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Dec 31, 2019
AGNC Q4 2019 Earnings Report
AGNC's financial results for Q4 2019 were announced, showcasing a strong quarter driven by tightening Agency MBS spreads and a favorable interest rate environment.
Key Takeaways
AGNC Investment Corp. reported a strong fourth quarter in 2019, with a 9.6% economic return driven by dividends and an increase in tangible net book value. The company benefited from Federal Reserve monetary easing and reduced global trade uncertainty.
Comprehensive income per common share was $1.59, including $1.56 net income per common share.
Tangible net book value per common share increased to $17.66, up 6.7% from the previous quarter.
Net spread and dollar roll income per common share was $0.57, excluding estimated 'catch-up' premium amortization benefit.
The investment portfolio totaled $107.9 billion, including $98.9 billion in Agency MBS and $7.4 billion in net TBA mortgage positions.
AGNC
AGNC
Forward Guidance
AGNC believes it is well-positioned to generate attractive risk-adjusted returns due to a benign interest rate environment and favorable developments in financing.
Positive Outlook
- Favorable interest rate environment
- Positive developments on the financing front
- Potential for attractive risk-adjusted returns
- Low-cost advantage in the residential mortgage REIT sector
- Additional capacity to take advantage of favorable earnings environments
Challenges Ahead
- Changes in interest rates
- Changes in the yield curve
- Changes in prepayment rates
- Availability and terms of financing
- General economic conditions