AGNC Investment reports Q1 EPS 44c, consensus 41c

Tangible net book value per share was $8.25 as of March 31, 2025, down 16c per common share, or -1.9%, from $8.41 per common share as of December 31, 2024. “In Q1, the prospect that potential governmental policy actions could adversely impact economic growth and accelerate inflationary pressures caused investor sentiment to turn decidedly more cautious,” said CEO Peter Federico. “Against this backdrop, AGNC generated a favorable economic return of 2.4% in Q1. Despite broader equity market declines, AGNC’s total stock return with dividends reinvested for the quarter was 7.8%…Although the widening of Agency MBS spreads drove a modest decline in our tangible book value, our anticipated portfolio returns have increased commensurately with today’s wider spread environment”. “AGNC’s 2.4% economic return on tangible common equity in the first quarter was comprised of 36c of dividends per common share and a modest 16c decline in tangible net book value per common share resulting from the moderate increase in mortgage spreads to benchmark rates quarter-over-quarter,” said CFO Bernice Bell. “AGNC’s 44c per common share of net spread and dollar roll income increased from 37c per common share in the prior quarter. Finally, AGNC concluded Q1 with tangible ‘at risk’ leverage of 7.5x and a substantial liquidity position of $6.0B of unencumbered cash and Agency MBS, which constituted 63% of our tangible equity at quarter end.”