QUOTE AND NEWS
The Australian  Jul 22  Comment 
MITSUBISHI’s new fuel import business in Australia will boost competition in the sector.
newratings.com  Jul 22  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 22.07.2014 14:37 Dissemination of a Voting Rights Announcement,...
JCN Network  Jul 22  Comment 
Mitsubishi Corporation (Mitsubishi) is pleased to announce it will establish a diesel import terminal at Port Bonython in South Australia.
newratings.com  Jul 21  Comment 
BERLIN (dpa-AFX) - German engine manufacturer MTU Aero Engines AG (MTUAY.PK) Monday announced that it has received around 1.3 billion euros in orders at this year's Farnborough International Airshow, at same level as last year. MTU CEO...
Reuters  Jul 18  Comment 
Mitsubishi Motors Corp is recalling cars made with Takata Corp air bags in Florida, Hawaii, Puerto Rico and the U.S. Virgin Islands. Mitsubishi is one of nine automakers to say it will conduct a recall that includes those areas.
Reuters  Jul 17  Comment 
* Kuwait Petroleum, Mitsui among others eying Murphy's assets
Reuters  Jul 16  Comment 
A U.S. energy company has found a second buyer in Japan for its condensate, an ultra-light oil, paving the way for more excess barrels from the United States to head to...
JCN Network  Jul 14  Comment 
Mitsubishi Aircraft Corporation announced today that it has signed a Memorandum of Understanding (MOU) for an order of twenty firm MRJ90 with purchase rights to an additional twenty MRJ90 with Eastern Air Lines Group, Inc., an airline based in...
JCN Network  Jul 14  Comment 
Mitsubishi Aircraft Corporation is pleased to announce that in addition to flight tests in Japan, Mitsubishi Regional Jet flight testing will also be conducted at the Grant County International Airport at Moses Lake, Washington in the United States.




 

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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