QUOTE AND NEWS
WA Business News  May 18  Comment 
Having run the local operations of multinational MTU Detroit Diesel for 10 years, Mike Cippitelli has established a new business that is defying the tough times facing many operators in Western Australia.
newratings.com  May 13  Comment 
DGAP-DD: MTU Aero Engines AG english Notification concerning transactions by persons performing managerial responsibilities pursuant to section 15a of the WpHG Directors' Dealings notification transmitted by DGAP - a service of EQS...
Forbes  May 12  Comment 
Notwithstanding the myth of the tradition-bound, consensus-following CEO, many, if not most, Japanese CEOs have highly individualistic styles, visions, and ideas, and are expected to--and do--lead their companies in new directions.
newratings.com  May 10  Comment 
TOKYO (dpa-AFX) - The U.S. National Highway Traffic Safety Administration said that Mitsubishi Motors Corp. is recalling in the U.S. more than 130,000 of its Outlander and other vehicles made between 2009 and 2011 due to possible malfunctions...
Japan Today  May 9  Comment 
Mitsubishi is recalling more than 130,000 cars because of two separate issues that could lead to reduced visibility for drivers and raise the risk of a crash. Nearly 77,000 cars are being recalled because the windshield defroster might fail as...
Automotive World  May 8  Comment 
Mitsubishi Motors Corporation (MMC) announced today the opening of a new product proving ground in Thailand*. The new proving ground will be used to conduct quality verification testing for products before they go into production and to further...
newratings.com  May 8  Comment 
TOKYO (dpa-AFX) - Japanese conglomerate Mitsubishi Corp. (MBC.L, MSBHY.PK) Friday said its full-year attributable net income grew to 400.57 billion yen from 361.36 billion yen in the prior year. Earnings per share advanced to 245.83 yen from...
Mondo Visione  May 7  Comment 
STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced that it has entered into a memorandum of understanding (MOU) with Mitsubishi UFJ Trust and Banking Corp. (MUTB), the leading Japanese...
newratings.com  May 5  Comment 
DGAP-DD: MTU Aero Engines AG english Notification concerning transactions by persons performing managerial responsibilities pursuant to section 15a of the WpHG Directors' Dealings notification transmitted by DGAP - a service of EQS...
Forbes  May 1  Comment 
A high-ranking Toyota executive from Japan visiting New York once told me years ago that what kept him up at night was the idea that Mitsubishi – a giant, formidable competitor in the rest of the world – might one day “get serious about...




 

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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