Manulife reports 2Q17 net income of $1,255 million, core earnings of $1,174 million, and strong investment-related experience gains
Manulife Financial Corporation ("MFC") announced net income attributed to shareholders of $1,255 million for the second quarter of 2017 ("2Q17"), fully diluted earnings per common share of $0.61 and return on common shareholders' equity ("ROE") of 12.4%, compared with $704 million, $0.34, and 7.1%, respectively, for the second quarter of 2016 ("2Q16"). MFC generated core earnings of $1,174 million, diluted core earnings per common share of $0.57 and core return on common shareholders' equity ("core ROE") of 11.5%, compared with $833 million, $0.40, and 8.4%, respectively, for 2Q16. Favourable investment-related experience in 2Q17 contributed $232 million to the increase in net income attributed to shareholders, of which $154 million also contributed to the $341 million increase in core earnings.
Year-to-date 2017 net income attributed to shareholders was $2,605 million, fully diluted earnings per common share were $1.27 and ROE was 13.0% compared with $1,749 million, $0.85 and 8.9%, respectively, for the same period of 2016. Year-to-date 2017 core earnings were $2,275 million, fully diluted core earnings per common share were $1.11 and core ROE was 11.3% compared with $1,738 million, $0.84 and 8.9%, respectively, for the same period of 2016.
Donald Guloien, Chief Executive Officer, stated, "This was another solid quarter, with strong operating performance reflected in core earnings of $1.17 billion and net income of $1.26 billion. Our global businesses continued to perform well and we delivered strong investment-related experience gains."
Roy Gori, President, added, "Our results this quarter highlight the strength of our diversified, global franchise. We delivered strong Insurance sales with double-digit growth in all divisions, and new business value increased by 24%. We also delivered our 30th consecutive quarter of positive wealth and asset management net flows, with contributions from all divisions."
Steve Roder, Chief Financial Officer, said, "We are in the process of completing the third quarter's annual review of actuarial methods and assumptions. Although the work is still ongoing, our preliminary analysis suggests that the impact will not be substantial in either direction to post-tax earnings in the third quarter."1