Wednesday, July 1st22.9°C
26667
24949

Sun Life Financial says continuing operations showed improved Q2 profit

TORONTO - Sun Life Financial Inc. (TSX:SLF) says its continuing operations were more profitable in the second quarter than they were at the same time last year, although its Canadian arm provided less operating net income.

Overall operating net income, excluding certain items and discontinued operations, was $488 million or 80 cents per share, up from $431 million or 71 cents per share in the second quarter of 2013.

However, SLF Canada's operating net income fell to $197 million — down from $210 million a year earlier.

By contrast, its MFS Investments segment showed in increase to $145 million in Canadian currency (US$133), up from C$104 million (US$101 million) a year before.

The Toronto-based company's continuing operations exclude a U.S. annuities business and certain U.S. life insurance businesses that were sold on Aug. 1, 2013.

Sun Life's operating net income also excludes certain items that are reported under international financial reporting standards, such as the impact from fluctuating interest rates and equity markets and changes to management assumptions.

Under IFRS, Sun Life's reported net income from continuing operations was $425 million or 69 cents per share, up from $391 million or 64 cents per share in the second quarter of 2013.

Sun Life is one of Canada's largest providers of life insurance and wealth management services. It also has extensive operations outside the country.

Apart from its SLF Canada and MFS, Sun Life U.S. accounted for $92 million, Sun Life Asia provided $37 million and corporate activities that aren't included in other business segments provided $9 million of net income in the second quarter.

As of June 30, Sun Life had $684 billion of assets under management, up 16 per per cent from a year earlier due to favourable markets that increased the value of its holdings, stronger sales and a positive impact from currency fluctuations.

Barclays analyst John Aiken said that Sun Life's underlying earnings — a measure of profitability introduced by Sun Life in the first quarter — amounted to 81 cents per share, which was better than the estimate of 73 cents per share. But Aiken said most of the difference was at the corporate level, which had losses both a year earlier and in the previous quarter.

"Should investors discount this level of earnings, we are concerned that the view may be more that Sun Life simply met expectations and could reverse any early gains (in its stock price)," Aiken wrote in a research note issued Wednesday.

He said Sun Life's performance at the operating level was "mixed." While MFS, SLF U.S. and SLF Asia showed year-year improvement, "SLF Canada had a weaker performance, down seven per cent from the first quarter and 12 per cent from a year ago."

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14553.33+63.18
S&P CDNX671.49+4.40
DJIA17757.91+138.40
Nasdaq5013.12+26.26
S&P 5002077.42+14.31
CDN Dollar0.7943-0.0002
Gold1166.40-2.60
Oil57.68-0.02
Lumber288.90+0.60
Natural Gas2.811+0.028

 
Okanagan Companies
Pacific Safety0.16-0.01
Knighthawk0.010.00
QHR Technologies Inc1.52-0.01
Cantex0.04-0.01
Anavex Life Sciences0.451+0.001
Metalex Ventures0.075+0.010
Russel Metals22.73+0.05
Copper Mountain Mining1.16-0.01
Colorado Resources0.08-0.02
ReliaBrand Inc0.006-0.000
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.185+0.015
Decisive Dividend Corporation2.50+0.42

 



26873

FEATURED Property
2290160429 Murray Crescent
7 bedrooms 5 baths
$649,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Active listening

Has this ever happened to you? You had an initial meeting with a prospect. You asked that prospect what seemed to be all the right questions. You had what felt to you like a good conversation, and bas...


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...


TFSA strategies

Photo: Thinkstock.comThe federal government has increased the annual contribution limit of Tax-Free Savings Accounts (TFSA) to $10,000. Going forward, the annual limit will no longer be indexed to inf...

_








Member of BC Press Council


26432