PennyMac Mortgage Investment Trust (PMT) has reported a 98.46 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $31.17 million, or $0.44 a share in the quarter, compared with $15.71 million, or $0.21 a share for the same period last year.
Revenue during the quarter surged 36.31 percent to $68.93 million from $50.57 million in the previous year period.
Cost of revenue surged 32.48 percent or $11.98 million during the quarter to $48.88 million. Gross margin for the quarter expanded 205 basis points over the previous year period to 29.09 percent.
Operating income for the quarter was $13.86 million, compared with $6.93 million in the previous year period.
"PMT’s fourth quarter earnings reflect contributions from its credit and interest-rate sensitive strategies as well as its correspondent production activities. Credit risk transfer investments and correspondent production delivered strong performance; however, the distressed loan portfolio underperformed expectations,” said executive chairman Stanford L. Kurland. "Returns on our net interest-rate sensitive strategies were primarily driven by gains on MSRs and ESS resulting from the significant rise in mortgage rates during the quarter. Correspondent production lock volumes and margins decreased from last quarter’s recent highs, pressured by the increase in mortgage rates and seasonality. This quarter’s results also included an income tax benefit primarily driven by the performance of interest rate hedges held in our taxable REIT subsidiary, which produced a loss offset by gains on other interest-rate sensitive assets."
Net receivables were at $7.09 million as on Dec. 31, 2016, down 19.48 percent or $1.71 million from year-ago.
Investments stood at $4,733.70 million as on Dec. 31, 2016, up 2.12 percent or $98.48 million from year-ago.
Total assets grew 9.11 percent or $530.58 million to $6,357.50 million on Dec. 31, 2016. On the other hand, total liabilities were at $5,006.39 million as on Dec. 31, 2016, up 15.60 percent or $675.58 million from year-ago.
Return on assets moved down 192 basis points to 0.49 percent in the quarter. At the same time, return on equity moved up 126 basis points to 2.31 percent in the quarter.
Debt moves up
Total debt was at $4,835.01 million as on Dec. 31, 2016, up 15.38 percent or $644.47 million from year-ago. Shareholders equity stood at $1,351.11 million as on Dec. 31, 2016, down 9.69 percent or $145 million from year-ago. As a result, debt to equity ratio went up 78 basis points to 3.58 percent in the quarter.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
