Revenue reached $6.81 billion, propelled by a 7.7% increase in net interest income to $5.88 billion. This growth stems from a strategic shift in the multifamily mortgage portfolio alongside steady expansion in the single-family business. Noninterest income saw a sharper trajectory, more than tripling to $933 million as the company shifted from recording investment losses last year to realizing net gains this quarter.
In section Market Quotes
Freddie Mac Profit Climbs to $3.24 Billion on Revenue Gains
With net income rising to $3.24 billion in the third quarter, Freddie Mac outperformed its year-ago figure of $2.77 billion. The secondary mortgage giant credited the growth to a 19% revenue surge, even as rising interest rate projections forced the company to significantly bolster its reserves for potential credit losses.
Despite these gains, the firm increased its provision for credit losses to $800 million, a stark rise from the $175 million recorded in the same period last year. Management attributed this reserve build to the single-family segment, where new acquisitions and expectations of higher future mortgage interest rates necessitated a more conservative outlook.
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