QUOTE AND NEWS
Wall Street Journal  5 hrs ago  Comment 
Japan's top three banks reported strong earnings for the latest fiscal year, in part thanks to gains from bond holdings and a recovery in the Tokyo stock market.
JCN Network  May 14  Comment 
Mitsubishi Corporation (MC) and Chiyoda Corporation (Chiyoda) are pleased to announce that they have reached an agreement with the Civil Aviation Authority of Mongolia (CAAM) to construct the New Ulaanbaatar International Airport in Mongolia.
JCN Network  May 8  Comment 
Mitsubishi Corporation has developed its new management strategy, entitled New Strategic Direction (charting a new path toward sustainable growth). It goes into effect from fiscal year 2013.
Benzinga  May 8  Comment 
In a report published Wednesday, Bank of America analyst Nana Otsuki downgraded the rating on Mitsubishi UFJ Financial Group (NYSE: MTU) from Buy to Neutral, but slightly raised the price target from $6.41 to $6.92. In the report, Otsuki noted,...
Sydney Morning Herald  May 8  Comment 
Recall notice issued over faulty speed sensor which can increase the risk of an accident.     
Flightglobal  May 7  Comment 
Mitsubishi Aircraft and Hong Kong-based ANI Group have cancelled their memorandum of understanding for five MRJ regional jets, say executives. The...
JCN Network  May 7  Comment 
Mitsubishi Heavy Industries, Ltd. (MHI) has established a new zone within M's Square, its showroom located on the second floor of the Shinagawa Head Office Building in Tokyo, to showcase news, topics and other items of interest relating to the...
Sydney Morning Herald  May 1  Comment 
The last remaining new car in Australia with one-star safety rating discontinued.     




 

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.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki