Dividends / Shareholder Returns
Dividend Policy
We consider stable returns to our shareholders an important management goal. At the same time,as we are still in our growth phase, we also believe that maximizing our corporate value by prioritizing sufficient internal reserves, expanding our businesses and accelerating profit growth may result in more appropriate shareholder returns. We will seek to achieve an optimal balance between these two aspects to enhance shareholder returns.
Our articles of incorporation provide that dividends may be declared by a resolution of our board of directors. Under our articles of incorporation, the record dates for annual dividends and interim dividends are March 31 and September 30, respectively, and for other dividends, we may set a record date. However, our articles of incorporation do not set forth a specific policy in terms of the frequency of dividends.
We have not distributed dividends for each of the five fiscal years ended March 31, 2022.
Our payments of dividends as distribution of surplus are restricted under Article 18 of the Banking Act. Notwithstanding the provisions of Paragraph 4 of Article 445 of the Companies Act (Amounts of Stated Capital and Amounts of Reserves), if we pay dividends, we must record an amount equivalent to one fifth of the amount of the deduction from surplus as a result of the payment of such dividends as capital reserves or retained earnings reserves.