Q2 2024 Annaly Capital Management Inc Earnings Call Transcript
Key Points
- Annaly Capital Management Inc (NLY) delivered a roughly 1% economic return for the second quarter and a 5.7% return for the first half of the year.
- Earnings available for distribution exceeded the dividend by $0.03, demonstrating strong returns with prudent leverage.
- The company actively managed its agency portfolio, growing it by approximately $1.6 billion notional during the quarter.
- The Onslow Bay correspondent channel experienced record growth in Q2, locking $4.1 billion of expanded prime loans and settling $2.8 billion.
- Annaly remains a top 10 non-bank holder of servicing rights, with MSR holdings increasing by $135 million quarter over quarter.
- Book value per share decreased from the prior quarter to $19.25.
- Rate volatility and modestly higher treasury rates resulted in a net increase of $0.96 per share on the agency MBS portfolio.
- The company experienced a modest decline in the residential credit portfolio, driven by the sale of third-party securities.
- Transactional activity in the MSR business slowed due to the portfolio being nearly 30% higher year over year.
- The efficiency ratios were impacted in Q2 due to the timing of certain expenses, with expectations for expenses to normalize.
Good morning and welcome to the Annaly Capital Management second quarter 2024 earnings conference call. (operator instructions) Please note, this event is being recorded. I would now like to turn the call over to Sean Kensil, Director, invest Investor Relations. Please go ahead.
Good morning, and welcome to the second quarter 2024 earnings call for Annaly Capital Management. Any forward looking statements made during today's call are subject to certain risks and uncertainties which are outlined in the Risk Factors section in our most recent annual and quarterly SEC filings. Actual events and results may differ materially from these forward-looking statements.
We encourage you to read the disclaimer in our earnings release in addition to our quarterly and annual filings. Additionally, the content of this conference call may contain time-sensitive information that is accurate only as of the date thereof. We do not undertake and specifically disclaim any obligation to update or revise this
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