MFC Q1-26 Review: Asia Strength Unable to Offset (Hopefully) One-time Headwinds

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MFC Q1-26 Review: Asia Strength Unable to Offset (Hopefully) One-time Headwinds

Canada | Life Insurance

Manulife Financial EquityMayResearch14, 2026

ESTIMATE CHANGEMFC Q1-26 Review: Asia Strength Unable to

RATING BUYOffset (Hopefully) One-time Headwinds

PRICE C$54.62^

The earnings miss, AUM outflows and an underperformance in Canada will

likely be the focus of the market, causing relative pressure on its valuation. PRICE TARGET | % TO PT C$61.00 | +12%

However, management took great pains to explain why it felt the headwinds 52W HIGH-LOW C$55.34 - C$41.08

were transitory, and we would point to the ongoing strength of its platform FLOAT (%) | ADV MM (USD) 99.8% | 197.72

in Asia as a distinct positive. The first quarter does not materially dampen MARKET CAP C$91.6B | $66.8B

our outlook for MFC, and we would view any softness in its valuation as an TICKER MFC CN ^Prior trading day's closing price unless otherwise

opportunity. noted.

Manulife's first quarter earnings came in below expectations as it faced headwinds from negative FY (Dec) CHANGE TO JEFe JEF vs CONS

experience in Canada, lower eMPF impact in Hong Kong, lower performance fees and lower 2026 2027 2026 2027

investment spreads in the U.S. Management was confident that these headwinds should dissipate REV NA NA NA NA

in the second quarter, pointing out that Global Wealth and Asset Management's contribution should

EPS -3% <-1% NM +1%

rebound by $25MM as the clouds clear.

Unfortunately the headwinds in the quarter dampened MFC's profitability, with its ROE down 2026 (C$) Q1A Q2 Q3 Q4 FY

sequentially to 16.5%, falling behind peers in this arms race. Despite this, we would characterize EPS 1.06 1.11 1.19 1.17 4.52

the results as solid, illustrating the breadth and diversity of Manulife's platform.