EPS of 92c beat estimates by 8%. EBITDA of $474M beat by 2%. Manulife's core EPS gains in 2024-25 could fall slightly below the Canadian insurer's 10-12% target on a higher tax rate, yet several factors should still drive solid high-single-digit growth. These include an investment income tailwind from higher rates, as well as a 9% rise in wealth assets in 2023 that can add to fee income. Manulife has shown good cost-control in recent years, which should endure. Analysts see buybacks lowering share count 2% a year. The company's sales in Hong Kong have accelerated with the reopening of the mainland border, contributing to decent 5% adjusted growth in the contractual-service margin balance -- the store of future profit under accounting rules. With further distance from the pandemic, Manulife’s other growth businesses in the region may also pick up. We see no major red flags and the dividend boost is a good sign. MFC may have more 'bounce' potential but we prefer SLF as a company/stock overall.
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