|Bid||506.70 x 0|
|Ask||507.20 x 0|
|Day's Range||505.30 - 507.80|
|52 Week Range||492.20 - 740.90|
|Beta (3Y Monthly)||1.28|
|PE Ratio (TTM)||8.34|
|Earnings Date||Nov 11, 2019 - Nov 15, 2019|
|Forward Dividend & Yield||25.00 (5.01%)|
|1y Target Est||830.30|
(Bloomberg Opinion) -- “Do you have Jakarta’s blessing?” That’s the first question Oversea-Chinese Banking Corp. CEO Samuel Tsien will be asked by investors about his plan to buy Indonesia’s PT Bank Permata.OCBC is weighing a bid for Standard Chartered Plc’s Indonesian bank, Bloomberg News has reported, citing people with knowledge of the matter. Deliberations are still at an early stage and may not result in a deal. And even if they do, there’s the government to consider.OCBC is one of Singapore’s three homegrown banks and Indonesia has been touchy in the past about ceding control of its lenders to the neighboring city-state. Just ask DBS Group Holdings Ltd. The larger rival to OCBC had to walk away from a $6.5 billion acquisition of PT Bank Danamon Indonesia in 2013 after Jakarta kicked up a fuss about lack of reciprocity for Indonesian banks getting licensed in Singapore. The central bank curbed the DBS plan for full ownership to a minority stake.Will Jakarta be more comfortable six years later? The afterglow of the China commodity boom still-prevalent back then is long gone, and Susilo Bambang Yudhoyono’s sclerotic late presidency has been replaced by a possibly re-energized Joko Widodo beginning his second term. Tsien’s overture for 90% of Permata will show how much has really changed.Like Danamon, Permata is a mid-tier Indonesian bank. Standard Chartered has a near 45% stake, though most of the value in the franchise comes from equal partner PT Astra International. Southeast Asia’s largest independent automotive group controls half of Indonesia’s car market thanks to partnerships with Toyota Motor Corp. and Daihatsu Motor Co. No wonder auto financing is Permata’s core competence.The bank’s 4.2% return on tangible common equity last year may be unappetizing for StanChart CEO Bill Winters, who has promised to deliver 10% to his own investors by 2021, a goal the U.K.-based specialist lender to emerging markets hasn’t hit in several years. StanChart, which has a separate wholly owned operation in Indonesia, said in February that it no longer considers Permata to be a core investment.But things may look very different from Tsien’s perspective. OCBC faces the prospect of a trade war-induced slowdown in its home market. Singapore recently slashed its GDP growth estimate for 2019 to between zero and 1%. The bleak outlook is a “bad omen for bank lending,” according to Bloomberg Intelligence. Mind you, Indonesia won’t be a perfect sanctuary: the rupiah could wobble as global risk aversion takes hold and capital rushes into dollar assets. Still, Bank Indonesia has done a good job of anchoring inflation expectations. Aided by higher fiscal spending, domestic demand should hold up even as the global economy sputters.It was poor luck for the news to break on the day the U.S. yield curve inverted, signaling a high possibility of an imminent recession. Sure enough, the fall in OCBC’s share price Thursday seems to suggest that the bank’s dividend-loving investors would rather that Tsien returned more cash than go on a shopping spree in these uncertain times. They should at least be grateful that OCBC is not doubling down on its 20% ownership of China’s Bank of Ningbo Co. Besides, strategic considerations may be more important than tactical ones. Mitsubishi UFJ Financial Group now owns 94% of Danamon.That highlights a problem for the Singaporeans: Their Japanese rivals are looking to offer multinational clients access to the local-currency balance sheets of their Southeast Asian affiliates, in addition to cheap yen financing arranged by headquarters in Tokyo. Both OCBC and DBS want a share of this corporate banking pie.OCBC already has a presence in Indonesia, where it owns 85% of Bank OCBC NISP. Given Indonesia’s juicy net interest margins, owning another lender there can’t hurt, provided two conditions are met. One, Astra’s departure from Permata shouldn’t mean the end of car-financing. Two, Indonesia shouldn’t make this a repeat of the 2013 nationalistic drama. A distracting, long-drawn transaction that eventually gets scuttled would be the worst possible outcome for OCBC shareholders. They’ll be watching for Jakarta’s answer.To contact the author of this story: Andy Mukherjee at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Japanese stocks declined for a third day, as the latest developments in the U.S.-China trade war caused large swings in markets Tuesday.The Topix index ended the day 0.4% lower after falling by as much as 2.9% in the morning session. The telecommunications and electronics groups were the biggest drags on the benchmark gauge, which trimmed its 2019 gain to 0.3%.China’s central bank set its daily reference rate stronger than the psychologically important 7 per dollar level, weakening the yen against the dollar and helping Japanese equities come off earlier lows. The move came after the U.S. labeled China a currency manipulator.