Manulife attributable net income rises 17% in Q2
Manulife Financial has reported attributable net income of C$704m for the second quarter of 2016, up 17% compared to C$600m a year earlier.
The bank said that the rise in net income was mainly driven by the impact of mark-to-market accounting partially offset by the impact of higher expected macro hedging costs and lower earnings on surplus assets.
The company’s core earnings during the period were C$833m, a fall of 8% from C$902m during the same period in 2015.
Net flows in the company’s wealth and asset management (WAM) units were C$4.8bn, down C$9.7bn from C$14.5bn in the prior year. Gross flows in the segment declined 25% year-on-year to C$26.6bn.
Assets under management and administration (AUMA) in the WAM division was C$503bn, a rise of 8% from a year ago, driven by net inflows and investment performance. Overall, the group’s AUMA increased 3% at the end of the second quarter compared to the corresponding period in 2015.
Manulife Financial president and CEO Donald Guloien said: “While both core earnings and net income this quarter were disappointing, having been impacted by the sharp decline in interest rates and heightened market volatility, I am pleased with how resilient our underlying businesses remained. Our key drivers of growth are continuing to perform very well.
“We delivered strong double digit growth in sales and new business value in Asia, and once again we generated positive net flows across our wealth and asset management businesses globally. This performance makes us confident that we have the right strategy in place to deliver long-term sustainable growth.”