QUOTE AND NEWS
Financial Times  Feb 16  Comment 
Chief highlights differences between groups’ technologies
Forbes  Feb 13  Comment 
We have not only learned how to survive, but how to thrive by implementing the process-oriented Japanese approach to the U.S. business culture.
Bulk Transporter  Feb 8  Comment 
New for the 2017 model year FUSO FE and FG Series trucks is an optional collision avoidance system from Mobileye Inc. Recently, Mitsubishi Fuso Truck of America Inc (MFTA) partnered with Mobileye to offer the Mobileye 6 Series Collision Avoidance...
newratings.com  Feb 7  Comment 
DGAP-DD: MTU Aero Engines AG english Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them 07.02.2017 / 14:22 The issuer is solely responsible for the...
Channel News Asia  Feb 6  Comment 
Nissan acquired a 34 per cent controlling stake in Mitsubishi in a 237 billion yen (S$2.97 billion) deal last October. 
Forbes  Feb 2  Comment 
MOBILEPAC is emergency mobile power, a lifeline to people in need that is fueled by jet engines, generating 30 megawatts of power – enough electricity to power more than 30,000 homes in times of temporary power loss.
Forbes  Feb 2  Comment 
According to a recent comScore survey, shoppers made 51 percent of their purchases on the web in 2016 compared with 48 percent in 2015 and 47 percent in 2014. And 44 percent of smartphone users said they made a purchase from their device, up from...
Flightglobal  Feb 2  Comment 
Mitsubishi Aircraft has appointed Hisakazu Mizutani as its new president, effective 1 April.




 

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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