Manulife’s net income attributed to shareholders for the second quarter of 2015 declined by 36% compared to the same period last year. The insurer says these poor results are due mostly to a steepening of the interest rate yield curve.
On Aug. 6, Manulife announced net income attributed to shareholders of $600 million for the second quarter of 2015, down from the $943 million recorded for the corresponding period in 2014. The decline in profits was most pronounced in the United States, where Q2 net income was down by 67% compared to the same period last year. In Canada, net income attributed to shareholders was down by 28% compared to the second quarter of 2014.
Manulife's Canadian core earnings actually increased across the board during the quarter; insurance earnings were up by 8% compared to the same period last year, while quarterly earnings from Canadian wealth and asset management and the Manulife Bank were up by 36% and 24% respectively. These increase earnings were not, however, enough to offset losses resulting from changes in interest rates.
"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," commented Manulife president and CEO Donald Guloien. "Core earnings were higher than our expectations, but net income, as a result of changes in interest rates, was lower than expected."