QUOTE AND NEWS
New York Times  Sep 1  Comment 
Japan’s first commercial airliner in half a century — the Mitsubishi Regional Jet — will take its first test flight in October.
Finance Asia  Aug 28  Comment 
Sanjeev Kumar, previously head of coverage for Asia-Pacific at RBS, will be joining Bank of Tokyo Mitsubishi UFJ.
Finance Asia  Aug 28  Comment 
Commodites trader Olam on the look out for battered commodity assets as it raises funds from strategic Mitsubishi stake sale.
Channel News Asia  Aug 28  Comment 
Japan's Mitsubishi will also nominate up to two members to the Olam Board and will also have its members join Olam's global management team.
Financial Times  Aug 27  Comment 
Two transactions as the companies launch strategic partnership
newratings.com  Aug 25  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...
The Australian  Aug 23  Comment 
Japan’s Mitsubishi has declared its interest in state rail deals and unveiled a new partnership with constructor CIMIC.
Forbes  Aug 12  Comment 
Masayoshi Son is following in the footsteps of Andrew Carnegie, John D. Rockefeller, or Iwasaki Yataro (1835-1885), founder of the Mitsubishi Group.
newratings.com  Aug 11  Comment 
MTU Aero Engines AG: Release according to Article 26, Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution MTU Aero Engines AG 11.08.2015 14:47 Dissemination of a Voting Rights Announcement,...
Japan Today  Aug 9  Comment 
Mitsubishi Aircraft Corporation has opened an engineering center in Seattle, Washington. The opening of the Seattle Engineering Center (SEC) enables Mitsubishi Aircraft to tap professional expertise on aircraft development and to accelerate the...




 

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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