AGNC Investment Corp. Reports Significant Increase in Financial Performance for Fiscal Year 2024

AGNC Investment Corp. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total comprehensive income rising to $0.84 per diluted common share, compared to $0.30 per share in 2023. The company generated total comprehensive income of $789 million, a notable increase from $310 million the previous year. This growth was driven by a combination of higher interest income, which reached $2.95 billion, and a reduction in net interest expense, which totaled $2.93 billion, resulting in a net interest income of $18 million, a substantial improvement from a net loss of $246 million in 2023.

AGNC's investment portfolio expanded to $73.3 billion as of December 31, 2024, up from $60.2 billion in 2023. This increase was primarily attributed to a rise in Agency residential mortgage-backed securities (RMBS), which accounted for $65.5 billion of the total portfolio, compared to $53.8 billion the previous year. The company also reported a decrease in net spread and dollar roll income per diluted common share, which fell to $1.88 from $2.61 in 2023, largely due to a narrowing of the net interest rate spread, which averaged 242 basis points in 2024, down from 306 basis points in 2023.

In terms of operational developments, AGNC raised $2.0 billion in common stock through its at-the-market offering program during 2024, significantly enhancing its capital base. The company maintained a stable employee count of 53 full-time employees, reflecting its commitment to a robust workforce. Additionally, AGNC's interest rate hedge position covered 91% of the outstanding balance of its repurchase agreements, indicating a proactive approach to managing interest rate risk.

Looking ahead, AGNC's management expressed a favorable outlook for Agency RMBS in 2025, anticipating that spreads relative to benchmark rates will remain wide compared to historical averages. The company expects continued demand for Agency RMBS, supported by a stable supply environment and potential increases in bank demand as regulatory constraints ease. However, AGNC also acknowledged the elevated financial market and macroeconomic uncertainties that could impact its operations, particularly in light of potential changes in government policies and the ongoing discussions surrounding GSE reform.