Freddie Reports Record EPS

Freddie Mac has reported second-quarter net income of $414 million, up from $340 million a year ago and $393 million in the first quarter.Diluted earnings per common share were a record $0.56, up 24% from $0.45 a year ago. Total revenues rose from $872 million in the first quarter to $881 million. David W. Glenn, president and chief operating officer of Freddie Mac, attributed the results to both the mortgage investment and the securitization businesses. "Our retained portfolio grew by $11 billion, despite substantial liquidation pressure," Mr. Glenn said. "Credit losses continued to decline, allowing us to surpass our goal of reducing credit losses to 5 basis points of the total portfolio significantly ahead of plan." Credit-related expenses totaled $90 million in the second quarter, down $14 million from the first quarter and $47 million from a year ago. In addition, chargeoffs fell to $35 million, down $14 million from the first quarter and $44 million from a year ago. Net interest income on earning assets totaled $535 million, compared with $460 million a year ago and $514 million in the first quarter. Freddie Mac's website address is http://www.freddiemac.com.