“China’s central bank didn’t make a move to weaken the yuan unexpectedly, so panicky selling ceased in the market,” said Norihiro Fujito, the chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo. “Uncertainties remain intact as China’s real intention is unclear, so nervous sentiment may stay in the stock market for the time being.”The Nikkei 225 Stock Average has been trading well below its moving averages, making stocks look cheap, said Katsuhiko Nakamura, senior technical analyst at Mizuho Securities Co. in Tokyo. Still that might not be enough to tempt many investors back into the market.“The U.S.-China situation is getting worse and worse,” said Hiroshi Matsumoto, head of Japan investment at Pictet Asset Management Ltd. “Unless either one of the nations steps toward concessions, risk-off moves will likely continue in the markets.”SummaryTopix -0.4% to close at 1,499.23 in TokyoNikkei 225 -0.7% at 20,585.31, after falling as much as 2.9%Yen -0.5% at 106.48 per dollar after strengthening as much as 0.4%Telecommunications: SoftBank Group -2.9%, KDDI -2.5%, Nexon -1.9%Electronics: Murata Manufacturing -2.2%, Nidec -1.8%, Kyocera -2.1%\--With assistance from Min Jeong Lee.To contact the reporters on this story: Keiko Ujikane in Tokyo at email@example.com;Shingo Kawamoto in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Lianting Tu at email@example.com, Kurt Schussler, Min Jeong LeeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NEW YORK , Aug. 2, 2019 /PRNewswire/ -- Leading global investment manager First State Investments today announced the completion of its sale from Commonwealth Bank of Australia to Mitsubishi UFJ Trust ...
Mitsubishi UFJ Financial Group Inc. recently opened a new office in Charlotte as part of a plan to establish an eastern U.S. hub and create about 300 jobs here.
(Bloomberg) -- SoftBank Group Corp.’s founder Masayoshi Son unveiled a second enormous fund for technology investments, seeking to keep his place as the most influential investor in the industry.The Japanese conglomerate aims to raise a total of $108 billion for the second Vision Fund, which would make it even larger than the first, unprecedented $100 billion effort. SoftBank is also taking more control this time around, committing $38 billion in capital itself and replacing Saudi Arabia as the largest investor. Saudi Arabia’s Public Investment Fund, which chipped in $45 billion for the initial effort, was not mentioned in the announcement Friday.SoftBank said the second fund is expected to collect money from Apple Inc., Microsoft Corp., Foxconn Technology Group and the sovereign wealth fund of Kazakhstan. Son also won broad support from Japanese financial institutions with seven identified as signing memorandums of understanding to participate.Son is aiming to raise a new massive fund every two or three years to take advantage of opportunities he sees in cutting-edge technologies such as artificial intelligence and autonomous driving. SoftBank in June disclosed the initial Vision Fund had earned 62% returns so far after investing $64.2 billion in 71 deals.“I wasn’t sure it would be possible to raise $100 billion without Saudi money, but it looks like it is,” said Chris Lane, an analyst with Sanford C. Bernstein & Co. “I think it was a conscious decision by SoftBank to decrease the influence of the Saudis.”Saudi Arabia and Crown Prince Mohammed bin Salman came under fire last year after the murder of journalist Jamal Khashoggi in a Saudi consulate in Istanbul. While Saudi officials have said the killing was carried out by rogue agents and have denied that the prince had any knowledge of their plan, U.S. politicians continue to press for further action in the case.“I think Masa personally was quite horrified by what happened,” said Lane.Saudi Arabia’s PIF and Mubadala Investment Co., both key partners in the first fund, are still in talks about possible investments, said Daisuke Sawatake, a SoftBank spokesman.The Japanese financial firms that have signed MOUs are Mizuho Financial Group Inc., Sumitomo Mitsui Financial Group Inc., Mitsubishi UFJ Financial Group Inc., Dai-ichi Life Holdings Inc., Sumitomo Mitsui Trust Holdings Inc., Daiwa Securities Group Inc., and SMBC Nikko Securities Inc. Other contributors will include Standard Chartered Plc, an unnamed Taiwanese investor and the fund’s management, according to the release.Satoru Kikuchi, an analyst at SMBC Nikko Securities in Tokyo, wrote in a research report that the broader group of investors and SoftBank’s contribution will grant the Japanese company more influence. Kikuchi also wrote that SoftBank may sell stakes in Alibaba Group Holding Ltd. and Sprint Corp. to pay for its investment in the second vehicle.The original Vision Fund was announced in October 2016, but took another seven months for its first major closing. Saudi Arabia was the biggest investor with its $45 billion contribution, followed by SoftBank’s $28 billion and $15 billion from Mubadala, the Abu Dhabi wealth fund. Investors also included Qualcomm Inc. and Sharp Corp. The Saudis’ stake allowed them to act as something of a constraint on Son’s power at the original fund.Amir Anvarzadeh, strategist at Asymmetric Advisors, wrote in a research note that