Manulife Earnings: Growth and Profitability Remains on Track; We Maintain Our CAD 29 FVE

No-moat-rated Manulife Financial reported a decent set of numbers in the fourth quarter as growth and profitability remain on track. The company reported core earnings of CAD 1.77 billion or CAD 0.92 per share versus CAD 1.54 billion or CAD 0.77 per share in the fourth quarter of the previous year. The fourth-quarter results equated to an annualized core return on equity of 16.4%, which is higher than the company's long-term target of 15%. Higher interest rates have been a tailwind for the company, resulting in higher recurring investment earnings. The company announced an increase of 9.6% to its quarterly common shareholders' dividend, resulting in a dividend of CAD 0.40 per share that represents a 5.2% dividend yield as per the current stock price. The adjusted book value of the company stood at CAD 32.2 per share, up 9% compared with the fourth quarter of the previous year. We are maintaining our CAD 29 fair value estimate for Manulife after incorporating the fourth-quarter results.