QUOTE AND NEWS
The Hindu Business Line  16 min ago  Comment 
The Chairperson of the Indian Institute of Management Bangalore, Dr Kiran Mazumdar-Shaw, along with the institute Director Prof G. Raghuram, inaugurated a Case Recording Lab at IIMB, as part of IIM B...
Japan Today  Jul 10  Comment 
Japanese conglomerate Mitsubishi and French engineering consulting firm Assystem have taken stakes in French nuclear reactor business New NP, created from Areva, electricity firm EDF said Monday. The…
WA Business News  Jul 3  Comment 
Perth-based Whittens has locked-in its fifth major contract this year, winning a $58 million package of work at BHP Billiton Mitsubishi Alliance’s Caval Ridge coal project in Queensland.
FierceBiotech  Jun 21  Comment 
Clinigen has signed exclusive agreements with Mitsubishi Tanabe, Shionogi and Romark to cooperate on expanded access to their medicines.
Flightglobal  Jun 21  Comment 
Mitsubishi Aircraft test pilot Captain Akira Udagawa believes the smooth handling of the MRJ regional jet makes it stand out among its peers.
Flightglobal  Jun 18  Comment 
Mitsubishi Heavy Industries' chief executive Shunichi Miyanaga reiterated his personal commitment to the MRJ regional jet programme as the aircraft made its debut at the Paris air show.
Flightglobal  Jun 16  Comment 
Mitsubishi Aircraft's MRJ regional jet has landed at the Le Bourget airport for its airshow debut at Paris.




 

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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