The rise in net income during the quarter was mainly attributed to decreases in the provision for loan losses of $115m and noninterest expense of $17m, offset by a $4m decrease in net interest income, a $39m decrease in noninterest income and a $5m increase in the provision for income taxes.
The company’s net interest income for the quarter was $1.563bn against $1.567bn during the corresponding period last fiscal.
For the latest quarter period, its net interest margin declined to 2.91%, versus 2.93% for the same period in the prior year.
For the full year ended 31 December 2011, the company’s combined net income increased $445m to $3.940bn compared to the combined net income of $3.495bn for the prior year.
Federal Farm Credit Banks Funding Corporation junior president and CEO Jamie Stewart said that strong global and domestic demand for crops and livestock, an extended period of low interest rates and the healthy credit quality of the System’s loan portfolio contributed significantly to the 2011 results.
