11:44 AM EDT, 05/08/2025 (MT Newswires) -- Great West Lifeco ( GWLIF ) reported first-quarter base EPS of $1.11, missing National Bank's $1.16 estimate and consensus of $1.14. Reported EPS stood at $0.92 versus National Bank's $1.09 estimate and consensus of $1.06.

Analyst Gabriel Dechaine notes that the drivers of the miss included higher credit losses in the Retirement business, along with higher expense growth in the Wealth business.

"We view the credit losses as abnormal relative to GWO's typical run rate, not to mention very small relative to the company's consolidated mortgage portfolio exposure. Higher expense growth could be more sustainable, especially in light of investments required to enhance Wealth segment capabilities/services that are needed to deliver GWO's 19%+ ROE target."

Maintain Sector Perform, trimming price target by $1, to $52.

Price: 50.58, Change: -0.56, Percent Change: -1.10