Manulife Financial (MFC) Q3 2024 earnings summary

Executive summary

• Achieved record financial and operating results in Q3 2024, with core earnings of $1.8 billion, net income of $1.8 billion, and strong momentum in Asia and Global WAM.

• Core EPS grew 7% (11% excluding Global Minimum Tax), and adjusted book value per share increased 14% year-over-year, despite returning nearly $5 billion to shareholders.

• Digital transformation and GenAI initiatives are driving efficiency, customer satisfaction, and financial benefits, with NPS at an all-time high and STP exceeding 2025 targets.

• Maintained a strong balance sheet, robust capital position, and continued significant capital returns to shareholders through dividends and share buybacks.

• Strategic focus on portfolio optimization and customer experience continues to drive growth.

Financial highlights

• APE sales grew 40% year-over-year, led by 64% growth in Asia, with record new business CSM (+47%) and NBV (+39%).

• Core earnings increased 4% year-over-year (7% excluding global minimum taxes), with 17% growth in Asia and 37% in Global WAM.

• Core EPS rose 7% year-over-year (11% adjusted for GMT), and core ROE reached 16.6%.

• Adjusted book value per share grew 14% year-over-year to $34.97, even after returning ~$5 billion to shareholders.

• Global WAM net inflows were $5.2 billion, reversing a net outflow of $0.8 billion in 3Q23.

Outlook and guidance

• On track to meet or exceed medium-term and 2027 targets, including 10%-12% core EPS growth, 18%+ ROE, and 15% new business CSM growth.

• Expense efficiency ratio improved to 45.0% YTD, targeting below 45% medium-term.

• 2027 target for 50% of core earnings from Asia and $22B+ cumulative remittances for 2024-2027.

• Management remains confident in sustainable, quality growth, with a focus on digital leadership and disciplined capital allocation.

• Forward-looking statements caution that results may differ due to economic, regulatory, and market risks.