Industry News

Freddie Mac earnings fell 52% last year

Reports 2003 income of $4.9 billion

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Freddie Mac today reported 2003 net income of $4.9 billion, down 52 percent from $10.1 billion in 2002. Diluted earnings per common share were $6.79 for 2003, down from $14.18 for 2002. The company said the net decrease for 2003 was driven primarily by a "substantial" decrease in total non-interest income. Non-interest income results continue to be affected by changes in unrealized gains and losses on certain financial instruments as well as interest rate volatility, the company said in a statement. Freddie Mac financed homes for about six million families in 2003. Other highlights of the 2003 financial results include: Net interest income was down slightly to $9.498 billion, compared to $9.525 billion in 2002. Non-interest income (loss) was ($259) million, compared to $7.1 billion in 2002. Non-interest expense was $2.1 billion, compared to $1.9 billion in 2002. Total stockholders' equity increased by $232 million, or 0.7 percent. Fair value of net...