QUOTE AND NEWS
Banking Business Review  Nov 19  Comment 
Bank of Tokyo-Mitsubishi UFJ (BMTU) has reached an agreement with New York's Department of Financial Services (NYDFS) to pay an additional $315m fine for misleading regulators over transactions involving countries subject to US sanctions.
JCN Network  Nov 17  Comment 
JALUX Inc. (JALUX), Mitsubishi Corporation (MC), and Myanmar's SPA affiliated group-company Yoma Development Group Limited, a wholly-owned subsidiary of Yoma Strategic Holdings Ltd. (YOMA), have signed a concession agreement with Myanmar's...
newratings.com  Nov 12  Comment 
MTU Aero Engines AG: Release according to Article 26, Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution MTU Aero Engines AG 12.11.2014 10:17 Dissemination of a Voting Rights Announcement,...
JCN Network  Nov 7  Comment 
Mitsubishi Heavy Industries, Ltd. (MHI), with the cooperation of Sumitomo Corporation, has received an order to construct an Automated People Mover (APM) system at the Tampa International Airport in the State of Florida. Completion is scheduled...
newratings.com  Nov 7  Comment 
TOKYO (dpa-AFX) - Japanese conglomerate Mitsubishi Corp. ( MBC.L, MSBHY.PK) Friday said first-half net income attributable to owners of the parent increased 15 percent to 255.05 billion yen from last year's 221.89 billion yen in the prior...
Automotive World  Nov 6  Comment 
Mitsubishi Fuso Truck and Bus Corporation (MFTBC) today announced it has finalized contracts for the manufacturing of light buses for sale in China with Jiangsu Yueda Group Co., Ltd. (Yueda), one of largest automotive and textile groups in China,...




 

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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