Fri, Sep. 4, 7:11 AM
- Japanese megabanks were among those to make offers for General Electric's (NYSE:GE) Japanese commercial finance operations today.
- Bidders included Orix (OTC:ORXCF) and the leasing units of Sumitomo Mitsui Financial Group (NYSE:SMFG), Mitsubishi UFJ Financial Group (NYSE:MTU) and Sumitomo Mitsui Trust Holdings (OTCPK:SUTNY).
- The banks will conduct due diligence over the next several weeks and determine the value of the operations, with the price likely to be several billion dollars.
Tue, Aug. 25, 9:19 AM| Tue, Aug. 25, 9:19 AM | 7 Comments
Thu, Mar. 5, 8:28 PM
- The minimum Tier 1 common capital ratio for banks is 5%, according to the Fed, and here's how the 31 lenders stacked up under the central bank's severely adverse scenario vs. a year ago (h/t: WSJ):
- Deutshce Bank (NYSE:DB): 34.7%, not tested a year ago
- DIscover (NYSE:DFS): 13.9% vs. 13.2% a year ago
- Bank of New York Mellon (NYSE:BK): 12.6% vs. 13.1%
- American Express (NYSE:AXP): 12.5% vs. 12.1%
- Northern Trust (NASDAQ:NTRS): 12.3% vs. 11.7%
- State Street (NYSE:STT): 11.8% vs. 13.3%
- Citizens Financial (NYSE:CFG): 10.7% vs. 10.7%
- KeyCorp (NYSE:KEY): 9.9% vs. 9.2%
- Capital One (NYSE:COF): 9.5% vs. 7.8%
- PNC Financial (NYSE:PNC): 9.5% vs. 9%
- Santander Holdings USA (SAN's U.S. unit): 9.4% vs. 7.3%; shares +0.8% after hours
- BMO Financial (BMO's U.S. unit): 9% vs. 7.6%
- Comerica (NYSE:CMA): 9% vs. 8.6%
- Huntington Bancshares (NASDAQ:HBAN): 9% vs. 7.4%
- HSBC North America (NYSE:HSBC): 8.9% vs. 6.6%
- U.S. Bancorp (NYSE:USB): 8.5% vs. 8.2%
- Regions Financial (NYSE:RF): 8.3% vs. 8.9%
- Citigroup (NYSE:C): 8.2% vs. 7.2%
- SunTrust (NYSE:STI): 8.2% vs. 8.8%
- BB&T (NYSE:BBT): 8.1% vs. 8.4%
- MUFG Americas Holdings (NYSE:MTU): 8% vs. 8.1%
- Ally Financial (NYSE:ALLY): 7.9% vs. 6.3%
- Fifth Third Bancorp (NASDAQ:FITB): 7.9% vs. 8.4%
- Wells Fargo (NYSE:WFC): 7.5% vs. 8.2%
- M&T Bank (NYSE:MTB): 7.3% vs. 6.2%
- Bank of America (NYSE:BAC): 7.1% vs. 5.9%; shares +2.1% after hours
- JPMorgan (NYSE:JPM): 6.5% vs. 6.3%
- BBVA Compass (NYSE:BBVA): 6.3% vs. 8.5%
- Goldman Sachs (NYSE:GS): 6.3% vs. 6.9%
- Morgan Stanley (NYSE:MS): 6.2% vs. 6.1%
- Zions Bancorp (NASDAQ:ZION): 5.1% vs. 3.6%; shares -1.7% after hours
- The lenders were also informed today whether their capital return plans would put them below the Fed's 5% threshold, giving them a 6-day window with which to change those requests, if need be. Last year, both BofA and Goldman scaled back their dividend/buyback requests, allowing them to pass the CCAR. This year's CCAR results will be announced on Wednesday.
- 2015 Stress Test Methodology and Results
Nov. 4, 2014, 9:15 AM
Sep. 12, 2014, 6:43 AM
- As banks weigh in their bids for Citigroup's (NYSE:C) Japanese retail banking operations, the U.S. bank announced that it was looking to sell its Japanese Diners Club card business along with the unit.
- Citigroup's Japanese retail business has some 3.6T yen ($33.6B) in deposits, of which almost 2T yen is dollar-denominated, attracting Japanese banks seeking foreign currencies.
- Ten banks, including Mitsubishi UFJ Financial (NYSE:MTU), Mizuho Financial (NYSE:MFG), Sumitomo Mitsui Financial (NYSE:SMFG), Resona (OTCPK:RSNHF), Sumitomo Mitsui Trust (OTCPK:SUTNY) and Shinsei Bank (OTCPK:SKLKY) have all submitted preliminary bids.
Aug. 22, 2014, 8:15 AM
- Citibank Japan had net income of $12.9M last year - that's less than the total compensation of CEO Michael Corbat, and it helps explain why C has reportedly put the unit on the block.
- “It is very difficult to make money from lending in Japan unless you’re in higher-margin consumer lending or if you’ve got a very large scale of operations like the megabanks have,” says analyst David Marshall. “In an environment in which interest rates are very low and investors are still somewhat risk adverse despite economics, it is hard to make money.”