Saudi Arabia and Mubadala may not have yet committed to the second Vision Fund for simple business reasons: They may be leery of committing as much capital as last time because of Son’s appetite for enormous risk. In one example, Son briefly considered putting $16 billion into WeWork on top of an existing $8 billion investment -- an unheard of concentration for a single deal -- before deciding to add only $2 billion.After decades of building his telecom empire, the 61-year-old is spending more time on investing. He has handed over the day-to-day management of SoftBank’s domestic telecom operations, a cash-cow division that went public in December, to his long-term lieutenant Ken Miyauchi. He has also engineered the sale of his Sprint wireless business to T-Mobile US Inc., a deal that is pending regulatory approval in the U.S.In May, Son declared he is now spending the vast majority of this time on deals. “My heart and mind are full of energy for the Vision Fund, taking up 97% of my brain,” he said.SoftBank shares have climbed 55% this year, including a 1.1% gain on Friday.One question is whether Son will be able to keep up the pace and scale of investments. The first fund targeted stakes of over $100 million, in just two years amassing a portfolio of 82 leading technology companies, including Uber Technologies Inc. and WeWork Cos. Ride-hailing is the single biggest segment, including stakes in China’s Didi Chuxing, India’s Ola and Singapore’s Grab.According to data from market researcher CB Insights, SoftBank Group was an investor in 24 of 377 global unicorns, startups valued over $1 billion. While several of its portfolio companies -- Uber and Slack Technologies Inc. -- have gone public, profitable exits for many others might still be years away.Anvarzadeh is skeptical of SoftBank’s knack for making multi-billion investments in private tech companies before they try to go public. Venture firms in Silicon Valley historically have avoided such outsized bets for fear of driving up valuations and seeing returns tumble.“Softbank’s strategy of bulking up and using its size to muscle into buying big stakes in late stage start-ups and unicorns depends on the IPO boom in loss-making firms to continue while it continues to raise the value of its existing unlisted holdings by simply providing a next round of financing at higher levels,” he wrote.On Friday, S&P Global Ratings warned that SoftBank’s ambitions might hurt its finances. Its “plan to quickly launch a second investment megafund is a manifestation of an extremely aggressive growth strategy and underlying financial policy that are likely to continue to restrain its credit quality,” the agency wrote.Lane has argued that investors have underestimated the potential returns from Son’s investment efforts. In an in-depth report earlier this year, he estimated the initial fund’s net present value was $14 billion to $24 billion, assuming returns of 15% to 20%. He said the net present value of the current and future funds could be $50 billion to $85 billion.“The first round of investors were betting on a man and betting on his vision, but the idea hadn’t been tested,” Lane said in an interview. “For the second round of investors, you can see the facts, you can see the returns.”(Updates with analyst comments from fifth paragraph.)\--With assistance from Peter Elstrom.To contact the reporters on this story: Pavel Alpeyev in Tokyo at firstname.lastname@example.org;Takahiko Hyuga in Tokyo at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Japanese banks have spent more than three years trying to flee negative interest rates at home by ramping up lending abroad. Now their escape routes are closing.Declining global rates are buffeting the country’s three largest lenders as they prepare to post fiscal first-quarter results next week. And with central banks around the world now in monetary easing mode, financial firms are growing concerned that the Bank of Japan may loosen policy further.“There is a limit to what banks can do to cope” with negative rates, Japanese Bankers Association Chairman Makoto Takashima said earlier this month.That bodes ill for Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc., which have about a third of their loans abroad. What’s more, the Tokyo-based banks face rising bad-loan costs and diminishing gains from selling shares held in their corporate clients – factors that had been propping up earnings as loan profitability eroded.The triple-whammy of low global rates, rising provisions and limited stock gains mean first-quarter results “will probably be subdued and may set the tone for the rest of the year,” said Francis Chan, a Bloomberg Intelligence banking analyst.Read how a return to easy money is slamming global banksShares of the three banks fell less than 1% on Friday morning in Tokyo. Sumitomo Mitsui is the best performer this year, climbing 4.9%, while Mizuho has slid 7.9% and MUFG is down 2%.The charts below illustrate the banks’ predicament heading into this earnings season. Sumitomo Mitsui will kick off reporting on Tuesday, followed by MUFG and Mizuho the following day.Record-Low RatesThe squeeze on banks’ domestic lending profitability got even worse last