The leading mortgage provider of U.S., Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA), has announced financial results for the previous quarter ended March 31, 2015. As per the reports, the net income for 1Q2015 was $1.9 billion while the comprehensive income was $1.8 billion. Fannie Mae’s share prices surged 0.95% on Thursday to close the day at $2.66.
Improved Market Conditions In U.S. Help Fannie Mae:
The improved market conditions in the United States of America have helped Fannie Mae posting higher YOY financial results. The net-worth of the company touched a whopping figure of $3.6 billion in the previous quarter that further led to a dividend obligation of $1.8 billion to Treasury. As per the reports, the company is expected to pay this dividend in June 2015.
It managed to earn net income of $1.9 billion in the previous quarter was a comparatively more than the $1.3 billion net income in the quarter before. When it comes to the comprehensive income for 1Q2015, it managed to earn $1.8 billion as compared to $1.3 billion in the quarter before. The primary reason for the surge in the net income was due to lower fair value losses in 1Q2015.
The provision for income tax in 1Q2015 was totaled at $870 million, which led to an effective tax rate of 31.6%. The senior management team of the company was delighted to announce the financial results. It assured to continue the same performance throughout the year.
According to Timothy J. Mayopoulos, CEO and President, Fannie Mae, the company managed to perform up to its potential in the first quarter. It was just another three month period of strong financial performance. The revenues in the first quarter were high, even after interest rate volatility hit the market. Fannie Mae will look forward to carrying this performance in the coming quarters as well.