Canadian-based financial services group Manulife Financial Corp. saw its full-year 2015 profits fall 37.41 percent to $2.19 billion from $3.5 billion in 2014, as lower oil and gas prices hit the company’s energy investments.
A disclosure to the local bourse showed that Manulife realized $246 million in net income attributed to shareholders for the fourth quarter of 2015, closing the year with a $2.191 billion overall profit.
This result is lower compared with the $640 million and $3.501 billion the company recorded for the corresponding periods in 2014.
“This was a disappointing year in terms of net income, largely due to sharp mark-to-market declines in oil and gas prices, diminishing an otherwise great year,” Donald Guloien, president and chief executive officer of Manulife, said.
Core earnings of Manulife for the fourth quarter and the full year of 2015 were $859 million and $3.428 billion, respectively.
These were higher compared with the $713 million and $2.888 billion the insurance firm had for the corresponding periods in 2014.
“Looking ahead, we expect that some macroeconomic headwinds and energy price volatility will persist, and that unless energy prices strengthen, it will be difficult for us to achieve the $4-billion core earning we have set for 2016,” Guloien said.