MFC EPS of 94c beat estimates of 91c; revenue was $1.88B. EBITDA of $477M missed estimates by 3%. Manulife's solid 1Q results, reflecting record insurance sales and strong wealth flows, bode well for core EPS gains through 2024. In Asia, core earnings jumped 34% on a combination of factors, including more-favorable underwriting and higher yields. The region's contractual service margin (CSM) -- effectively the store of future value under IFRS17 -- climbed 36% from a year ago, boosting the dollar value of the balance amortized into profit. New-business momentum and actuarial adjustments drove the higher Asia CSM balance. Insurance volume, which gained 13% in Asia on strength in China, Singapore and Indonesia, also rose in Canada and the US on growth in group lines and high-net-worth sales, respectively. Buybacks may trim shares about 2% in 2024, based on consensus. MFC continues to improve.
T raised its dividend, which surprised some. EPS of 26c beat estimates of 24c; revenue of $4.93B was light. Telus faced a tough 1Q, with revenue. down 0.6% year over year, missing consensus growth of 1%. This decline stemmed from weakness in several key segments, including a 0.4% dip in Telus International (TIXT) due to lower spending by a major social-media client and a 0.7% drop in health services. Still, Telus sees the health segment rebounding in 2Q on strong 1Q bookings. The mobile-network segment was up 2.9%, yet faced many challenges including higher churn and a 1.8% slide in average revenue per user. Amid these sales challenges, Telus’ adjusted Ebitda margin rose 170 bps year over year to 37.6%, driven by efficiency gains and growth in high-margin businesses. Not much excitement here other than the dividend.