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Fannie Mae sees sequential rise in Q2 earnings on higher credit-related income

Fannie Mae reported second-quarter net income of $3.20 billion, compared to $2.77 billion in the previous quarter.

The sequential increase in net income was largely driven by higher credit-related income and a shift to investment gains in the second quarter from investment losses in the first quarter, partially offset by higher fair value losses on the company's risk management derivatives.

Total comprehensive income was $3.12 billion, versus $2.78 billion in the linked quarter.

Net interest income for the quarter decreased to $5.00 billion from $5.35 billion in the prior quarter. Fee and other income grew to $353 million from $249 million in the previous quarter. Net revenues declined to $5.36 billion from $5.60 billion in the first quarter.

Fannie Mae's estimated market share of new single-family mortgage-related securities issuances was 39% in the second quarter, unchanged from the previous quarter and up from 38% in the year-ago quarter.

The company reported a positive net worth of $3.7 billion as of June 30, resulting in a dividend obligation to Treasury of $3.1 billion. The company expects to pay that dividend in September.

Once the latest dividend is paid out, Fannie Mae will have paid a total of $165.8 billion in dividends to Treasury.