The global wealth and asset management division of Manulife Financial had assets under management and administration (AUMA) of C$475bn at the end of second quarter of 2015, a surge of 66% compared to C$286bn a year ago.
The business contributed $155m to core earnings in the second quarter, an increase of 20% compared the year ago quarter due to higher fee income from higher asset levels, reflecting strong net flows and recent acquisitions.
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The wealth and asset management businesses has generated net wealth flows of $14.5bn, more than double compared to prior year quarter levels.
The company’s overall assets under management and administration rose to $883bn as at 30 June 2015, versus $637bn a year ago.
Premiums and deposits for wealth and asset management (WAM) products were $34.9bn, an increase of 74% on a constant currency basis, compared to the year ago quarter.
Overall, the group’s net income attributed to shareholders declined to $600m during the second quarter of 2015 from $943m a year ago.
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By GlobalDataTotal revenue for the quarter was $1.1bn compared with $13.2bn in the second quarter of 2014.
Manulife president and CEO Donald Guloien said: "We continued to deliver robust growth in wealth management and life insurance, our core earnings grew 29% to $902 million, and our assets under management and administration reached $883 billion. Core earnings were higher than our expectations, but net income, as a result of changes in interest rates, was lower than expected."
Manulife CFO Steve Roder said, "Our strong core earnings demonstrate our continued execution on the key drivers of earnings growth: increasing scale in our wealth and asset management businesses, generating strong insurance growth in Asia, and delivering on our Efficiency & Effectiveness initiative."
