Manulife Financial Corp. today reported a 28% rise in second-quarter profit, boosted in part by strong investment results and growth in its Canadian, Japanese and U.S. wealth management businesses.
Net income for the quarter ended June 30 rose to $839 million, or $1.04 a share, up from $656 million, or 92¢ a share, in the year-before period.
Included in the results were a $26 million charge for final adjustments to the John Hancock Financial purchase equation and $28 million of integration expenses.
There was also a $47 million gain to align investment policies in Canada Individual Insurance. In total, the non-recurring items hurt results by $7 million.
Hancock’s contribution this quarter included an extra-month of results compared with only two-months a year ago, but its earnings were partially offset by the stronger Canadian dollar.
Manulife said the Hancock integration is continuing and on-track to exceed its financial targets.
“This quarter marked the one year anniversary of the John Hancock transaction,” said Dominic D’Alessandro, Manulife president and CEO. “We are very pleased with the enhanced scale, strong product portfolio and diversified distribution that the organization has realized through this acquisition. The anticipated synergies are evident in the impressive sales results, particularly those recorded in U.S. Individual Insurance and Annuities segments, and our record level of shareholders’ earnings.”
Manulife said total revenue climbed to $8 billion from $6.97 billion.
Total premiums and deposits for the quarter were $14.3 billion, up from $13 billion, while funds under management were $364 billion as of June 30.
Return on equity rose to 14.3% on an annualized basis from 14%.