QUOTE AND NEWS
Reuters  4 hrs ago  Comment 
Anglo American Plc is looking at syndicating its Quellaveco copper project in Peru and having current partner Mitsubishi Corp increase its current 18.1 percent stake, said Hennie...
Japan Today  Apr 12  Comment 
At a tightly guarded factory in central Japan, Mitsubishi, a maker of the Zero fighter planes of World War II, is launching its MRJ regional jet and aiming to fulfill Japan's long-cherished ambitions to regain status as a major aviation...
Reuters  Mar 31  Comment 
Germany's Kion and Mitsubishi Heavy Industries are in talks to buy Japanese forklift truck maker UniCarriers [INCJPG.UL] for up to 100 billion yen ($833 million), a source...
WA Business News  Mar 31  Comment 
Automotive Holdings Group has splashed $5 million on an acquisition of the Paceway Mitsubishi dealership in Osborne Park and another dealership in Brisbane.
WA Business News  Mar 31  Comment 
The Times of India  Mar 27  Comment 
PCMA Rus, a Russian venture owned by France's PSA Peugeot Citroen and Mitsubishi Motors Corporation, will temporarily suspend production of Peugeot, Citroen and Mitsubishi models, it said on Friday.
Automotive World  Mar 26  Comment 
Mitsubishi is positioning the ASEAN region as its most important market The post Mitsubishi highlights ASEAN focus with new Indonesian plant appeared first on Automotive World.
Automotive World  Mar 24  Comment 
Mitsubishi Motors Corporation (MMC) announced the commemoration of a new manufacturing plant in the GIIC Industrial Estate in Bekasi Prefecture in Indonesia today. Mitsubishi Motors Krama Yudha Indonesia (MMKI), its joint manufacturing company...
WA Business News  Mar 9  Comment 
Buru Energy has announced the signing of a native title agreement with the Nyikina Mangala and Karajarri Yanja people, an important step in moving to full production at its Ungani oil project joint venture with Mitsubishi.
The Hindu Business Line  Mar 4  Comment 
Mitsubishi has opened its new showroom – ‘Vijayachandra Mitsubishi’ in Bengaluru. Vijayachandra Mitsubishi will be the latest authorised dealer for Mitsubishi range of cars, spares, and...
The Hindu Business Line  Feb 26  Comment 
Members included officials from Panasonic, Hitachi, Daiwa, Mitsubishi Research Institute




 

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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