Sun Life Earnings: Wealth and Asset Management Business Drives Decent Results

No-moat-rated Sun Life Financial reported a middling set of numbers as the company reported underlying net income of CAD 930 million or CAD 1.59 per share in the third quarter versus CAD 949 million or CAD 1.62 per share in the third quarter of the previous year. The third-quarter results equated to an annualized underlying return on equity of 17.7% that is largely in line with management’s medium-term guidance of 18%. The company paid a quarterly dividend of CAD 0.78 per share in the third quarter, which represents a 4.7% dividend yield as per the current stock price. We are maintaining our CAD 63 fair value estimate for Sun Life after incorporating the third-quarter results.