Countrywide Reports Quarter, Year

Countrywide Financial Corp. today reported net earnings of $622 million or $1.01 per diluted share on revenues of $2.8 billion for the quarter ended Dec. 31, compared with earnings of $639 million or $1.03 per diluted share on revenues of $2.6 billion for the comparable 2005 quarter. “In the face of a challenging environment which included flat and inverted yield curve conditions, home price depreciation, slowing home sales, declining production volumes and pressure on credit quality, Countrywide set a new record for annual diluted earnings per share,” said Angelo R. Mozilo, chairman and CEO of the Calabasas-based mortgage company. Countrywide’s earnings for the full year rose 6 percent to $2.7 billion or $4.30 per diluted share and revenues rose 14 percent to $11.4 billion. The company’s quarterly pre-tax earnings performance was weakest in its Capital Markets and Insurance divisions, which saw declines of 25 percent and 27 percent respectively in the quarter, but increased 23 percent and 74 percent respectively for the year. Pre-tax earnings in the mortgage banking segment rose 4 percent in the quarter and declined 15 percent for the year.