Fannie Mae Q1 Net Revenues Soar
For the first quarter of 2011, the company posted a net loss was $6.47 billion, or $1.52 per diluted share, compared to $11.52m, or $2.29 per diluted share, for the same period in 2010.
Net interest income for the first quarter of 2011 was $4.96 billion, compared to $2.78 billion for the same period in 2010. Net losses and expenses were $11.66 billion, compared to $14.61 billion for the same period in 2010.
Credit-related expenses, which are the total provision for credit losses plus foreclosed property expense, were $11 billion in the first quarter of 2011, up from $4.3 billion in the fourth quarter of 2010.
Credit losses, which the company defines generally as net charge-offs plus foreclosed property expense, excluding the effect of certain fair-value losses, were $5.7 billion in the first quarter of 2011, compared with $3.2 billion in the fourth quarter of 2010.
Total loss reserves and fair value losses previously recognized on acquired credit-impaired loans were $90.6 billion as of March 31, 2011, compared with $85.4 billion as of December 31, 2010.
Net fair value gains were $289 billion in the first quarter of 2011, compared to $366m in the fourth quarter of 2010. This was primarily due to gains recognized on trading securities.
Michael Williams, president and CEO of the company, said: â€œWe expect our credit-related expenses to remain elevated in 2011 as we continue to be negatively impacted by the prolonged decline in home prices. As we move forward, we are building a strong new book of business that now accounts for 45 percent of the companyâ€™s overall single-family guaranty book of business.â€
Will the firm further increase net revenues in Q2?
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