KUALA LUMPUR (Aug 23): Manulife Holdings Bhd reported a 66.36% increase in second quarter net profit to RM9.31 million, from RM5.59 million a year earlier, on higher contribution from its life insurance business and asset management services segments.

Earnings per share for the quarter ended June 30, 2017 rose to 4.60 sen from 2.76 sen in the previous corresponding quarter, the group said in a filing to Bursa Malaysia.

Revenue grew 25.04% to RM322.12 million from RM257.62 million as net realised and fair value gains were recorded, compared to losses previously.

Operating revenue for the quarter, however, was down 1.2% at RM282.4 million, from RM285.7 million a year ago, as Manulife recorded lower contribution from its investment holding and life insurance segments.

The investment holding segment reported a loss before tax (LBT) of RM500,000 compared to a profit before tax (PBT) of RM800,000 a year ago on lower investment income from fixed income securities.

Meanwhile, the life insurance business saw lower revenue from reduced single premium of investment-linked compared to the previous corresponding quarter, though PBT was up by RM4.8 million to RM13.1 million on new business gains and favourable impact from the medical repricing exercise.

Manulife said its asset management services saw a 60% increase in quarterly revenue to RM23.2 million, and recorded a PBT of RM200,000 compared with a LBT of RM1.4 million year ago due to higher unit trust sales and higher management fees earned from increased assets under management.

For the six months ended June 30, 2017, Manulife's net profit more than doubled to RM13.92 million, from RM5.71 million in the same corresponding period a year ago, on higher PBT from its life insurance business and lower LBT from its asset management services segment.

First-half revenue rose 18.64% to RM645.17 million from RM543.8 million, as net fair value gains of RM108.84 million were made compared with RM8.42 million net fair value loss previously.

Going forward, Manulife said it expects its insurance business to record growth in full-year sales as well as an outperformance of its wealth and asset management segments relative to earlier years.

"We continue to believe there is a secular growth trend in Malaysia supported by the under-penetration of life insurance coupled with a growing affluent population, which creates a need for investment and retirement solutions," it said.

"Nonetheless, any sharp fluctuations occurring in local interest rates and equity markets due to changes in global economic conditions may cause profitability to become volatile in the short term," it added.

Manulife's share price closed up 1 sen at RM3.21 today, giving a market capitalisation of RM647.58 million.