Notice Regarding Revision of Earnings Guidance and Revision of Year-End Dividend Forecast (Dividend Increase)

Regarding the Revision of Earnings Guidance

The Gunma Bank, Ltd. has upwardly revised its consolidated and non-consolidated earnings forecasts for the full fiscal year ending March 2026. Consolidated ordinary income is expected to increase by 8.7% from the previous forecast of 78,000 million yen to 84,800 million yen, and net income attributable to owners of parent is also expected to rise by 6.9% from 55,000 million yen to 58,800 million yen. Similarly, non-consolidated ordinary income is projected to increase by 9.3% from 72,000 million yen to 78,700 million yen, and net income by 7.3% from 51,000 million yen to 54,700 million yen. The main reason for this revision is the steady progress in core business profit, supported by increased interest income on loans and interest and dividend income from securities.

Regarding the Revision of Year-End Dividend Forecast (Dividend Increase)

Regarding dividends, the basic policy is progressive dividend payments with a target payout ratio of 40%. Based on the upward revision of earnings forecasts, the year-end dividend forecast has been increased by 2 yen per share from 30 yen to 32 yen, resulting in an annual dividend of 62 yen including an interim dividend of 30 yen. This represents a substantial increase of 17 yen from the previous fiscal year’s 45 yen. The full-year payout ratio is approximately 40%, and the total return ratio including share buybacks is expected to be about 50%. The company plans to continue strengthening its financial base and expanding shareholder returns.