QUOTE AND NEWS
newratings.com  Jun 29  Comment 
TOKYO (dpa-AFX) - Mitsubishi Corp. (MBC.L, MSBHY.PK) announced the transfer of fuel oil sales business for industrial customers to its wholly owned subsidiary Mitsubishi Shoji Sekiyu Co., Ltd. by way of an absorption-type company split. Mitsubishi...
The Hindu Business Line  Jun 25  Comment 
Undaunted by established players, they are focused on growth
Japan Today  Jun 24  Comment 
In January, a top U.S. Marine general visited Mitsubishi Heavy Industries in Japan to look at a prototype of an amphibious assault vehicle that could one day be a key pillar in Prime Minister Shinzo Abe's push to sell weapons abroad. Using...
Automotive World  Jun 19  Comment 
Mitsubishi Corporation (MC) today filed its Corporate Governance Report with the Tokyo Stock Exchange, in compliance with requirements under the Corporate Governance Code. MC’s corporate philosophy is enshrined in the Three Corporate Principles...
Automotive World  Jun 18  Comment 
Mitsubishi Motors Corporation (MMC) has given the front and rear designs of the Outlander PHEV and Outlander a facelift and in addition has made major improvements to the powertrain, body and chassis to deliver better quietness, acceleration,...
newratings.com  Jun 12  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  Jun 11  Comment 
Mitsubishi Fuso Truck and Bus Corporation (MFTBC), one of Asia’s leading commercial vehicle manufacturers, today announced important personnel changes in domestic sales. Mr. Akio Suehiro, currently Senior Vice President and Head of Mitsubishi...
Reuters  Jun 11  Comment 
Mitsubishi Heavy Industries Ltd would consider investing in nuclear company Areva , which is being bailed out by the French government, the president of the Japanese company told the Asahi newspaper.
Japan Today  Jun 9  Comment 
Mitsubishi Aircraft Corp and Mitsubishi Heavy Industries Ltd this week started low speed taxiing tests with the first flight test aircraft of the MRJ (Mitsubishi Regional Jet), their next-generation regional jet, at Nagoya Airport. Taxiing is...
Japan Today  Jun 6  Comment 
Mitsubishi Corp says it will start working in partnership with Sembcorp Development on a housing development project in Vietnam. The project will involve the construction of 11 condominiums in the province of Binh Duong, just north of Ho Chi...




 

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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