- AGNC Investment Corp (AGNC, Financial) reported a 2.4% economic return for Q1 2025.
- Tangible net book value decreased by 1.9% to $8.25 per share.
- Net spread and dollar roll income increased to $0.44 per share from $0.37.
AGNC Investment Corp (Nasdaq: AGNC) announced its first quarter 2025 financial results, highlighted by a 2.4% economic return on tangible common equity. The quarter's performance included $0.36 in dividends per share and a reduction of $0.16 in tangible net book value, now at $8.25 per share, marking a 1.9% decline from $8.41 in the previous quarter.
The company's investment portfolio stood at $78.9 billion, composed of $70.5 billion in Agency MBS, $7.5 billion in TBA securities, and $0.9 billion in credit risk transfer (CRT) and non-Agency securities. AGNC maintained a tangible net book value leverage ratio of 7.5x, supported by $6.0 billion in unencumbered assets.
AGNC's net spread and dollar roll income rose to $0.44 per share from $0.37 in the preceding quarter, reflecting a robust 19% increase. The improved performance indicates strong dividend coverage, enhancing financial resilience. The portfolio's average asset yield was reported at 4.78%, maintaining a net interest spread of 2.12%.
Management pointed to the company's effective interest rate risk management strategy, with hedges covering 91% of repo and TBA liabilities. AGNC's emphasis on conservative leverage and ample liquidity positions it well amidst present market volatility, despite the short-term pressure from wider Agency MBS spreads.
