Freddie Mac Q1 income shrinks on higher expected credit losses
Apr. 30, 2020 8:50 AM ET|By : Liz Kiesche, SA News Editor
--- Freddie Mac (OTCQB:FMCC) Q1 comprehensive income of
$622M falls from $2.45B in Q4 2019 and $1.67B in Q1 2019 on higher
credit-related expense, lower gains on single-family asset dispositions,
and higher market-related losses.
--- Credit-related expense of $1.08B vs. $56M a year ago, driven by higher expected
credit losses on loans as a result of the pandemic, partially offset by the related expected
recoveries from credit enhancements, such as STACR and ACIS, on the corresponding loans.
--- Q1 net interest income of $2.79B fell from $3.36B in Q4 2019 and $3.15B in Q1 2019;
adjusted net interest income of $778M improved from $748M in Q4 2019 and fell from $1.01B in Q1 2019.
--- Q1 adjusted guarantee fee income of $2.51B vs. $2.43B in Q4 2019 and $1.92B in Q1 2019.
--- Q1 operating expense of $1.12B fell from $1.32B in Q4 2019 and increased from $1.09B in the year-ago quarter.
--- Q1 net revenue for $2.42B declined from $4.57B in the previous quarter and $2.91B in the year-ago quarter.
Conference call at 9:00 AM ET.
Previously: Freddie Mac reports Q1 results (April 30)
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