QUOTE AND NEWS
Automotive World  Jan 28  Comment 
Mitsubishi Fuso gained recognition for its nation-wide energy saving activities at its 194 sales and service outlets Another proof of the successful results of the FUSO 2015 Program with the target “Leader in Green Innovation” Mitsubishi Fuso...
Wall Street Journal  Jan 27  Comment 
Renault’s international expansion plans are encountering obstacles with a proposed joint-venture with Mitsubishi scrapped and its struggling business in Russia disclosing another round of layoffs.
Automotive World  Jan 27  Comment 
Mitsubishi Motors Corporation (MMC) will unveil a world premiere compact SUV concept car featuring MMC’s @earth TECHNOLOGY stable of environmental technologies on March 3 at the 85th Geneva International Motor Show*1. The new compact SUV...
JCN Network  Jan 6  Comment 
Mitsubishi Aircraft Corporation announced today that it has relocated its headquarters from the current office in Minato-ku, Nagoya-shi, Aichi Prefecture to the terminal building of the Nagoya Airport located in Nishikasugai-gun, Aichi Prefecture,...
Reuters  Dec 23  Comment 
Japan's Mitsubishi Heavy Industries Ltd (MHI) said on Wednesday it was considering a range of options for its shipbuilding business, including splitting it off into a separate company.
JCN Network  Dec 22  Comment 
The PurePower PW1100G-JM aero engine, which Mitsubishi Heavy Industries Aero Engine, Ltd. (MHIAEL) has been jointly developing as a member of Japanese Aero Engines Corporation (JAEC) with Pratt & Whitney (P&W) of the U.S. and MTU Aero Engines AG...
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).




 

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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