QUOTE AND NEWS
Reuters  Jul 29  Comment 
Mitsubishi UFJ Financial Group (MUFG) has agreed to buy a fund administration business from Chicago-based investment and advisory firm Guggenheim Partners, extending a...
Reuters  Jul 28  Comment 
* Mitsubishi UFJ Trust and Banking will acquire Rydex Fund Services for about 20 billion yen ($190 million) as early as this year - Nikkei
The Hindu Business Line  Jul 27  Comment 
While HPL’s business has no immediate link to MCPI, in the days ahead the acquisition may open doors to synergies in manufacturing high-value-added products.
The Economic Times  Jul 27  Comment 
The agreement was signed in Tokyo and MCC will continue to hold a minority stake in the company to facilitate technical and operational support on mutually advantageous terms, going forward.
newratings.com  Jul 26  Comment 
BERLIN (dpa-AFX) - MTU Aero Engines AG (MTUAY.PK) reported net income for the first half of 2016 of 158.6 million, up 52.5 percent from 104.0 million euros in the previous year period. Net income calculated on a comparable basis was 176.1 million...
newratings.com  Jul 19  Comment 
TOKYO (dpa-AFX) - Mitsubishi UFJ Financial Group Inc. (MTU) reported earnings applicable to common shareholders of 802.3 billion yen or 57.51 yen per share for the fiscal year ended March 31, 2016, a decrease from 1.52 trillion yen or 107.50 yen...
Forbes  Jul 18  Comment 
Investors in Mitsubishi UFJ Financial Group Inc (NYSE: MTU) saw new options become available today, for the September 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the MTU options chain for the new...
Clusterstock  Jul 13  Comment 
FARNBOROUGH, England (Reuters) - Mitsubishi Aircraft Corp believes Iran will need around 100-150 regional jets over the next ten years and is aiming to win a chunk of the business for its new Mitsubishi Regional Jet (MRJ), it said at the...
Flightglobal  Jul 13  Comment 
Mitsubishi Aircraft has selected three MRO firms as preferred service providers on the Mitsubishi Regional Jet (MRJ).




 

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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