Manulife first-half profit expands 16pc to C$2.3B

Manulife Financial’s (0945) first-half net profit rose 16 percent year-on-year to C$2.27 billion (HK$12.98 billion), after a robust second quarter on the continuous growth of business in Asia and Canada.

The company declared a dividend of C$0.44 per common share.

For the second quarter, the Canadian insurer reported a net income of C$1.79 billion, up by  72 percent year-over-year. The company declared a dividend of C$0.44 per common share.

Core earnings, however, declined 2 percent to C$1.73 billion, attributed to weaker US performance and increased expected credit loss provisions. 

Profit surged 44 percent in Asia and was nearly up by 394 percent in Canada, but plummeted 73 percent in the US. 

New business value grew across all three markets, led by a 28 percent increase in Asia.

Global wealth and asset management earnings rose 36 percent, driven by favorable market impacts over the past 12 months and net inflows, generating higher net fee income.

New business contractual service margin (CSM) for the June quarter reached C$882 million, up 40 percent year-over-year but down 3 percent quarter-over-quarter. 

Hong Kong contributed C$286 million, which was up by 43 percent from a year ago but down over 9 percent from a quarter ago. Other Asian regions contributed C$303 million, 61 percent higher than one year earlier but 5 percent lower than three months ago. 

Additionally, Manulife announced the acquisition of a 75 percent stake in Comvest Credit Partners, expected to close in the fourth quarter of 2024. The deal will add US$14.7 billion (HK$114.66 billion) to Manulife's Global Wealth and Asset Management platform, including US$11.0 billion in fee-generating assets under management and US$3.7 billion in committed capital from Comvest.
Shares of Manulife rose 0.83 percent to HK$243 apiece in Hong Kong.

STAFF REPORTER