Fannie Reports Net Income Surge

Fannie Mae reported net income of about $7.90 billion for 2003, up 71.1% from that of the year previous. Diluted earnings per share were up 75%, to $7.91.However, Fannie Mae prefers to measure its "core business earnings," which differ from the net income measure prescribed under generally accepted accounting principles. Core earnings were up 14.3% to approximately $7.31 billion for the year and up 5.9% to $1.77 billion for the fourth quarter. Core earnings per share were up 15.7%, at $7.29 per share, for the year and up 6.6% to $1.66 for the quarter. Net interest income for the year totaled about $13.57 billion, up 28.4%, and guaranty fee income totaled approximately $2.41 billion, up 32.7%, Fannie Mae reported. Meanwhile, credit-related expenses rose to $111.6 million from $91.7 million in 2003, and the government-sponsored enterprise reported losses of about $2.26 billion from the call and repurchase of debt, compared with $710.5 million in 2002. Chairman and chief executive officer Franklin Raines touted the results. "Fannie Mae delivered outstanding business results in 2003, capitalizing on opportunities and meeting significant challenges posed by a year of historic refinance and purchase volumes and volatility in our market," he said. Fannie Mae can be found online at http://www.fanniemae.com