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Fannie Mae profit rises 26 percent in 2005, names new CFO, boosts dividend

Fannie Mae profit rises 26 percent in 2005, names new CFO, boosts dividend

Mortgage finance giant Fannie Mae reported Wednesday its profit rose 26 percent in 2005, but expects to report a lower profit for 2006. It also named a new chief financial officer and raised its dividend.
The government-sponsored company, which finances one of every five home loans in the United States, is remaking itself as it recovers from a multibillion-dollar accounting scandal.
It said Stephen Swad, a former executive vice president and CFO of Internet company AOL, will succeed Robert Blakely as its CFO. There was no immediate explanation offered for the change.
The company said it is also raising its quarterly dividend by 10 cents to 50 cents a share as of May 25.
In a long-delayed financial report, Fannie Mae said it earned $6.3 billion (euro4.64 billion), or $6.01 (euro4.42) a share, in 2005, up from $5 billion (euro3.68 billion), or $4.94 (euro3.64) a share, in 2004. Wall Street analysts had expected 2005 earnings of $5.80 (euro4.27) a share.
The company 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 (euro4.64 billion) in previously reported profit for 2001-2004.
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.
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Updated : 2021-02-27 09:40 GMT+08:00