QUOTE AND NEWS
newratings.com  Jul 27  Comment 
DGAP-DD: MTU Aero Engines AG english Notification concerning transactions by persons performing managerial responsibilities pursuant to section 15a of the WpHG Directors' Dealings notification transmitted by DGAP - a service of EQS...
Automotive World  Jul 27  Comment 
High labour costs could have been instrumental to Mitsubishi’s exit from North America The post Plant economics prove tricky for Mitsubishi appeared first on Automotive World.
Forbes  Jul 24  Comment 
Japanese carmaker still plans to import vehicles for sale in North America
Clusterstock  Jul 24  Comment 
Facing sluggish US car sales, Japanese automaker Mitsubishi said Friday it would stop making vehicles in the United States and is looking to sell its Illinois plant. "Following a review of Mitsubishi Motor Corporation's global supply chain, we...
Automotive World  Jul 24  Comment 
Media speculations suggest that Mitsubishi could soon stop production at its North American plant The post Is Mitsubishi leaving the land of opportunity? appeared first on Automotive World.
Clusterstock  Jul 23  Comment 
DETROIT (Reuters) - Mitsubishi Motors plans to quit building cars in the United States, according to a report from Japan, but U.S. officials with the automaker declined on Thursday to comment. Japan's Nikkei news service said the plan to cease...
newratings.com  Jul 23  Comment 
VIENNA (dpa-AFX) - MTU Aero Engines AG (MTUAY.PK) reported first-half net income of 104.0 million euros compared to 83.9 million euros, prior year. Net income calculated on a comparable basis was 147.2 million euros compared to 111.0 million...
Financial Times  Jul 20  Comment 
Apology is the first offered by a Japanese corporation for second world war abuses
The Hindu Business Line  Jul 20  Comment 
Japan’s Mitsubishi Materials has made a landmark apology to US prisoners of war forced to work in its mines during World War II, seven decades after the conflict.The Japanese government off...
NPR  Jul 19  Comment 
A senior executive personally said sorry to James Murphy, 94, who was forced to work in one of the company's copper mines, something Murphy described as "slavery in every way."




 

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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