP¥1,863 Up from JP¥1,700, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥1,890. Stock is up 66% over the past year. The company is forecast to post earnings per share of JP¥153 for next year compared to JP¥107 last year. Declared Dividend • Dec 10
First half dividend of JP¥22.00 announced Shareholders will receive a dividend of JP¥22.00. Ex-date: 30th March 2026 Payment date: 3rd June 2026 Dividend yield will be 2.6%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 8.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 18% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 16
Second quarter 2026 earnings released: EPS: JP¥59.28 (vs JP¥22.47 in 2Q 2025) Second quarter 2026 results: EPS: JP¥59.28 (up from JP¥22.47 in 2Q 2025). Revenue: JP¥24.5b (up 46% from 2Q 2025). Net income: JP¥10.4b (up 143% from 2Q 2025). Profit margin: 42% (up from 26% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue is expected to decline by 5.0% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to grow by 3.4%. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has increased by 56% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 03
Suruga Bank Ltd. to Report Q2, 2026 Results on Nov 13, 2025 Suruga Bank Ltd. announced that they will report Q2, 2026 results on Nov 13, 2025 Upcoming Dividend • Sep 22
Upcoming dividend of JP¥18.50 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 10 December 2025. Payout ratio is a comfortable 29% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.1%). Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: JP¥29.89 (vs JP¥35.37 in 1Q 2025) First quarter 2026 results: EPS: JP¥29.89 (down from JP¥35.37 in 1Q 2025). Revenue: JP¥24.5b (up 8.5% from 1Q 2025). Net income: JP¥5.45b (down 20% from 1Q 2025). Profit margin: 22% (down from 30% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 1.7% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to grow by 4.5%. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has increased by 57% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 29
Suruga Bank Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Suruga Bank Ltd. announced that they will report Q1, 2026 results on Aug 07, 2025 Declared Dividend • Jul 09
Final dividend of JP¥18.50 announced Shareholders will receive a dividend of JP¥18.50. Ex-date: 29th September 2025 Payment date: 10th December 2025 Dividend yield will be 2.4%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 36% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 14
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: JP¥107 (up from JP¥75.45 in FY 2024). Revenue: JP¥78.7b (up 7.6% from FY 2024). Net income: JP¥20.2b (up 31% from FY 2024). Profit margin: 26% (up from 21% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 57%. Earnings per share (EPS) also surpassed analyst estimates by 10.0%. Revenue is forecast to stay flat during the next 3 years compared to a 2.4% growth forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
Suruga Bank Ltd. (TSE:8358) announces an Equity Buyback for 12,500,000 shares, representing 6.8% for ¥15,000 million. Suruga Bank Ltd. (TSE:8358) announces a share repurchase program. Under the program, the company will repurchase 12,500,000 shares, representing 6.80% of its issued share capital for ¥15,000 million. The purpose of the program is to enhance shareholders returns. The program will expire on January 31, 2026. As of March 31, 2025, the company had 197,139,248 shares and 13,209,575 shares in treasury. Announcement • May 12
Suruga Bank Ltd., Annual General Meeting, Jun 25, 2025 Suruga Bank Ltd., Annual General Meeting, Jun 25, 2025. Buy Or Sell Opportunity • May 09
Now 20% overvalued The stock has been flat over the last 90 days, currently trading at JP¥1,304. The fair value is estimated to be JP¥1,085, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 16%. For the next 3 years, revenue is forecast to grow by 2.4% per annum. Earnings are also forecast to grow by 9.2% per annum over the same time period. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥1,085, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 10x in the Banks industry in Japan. Total returns to shareholders of 182% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,112 per share. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥14.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 04 June 2025. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (3.1%). Announcement • Mar 13
