QUOTE AND NEWS
Reuters  10 hrs ago  Comment 
Mitsubishi Heavy Industries (MHI) is in talks with an unidentified U.S. company over a possible partnership to develop an armored vehicle that for the first time could see a...
Flightglobal  10 hrs ago  Comment 
Miami-based Aerolease Aviation has firmed an order for 10 Mitsubishi Aircraft MRJ90 regional jets and options for 10 more.
Mondo Visione  11 hrs ago  Comment 
The hallmark on the below Deliverable Grade of Precious Metals has been modified : Commodity: Silver Producer: Mitsubishi Materials Corporation Brand name: Mitsubishi Materials Corporation Applicable contract months: the...
newratings.com  Aug 30  Comment 
TOKYO (dpa-AFX) - Mitsubishi Motors Corp. (7211, MMTOF.PK) has suspended sales of eight car models in Japan after the country's Transport Ministry said the automaker overstated the fuel-economy figures for those models. Japan's...
Benzinga  Aug 29  Comment 
Mitsubishi UFG has downgraded Autodesk, Inc. (NASDAQ: ADSK) to Underweight from Neutral, as the brokerage is not convinced of the immediate positives from the company's shift to a new subscription model. Moreover, the brokerage has less...
CNNMoney.com  Aug 29  Comment 
Japan's first ever homegrown passenger jet has had a bumpy few days.
Flightglobal  Aug 28  Comment 
Mitsubishi Aircraft made two failed attempts to ferry its first MRJ regional jet prototype to the US over the weekend, due to issues with the aircraft's air management system.
Japan Today  Aug 25  Comment 
The 2017 Mitsubishi Mirage subcompact hatchback combines subtle restyling, more power, more features and gas-sipping performance in an economical package. The base, five-door Mirage hatchback comes with standard power windows, door locks and...
Flightglobal  Aug 24  Comment 
Mitsubishi Aircraft has obtained approval from the relevant authorities for a ferry flight of its MRJ regional jet to the US, and is in the final stages of preparing for the voyage.




 

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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