TOKYO, May 12 (Pulse News Wire) – The Keiyo Bank,ltd. (8544.T) announced changes to its shareholder return policy during a board meeting held.
The revised strategy focuses on stable dividend growth per share rather than total payout ratio, aiming to enhance returns for shareholders while maintaining robust capital management. Previously, the bank's approach combined dividends and share repurchases within a total payout ratio of around 40%. However, moving forward, the bank plans to prioritize steady dividend increases based on earnings growth, targeting a dividend payout ratio of 40% or higher. Additionally, share buybacks will be executed flexibly based on capital efficiency, market trends, and opportunities for long-term growth.
The updated policy will take effect starting from the fiscal year ending March 2027. Financial targets outlined in the bank’s strategic plan include a target equity base of 6.5% for the fiscal year 2026, rising to 9.0% by 2029 and exceeding 10.0% by 2032. Linked ROE (return on equity) goals are set at (6.0%), (8.5%), and above (9.5%) respectively, alongside net income objectives of ¥19.00 billion, ¥30.00 billion, and ¥35.00 billion or more. For interest rate assumptions in profit forecasts, the bank anticipates rates up to 0.75% through September 2026, followed by adjustments based on prevailing conditions thereafter.
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