Suruga Bank, Ltd. Hereby Announces the Retirement of Board and Committees Suruga Bank Ltd. hereby announced the retire at the conclusion of the 214th Annual General Meeting of Shareholders to be held on June 25, 2025, of Emi Noge as Outside Director, Member of the Audit & Supervisory Committee and Takeshi Miyajima as Director & Senior Executive Officer, General Manager of IT & Operations Division. Announcement • Mar 11
Suruga Bank Ltd. to Report Fiscal Year 2025 Results on May 12, 2025 Suruga Bank Ltd. announced that they will report fiscal year 2025 results on May 12, 2025 Price Target Changed • Mar 04
Price target increased by 8.3% to JP¥1,338 Up from JP¥1,235, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of JP¥1,319. Stock is up 68% over the past year. The company is forecast to post earnings per share of JP¥95.85 for next year compared to JP¥75.45 last year. Buy Or Sell Opportunity • Feb 10
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 25% to JP¥1,316. The fair value is estimated to be JP¥1,092, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to decline by 7.5% in 2 years. Earnings are forecast to grow by 6.9% in the next 2 years. Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥39.00 (vs JP¥18.66 in 3Q 2024) Third quarter 2025 results: EPS: JP¥39.00 (up from JP¥18.66 in 3Q 2024). Revenue: JP¥26.8b (up 32% from 3Q 2024). Net income: JP¥7.28b (up 86% from 3Q 2024). Profit margin: 27% (up from 19% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 1.7% growth forecast for the Banks industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 06
Suruga Bank Ltd. (TSE:8358) announces an Equity Buyback for 4,500,000 shares, representing 2.41% for ¥6,000 million. Suruga Bank Ltd. (TSE:8358) announces a share repurchase program. Under the program, the company will repurchase 4,500,000 shares, representing 2.41% of its issued share capital for ¥6,000 million. The purpose of the program is to enhance shareholders returns. The program will expire on April 30, 2025. As of December 31, 2024, the company had 197,139,248 shares and 10,179,098 shares in treasury. Announcement • Jan 03
Suruga Bank Ltd. to Report Q3, 2025 Results on Feb 06, 2025 Suruga Bank Ltd. announced that they will report Q3, 2025 results on Feb 06, 2025 Price Target Changed • Dec 24
Price target increased by 8.8% to JP¥1,235 Up from JP¥1,135, the current price target is an average from 4 analysts. New target price is 7.4% above last closing price of JP¥1,150. Stock is up 47% over the past year. The company is forecast to post earnings per share of JP¥99.47 for next year compared to JP¥75.45 last year. Declared Dividend • Dec 11
First half dividend of JP¥14.50 announced Shareholders will receive a dividend of JP¥14.50. Ex-date: 28th March 2025 Payment date: 4th June 2025 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 5.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 38% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 15
Second quarter 2025 earnings released: EPS: JP¥22.47 (vs JP¥27.46 in 2Q 2024) Second quarter 2025 results: EPS: JP¥22.47 (down from JP¥27.46 in 2Q 2024). Revenue: JP¥19.7b (down 6.8% from 2Q 2024). Net income: JP¥4.27b (down 30% from 2Q 2024). Profit margin: 22% (down from 29% in 2Q 2024). The decrease in margin was primarily driven by lower revenue. Revenue is expected to decline by 5.3% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to grow by 1.6%. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 31% per year, which means it is well ahead of earnings. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥11.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 12 December 2024. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (3.5%). Announcement • Sep 18
Suruga Bank Ltd. to Report Q2, 2025 Results on Nov 12, 2024 Suruga Bank Ltd. announced that they will report Q2, 2025 results on Nov 12, 2024 Buy Or Sell Opportunity • Sep 11
Now 22% undervalued Over the last 90 days, the stock has risen 7.8% to JP¥1,133. The fair value is estimated to be JP¥1,455, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.7% over the last 3 years. Earnings per share has declined by 24%. For the next 3 years, revenue is forecast to decline by 5.9% per annum. Earnings are also forecast to decline by 3.1% per annum over the same time period. Reported Earnings • Aug 09
