- Growth in Asia last year outperformed the Canadian and US divisions. While no longer the case, profits rose 3.8% to C $ 489 million (US $ 369 million) in Asia in the quarter.
- A market rebound added US $ 12.3 trillion to the world’s stock market value between April and June, helping fund managers around the world regain ground after a coronavirus crisis earlier in the year . For Manulife’s Wealth Division, assets under management and administration totaled C $ 696.9 billion, compared to C $ 653.1 billion a year earlier. Global wealth and asset management revenues fell 1.7% to C $ 238 million.
- Manulife’s US business, through its John Hancock business, has been the largest contributor to earnings after Asia since the start of 2019. US core earnings increased 37% to 602 million Canadian dollars, making it the largest contributor to overall profit in the second quarter.
- Analysts including Darko Mihelic of RBC Capital Markets have predicted that the credit losses will weigh on Manulife’s domestic earnings. Canada’s core profits increased 9.6% to C $ 342 million.
- Manulife shares have fallen 29% this year, after the S & P / TSX Composite Financial Services Index fell 17%.
Core profits rose 7.5% to C $ 1.56 billion, or 78 cents Cdn per share, beating the average estimate of 62% of 14 analysts in a Bloomberg survey.
Net income totaled C $ 727 million, or 35 cents per share, compared to C $ 1.48 billion, or 73 cents, a year earlier.