QUOTE AND NEWS
newratings.com  Apr 4  Comment 
MTU Aero Engines AG: Release according to Article 26, Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution MTU Aero Engines AG 04.04.2014 11:31 Dissemination of a Voting Rights Announcement,...
Insurance Journal  Apr 2  Comment 
Hudson Insurance Group has acquired Motor Transport Underwriters Inc. (MTU), an underwriting, claims and risk management specialist in the long-haul trucking arena with which Hudson does business. The announcement said MTU will continue to be led...
Automotive World  Mar 31  Comment 
• Yoshiro Motoyama appointed Member of the Board and Senior Vice President of operations Trucks & Buses, effective April 1, 2014 • Kogame Masashi to retire, effective March 31, 2014 Mitsubishi Fuso Truck and Bus Corporation (MFTBC), one of...
Reuters  Mar 25  Comment 
Royal Bank of Scotland has had contact regarding the possible sale of its U.S. retail business Citizens with Sumitomo Mitsui Financial Group , while Mitsubishi UFJ...
USAToday.com  Mar 22  Comment 
Test Drive: Buyers seem to like the subcompact car for its good mileage and low advertised price.
Reuters  Mar 21  Comment 
Clifford De Souza, the principal executive officer of Mitsubishi UFJ's investment banking arm, is to leave his role at end of March, a source familiar with the matter said on Friday.
Automotive World  Mar 19  Comment 
Emerging markets are taking on a greater proportion of global vehicle sales, and getting it right in these regions has become increasingly important. However, these markets often demand specific model adaptations and customisation, and insider...
SeekingAlpha  Mar 18  Comment 
By Alpha Gen Capital: Executive Summary The aerospace industry has been on a bit of a tear lately as investors bid up companies that are set to benefit from a secular theme that has emerged within the investing world of a massive increase in...




 

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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