Manulife Financial Corp. says it saw a $1.6-billion drop in earnings in the second quarter compared with a year earlier as market turmoil hit its bottom line.
The insurance giant says it had net income of $1.09 billion, or 53 cents per share, for the quarter ending June 30 compared with earnings of $2.65 billion or $1.33 per share for the same quarter last year.
Analysts had expected net income of $1.47 billion or 76 cents per share, according to financial markets data firm Eikon.
Manulife says the drop in earnings came from charges from the direct impact of markets, compared with gains last year, as well as smaller gains from investment-related activities and lower core earnings.
Manulife reported core earnings of $1.56 billion, down nine per cent from the $1.68 billion for the same quarter last year.
The company says that while earnings are down, it has year-to-date reported higher net income attributable to shareholders than last year.