First quarter 2025 earnings released: EPS: JP¥35.37 (vs JP¥18.63 in 1Q 2024) First quarter 2025 results: EPS: JP¥35.37 (up from JP¥18.63 in 1Q 2024). Revenue: JP¥22.5b (up 21% from 1Q 2024). Net income: JP¥6.81b (up 94% from 1Q 2024). Profit margin: 30% (up from 19% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to decline by 5.9% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 46% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥918, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 11x in the Banks industry in Japan. Total returns to shareholders of 184% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,460 per share. Buy Or Sell Opportunity • Jul 18
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 21% to JP¥1,132. The fair value is estimated to be JP¥940, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Earnings per share has declined by 35%. For the next 3 years, revenue is forecast to decline by 5.4% per annum. Earnings are forecast to grow by 1.4% per annum over the same time period. Price Target Changed • Jul 16
Price target increased by 9.0% to JP¥1,003 Up from JP¥920, the current price target is an average from 4 analysts. New target price is 7.9% below last closing price of JP¥1,088. Stock is up 89% over the past year. The company is forecast to post earnings per share of JP¥74.36 for next year compared to JP¥75.45 last year. Declared Dividend • Jul 11
Final dividend of JP¥11.00 announced Shareholders will receive a dividend of JP¥11.00. Ex-date: 27th September 2024 Payment date: 12th December 2024 Dividend yield will be 2.3%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 2.6% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 12% to bring the payout ratio under control. EPS is expected to grow by 13% over the next 3 years, which should be enough to bring the dividend into a sustainable range. Announcement • Jun 22
Suruga Bank Ltd. to Report Q1, 2025 Results on Aug 08, 2024 Suruga Bank Ltd. announced that they will report Q1, 2025 results on Aug 08, 2024 New Risk • Jun 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.7% average weekly change). Shareholders have been diluted in the past year (2.2% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jun 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,143, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 13x in the Banks industry in Japan. Total returns to shareholders of 238% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥911 per share. Buy Or Sell Opportunity • May 31
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 37% to JP¥1,104. The fair value is estimated to be JP¥912, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Earnings per share has declined by 35%. For the next 3 years, revenue is forecast to decline by 5.5% per annum. Earnings are forecast to grow by 2.0% per annum over the same time period. Reported Earnings • May 13
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥75.45 (up from JP¥56.15 in FY 2023). Revenue: JP¥73.2b (up 6.5% from FY 2023). Net income: JP¥15.4b (up 45% from FY 2023). Profit margin: 21% (up from 15% in FY 2023). Revenue exceeded analyst estimates by 74%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Revenue is expected to decline by 5.5% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to grow by 4.1%. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 34% per year, which means it is well ahead of earnings. Announcement • May 12
Suruga Bank Ltd., Annual General Meeting, Jun 26, 2024 Suruga Bank Ltd., Annual General Meeting, Jun 26, 2024. Announcement • Apr 04
Suruga Bank Ltd. (TSE:8358) announces an Equity Buyback for 6,000,000 shares, representing 3.11% for ¥7,000 million. Suruga Bank Ltd. (TSE:8358) announces a share repurchase program. Under the program, the company will repurchase 6,000,000 shares, representing 3.11% of its issued share capital for ¥7,000 million. The purpose of the program is to enhance shareholders returns. The program will expire on September 30, 2024. As of March 31, 2024, the company had 232,139,248 shares and 39,334,605 shares in treasury. Announcement • Mar 24
Suruga Bank Ltd. to Report Fiscal Year 2024 Results on May 10, 2024 Suruga Bank Ltd. announced that they will report fiscal year 2024 results on May 10, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥7.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 06 June 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.9%). Price Target Changed • Mar 09
