Fannie Mae 2003 Annual Report Download - page 3

FINANCIAL HIGHLIGHTS
1
FANNIE MAE 2003 ANNUAL REPORT
Dollars in millions, except per common share amounts 2003 2002 % Change
For the Year
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,905 $ 4,619 71
Diluted earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.91 4.52 75
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.68 1.32 27
Mortgage purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572,852 370,641 55
MBS issues acquired by others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,204 478,260 78
At December 31,
Mortgage portfolio, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $901,795 $801,043 13
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,009,569 887,515 14
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,373 16,288 37
Core capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,405 28,079 23
Excess of core capital over minimum capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,885 877 229
Outstanding MBS1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,166 1,029,456 26
Year Ended December 31,
Other Performance Measures 2003 2002 % Change
Core business earnings2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,306 $ 6,394 14
Core business earnings per diluted common share2. . . . . . . . . . . . . . . . . . . . . . . . . . 7.29 6.30 16
Core taxable-equivalent revenues2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,794 11,896 24
Net interest margin, taxable-equivalent basis2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.20% 1.15% 4
Average effective guaranty fee rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202 .191 6
Credit loss ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .006 .005 20
Administrative expense ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .072 .072 –
Efficiency ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.9 10.2 (3)
Core return on average realized common equity2. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.0 26.0 –
1Unpaid principal balance of MBS guaranteed by Fannie Mae and held by investors other than Fannie Mae.
2These measures are non-GAAP (generally accepted accounting principles) measures developed by management in conjunction with the adoption of FAS 133 to evaluate and assess the quality of Fannie Mae’s
earnings from its principal business activities on a consistent basis. Core business earnings is presented on a net of tax basis and excludes changes in the time value of purchased options recorded under FAS 133
and includes purchased options premiums amortized over the original estimated life of the option and any acceleration of expense related to options extinguished prior to exercise. See 2003 Form 10-K
“Item 6—Selected Financial Data” and “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Core Business Earnings and Business Segment Results” for additional
information on these measures, including a reconciliation to comparable GAAP measures.