AGNC Investment reports Q3 comprehensive EPS 35c, consensus 39c

Reports Q3 tangible net book value per common share $8.28 as of September 30, an increase of 6.0% for the quarter compared to $7.81 per share as of June 30. “In Q3, the Federal Reserve’s pivot to a less restrictive monetary policy stance and the easing of fiscal policy concerns drove robust financial market performance and a significant improvement in investor sentiment,” said CEO Peter Federico. “In this beneficial investment environment, AGNC generated a very strong economic return on tangible common equity of 10.6% in Q3. Looking ahead, several macroeconomic dynamics continue to support our constructive outlook for Agency MBS…As the largest levered Agency MBS-focused investment vehicle, AGNC is well-positioned to generate attractive risk-adjusted returns in this evolving investment environment.” “AGNC’s 10.6% economic return on tangible common equity in Q3 was comprised of 36c of dividends per common share and a 47c increase in tangible net book value per common share, driven by tighter mortgage spreads to benchmark rates quarter-over-quarter,” said CFO Bernice Bell. “AGNC’s net spread and dollar roll income per common share was 35c for Q3…Finally, AGNC concluded the third quarter with tangible net book value ‘at risk’ leverage of 7.6x and a significant liquidity position of $7.2 billion of unencumbered cash and Agency MBS, which constituted 66% of our tangible equity at quarter end.”