Manulife Earnings: Robust Growth and Profitability in Asia Business Drive Solid Results

No-moat-rated Manulife Financial reported a solid set of first-quarter numbers, as growth was strong and profitability remained on track. The company reported core earnings of CAD 1.75 billion, or CAD 0.94 per share, versus CAD 1.54 billion, or CAD 0.79 per share, in the year-ago first quarter. The quarterly results equated to an annualized core return on equity of 16.7%, higher than the company’s long-term target of 15%. Adjusted book value stood at CAD 33.40 per share in the first quarter, up 11% compared with the first quarter of the previous year. We are maintaining our CAD 30 fair value estimate after incorporating these results.