Automotive World  1 hr ago  Comment 
Mitsubishi Motors North America, Inc. (MMNA) today unveiled the updated 2016 Mitsubishi Outlander Sport featuring a newly redesigned, bold exterior front fascia/grille. The brand’s best-selling CUV is now equipped with Mitsubishi’s “Dynamic...
Automotive World  1 hr ago  Comment 
Mitsubishi Motors North America, Inc. (MMNA) today announced details for the fuel-efficient 2017 Mitsubishi Mirage featuring a new exterior design, improved performance and enhanced interior appeal. Despite all that is new for Mirage in 2017, a...
Bulk Transporter  11 hrs ago  Comment 
Mitsubishi Fuso Truck of America Inc (MFTA) has launched its new, comprehensive FusoFirst product support program, aimed at providing full-service customer support for owners and operators of Mitsubishi Fuso medium-duty trucks. The program...
Automotive World  Nov 16  Comment 
If you can’t join us at the Los Angeles Auto Show, watch our press conference live at www.MitsubishiWebcast.com on Nov. 18 at 4:40pm PT. Click here for details. The post Watch the Mitsubishi Los Angeles Auto Show press conference live appeared...
Flightglobal  Nov 15  Comment 
Mitsubishi sees an opportunity to change the aircraft sales conversation in Latin America with its 70-seat MRJ70, Mitsubishi Aircraft chief executive Masao Yamagami tells Flightglobal.
Financial Times  Nov 15  Comment 
Mizuho, Sumitomo and Mitsubishi set fresh targets to reduce Y10tn ‘strategic’ client stakes
Japan Today  Nov 13  Comment 
Mitsubishi UFJ Financial Group (MUFG) said Friday its six-month net profit rose 3.6%, but rival Sumitomo Mitsui suffered a profit decline on a slump in its shareholdings abroad. MUFG booked a net profit of 599.3 billion yen for the...
Clusterstock  Nov 11  Comment 
By Tim Kelly TOKYO (Reuters) - Japan's first commercial passenger plane in half a century made its maiden flight on Wednesday, in a breakthrough for the country's long-held ambition to establish an aircraft industry able to challenge some of the...
The Australian  Nov 11  Comment 
New York Times  Nov 11  Comment 
The Mitsubishi Regional Jet, the first commercial passenger aircraft built in Japan in five decades, is intended to compete with aircraft from Embraer and Bombardier.
Japan Today  Nov 10  Comment 
The Mitsubishi Regional Jet (MRJ), Japan's first commercial jet in half a century, will take to the air for the first time on Wednesday on a test flight, the aircraft's maker said. A successful flight at Nagoya Airport in central Japan on...


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.


Wonderful explanation of facts aviaallbe here.

I really couldn't ask for more from this atricle.

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