quarter. The average interest rate on new loans tumbled to a record-low 0.576% in May, Bank of Japan data show, and 10-year Japanese bond yields have been negative almost all year.Not All BadTo be sure, the drop in interest rates abroad isn’t entirely bad news because it will allow the banks to book gains on their foreign bond holdings in the short term, said Rie Nishihara, an analyst at JPMorgan Chase & Co. in Tokyo. She predicts the lenders will achieve at least 25% of their full-year profit targets during the period.MUFG and Mizuho expect net income to rise in the fiscal year through March -- but only because they booked hefty writedowns in the last quarter of the previous year. Sumitomo Mitsui is forecasting a profit decline.Rising Credit CostsIn recent years, Japanese banks booked profits from clawing back loan-loss provisions that weren’t needed because of gradually improving economic conditions. While it’s unlikely that loan quality will suddenly deteriorate, those reversals have now reached their limit and it’s time to replenish reserves.“One thing that should make their lives more difficult will be rising credit costs,” said Michael Makdad, an analyst at Morningstar Inc. in Tokyo.Stock Sale GainsJapanese banks have been trimming their so-called cross-shareholdings in recent years following government efforts to loosen cozy ties between lenders and their corporate clients. They initially booked healthy gains when stocks were rallying, but those are likely to diminish because Japan’s equity market recovery has faded.(Updates with shares in the sixth paragraph)To contact the reporters on this story: Taiga Uranaka in Tokyo at email@example.com;Yuki Hagiwara in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Marcus Wright at email@example.com, Russell WardFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Toshiba Memory Corp., the world’s second-largest memory chipmaker that was spun out of its parent last year, is changing its name to Kioxia as it gears up for an initial public offering.By taking a new name, the semiconductor company is marking a clean break from its roots as a unit of Toshiba Corp., which retained a 40% stake after selling it to a group led by Bain Capital. Kioxia is an invented word that combines the Japanese word for memory — kioku — and axia, the Greek term for value. The new moniker takes effect Oct. 1 under the full name Kioxia Holdings Corp.“It’s really meant to denote a fresh start as an independent company,” said Stacy Smith, the former Intel Corp. chief financial officer who became chairman of Toshiba Memory last year. “We’re not running from our rich heritage.”Toshiba, a Japanese conglomerate founded in the 1800s, invented flash memory three decades ago. The chips are used to store data in iPhones and other smartphones, as well as gadgets such as USB drives and memory cards. Memory chips are also displacing hard drives in the data centers that power cloud-based computing services and internet businesses because of their speed and reliability. Toshiba had to sell the business to pay for losses at its bankrupt nuclear power unit.While Bain has made clear that it’s planning to hold an IPO for the business by mid-2021, local media have reported that it may file for a public sale as soon as this summer or September. The investor has hired banks including Nomura Holdings Inc. and Mitsubishi UFJ Financial Group Inc. to handle the IPO, people familiar with the matter have said. Smith declined to comment on the timing of the planned IPO.Separately, Smith said the company’s main factory, which was hit with a power outage on June 15, would return to full production capacity over the next several weeks. Equipment at the plant, in Yokkaichi, Japan, is already back online and is now being ramped up, he said. The disruption also impacted Western Digital Corp., its manufacturing partner at the plant.“The silver lining to that one was it happened in a time when supply was ahead of demand,” Smith said. “That’s helping us to minimize the impact on our customers.”Although Toshiba was the leader in NAND flash memory, it was outspent over the years by the likes of Samsung Electronics Co. The South Korean electronics conglomerate controlled 30% of the market at the end of 2018, followed by Toshiba with about 19%, according to researcher TrendForce Corp. The industry is now shifting to so-called 3-D NAND, which Toshiba believes gives it an edge against Samsung.Asked about recent trade tensions between Japan and South Korea, and the potential impact on memory prices, Smith said he didn’t see any impact that diverged from industry forecasts.Toshiba has been increasing investments at its Fab 6 chip facility in Yokkaichi, and also announced plans to build a new plant in the northern prefecture of Iwate that will begin mass production in 2020.\--With assistance from Yuki Furukawa.To contact the reporter on this story: Jason Clenfield in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Reed StevensonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
With high-profile breaches and data controversies becoming more commonplace, OKTA co-founder Frederic Kerrest told Yahoo Finance that companies have to be more proactive.
