Dec 31, 2020

Annaly Q4 2020 Earnings Report

Announced financial results for the quarter and year ended December 31, 2020.

Key Takeaways

Annaly Capital Management reported strong results in the fourth quarter of 2020, with a GAAP net income of $0.60 per average common share and core earnings (excluding PAA) of $0.30 per average common share. The company's economic return for the quarter was 5.1%, and the book value per common share increased to $8.92. Annaly also declared a quarterly common stock cash dividend of $0.22 per share.

GAAP net income of $0.60 per average common share for the quarter.

Core earnings (excluding PAA) of $0.30 per average common share for the quarter.

Economic return of 5.1% for the fourth quarter.

Book value per common share of $8.92, up 2.5% from the prior quarter.

Total Revenue
$527M
Previous year: $1.07B
-50.9%
EPS
$1.2
Previous year: $1.04
+15.4%
Net Interest Margin
2.14%
Previous year: 1.67%
+28.1%
Average Yield on Assets
2.61%
Previous year: 3.53%
-26.1%
Cost of Interest Bearing Liabilities
0.51%
Previous year: 2.01%
-74.6%
Cash and Equivalents
$1.24B
Previous year: $1.85B
-32.8%
Total Assets
$88.5B
Previous year: $130B
-32.1%

Annaly

Annaly

Forward Guidance

Annaly is well-positioned with low leverage and ample liquidity to capitalize on the improving outlook for residential mortgage finance. Agency MBS remains attractive given continued low funding costs, accommodative Federal Reserve policy, and a recent steepening of the yield curve. The Residential Credit Group continues to build momentum, and the company will continue to look to create value for its shareholders.

Positive Outlook

  • Portfolio is well-positioned with low leverage and ample liquidity.
  • Agency MBS remains attractive given continued low funding costs.
  • Accommodative Federal Reserve policy.
  • Recent steepening of the yield curve.
  • Residential Credit Group continues to build momentum.