Washington Mutual's Creditable Quarter: Fool by Numbers

• Email
• Share
• Print

On July 18, Washington Mutual (NYSE: WM) released second-quarter earnings for the period ended June 30.

• Robust growth in the retail banking, credit card, and commercial businesses helped increase total revenue.
• The decline in average interest-earning assets was the primary cause for the drop in net interest income.
• The company improved its funding mix by reducing the average balance of Federal Home Loan Bank advances and increasing lower-cost retail deposits. The change positively affected the net interest margin.
• As a result of a solid performance during the quarter, the company's Board of Directors increased the cash dividend to $0.56 per share.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q2 2007	Q2 2006	Change
Total Revenue	$3,790	$3,640	4.1%
Net Interest Income	$2,034	$2,060	(1.3%)
Net Profit*	$830	$767	8.2%
EPS**	$0.92	$0.79	16.5%

*Income from continuous operations.
**Non-GAAP EPS as reported by the company.

Get back to basics with a look at the income statement.

Ratio Checkup

	Q2 2007	Q2 2006	Change*
Net Interest Margin	2.90%	2.65%	0.25%
Efficiency Ratio	56.38%	61.27%	(4.89%)
Nonperforming Assets / Assets	1.29%	0.62%	0.67%
Return on Average Assets	1.05%	0.88%	0.17%
Return on Average Equity	13.74%	11.82%	1.92%

*Expressed in percentage points.

Find out more about bank performance ratios.

Balance Sheet Highlights

Assets	Q2 2007	Q2 2006	Change
Investments	$33,874	$35,241	(3.9%)
Loans	$234,321	$266,845	(12.2%)

Liabilities	Q2 2007	Q2 2006	Change
Deposits	$201,380	$204,558	(1.6%)
Total Liabilities	$288,009	$324,753	(11.3%)

Learn about bank assets and bank liabilities.

Related Foolishness:

• Thank the Bank, Bankrate
• 6 Beaten-Up Foreign Financials
• Small Bank, Big Potential

Check in on Washington Mutual and thousands of other stocks at Motley Fool CAPS, our stock-rating service that you can join for free.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.