MUFG Bank Ltd, the lending division of Mitsubishi UFJ Financial Group, Inc. MUFG, has planned to launch an online platform named MUFG Trade Club, per Reuters. The platform is expected to roll out this month.
An official, who declined to be identified, said that this move comes as Japan’s largest lender wants to provide clients with a platform that will help them find business partners in countries outside Asia.
The official further added that the company targets to have a minimum of 300 clients registered on the platform.
MUFG already has a strong presence in the United States and the U.K. along with a wide network in Asia.
The company has realized that till now it has not been able to meet the need of its clients in Japan, who seek to expand into Africa, the Middle East and parts of Europe where it does not have a strong presence. With the introduction of this platform, MUFG will be able to link its clients to a broader network of nearly 13 other banks.
The official said that there are many clients who wish to sell products like cosmetics, accessories, and Japanese sake in countries outside of Asia.
It is being expected that MUFG will provide this platform to its clients for free. However, the company is expecting that a new business will be created out of this move if clients will require foreign exchange transactions or capital investment.
Notably, Mitsubishi seems focused on expanding global presence through several efforts. In fact, its strong capital position supports its expansion strategies.
While Japan’s low interest-rate policy and strict regulations might pose headwinds for Mitsubishi, its strong capital ratios and organic growth are likely to drive bottom-line growth.
Shares of Mitsubishi have gained 2.6% over the past six months against a 7.6% decline of the industry.
Currently, the stock has a Zacks Rank #3 (Hold).
A few better-ranked stocks from the finance space are Ally Financial Inc. ALLY, The Blackstone Group Inc. BX and Eaton Vance Corp. EV.
Over the past 60 days, Ally Financial witnessed an upward earnings estimate revision of 3.6% for 2019. Its shares have gained 54.7% so far this year. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, the Zacks Consensus Estimate for Blackstone’s current-year earnings has been revised 2.7% upward. Its shares have surged 75.2% so far this year. It currently carries a Zacks Rank #2 (Buy).
Eaton Vance also has a Zacks Rank of 2 at present. It has witnessed an upward earnings estimate revision of 1.8% for fiscal 2019, over the past 60 days. The company’s share price has increased 32.5% year to date.
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