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Jun 30, 2020
AGNC Q2 2020 Earnings Report
Announced financial results, reporting comprehensive income of $1.60 per common share and net income of $1.24 per common share.
Key Takeaways
AGNC Investment Corp. reported a strong second quarter with a 12.2% economic return on tangible common equity. The company's tangible net book value per common share increased by 9.5% to $14.92. Net spread and dollar roll income was $0.58 per common share, excluding 'catch-up' premium amortization cost.
$1.60 comprehensive income per common share.
$0.58 net spread and dollar roll income per common share, excluding estimated 'catch-up' premium amortization cost.
$14.92 tangible net book value per common share as of June 30, 2020, an increase of 9.5% from March 31, 2020.
12.2% economic return on tangible common equity for the quarter.
Forward Guidance
AGNC expects the earnings environment for Agency MBS to remain favorable for the foreseeable future despite the ongoing economic uncertainties associated with the COVID-19 pandemic.
Positive Outlook
- Market conditions improved significantly due to domestic monetary and fiscal stimulus.
- Interest rate volatility was muted as the Federal Reserve communicated its intention to hold short-term rates at current levels for several years.
- Risk assets rallied dramatically during the quarter.
- The broad availability of funding at rates near zero.
- Muted interest rate volatility creates a very favorable environment for the three primary components of our business.
Challenges Ahead
- Higher coupon Agency MBS were negatively impacted by prepayment concerns.
- Ongoing economic uncertainties associated with the COVID-19 pandemic.
- Unspecified negatives
Historical Earnings Impact
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Avg. Return Before/After Earnings
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