Annaly Capital Management Q3 Profit Rises, Meets View

(RTTNews) - Annaly Capital Management, Inc. (NLY) reported third-quarter net income to shareholders of $336.86 million or $0.36 per share, up from $174.47 million or $0.18 per share in the prior-year quarter.

The company noted that the increase in net income was largely driven by higher unrealized gains on interest rate swaps and lower realized losses on interest rate swaps during the latest quarter.

Core earnings for the quarter were $308.62 million or $0.31 per share, compared to $282.29 million or $0.28 per share in the year-ago period. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $0.31 for the quarter. Analysts' estimates typically exclude special items.

However, net interest income decreased to $517.57 million from $551.68 million in the year-ago period. Total other income was a loss of $109.01 million, compared to loss of $299.93 million in the year-ago period. Analysts had a consensus revenue estimate of $347.37 million for the quarter.

Wellington Denahan, Chairman and Chief Executive Officer of Annaly Capital Management, said, "We welcome the end of Quantitative Easing and look forward to the opportunities it presents as the mortgage market begins to adjust to fewer direct policy impacts on fundamentals. We expect the market to endure higher levels of volatility but remain comfortable in our continued ability to deliver attractive relative returns."