Countrywide’s First Quarter Net Rises 27 Percent

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Mortgage lender Countrywide Financial Corp. reported net income of $688.9 million ($1.13 per diluted share) for the first quarter ended March 31, compared with $543.2 million (90 cents) for the like period a year ago.


The provision for loan losses was $19.6 million, compared with $20.8 million in the same quarter a year earlier. Total assets at the end of the first quarter rose 7 percent to $137 billion from $128.5 billion on the same date a year ago.


Calabasas-based Countrywide said the earnings increase resulted from a higher number of people taking out loans to buy homes. Total loan production volume was $92 billion for the quarter, up 21 percent from the comparable quarter last year.


“Countrywide’s heightened profitability was driven primarily by an increased contribution from the mortgage banking segment,” said Countrywide Chairman and Chief Executive Angelo R. Mozilo, in the earnings announcement.


Countrywide said its servicing portfolio has grown by $211 billion since March 31, 2004, to a record $893 billion.


Based on the strong mortgage demand, Countrywide increased its 2005 earnings outlook the second time the company has done so in the last two months. It now expects earnings per share of $3.60 to $4.60, up from earlier estimate of between $3.45 to $4.45 a share.


“This improvement was primarily as a result of continued asset growth at Countrywide Bank, whose recent portfolio growth has been fueled by adjustable-rate mortgages with low introductory rates,” Moziilo said in the statement. “These products have the effect of reducing current period net interest margins, while future periods are expected to benefit as interest rates reset.”

In mid-afternoon trading, Countrywide shares rose 2.2 percent to $33.74.

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