Gunma Bank boosts shareholder returns with higher dividend, buybacks

The Gunma Bank (TSE:8334) today announced a significant shift in its shareholder return policy, introducing a progressive dividend system that aims to maintain or increase dividends, targeting a payout ratio of 40% of profit attributable to owners. The bank also increased its year-end dividend forecast by ¥5.00 per share to ¥25.00, bringing the total annual dividend to ¥45.00, a ¥23.00 increase year-over-year. The moves come as the firm strives to enhance equity capital while balancing profitability and growth investments. As part of its capital management strategy, the bank will cancel 10 million of its own shares. The treasury share cancellation, representing approximately 2.40% of total issued shares before cancellation, is scheduled for March 31, 2025.