| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1229.53 | -37 |
| Intrinsic value (DCF) | 551.27 | -72 |
| Graham-Dodd Method | 1712.47 | -12 |
| Graham Formula | 325.74 | -83 |
Suruga Bank Ltd. (8358.T) is a regional bank headquartered in Numazu, Japan, with a history dating back to 1895. Operating primarily in Japan, the bank provides a comprehensive suite of financial services, including deposit accounts, loans (housing, business, and personal), credit and debit cards, investment trusts, insurance, and foreign exchange services. Suruga Bank serves both individual and corporate customers through its network of 128 branches. The bank also offers ancillary services such as staffing, leasing, and clerical agency services, enhancing its value proposition. As part of Japan's regional banking sector, Suruga Bank plays a crucial role in supporting local businesses and retail customers, leveraging its strong regional presence and diversified financial offerings. With a market capitalization of approximately ¥239.5 billion, Suruga Bank remains a key player in Japan's financial services landscape, focusing on digital banking solutions and customer-centric financial products.
Suruga Bank presents a stable investment opportunity within Japan's regional banking sector, supported by its long-standing history and diversified financial services. The bank's low beta (0.334) suggests lower volatility compared to the broader market, appealing to risk-averse investors. With a net income of ¥15.4 billion and a diluted EPS of ¥75.45, Suruga Bank demonstrates profitability, further reinforced by a solid dividend payout of ¥29 per share. However, the bank operates in a highly competitive and low-interest-rate environment, which may constrain net interest margins. Investors should weigh its regional strengths against broader macroeconomic challenges in Japan's banking sector, including demographic pressures and regulatory scrutiny.
Suruga Bank competes in Japan's crowded regional banking sector, where differentiation is often driven by customer service, digital innovation, and niche lending products. The bank's competitive advantage lies in its strong regional footprint (128 branches) and diversified service offerings, including non-traditional services like staffing and leasing. However, it faces intense competition from larger national banks (e.g., Mitsubishi UFJ Financial Group) with greater resources and digital capabilities, as well as other regional banks with similar localized strategies. Suruga Bank's focus on retail and SME banking provides stability but limits exposure to higher-margin corporate banking. Its relatively low total debt (¥80 million) and healthy cash position (¥982.2 billion) underscore financial stability, though growth may be constrained without significant digital transformation or expansion beyond its regional stronghold.