Tag Archives: Quarterly Earnings

Freddie Mac pulled in a net profit of $11 billion for 2012, significant increase from the annual net loss of $5.3 billion in 2011. In addition, Freddie Mac's fourth quarter net income climbed to $4.5 billion, up from $2.9 billion in the third quarter of last year. According to the company's earnings release, the increase reflects a decrease in delinquent single-family loans, improved national home prices, and a higher income tax benefit. ""It's clear from our earnings that the housing market has turned a corner and that our work to minimize legacy losses and build a strong new book of business is paying off,"" said Freddie Mac CEO Donald H. Layton in a release.

Ally Financial reported net income of $1.4 billion for 2012's last quarter as the bank continues to shift away from the mortgage business. Last quarter's $1.4 billion income was a marked turnaround from the net loss of $206 million reported at the end of 2012. For the entire year, Ally recorded a net income of $1.2 billion compared to a net loss of $157 million in 2011. According to the bank's quarterly earnings report, performance was largely ""affected by strong on sale revenue in Mortgage Operations.""

Bank of America and Citigroup both released their fourth-quarter earnings Thursday, revealing the scars their legacy mortgage issues have left. BofA reported net income of $732 million, a significant decline from $2 billion in Q4 2011. The bank did better on a year-long scale, coming in at $4.2 billion (well above its $1.4 billion income in 2011). While Citi pulled ahead compared to last year, its earnings still fell well short of forecasts.

Citing ""strong underlying performance across virtually all [its] businesses,"" JPMorgan Chase reported record profits for its third straight year. According to its quarterly filing, JPMorgan took in $5.7 billion in net income during 2012's final quarter, up 53 percent from the same quarter in 2011. For all of 2012, the bank reported a record $21.3 billion. Much of that profit came on the bank of JPMorgan's strengthened mortgage business.

Wells Fargo pulled in a record net profit of $5.1 billion in the final quarter of 2012, up 24 percent from the same period in 2011, according to the bank's quarterly filings. Total profits for 2012 were $18.9 billion, up 19 percent from the year before. Net mortgage servicing rights (MSRs) results were $220 million, up from $142 million in the prior quarter. In addition, losses for mortgage loan repurchases dropped to $379 million from $462 million in Q3.

Fannie Mae has experienced significant improvements in recent months. The GSE reported a $1.8 billion net income for the third quarter of this year, a notable improvement over the $5.1 billion loss reported in the same quarter last year. Fannie Mae's third quarter report states the entity will not require a draw from Treasury this quarter. Fannie Mae also incurred a net income of $9.7 billion over the first three quarters of this year, leading the GSE to expect an annual net income for the first time since 2006.

A turnaround in housing helped drive Freddie Mac to a $2.9 billion profit in the third quarter, the GSE reported. Freddie Mac's net earnings dipped slightly under the $3.0 billion reported for Q2, but it helped keep the company from making any additional Treasury draws. In addition, Freddie's comprehensive income of $5.6 billion in Q3 allowed it to pay a $1.8 billion dividend on senior preferred stock.

A rather rough quarter for Bank of America resulted in a better-than-anticipated quarterly net income of $340 million, the bank reported. Citing legal expenses (totaling $1.6 billion) and debit valuation adjustments ($1.9 billion), BofA saw its quarterly revenue drop drastically year-over-year from $6.2 billion in third-quarter 2011.

One day after posting better-than-expected-albeit reduced-Q3 quarterly earnings, Citigroup announced the resignations of CEO Vikram Pandit and president and COO John P. Havens. Pandit's sudden and unexpected announcement has some analysts and investors baffled. Filling Pandit's shoes as CEO is Michael Corbat, who previously served as Citigroup's CEO of Europe, the Middle East, and Africa.

Citigroup reported a net income of $468 million, or $0.15 per share, for the third quarter of 2012, down from $3.8 billion in the same quarter a year ago. Citi reported the third quarter results included a pre-tax loss of $4.7 billion after Citi decided to sell off its remaining stake in Morgan Stanley Smith Barney (MSSB) to Morgan Stanley.