
Please try another search
Despite elevated expenses, negative interest rates in Japan, uncertain global economy and a stringent regulatory landscape, Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) has been consistently growing through acquisitions backed by its strong liquidity position. Further, the bank remains focused on its business upgradation plan.
This Japanese investment banking firm has been continuously expanding inorganically. Since 2016, the bank has completed a number of acquisitions to expand its global footprint. Further, it remains focused on its Medium-term Business Plan (2018 to 2021) that includes upgradation and reformation of business model and exploration of new business areas.
Notably, in this regard, the company has implemented “Eleven Transformation Initiatives” — specific strategic initiatives designed to enable the bank to cope with adverse changes in the domestic or overseas business environment, and register sustainable growth. Also, it enjoys a solid liquidity position owing to its robust customer base in Japan and depositors’ preference for large financial institutions for the safety of deposits.
However, with the Bank of Japan's negative interest rate policy, Mitsubishi UFG’s revenues have been under pressure. Though it aims to deliver ¥900 billion of profits attributable to shareholders for the fiscal year ending Mar 31, 2020, it would be difficult for the company to run its business profitably in a slowly-growing economy. Notably, the company failed to achieve its target for fiscal 2018.
Further, escalating expenses are a major concern for Mitsubishi UFG. The company has been witnessing a persistent rise in expenses, mainly due to higher salaries and employee-benefit expenses. Higher regulatory costs in overseas businesses have contributed to this upswing.
The Zacks Consensus Estimate remained unrevised for fiscal 2019 and 2020, over the last 90 days. Hence, the company carries a Zacks Rank #3 (Hold). Further, Mitsubishi UFG has gained 11.7%, year to date, compared with 7.2% growth recorded by the industry.
The S&P 500 had risen by nearly 1% at the start of the day yesterday, but by day’s end, all the gains were gone, with the index finishing 12 bps. There are now two...
It was a mixed day for indices yesterday with the first indication of a top for the current advance with reversal candlesticks coming into play off opening gaps in markets. The...
There is little sign that consumers are spending less on ride-sharing and delivery services Uber is making more money from delivery than ever, primarily because of its...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.