Mitsubishi UFJ Financial Group, Inc. hereby announces that it has filed its Annual Report on Form 20-F for the fiscal year ended March 31, 2019 with the U.S.
MUFG is pleased to announce today that Mr. George Yeo, a former Singaporean Minister for Foreign Affairs with an MBA from Harvard University, has been appointed to its Global Advisory Board.
Moody's Japan K.K. has assigned a (P)A1 senior unsecured rating to MUFG Bank, Ltd.'s (MUFG Bank) JPY120 billion senior unsecured domestic shelf registration. The A1 ratings assigned to MUFG, MUFG Bank, and Mitsubishi UFJ Trust and Banking Corporation (MUTB, deposits A1/senior unsecured A1 stable, BCA a3) (We collectively refer to the two banks as the MUFG banks) incorporate a two-notch uplift from their BCAs, reflecting Moody's assessment of a very high probability of government support that will benefit MUFG and the MUFG banks equally in times of stress.
Japan's Nikkei dropped on Friday as investors awaited cues from U.S.-China trade talks, while oil and mining shares were in demand amid rising geopolitical risks in the Middle East. Investors' focus has now shifted to a meeting between U.S. President Donald Trump and China's President Xi Jinping during a Group of 20 summit in Japan next week, with hopes that they can put negotiations back on track to de-escalate a trade war. Trump said that he would decide whether to carry out his threat to hit Beijing with tariffs on at least $300 billion in Chinese goods after the meeting.
New Managing Director to Oversee Supplier Acquisition, On-Boarding NEW YORK , June 10, 2019 /PRNewswire/ -- Mitsubishi UFJ Financial Group (MUFG), Inc., one of the world's leading financial institutions, ...
Japan's Mitsubishi UFJ Financial Group is offering voluntary redundancy packages to 500 managing directors and directors in its London office, a source familiar with the matter said on Friday. The plan aimed to reduce costs and streamline a workforce that had too many senior managers, the source said. Japan's biggest bank by assets set a more bullish tone in November 2017, when Reuters reported it had hired more than 180 staff in the British capital that year and was set to bring on board more as it sought to expand its business in Europe.
NEW YORK, May 30, 2019 /PRNewswire/ -- Mitsubishi UFJ Financial Group (MUFG), Inc., today announced that its Project Finance team in the Americas added to its impressive list of recent honors by capturing six of Power Finance & Risk's 2018 industry awards, including one for Louise Pesce, who was named Project Finance Banker of the Year.
U.S. President Donald Trump urged Japanese business leaders on Saturday to increase their investment in the United States while he chided Japan for having a "substantial edge" on trade that negotiators were trying to even out in a bilateral deal. Trump arrived in Japan on Saturday for a largely ceremonial state visit meant to showcase strong ties even though trade relations are problematical. In the evening, the Tokyo Sky Tree tower was lit up red, white and blue in Trump's honor.
BRUSSELS/LONDON (Reuters) - Barclays, Citigroup, JP Morgan, MUFG and Royal Bank of Scotland were fined a combined 1.07 billion euros ($1.2 billion) by the European Union on Thursday for rigging the multi-trillion dollar foreign exchange market. Banks have been hit with billions of dollars in penalties worldwide over the last decade for the rigging of benchmarks used in many day-to-day financial transactions, further damaging the industry's fragile reputation after the financial crisis.