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Fannie Mae profit up 26 percent in 2005; decline seen in 2006

Fannie Mae profit up 26 percent in 2005; decline seen in 2006

Mortgage finance giant Fannie Mae reported Wednesday its profit rose 26 percent in 2005, buoyed by growth in its home-loan finance and guarantee business. It expects to report a lower profit for 2006.
The government-sponsored company, remaking itself as it recovers from a multibillion-dollar accounting scandal, said in a long-delayed report that it earned $6.3 billion (euro4.63 billion), or $6.01 a share, in 2005, up from $5 billion, or $4.94 a share, in 2004.
Fannie Mae which finances one of every five home loans in the United States, undertook a massive reworking of its accounting after the scandal came to light in September 2004.
The 2005 report was its first public reckoning of finances since it announced a restatement in December that erased $6.3 billion in previously reported profit for 2001-2004.
Fannie Mae also announced it was raising its quarterly dividend by 10 cents to 50 cents a share as of May 25.
Fannie Mae said 2005 was a strong year but that it expects 2006 profit to show a decline, mainly due to reductions in interest income and ballooning costs from the restatement process.


Updated : 2021-07-24 12:19 GMT+08:00