QUOTE AND NEWS
Flightglobal  May 29  Comment 
No sector of the aerospace industry is in more turmoil than the regional jet market, where Mitsubishi Aircraft must take on huge rivals with its MRJ.
Flightglobal  May 22  Comment 
Beyond the walls of Mitsubishi Aircraft offices in Nagoya and Seattle, a steady stream of ominous events have followed what the Mitsubishi Regional Jet (MRJ) programme describes as that dark, dark day on 23 January 2017, when the company was...
Flightglobal  May 22  Comment 
MTU Aero Engines has revealed that it established a dedicated department for additive manufacturing earlier this year, in an effort to increase use of the technology.
Financial Times  Apr 23  Comment 
Chairman has indicated a change to the alliance’s capital structure is in the mix
Japan Today  Apr 11  Comment 
Mitsubishi UFJ Financial Group plans to book a charge of 50 billion yen ($470 million) for the year ended March, as it closes or merges unprofitable domestic branches…
Biomass Magazine  Apr 11  Comment 
Turboden, a group company of Mitsubishi Heavy Industries, leader in Organic Rankine Cycle turbogenerators for distributed power generation employing renewable sources and waste heat, signed an order with AGT A.Ş. for a 5.5 MWe power-only unit.
Mondo Visione  Apr 11  Comment 
DTCC-Euroclear Global Collateral Ltd (GlobalCollateral), a joint venture of Euroclear and The Depository Trust & Clearing Corporation (DTCC), and NEX a financial technology company at the centre of the global markets, today announced a new...
Reuters  Apr 10  Comment 
Mitsubishi UFJ Financial Group (MUFG) plans to book a nearly half-billion-dollar charge to write down the value of branches as the Japanese megabank seeks to consolidate retail outlets in a shrinking domestic market, two people with direct...
Channel News Asia  Apr 6  Comment 
Russia's standards agency Rosstandart said on Friday it has been informed about the recall of 86,620 Mitsubishi Motors Corp Outlander cars sold in Russia from February 2007 to June 2012.
Forbes  Mar 29  Comment 
Artificial Intelligence tends to grab the headlines when it promises dramatic leaps in consumer product capability. The driverless car has captured the popular imagination. Ever-smarter phones and online home appliances also get a lot of attention.




 

Mitsubishi UFJ Financial Group (NYSE:MTU) (also known as MUFG) is the world's largest bank holding company by total assets.[1] Despite having the most assets, the Japanese bank holding company is smaller in terms of market capitalization than other large money-center banks, like Wells Fargo (WFC), J P Morgan Chase (JPM), and Bank of America (BAC). The market's lower valuation stems from Mitsubishi's historically low return on assets (ROA).[2]

The Japanese bank runs a conservative book compared to industry peers, with a loan-to-capital ratio of 68%.[2] While this has limited ROA/earnings, it has kept the bank from having capital issues as European and American competitors, such as Lehman Brothers (LEH), UBS AG (UBS), and Citigroup (C).[3] Mitsubishi uses bank deposits and short-term borrowings to originate loans to corporations, governments, and individuals. MUFG also invests in Equities and bonds.

While the company is Japanese, its ADR is publicly traded (NYSE: MTU).[4] Not only does Mitsubishi's financial health and outlook affect the share price, but also the Yen/USD exchange rate. The company records earnings and assets in its local currency, so an appreciation of the Yen benefits the ADR price and increases the nominal value of dividends on its ADR shares, as it earns more in terms of US dollars.[5] A bit suprriesd it seems to simple and yet useful.

Umm, are you really just giving this info out for notinhg?

Key Trends and Forces

Yen/USD Relationship

The value of the Yen compared to the US dollar impacts the value of ADR shares of MUFG and its business operations. Mitsubishi's stock is listed on the NYSE. An increase in the value of the Yen translates to higher share price and dividend payments in the ADR shares all else constant. An appreciating Yen can purchase more US dollars. However, on the flipside, a strengthening Yen adversely impacts parts of MUFG's business. Not all foreign borrowers hedge currency, so if they took a loan out in term of Yen dollars, and the Japanese currency appreciates, this increases the payment burden on the borrower. The pressure increases borrower defaults.[5] Further, if MUFG does not hedge its foreign loans, currency movements impact earnings.

Competition

Wonderful explanation of facts aviaallbe here.

I really couldn't ask for more from this atricle.

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