QUOTE AND NEWS
Reuters  Sep 12  Comment 
Japanese trading house Mitsubishi Corp is buying a 20 percent stake in an offshore oilfield in Ivory Coast from U.S. firm Anadarko Petroleum , in what will be the first Japanese oilfield stake purchase in the African country.
DailyFinance  Sep 10  Comment 
Mitsubishi UFJ Financial Group, Inc. (MUFG –NYSE: MTU), one of the world’s leading financial groups, announced that Roderick L. Fraser has joined MUFG as Managing Director in the Latin America Corporate and Investment...
Japan Today  Sep 5  Comment 
Effective Oct 1, Mitsubishi Heavy Industries Ltd (MHI) will implement changes to its Technology & Innovation Headquarters and Global Business Planning & Operations Headquarters. Topping the list of changes is the establishment of a new global...
Clusterstock  Sep 5  Comment 
CARACAS (Reuters) - Japanese automaker Mitsubishi's subsidiary in Venezuela has halted operations due to a delay in the import of parts for assembly, a union official said on Friday. Like other private businesses in the South American nation,...
JCN Network  Sep 4  Comment 
Effective October 1, Mitsubishi Heavy Industries, Ltd. (MHI) will implement changes to its Technology & Innovation Headquarters and Global Business Planning & Operations Headquarters.
JCN Network  Sep 2  Comment 
Starting this month Mitsubishi Heavy Industries Air-Conditioning & Thermal Systems Corporation, a group company of Mitsubishi Heavy Industries, Ltd. (MHI), will begin progressively introducing five new fan-powered steam type models into its 2014...
JCN Network  Aug 29  Comment 
Mitsubishi Heavy Industries, Ltd. (MHI), IHI Corporation and the Development Bank of Japan Inc. (DBJ) concluded a three-way formal agreement today on their respective investments into a new commercial aero engine company, Mitsubishi Heavy...
JCN Network  Aug 27  Comment 
Mitsubishi Corporation (MC) is pleased to announce that PT. Atri Pasifik, its joint venture with PT. Sigmantara Alfindo (Alfa Group), has reached an agreement to establish a fifty-fifty joint venture with Thailand's Ichitan Group Public Company...




 

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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