Wealth and Asset Management Drive Manulife’s Profit Growth as Results Mixed Elsewhere

Manulife second quarter was mostly consistent with expectations. Core earnings per share of CAD 0.83 were a touch about the FactSet consensus estimate of CAD 0.79. Core earnings grew 18% with most of the growth driven by the firm’s wealth and asset management, or WAM, business. Given the amount of market appreciation, WAM faced easy comps, in our view. Overall, there was little in the firm’s release of financial results that would alter our long-term view of the firm and we will maintain our no-moat rating and CAD 26 fair value estimate on the firm’s shares.