Fannie Mae 2012 Annual Report Download - page 80

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Table 9 displays a summary of our consolidated results of operations for the periods indicated.
Table 9: Summary of Consolidated Results of Operations
For the Year Ended December 31, Variance
2012 2011 2010 2012 vs. 2011 2011 vs. 2010
(Dollars in millions)
Net interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,501 $ 19,281 $ 16,409 $ 2,220 $ 2,872
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,487 1,163 1,084 324 79
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,988 $ 20,444 $ 17,493 $ 2,544 $ 2,951
Investment gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 506 346 (19) 160
Net other-than-temporary impairments . . . . . . . . . . . . . . . . . . (713)(308)(722)(405) 414
Fair value losses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,977)(6,621)(511) 3,644 (6,110)
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,367)(2,370)(2,597) 3 227
Credit-related income (expenses):
Benefit (provision) for credit losses . . . . . . . . . . . . . . . . . . 852 (26,718)(24,896) 27,570 (1,822)
Foreclosed property income (expense) . . . . . . . . . . . . . . . . 254 (780)(1,718) 1,034 938
Total credit-related income (expenses) . . . . . . . . . . . . . . 1,106 (27,498)(26,614) 28,604 (884)
Other non-interest expenses(1) . . . . . . . . . . . . . . . . . . . . . . . . . (1,304)(1,098)(1,495)(206) 397
Income (loss) before federal income taxes. . . . . . . . . . . . . . . . 17,220 (16,945)(14,100) 34,165 (2,845)
Benefit for federal income taxes . . . . . . . . . . . . . . . . . . . . . . . — 90 82 (90) 8
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,220 $(16,855) $(14,018) $34,075 $ (2,837)
Less: Net loss attributable to noncontrolling interest. . . . . . . . 4 — 4 4 (4)
Net income (loss) attributable to Fannie Mae . . . . . . . . . . . $17,224 $(16,855) $ (14,014) $34,079 $ (2,841)
Total comprehensive income (loss) attributable to Fannie
Mae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,843 $(16,408) $ (10,570) $35,251 $ (5,838)
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(1) Consists of debt extinguishment losses, net and other expenses.
Net Interest Income
Net interest income represents the difference between interest income and interest expense and is a primary source of our
revenue. The amount of interest income and interest expense we recognize in the consolidated statements of operations and
comprehensive income (loss) is affected by our investment and debt activity, asset yields (including the impact of loans on
nonaccrual status) and our funding costs.
Table 10 displays an analysis of our net interest income, average balances, and related yields earned on assets and incurred on
liabilities for the periods indicated. For most components of the average balances, we use a daily weighted average of
amortized cost. When daily average balance information is not available, such as for mortgage loans, we use monthly
averages. Table 11 displays the change in our net interest income between periods and the extent to which that variance is
attributable to: (1) changes in the volume of our interest-earning assets and interest-bearing liabilities or (2) changes in the
interest rates of these assets and liabilities.