- Among the possible buyers are Shinsei Bank and Mitsubishi UJF (NYSE:MTU), according to the Nikkei.
- Previously: WSJ: Citi considering sale of retail ops in Japan
May 9, 2014, 8:33 AM
- Looking to boost its U.S. presence, Mitsubishi UJF (MTU) is among those weighing a bid for BNY Mellon's (BK) corporate trust unit, reports the FT. The unit could fetch up to $2.5B in a sale, according to those close to the matter.
- MUFG has been looking for growth outside of Japan in recent years, and recently told investors it wants to be a top-10 financial institution in the U.S. "by scale and profitability." It currently ranks 12th by deposits, according to SNL Financial.
- Previously: BNY Mellon corporate trust unit reportedly on the block
Mar. 20, 2014, 5:07 PM
- Again, all 30 lenders subject to the Fed stress test passed with the exception of Zions Bancorp. Checking the individual results:
- Regional banks passing: BB&T Corp. (BBT), Comerica (CMA), Fifth Third (FITB), Huntington (HBAN), KeyCorp (KEY), M&T (MTB), PNC, Regions (RF), SunTrust (STI), U.S. Bancorp (USB).
- Credit card lenders: American Express (AXP), Discover (see here), Capital One (COF).
- Those controlled by overseas holding companies: BBVA Compass, BMO FInancial, HSBC North America, RBS Citizens Financial, Santander Holdings USA (SAN), UnionBanCal (MTU).
- Trust banks: Bank of New York (BK), State Street (STT), Northern Trust (NTRS).
- TBTFs: See here.
- More on Zions (ZION): The failure likely has something to do with CDOs on its books backed by trust-preferred securities. The bank signaled earlier this year it would likely resubmit its capital plan to the Fed as the test's calculation of its capital ratio wouldn't reflect Zion's planned sale of these.
Mar. 20, 2014, 10:35 AM
- The results of the Fed stress tests on the usual banking industry suspects are expected today, but this year's version includes 12 new companies added to last year's list of 18. Newly subjected U.S.-based lenders: DFS, NTRS, HBAN, MTB, ZION. Foreign-owned U.S. bank holding companies: BBVA Compass Bancshares, BMO Financial, HSBC N.A. Holdings, RBS Citizens Financial Group, Santander Holdings USA (SAN), UnionBanCal (MTU).
- The CCAR results - at which the Fed will give a thumbs up/thumbs down on banks' capital return plans - are due on March 26.
Feb. 3, 2014, 3:02 AM
Nov. 29, 2013, 7:50 AM
- The tie-up with Mitsubishi UJF Financial (MTU) is paying off for Morgan Stanley (MS) which is set to take the top spot in Japanese M&A for the first time since 1997. The bank this year advised on 41 takeovers valued at $28.3B, according to Bloomberg, leading Goldman, Bank of America, and Nomura.
- In equity offerings, the Morgan/Mitsubishi team is ranked 3rd this year - the same as 2012, and up from #5 in 2011.
- MItsubishi bought a $9B stake in Morgan Stanley at about the height of the financial crisis, and now owns 22% of the company.
Jul. 2, 2013, 9:51 AMMitsubishi UFJ Financial Group (MTU +0.5%) looks for growth away from home, agreeing to buy as much as a 75% stake in Thailand's Bank of Ayudhya for up to $5.61B. If approved by Thai regulators (foreign ownership of domestic banks is capped at 49%), it would be the largest acquisition by a Japanese bank in Southeast Asia. One selling shareholder will be GE, which will raise $2.41B by exiting its stake. | Jul. 2, 2013, 9:51 AM | Comment!
Jun. 21, 2013, 1:06 PMMitsubishi UFJ Financial Group (MTU +1%) is set to buy a 51% stake in Thailand's Bank of Ayudhya (BKAHF.PK), in what could be the largest acquisition by a Japanese bank in Southeast Asia. The stake, which includes GE's (GE +1%) Capital's entire 25% position in the company, could be worth over $4B when completed. A deal could be announced as early as next week. | Jun. 21, 2013, 1:06 PM | 1 Comment
Jun. 4, 2013, 9:11 AM
May 23, 2013, 9:12 AM
Apr. 28, 2013, 3:25 AMSan Francisco based Union Bank, a unit of Japan's Mitsubishi UFJ Financial Group (MTU), is reportedly in negotiations to acquire Morgan Stanley's (MS) trust-banking assets, which are valued at around $4B. Any deal would add to Union Bank's purchase of a portfolio of $3.7B in U.S. real-estate loans from Deutsche Bank as MUFG looks to expand overseas to offset anemic demand in Japan. | Apr. 28, 2013, 3:25 AM | Comment!
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Mitsubishi UFJ Financial Group Inc is a bank holding company. The Company through its subsidiaries offerscommercial banking, trust banking, securities, credit cards, consumer finance, asset management, leasing and many more fields of financial services.
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