The Financial Post reports in its Friday edition that Manulife Financial faced headwinds in its home market in the third quarter that muted the benefit of gains from its wealth and asset management business along with resilience in Asia and the U.S.
A Bloomberg dispatch to the Post reports that core earnings from Canada fell 12 per cent to $279-million last quarter, hurt by higher-than-expected payout costs. That contrasts with Manulife's performance in Asia, where core earnings rose 7.5 per cent to $559-million, and the U.S., where earnings increased 5.7 per cent to $498-million.
The global stock-market rebound drove a strong quarter in Manulife's wealth and asset management business, with assets under management and administration rising 8.5 per cent to $715.4-billion. Manulife's total core earnings fell 4.8 per cent to $1.45-billion or 73 cents a share topping analysts' 70-cent average estimate. Net income more than doubled to $2.07-billion. Barclays analyst John Aiken says, "Were it not for weakness in its Canadian platform it would have been a very significant beat, with Asia and wealth management generating solid contributions and impressive year-over-year growth in the midst of the pandemic."
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