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Tag: Income

  • FDVV Vs. SCHD: One Is Better For Income & One Is Better For Growth (NYSEARCA:FDVV)


    This article was written by

    Financial analyst by day and a seasoned investor by passion, I’ve been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering strategies to utilize various investment vehicles – seeking out high quality dividend stocks, and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.You can read more of my work here.

    Analyst’s Disclosure: I/we have a beneficial long position in the shares of SCHD, FDVV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.



    When it comes to investing in dividend stocks, there are two popular options that investors often consider: FDVV (Fidelity High Dividend ETF) and SCHD (Schwab US Dividend Equity ETF). Both of these exchange-traded funds (ETFs) offer exposure to a diversified portfolio of dividend-paying companies, but they have different focuses and objectives.

    FDVV is designed for income-seeking investors who prioritize high dividend yields. This ETF tracks an index of large and mid-cap U.S. stocks that have a history of consistently paying and growing dividends. With a current dividend yield of around 3.5%, FDVV is a solid choice for investors looking to generate a steady stream of income from their investments.

    On the other hand, SCHD is geared towards investors who are more interested in long-term growth potential. This ETF focuses on companies that have a track record of growing their dividends over time, as well as strong fundamentals and competitive advantages. While SCHD’s dividend yield may not be as high as FDVV’s, it offers the potential for greater capital appreciation over the long term.

    So, which ETF is better for you? It ultimately depends on your investment goals and risk tolerance. If you are primarily looking for income, FDVV may be the better choice for you. However, if you are more focused on growth and are willing to sacrifice some current income for potentially higher returns in the future, SCHD may be the right option for you.

    In conclusion, both FDVV and SCHD have their own strengths and weaknesses, and the best choice for you will depend on your individual investment objectives. Consider your goals, risk tolerance, and time horizon before making a decision on which ETF to invest in.

    Tags:

    1. FDVV vs SCHD comparison
    2. Income vs growth ETFs
    3. NYSEARCA:FDVV analysis
    4. Dividend vs dividend growth ETFs
    5. FDVV vs SCHD performance
    6. Choosing between FDVV and SCHD
    7. Best ETF for income
    8. Best ETF for growth
    9. FDVV vs SCHD dividend yields
    10. NYSEARCA:FDVV review

    #FDVV #SCHD #Income #Growth #NYSEARCAFDVV

  • Schwab U.S. Dividend Equity ETF Should Be on Every Income Investor’s Radar


    There is a huge temptation for income-focused investors to buy the highest-yielding stocks in an effort to boost the cash they generate from their portfolios. Anyone who has done this likely knows that buying based on yield alone can end up with you buying poorly run companies and result in diminished returns through often painful dividend cuts.

    This helps make an exchange-traded fund (ETF) like Schwab U.S. Dividend Equity ETF (SCHD -1.11%) so interesting. Here’s why this income-focused ETF should be on your radar today.

    What does Schwab U.S. Dividend Equity ETF do?

    The very first thing that Schwab U.S. Dividend Equity ETF does when creating its portfolio is to limit its pool of stocks to just those that have 10 or more annual dividend increases behind them. (Real estate investment trusts are excluded from consideration.) This is a fairly stiff bar that only strong and consistent business can surpass. And it sets the stage for an approach that deftly attempts to balance yield with company quality.

    Four hands holding puzzle pieces together.

    Image source: Getty Images.

    The second step for Schwab U.S. Dividend Equity ETF is to create a composite score for each company in its investable pool. The metrics used to create this score include cash flow to total debt, return on equity, dividend yield, and a company’s five-year dividend growth rate. Cash flow to total debt is a financial strength measure, return on equity is a measure of company quality, and dividend growth and yield are both income-related factors.

    The scores are ranked from best to worst, and the 100 companies with the best scores get into the portfolio. The portfolio is weighted by market capitalization, so the largest companies have the biggest impact on performance. Like most ETFs, the portfolio is re-examined on a regular basis (yearly), so it always has the best investment candidates in the portfolio. You get all of this for a fairly small expense ratio of 0.06%.

