QUOTE AND NEWS
Automotive World  3 hrs ago  Comment 
Mitsubishi Corporation (MC) and Hitachi, Ltd (Hitachi) today announce the formation of a new joint venture that will provide comprehensive remote sensing services for industrial use. The new venture, SkymatiX, Inc., will develop, manufacture and...
Japan Today  Dec 1  Comment 
Mitsubishi Motors wants to triple its directors' pay as Nissan chief Carlos Ghosn gets set to take over as chairman at the automaker dented by a mileage-cheating scandal. In a notice dated Nov 29, Mitsubishi said it would put a "restructuring...
Financial Times  Nov 30  Comment 
Scandal-hit Japanese carmaker seeks changes as Nissan’s Carlos Ghosn becomes chairman
newratings.com  Nov 29  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 29.11.2016 09:00 Dissemination of a Voting Rights...
Flightglobal  Nov 28  Comment 
Spanish carrier Air Europa has contracted MTU to maintain the General Electric CF34-10E engines powering its Embraer 195 regional jet fleet.
Reuters  Nov 25  Comment 
Delta Air Lines Inc pilots are expected to keep existing rules in their new labor contract that prevent the U.S. No. 2 carrier from flying aircraft above a certain weight on regional routes, in a blow to Embraer SA and Mitsubishi Heavy...
Motley Fool  Nov 25  Comment 
The post-holiday market was strong, and these stocks led the way. Find out why.
New York Times  Nov 25  Comment 
The suspension system for the Army's Bradley Fighting Vehicle is potentially the first Japanese defense hardware built for export in decades.
Flightglobal  Nov 18  Comment 
A weak turboprop market is damping enthusiasm for bigger ATR and Bombardier models, but new technology could boost regional jet producers including Embraer and Mitsubishi
Flightglobal  Nov 16  Comment 
A second Mitsubishi Aircraft MRJ regional jet has departed Nagoya for the airframer s US flight test base at Moses Lake.




 

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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