Price target increased by 11% to JP¥693 Up from JP¥623, the current price target is an average from 3 analysts. New target price is 19% below last closing price of JP¥852. Stock is up 99% over the past year. The company is forecast to post earnings per share of JP¥59.78 for next year compared to JP¥56.15 last year. Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥18.66 (vs JP¥23.84 in 3Q 2023) Third quarter 2024 results: EPS: JP¥18.66 (down from JP¥23.84 in 3Q 2023). Revenue: JP¥26.5b (up 41% from 3Q 2023). Net income: JP¥3.91b (down 13% from 3Q 2023). Profit margin: 15% (down from 24% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 6.0% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to grow by 2.3%. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. Announcement • Jan 09
Suruga Bank Ltd. to Report Q3, 2024 Results on Feb 09, 2024 Suruga Bank Ltd. announced that they will report Q3, 2024 results on Feb 09, 2024 New Risk • Dec 01
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 8.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (6.1% net profit margin). Shareholders have been diluted in the past year (8.8% increase in shares outstanding). Announcement • Sep 27
Suruga Bank Ltd. to Report Q2, 2024 Results on Nov 09, 2023 Suruga Bank Ltd. announced that they will report Q2, 2024 results on Nov 09, 2023 New Risk • Aug 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.09% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.09% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Price Target Changed • Aug 24
Price target increased by 8.8% to JP¥463 Up from JP¥425, the current price target is an average from 4 analysts. New target price is 23% below last closing price of JP¥597. Stock is up 52% over the past year. The company is forecast to post earnings per share of JP¥52.07 for next year compared to JP¥56.15 last year. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥18.63 (vs JP¥21.56 in 1Q 2023) First quarter 2024 results: EPS: JP¥18.63 (down from JP¥21.56 in 1Q 2023). Revenue: JP¥20.6b (up 13% from 1Q 2023). Net income: JP¥3.51b (down 14% from 1Q 2023). Profit margin: 17% (down from 22% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Jul 04
Suruga Bank Ltd. announced that it has received ¥17.123432 billion in funding from Credit Saison Co., Ltd. On July 3, 2023, Suruga Bank Ltd. closed the transaction. Announcement • Jun 24
Suruga Bank Ltd. to Report Q1, 2024 Results on Aug 10, 2023 Suruga Bank Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Announcement • May 20
Suruga Bank Ltd. announced that it expects to receive ¥17.123432 billion in funding from Sansei Capital Investment Co., Ltd. Suruga Bank Ltd. announced that it will issue 35,089,000 common shares at a price of ¥488 per share for gross proceeds of ¥17,123,432,000 on May 18, 2023. The transaction included participation from new investor, Saison Information Systems Co., Ltd. for 15.70% shares. The transaction is expected to complete from July 3, 2023 to September 29, 2023. The company will pay ¥254,890,000 as legal fees, advisory fees and document preparation costs such as securities registration statements. Announcement • May 19
Suruga Bank Ltd. (TSE:8358) announces an Equity Buyback for 35,000,000 shares, representing 18.58% for ¥22,000 million. Suruga Bank Ltd. (TSE:8358) announces a share repurchase program. Under the program, the company will repurchase 35,000,000 shares, representing 18.58% of its issued share capital for ¥22,000 million. The purpose of the program is implementing a capital policy that responds to changes in the environment and market environment. The program will expire on March 31, 2024. As of March 31, 2023, the company had 232,139,248 shares and 43,768,676 shares in treasury. Announcement • May 18
Credit Saison Reportedly to Acquire Stake in Suruga Bank Credit Saison Co., Ltd. (TSE:8253) plans to acquire a stake of around 15% in Suruga Bank Ltd. (TSE:8358), people familiar with the matter said 17 May 2023. The Japanese lender, for its part, will acquire a stake of about 5% in Credit Saison, the people said. The cross-shareholding deal comes as an effort by Nojima Corp, a Japanese electronics retailer, to help rebuild the struggling bank had fallen through. Reported Earnings • May 17
