QUOTE AND NEWS
JCN Network  Dec 5  Comment 
Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has received an order from Kyushu University for a pressurized hybrid power generation system integrating a solid oxide fuel cell (SOFC) stack and a micro gas turbine (MGT).
JCN Network  Dec 2  Comment 
Crystal Mover Services, Inc. (CMS), a group company of Mitsubishi Heavy Industries, Ltd. (MHI) based in Miami, Florida, has concluded an agreement with the Metropolitan Washington Airports Authority (MWAA) renewing and extending Operations and...
JCN Network  Dec 2  Comment 
Shirakawa Goyo Club, a food-processing company in Fukushima, has joined the list of entrepreneurial initiatives receiving support from the Mitsubishi Corporation Disaster Relief Foundation (MCDRF).
Automotive World  Nov 28  Comment 
Mitsubishi’s Mirage hatch ES has been named the ‘Best Micro Car’ in the 2014 Australia’s Best Car awards. The awards represent the best of the best for value for money, design and function and on-road performance of new vehicles. To win,...
Automotive World  Nov 27  Comment 
Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and UD Trucks Corporation (UD Trucks) today announced they have jointly developed a new truck for sale in Japan. Further details including the start of sales will be disclosed by each company...
Automotive World  Nov 20  Comment 
Mitsubishi Motors showcases the Concept XR-PHEV featuring bold styling, high performance and an efficient plug-in-hybrid electric vehicle (PHEV) drivetrain at LAAS 2014 This futuristic crossover design study hints at the upcoming direction of U.S....
Banking Business Review  Nov 19  Comment 
Bank of Tokyo-Mitsubishi UFJ (BMTU) has reached an agreement with New York's Department of Financial Services (NYDFS) to pay an additional $315m fine for misleading regulators over transactions involving countries subject to US sanctions.
JCN Network  Nov 17  Comment 
JALUX Inc. (JALUX), Mitsubishi Corporation (MC), and Myanmar's SPA affiliated group-company Yoma Development Group Limited, a wholly-owned subsidiary of Yoma Strategic Holdings Ltd. (YOMA), have signed a concession agreement with Myanmar's...




 

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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