QUOTE AND NEWS
The Times of India  May 18  Comment 
Mitsubishi Motors president Tetsuro Aikawa will step down as the Japanese automaker looks to regroup from its widening fuel economy testing scandal with the backing of Nissan Motor. Mitsubishi said its management created an environment for fraud.
New York Times  May 18  Comment 
The Japanese automaker said its methods did not exaggerate results. Also Wednesday, the chief of Mitsubishi said he would resign after a fuel-test scandal there.
Automotive World  May 17  Comment 
Mitsubishi Corporation (MC) is pleased to announce that “Geodesic Capital Fund I” has concluded the final closing with the aggregate investment amount of $335 million. The fund is aimed at providing investment capital for innovative technology...
Automotive World  May 16  Comment 
Mitsubishi Fuso Truck of America, Inc. (MFTA) has named Otto Schmid its new Director, Product Management. Schmid has worked for the past eight years for Daimler AG in Germany and Japan, in various corporate and engineering functions. According to...
newratings.com  May 16  Comment 
TOKYO (dpa-AFX) - Mitsubishi UFJ Financial Group Inc. (MTU) said that its board decided Monday to appoint two women as executive officers at its core banking unit, the Wall Street Journal reported citing people familiar with the matter. Suk Fun...
Financial Times  May 13  Comment 
Adding carmaker to the Renault-Nissan alliance will create a rival for big groups such as Toyota, VW and GM
The Australian  May 13  Comment 
Nissan expect big savings in developing common platforms after taking a $3 billion stake in Mitsubishi.
Automotive World  May 13  Comment 
In an update to Japan's Ministry of Land, Infrastructure, Transport and Tourism, Mitsubishi confirms that the number of models impacted is much larger than initially thought The post Mitsubishi fuel economy fix: from 4 to 13 and counting...
Clusterstock  May 13  Comment 
By Minami Funakoshi YOKOHAMA, Japan (Reuters) - Nissan Motor Co CEO Carlos Ghosn said restoring Mitsubishi Motors' credibility with consumers will be his top challenge but that Japan's second-biggest automaker will not impose its management on...
BBC News  May 13  Comment 
Shares in Japanese carmaker Nissan rise by 4.1% on Friday after the company had clinched a deal to take a major stake in embattled rival Mitsubishi.




 

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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