Manulife says cost containment key to 10%-12% core earnings growth

[TORONTO] Manulife Financial's focus on containing costs will be a key driver of its target of 10 per cent to 12 per cent growth in core earnings per share next year and beyond, its chief executive said on Thursday.

Canada's biggest life insurer comfortably beat analyst estimates for second-quarter core profit after markets closed on Wednesday.

Costs will be a "critical driver that gives us confidence in achieving that 10 per cent to 12 per cent core earnings growth," CEO Roy Gori said on an analyst call. Manulife's core general expenses in the quarter dropped 5 per cent from a year earlier, and it expects C$1 billion (S$1.03 billion) in expense efficiencies by year-end.

REUTERS