Stock Watch – Manulife Financial Closes Q1 with $818m In Net Income

Stock Watch – Manulife Financial continues to view Asia as a key growth area and to examine possible acquisitions in the region

Manulife Financial Corp. (TSE:MFC, Mkt cap 37.90B, P/E 11.66, Div/yield 0.13/2.54, EPS 1.75, Shares 1.85B), Canada’s largest life insurer, reported last week an increase of more than 50% in first-quarter earnings, helped by an improvement in its investment performance and a pickup in wealth management fees.

Stock Watch - Manulife Financial Net Income Asia key growth area

Stock Watch – Manulife Financial continues to view Asia as a key growth area

The company’s net income attributed to shareholders advanced to C$818 million, or C$0.42 per share, in the quarter to March 2014, from C$540 million, or C$0.28 per share, in the same period of 2013. Its core earnings increased by C$100 million to C$719 million in the quarter compared with January-March 2013, thank to a rise in fee income on assets under management, lower net hedging expenses and a stronger US dollar. On a per-share basis, Manulife’s core profit went up to C$0.37 per share from C$0.32 last year, missing the mean forecast for a result of C$0.39 per share among analysts polled by Thomson Reuters.

Manulife saw its insurance sales slip by an annual 15% in the quarter to C$537 million, chiefly due to lower sales in Canada Group Benefits. Excluding that, insurance revenues were 4% higher than in the first quarter of 2013. Wealth sales, meanwhile, added 5% to C$13.8 billion, with strong gains in Canada and the US well offsetting drops in Asia.

See Michael Sprung’s top stock picks on BBN Market Call, Thursday May 8 at 6:00pm. Please email your questions to [email protected] or Tweet to @marketcall

Free Portfolio Review – Markets were up in 2013. Are you at risk in 2014? Sprung Investment Management Is Pleased To Offer Qualified Investors A Free Portfolio Review—Without Cost or Obligation. Learn more here>>

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.

 

 

Did you find this helpful? Please share...
  • More

Leave a Reply

Your email address will not be published. Required fields are marked *