QUOTE AND NEWS
newratings.com  Jul 19  Comment 
TOKYO (dpa-AFX) - Mitsubishi UFJ Financial Group Inc. (MTU) reported earnings applicable to common shareholders of 802.3 billion yen or 57.51 yen per share for the fiscal year ended March 31, 2016, a decrease from 1.52 trillion yen or 107.50 yen...
Forbes  Jul 18  Comment 
Investors in Mitsubishi UFJ Financial Group Inc (NYSE: MTU) saw new options become available today, for the September 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the MTU options chain for the new...
Clusterstock  Jul 13  Comment 
FARNBOROUGH, England (Reuters) - Mitsubishi Aircraft Corp believes Iran will need around 100-150 regional jets over the next ten years and is aiming to win a chunk of the business for its new Mitsubishi Regional Jet (MRJ), it said at the...
Flightglobal  Jul 13  Comment 
Mitsubishi Aircraft has selected three MRO firms as preferred service providers on the Mitsubishi Regional Jet (MRJ).
Japan Today  Jul 12  Comment 
Japan's Mitsubishi Aircraft Corp on Monday said it had signed a letter of intent for orders of its new regional passenger plane with Swedish leasing company Rockton, in what would be its first European sale. The deal is for 10 firm orders with...
Flightglobal  Jul 8  Comment 
It has been a pivotal 12 months for the new wave of sub-100-seat jets. Two types powered by Pratt & Whitney s geared turbofan PW1000G family the Mitsubishi Regional Jet and the Embraer E2 have embarked on flight test campaigns. In the last few...
Automotive World  Jul 6  Comment 
A leading UK automation and controls business has taken on a fleet of seven new Mitsubishi Outlander Plug-in Hybrid Electric Vehicles at its headquarters in Newport. Industrial Automation & Control Ltd (IAC) is the UK’s leading independent...
Automotive World  Jul 6  Comment 
A Mitsubishi dealership in Bristol has received an award in recognition of its long service to the brand. Bristol Mitsubishi, in Feeder Road, St Phillips, was honoured for reaching the 30-year landmark as a Mitsubishi dealership in a presentation...
The Economic Times  Jul 6  Comment 
Banks extended drops, with Mitsubishi UFJ Financial Group slipping 4.1 percent and Sumitomo Mitsui Financial Group sliding 2.8 percent.
Flightglobal  Jun 30  Comment 
Mitsubishi Heavy Industries is set to begin final assembly of the first customer aircraft for the MRJ regional jet programme, with various sections of the fuselage having been delivered to the MRJ final assembly hangar.




 

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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