AGNC Investment reports Q2 adjusted EPS 67c, consensus 62c

“Market conditions in the second quarter provided further support of our favorable investment outlook for Agency MBS,” said CEO Peter Federico. “Over the last two years, the U.S. Treasury and Agency MBS markets have undergone a dramatic repricing as the Federal Reserve pivoted from an ultra-accommodative monetary policy in response to the pandemic’s impact on the U.S. economy to its restrictive stance today to combat elevated inflation. We believe that this transition is largely complete and that we are at the forefront of one of the most constructive investment environments in our 15 year history, driven by historically attractive asset valuations, strong funding markets, and gradually improving hedging conditions as the Fed’s tightening campaign concludes. “In Q2, AGNC generated a 3.6% economic return on tangible common equity, comprised of 36c of dividends per common share and a modest (2c) decline in tangible net book value per common share,” said CFO Bernice Bell. “AGNC’s net spread and dollar roll income, excluding ‘catch-up’ premium amortization, remained strong at $0.67 per common share. Finally, in light of continuing rate volatility, AGNC maintained a conservative leverage level, disciplined risk management positioning, and ample liquidity throughout the quarter.”