Fannie Mae 2001 Annual Report Download - page 8

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{ 6} Fannie Mae 2001 Annual Report
Shareholder Value
Timothy Howard
Executive Vice President
and Chief Financial Officer
Timothy Howard, Executive Vice
President and Chief Financial Officer,
talks about Fannie Mae’s stellar
performance, strong growth prospects,
and model safety, soundness, and
transparency practices.
How has Fannie Mae achieved such a superior
performance record?
Fannie Mae is one of only three companies in the
S&P 500 to have produced double-digit growth in
operating earnings per share in each of the last 15 years.
Fannie Mae’s operating earnings per share rose by 21
percent in 2001, and for the past five years we have
increased our operating EPS at an average rate of
16 percent per year.
We have been able to achieve this record because we are
at the center of a large and growing market – residential
mortgages. We are the low-cost provider in that market,
and we manage our business risks exceptionally well.
What are Fannie Mae’s prospects for
long-term growth?
I believe they are excellent. We expect that Fannie Mae’s
earnings growth in the future will be driven by the same
elements that have produced our superior performance
record in the past. These are growth in the residential
mortgage market that exceeds growth in GDP; growth in
our portfolio investment and credit guaranty businesses
that together exceed growth in the mortgage market; and