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Tag Archives: Profits

Q1 Bank Earnings Down 7.6% on Lower Mortgage Revenue

First-quarter bank earnings dropped more than $3 billion compared to last year as mortgage-related income fell, FDIC reported Wednesday. FDIC reported the decline was "mainly attributable to a $7.1 billion (10.7 percent) decline in noninterest income," about $4 billion of which came from decreased mortgage revenues as interest rates continued to rise.

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Mortgage Banking Profits Dive 44% in 2013

According to the Mortgage Bankers Association (MBA), independent mortgage banks and mortgage subsidiaries of chartered banks earned an average $1,242 on each loan originated in 2013, down 43.5 percent from $2,199 the previous year. MBA's VP of industry analysis, Marina Walsh, called 2013 net production profits "respectable," even with the massive decline.

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Fannie, Freddie Profit from First-Quarter Settlements

Releasing their earnings reports simultaneously, Fannie and Freddie reported first-quarter profits of $5.3 billion and $4.0 billion, respectively—a major step back from incomes reported last year but still a fair amount for what was a slow period for the housing market. Both enterprises have reported profits each quarter for more than two years straight.

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PNC Reports Solid First-Quarter Earnings

PNC Financial Services Group released its quarterly earnings, reporting a net income of $1.1 billion, or $1.82 per diluted common share. The group found that consumer lending decreased by $1 billion, from "lower home equity, residential mortgage and education loans as well as seasonal declines in credit card loans partially offset by growth in automobile loans."

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Mounting Legal Expenses Eat Up BofA’s Earnings

Legal expenses took a substantial bite out of Bank of America’s first-quarter earnings, resulting in a net loss of $276 million to start the year. “The cost of resolving more of our mortgage issues hurt our earnings this quarter,” said Brian Moynihan, CEO of the North Carolina-based megabank. “But the earnings power of our business and customer strategy generated solid results and we continued to return excess capital to our shareholders.”

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Despite Rough Quarter, Citi Beats Forecasts

Citigroup reported Monday profits of $3.9 billion in Q1, just barely edging out last year’s income of $3.8 billion. Gains were more impressive when put next to Q4’s earnings, which disappointed at $2.5 billion. The gain came despite a year-over-year drop in total revenues, which were down 1 percent to $20.1 billion as a result of declines in fixed income markets revenues and lower refinancing activity.

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Wells, JPMorgan Show Bruises in Q1 Mortgage Results

Wells Fargo and JPMorgan Chase experienced very different first quarters, as evidenced by results in their quarterly earnings reports released Friday. Wells Fargo reported a record net income of $5.9 billion for the first quarter, an increase of 14 percent from the year-ago quarter and 5 percent from Q4 2013. Meanwhile, JPMorgan Chase reported profits of $5.3 billion for the quarter compared to $6.5 billion a year ago.

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Closing Costs Sink Profits at Independent Mortgage Banks

According to the Mortgage Bankers Association’s (MBA) Performance Report for Q4, independent mortgage banks and mortgage subsidiaries of chartered banks took in an average profit of $150 on each loan they originated, a record low. That number was down from $743 per loan in Q3. “Fourth-quarter production profits were at their lowest levels since [the] inception of the Performance Report in 2008,” said Marina Walsh, MBA’s VP of industry analysis.

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Servicer Earnings Underscore Uncertain Future

Three special servicers—Nationstar, Ocwen, and Walter Investment Corp.—released their fourth-quarter and year-end earnings reports with revenue increases and increasingly active originations sectors. At least one group of analysts suggests special servicers might “become the next generation of non-prime originators,” according to a report earlier this year from Moody’s.

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Freddie Mac Reports Q4 Profit; Will Pay $10B to Treasury

Freddie Mac released on Thursday its quarterly earnings report for the end of 2013, revealing yet another strong quarter—the ninth straight. Net income at the enterprise totaled $8.6 billion in Q4, bringing total 2013 profits up to $48.7 billion. According to the company, full-year earnings were spurred by the ongoing housing recovery, legal settlements totaling $7.7 billion, and a tax benefit of $23.3 billion.

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