Pls comment on Manulife Financial quarter earning.
Thanks as always.
EPS of 95c missed estimates of 97c; revenue was $15.63B. EBITDA $623M. Strong growth in Manulife's flagship Asia operations and wealth management should allow it to achieve the lower end of its 10-12% core EPS growth target in 2026-27. This is despite headwinds in the US unit and an administrative change on Hong Kong MPF savings schemes that may be a 1 percentage point drag. Steady buybacks and cost-control are also contributing, including a 3% 2Q drop in core expenses. Manulife's underlying momentum is strong, as 1H insurance sales rose 30% led by Asia (47%). Wealth assets rose 10%, aided by a sixth consecutive quarter of inflows. The US unit lagged in 2Q but this was due to unfavorable mortality and credit provisions, and this is not likely to persist, though spreads likely remain pressured and there's modest lost business from reinsurance deals. The stock remains very cheap at 10X earnings and we remain comfortable overall here.