    SCHD Chart

    SCHD data by YCharts

    Why is Schwab U.S. Dividend Equity ETF so attractive?

    The simple reason why Schwab U.S. Dividend Equity ETF is a great income option is that it basically does exactly what you would do when looking for a dividend stock. Who wouldn’t want to own financially strong companies with good businesses that have high yields?

    That said, the screens are more restrictive than simply picking the highest-yielding stocks. So the ETF’s yield is around 3.6%. That’s well above the 1.2% offered up by the S&P 500 index, but there are plenty of other ETFs out there with higher yields.

    You might even want to buy some of those higher-yielding ETFs, too. But you’ll probably want the foundation of your portfolio to focus on financially strong companies with good businesses. This is what Schwab U.S. Dividend Equity ETF provides in a single investment and why it should be a core holding for dividend investors.

    Given that it updates its portfolio annually, meanwhile, you never have to worry about it straying too far from its approach of picking good companies with attractive dividend yields. The best selection of dividend stocks will be packed into the ETF every year.

    SCHD Dividend Yield Chart

    SCHD Dividend Yield data by YCharts

    However, don’t make the mistake of thinking that Schwab U.S. Dividend Equity ETF is only for ETF investors. You can use this as a foundation on which to build an individual stock portfolio, too. Just make sure that you aren’t unknowingly doubling up on investments that may be in the ETF’s portfolio (unless that’s what you want to do).

    Schwab U.S. Dividend Equity ETF is a buy and long-term hold

    It isn’t often that investment options as attractive as Schwab U.S. Dividend Equity ETF come along. And sometimes when they do show up, they get bid up to the point where they are no longer attractive. But because of the nature of exchange-traded funds, that can’t happen with Schwab U.S. Dividend Equity ETF.

    The key is to understand the approach this dividend ETF takes and, if you see the value on offer, buy it and hold it forever. And don’t worry too much about the timing of your purchase, especially if you are still in the process of building your nest egg. If that’s the case, you should probably just keep putting money into the ETF whenever you can so you can benefit from the long-term appeal of its investment approach.



    As an income investor, it’s crucial to have a diversified portfolio that includes dividend-paying stocks. One way to achieve this is by adding the Schwab U.S. Dividend Equity ETF to your radar.

    This ETF offers exposure to high-quality U.S. companies that have a consistent track record of paying dividends. With a low expense ratio and a solid performance history, the Schwab U.S. Dividend Equity ETF is a great option for investors looking to generate passive income through dividends.

    By including this ETF in your portfolio, you can benefit from the potential for capital appreciation while also receiving regular dividend payments. This can help you build a steady stream of income over time, making it a valuable addition to your investment strategy.

    Overall, the Schwab U.S. Dividend Equity ETF is a reliable option for income investors looking to diversify their portfolios and generate passive income through dividends. Make sure to keep this ETF on your radar as you continue to build and grow your investment portfolio.

    Tags:

    Schwab U.S. Dividend Equity ETF, income investing, dividend investing, ETF investing, investment strategy, income generation, dividend stocks, dividend ETFs, Schwab ETFs, passive income, financial planning, wealth building, income portfolio, stock market, dividend yields, investment opportunities

    #Schwab #U.S #Dividend #Equity #ETF #Income #Investors #Radar

  • IRS, national partners launch EITC Awareness Day on 50th anniversary of the Earned Income Tax Credit


    EITC has helped America’s working families since 1975

    IR-2025-20, Jan. 31, 2025

    WASHINGTON — The Internal Revenue Service and partners around the nation today celebrated the 50th anniversary of the Earned Income Tax Credit (EITC) with the launch of this year’s EITC Awareness Day campaign.

    The annual campaign, now in its 19th year, helps increase awareness among the millions of working Americans with a low-to-moderate income who are eligible for the EITC. The IRS estimates that roughly one in five eligible taxpayers miss out on claiming this valuable credit.

