QUOTE AND NEWS
Clusterstock  9 hrs ago  Comment 
TOKYO (Reuters) - Japan's transport ministry said on Tuesday that government tests of Mitsubishi Motors Corp minivehicles with overstated mileages showed that their fuel economy was on average 11 percent lower than advertised. But Transport...
The Hindu Business Line  5 hrs ago  Comment 
Japan Today  Jun 18  Comment 
Mitsubishi Motors is giving 100,000 yen to each Japanese owner of its car as a compensation for inflated mileage and extra gas costs. The Japanese automaker said Friday it will take a 50 billion yen charge to cover mileage-rigging expenses,...
Clusterstock  Jun 17  Comment 
By Alwyn Scott NEW YORK (Reuters) - Mitsubishi Heavy Industries Ltd should have pushed harder to market its defense technology to win a $40 billion submarine sale to Australia, and is open to partnerships with U.S. defense companies, Chief...
Financial Times  Jun 17  Comment 
Payments follow inquiry into falsification of fuel economy data
newratings.com  Jun 17  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 Hindu Business Line  Jun 17  Comment 
Mitsubishi Motors said today it will post a $480 million special loss for the current fiscal year to pay compensation to customers over years of cheating on fuel-economy tests. Mitsubishi first adm...
Yahoo  Jun 17  Comment 
Japan's Mitsubishi Motors Corp said it plans to give owners of four minivehicles close to $1,000 in compensation for its overstating of mileage readings, part of reimbursement costs that will total at least $600 million. The mileage scandal, which...
Reuters  Jun 17  Comment 
Japan's Mitsubishi Motors Corp said it plans to give owners of four minivehicles close to $1,000 in compensation for its overstating of mileage readings, part of reimbursement costs that will total at least $600 million.
Automotive World  Jun 16  Comment 
Freddie Holmes looks into the latest exposé of weak automotive cyber security, with Mitsubishi taking the fall this time The post Mitsubishi hack not really a hack, but exposes serious vulnerabilities appeared first on Automotive World.
Flightglobal  Jun 14  Comment 
Garuda Indonesia has signed a five-year agreement with MTU Maintenance for the overhaul of General Electric CF34-8C5 engines that power its Bombardier CRJ1000s.




 

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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