QUOTE AND NEWS
Japan Today  Sep 16  Comment 
Japanese trading house Mitsubishi Corp on Friday said it is raising its stake in convenience store operator Lawson Inc to make it a subsidiary, in a deal worth about 144 billion yen. Lawson is trying to claw back market share in the Japanese...
Wall Street Journal  Sep 15  Comment 
Mitsubishi Motors continued to improperly test the fuel-economy of its vehicles in the month after it admitted to manipulating data to inflate mileage results, Japan’s transport ministry said Thursday.
newratings.com  Sep 15  Comment 
TOKYO (dpa-AFX) - Mitsubishi Corp. (MBC.L, MSBHY.PK) is considering increasing its stake in convenience store operator Lawson Inc. It would pay a premium in a tender offer to existing shareholders, plus possible private placement of new stock,...
Automotive World  Sep 8  Comment 
Mitsubishi Electric Corporation (TOKYO: 6503) announced today the launch of its latest Low Voltage Motor Control Center, the Type-D version, which accommodates a high number of functional units and is specifically designed for deployment in many...
Flightglobal  Sep 7  Comment 
Mitsubishi Aircraft says the anomalies detected on its MRJ regional jet prototype are not due to faulty systems, but that it is nonetheless working to uncover the cause that forced it to abort two attempts to fly the aircraft to the US late last...
The Hindu Business Line  Sep 6  Comment 
Drug major Sun Pharma has announced initiation of a phased transfer of manufacturing and marketing rights of 14 brands, it acquired from Swiss drug firm Novartis in Japan, earlier this year for $293 ...
FiercePharma  Sep 1  Comment 
With FDA filing, Mitsubishi Tanabe aims to bring ALS med edavarone to U.S. next year phil Thu, 09/01/2016 - 08:05
Japan Today  Aug 31  Comment 
The mileage scandal at Mitsubishi Motors Corp is widening after the Japanese government ordered sales of eight more models halted after finding their mileage ratings were falsely inflated. The Japanese automaker had acknowledged in April it...
Reuters  Aug 31  Comment 
Mitsubishi Heavy Industries (MHI) is in talks with an unidentified U.S. company over a possible partnership to develop an armored vehicle that for the first time could see a...
Flightglobal  Aug 31  Comment 
Miami-based Aerolease Aviation has firmed an order for 10 Mitsubishi Aircraft MRJ90 regional jets and options for 10 more.




 

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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