QUOTE AND NEWS
Automotive World  Oct 21  Comment 
Major milestone to deliver trucks outside Europe for the first time in MFTE’s 50-year history MFTE: Integral part of Daimler Trucks global production network and production hub for the globally popular Canter light-duty truck Plans for further...
Reuters  Oct 21  Comment 
Japan's Mitsubishi Corp acquired 91 percent of Norwegian salmon farmer Cermaq in a $1.4 billion bid for the firm, which holds extensive fishing assets in Norway and Chile, it said...
Forbes  Oct 20  Comment 
I have posted about this MHI (OTC: MHVYF) project before (see sidebar). Frankly, it seems to be taking forever. There have been three major reschedulings, and, if there are not further delays, actual deliveries (to ANA as a start) of the 78-92...
JCN Network  Oct 20  Comment 
Mitsubishi Heavy Industries, Ltd. (MHI) has completed development of the "Mitsubishi Super Skiving System" for machining internal gears with high speed and outstanding precision.
Japan Today  Oct 16  Comment 
The first made in Japan passenger jet in four decades reaches a development milestone later this week. A "rolling out" ceremony in Nagoya, central Japan on Saturday will unveil the long awaited Mitsubishi Regional Jet, or MRJ, a fuel-efficient...
JCN Network  Oct 13  Comment 
Mitsubishi Corporation (MC) is pleased to announce the opening of the Caval Ridge Coal Mine in Queensland, Australia.




 

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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