Full year 2023 earnings released: EPS: JP¥56.15 (vs JP¥34.73 in FY 2022) Full year 2023 results: EPS: JP¥56.15 (up from JP¥34.73 in FY 2022). Revenue: JP¥68.7b (down 1.4% from FY 2022). Net income: JP¥10.6b (up 33% from FY 2022). Profit margin: 15% (up from 11% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥6.00 per share at 1.3% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 13 June 2023. Payout ratio is a comfortable 6.1% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (4.0%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥23.84 (vs JP¥35.48 loss in 3Q 2022) Third quarter 2023 results: EPS: JP¥23.84 (up from JP¥35.48 loss in 3Q 2022). Revenue: JP¥22.1b (up 226% from 3Q 2022). Net income: JP¥4.49b (up JP¥12.7b from 3Q 2022). Profit margin: 20% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Feb 09
Suruga Bank Ltd. Provides Consolidated Earnings Guidance for the Year Ending March 31, 2023 Suruga Bank Ltd. provided consolidated earnings guidance for the year ending March 31, 2023. For the year, the company expects ordinary revenues of ¥86,000 million, ordinary profit of ¥11,000 million, profit attributable to owners of parent of ¥9,000 million and basic earnings per share of ¥47.77. Announcement • Dec 22
Suruga Bank Ltd. to Report Q3, 2023 Results on Feb 09, 2023 Suruga Bank Ltd. announced that they will report Q3, 2023 results on Feb 09, 2023 Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 7 non-independent directors. Outside Independent Director Yoriyuki Kusaki was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 13
Second quarter 2023 earnings released: EPS: JP¥65.47 (vs JP¥65.85 in 2Q 2022) Second quarter 2023 results: EPS: JP¥65.47 (down from JP¥65.85 in 2Q 2022). Revenue: JP¥33.5b (up 3.8% from 2Q 2022). Net income: JP¥12.3b (down 19% from 2Q 2022). Profit margin: 37% (down from 47% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, while revenues in the Banks industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Sep 10
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate increased from JP¥42.95 to JP¥47.79. Revenue forecast unchanged at JP¥85.3b. Net income forecast to shrink 5.0% next year vs 5.0% growth forecast for Banks industry in Japan . Consensus price target of JP¥405 unchanged from last update. Share price was steady at JP¥378 over the past week. Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥21.56 (vs JP¥11.01 in 1Q 2022) First quarter 2023 results: EPS: JP¥21.56 (up from JP¥11.01 in 1Q 2022). Revenue: JP¥20.3b (up 12% from 1Q 2022). Net income: JP¥4.06b (up 59% from 1Q 2022). Profit margin: 20% (up from 14% in 1Q 2022). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 13% while the industry in Japan is not expected to grow. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jul 06
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate increased from JP¥37.17 to JP¥42.21. Revenue forecast unchanged at JP¥69.0b. Net income forecast to shrink 2.2% next year vs 2.3% growth forecast for Banks industry in Japan . Consensus price target down from JP¥420 to JP¥408. Share price was steady at JP¥365 over the past week. Major Estimate Revision • Jun 09
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate increased from JP¥30.20 to JP¥37.17. Revenue forecast unchanged at JP¥69.0b. Net income forecast to shrink 12% next year vs 3.2% growth forecast for Banks industry in Japan . Consensus price target down from JP¥432 to JP¥420. Share price was steady at JP¥361 over the past week. Reported Earnings • May 19
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: JP¥34.73 (down from JP¥92.52 in FY 2021). Revenue: JP¥69.7b (down 22% from FY 2021). Net income: JP¥7.96b (down 63% from FY 2021). Profit margin: 11% (down from 24% in FY 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 27%. Earnings per share (EPS) missed analyst estimates by 41%. Over the next year, revenue is expected to shrink by 1.0% compared to a 20% decline forecast for the banks industry in Japan. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Major Estimate Revision • May 14
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate fell from JP¥45.44 to JP¥30.20. Revenue forecast unchanged from JP¥69.0b at last update. Net income forecast to shrink 60% next year vs 1.0% decline forecast for Banks industry in Japan. Consensus price target of JP¥432 unchanged from last update. Share price fell 3.6% to JP¥399 over the past week.