Regional lender Jimoto Holdings exits government control
Shareholders of Jimoto Holdings approved Thursday a plan to resume dividend payments on preferred shares held by the government, allowing the regional banking group to exit from effective government control.
The plan was approved at a general shareholders meeting held in the city of Yamagata.
In the business year ended in March 2024, Jimoto Holdings incurred a net loss for the second straight year due to the deterioration of earnings at subsidiary Kirayaka Bank, based in Yamagata. The group also has Sendai Bank, based in city of Sendai, under its wing.
At a general shareholders meeting in June 2024, Jimoto Holdings decided to forgo dividend payments, giving preferred shares that are held by the government voting rights equivalent to 63% of the total.
At an extraordinary shareholders meeting in September last year, Jimoto Holdings revamped its management team, working to improve its profitability.
As a result, the holding company regained profitability in the business year ended in March this year, and it decided on a policy of resuming dividend payments.
The focus is now on whether the group will be able to repay a total of ¥78 billion in public funds injected into Sendai Bank and Kirayaka Bank as planned.
Kirayaka Bank received public funds following the financial crisis triggered by the 2008 collapse of U.S. investment bank Lehman Brothers. Public funds were again injected into the bank, following the 2011 massive earthquake and tsunami that heavily hit northeastern Japan, and the COVID-19 crisis.
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