Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

In order to expand its operations, Japan-based Mitsubishi UFJ Financial Group, Inc.’s (MTU - Analyst Report) U.S.-based subsidiary – UnionBanCal Corporation – is seeking to acquire the rights to sell trust-banking services to Morgan Stanley’s (MS - Analyst Report) clients. The proposed business to be acquired offers trust services for approximately $4 billion worth of client assets.

The trust services business offers fiduciary and administrative services for high net worth clients who plan to set up personal trusts. Morgan Stanley will continue to manage the client assets, while Mitsubishi UFJ will earn fees from the sale of trust services to the clients.

Mitsubishi UFJ’s primary intention behind the proposed deal is to augment revenues to somewhat offset the persistent lower loan demand in Japan. The company has been growing inorganically over the last few years. Earlier in Apr 2013, UnionBanCal announced a deal to acquire commercial real estate (CRE) lending portfolio and platform from PB Capital Corporation – a wholly owned subsidiary of Deutsche Bank AG (DB - Analyst Report).

Moreover, in Dec 2012, Mitsubishi UFJ purchased the remaining 49% stake in joint venture (JV) with Bank of America Corp. (BAC - Analyst Report), enabling it to further improve its relationship with Morgan Stanley, with whom it has 3 separate JVs. Hence, the above-mentioned proposed deal will add strength to Mitsubishi UFJ’s relationship with Morgan Stanley.

For Morgan Stanley, which has been trying to consolidate its global operations and concentrate on brokerage operations, the deal if finalized would be a positive step. In Mar 2013, it announced plans to restructure its Europe, the Middle East and Asia (EMEA) Private Wealth Management (PWM) business. Additionally, the company agreed to sell its EMEA PWM businesses in the U.K., U.A.E., and Italy to Credit Suisse.

Mitsubishi UFJ currently carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
VERTEX ENERG VTNR 8.25 +10.59%
MODINE MANUF MOD 17.12 +8.77%
CLAYTON WILL CWEI 140.03 +7.27%
E*TRADE FINA ETFC 22.67 +5.44%
KNIGHTSBRIDG VLCCF 13.22 +5.42%