    EITC was signed into law on March 29, 1975. Through numerous legislative changes, the tax break has helped encourage work and lift many financially challenged families out of poverty.

    As of December 2024, approximately 23 million workers and families had received about $64 billion total from the EITC, according to IRS statistics. On average, eligible taxpayers received $2,743 from the credit in tax year 2023.

    For the past 19 years, the IRS has invited community organizations, elected officials, state and local governments, schools, employers and other interested parties to join this national grassroots effort to help reach workers eligible for the credit. IRS offers an online social media toolkit with sample text and downloadable graphics to help spread the word about the EITC.

    Who is eligible to claim the EITC?

    Workers may use the EITC Assistant, an online tool, to check their eligibility, which may be affected by changes in marital, parental or financial status. Workers also may visit the Child-related tax benefits comparison page to learn more about basic eligibility rules for the EITC and several other tax credits.

    EITC is for workers whose income did not exceed the following limits in 2024:

    No. of dependents Single filer income limit Married, filing jointly income limit
    No children $18,591 $25,511
    1 child $49,084 $56,004
    2 children $55,768 $62,688
    3+ children $59,899 $66,819

    *Investment income limit: $11,600

    Workers also must:

    • Be a U.S. citizen or resident alien all year.
    • File a tax return even if their income level doesn’t usually require them to file.
    • Have a valid Social Security number (SSN) for themselves, as well as for their spouse, if filing a joint return, and for each qualifying dependent claimed for the EITC.
    • File a return without Form 2555, Foreign Earned Income.

    There are special rules for military personnel, clergy and ministers and taxpayers with certain types of disability income or a child who is disabled.

    Eligible workers between the ages of 25 and 64 who have no dependents may receive up to $632 by claiming the EITC, while married but separated spouses who do not file a joint return may qualify for the EITC if they meet certain requirements.

    Those with qualifying children can receive a maximum of $7,830 when claiming the EITC for tax year 2024, up from $7,430 in tax year 2023.

    How to claim the EITC

    To get the EITC, workers must file a tax return and claim the credit on that return. They can file in a variety of ways, including by using:

    As a reminder, the quickest way for taxpayers to get their refund is by e-filing an accurate return and choosing to receive that refund via direct deposit.

    New this year: Duplicate dependents

    Starting this filing season, the IRS will accept an e-filed return even if a dependent has already been claimed on a separate, previously filed return as long as the primary taxpayer on the second return includes a valid identity protection personal identification number (IP PIN).

    This change will reduce the time it takes for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns. In previous years, the second tax return had to be filed by paper.

    Meanwhile, taxpayers who do not have IP PINs will have their e-filed returns rejected if one of their dependents has already been claimed by another taxpayer.

    Note that the use of an IP PIN does not exempt taxpayers from receiving notices questioning their right to claim certain dependents.

    Claiming other valuable tax credits

    Whether they qualify for the EITC, taxpayers may be eligible for other valuable tax credits, such as the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC) or the Credit for Other Dependents (ODC). The Interactive Tax Assistant is a helpful tool for taxpayers to check their eligibility for those credits.

    When to expect EITC refunds

    The Where’s My Refund? tool, which allows taxpayers to monitor the status of their refunds, will be updated with projected deposit dates for most early EITC/ACTC refund filers by Feb. 22. Most EITC or ACTC related refunds should be available in bank accounts or on debit cards by March 3 if there are no issues with a taxpayer’s return and they chose to receive their refund by direct deposit.

    Additional resources



    Today marks the 50th anniversary of the Earned Income Tax Credit (EITC), a vital program that helps millions of working Americans keep more of their hard-earned money. To celebrate this milestone, the IRS has teamed up with national partners to launch EITC Awareness Day.

    The EITC is a refundable tax credit for low to moderate-income working individuals and families. It is designed to provide financial assistance to those who need it most, lifting them out of poverty and helping them achieve financial stability.

    EITC Awareness Day aims to raise awareness about the EITC and encourage eligible individuals to claim this valuable credit on their tax returns. By doing so, they can receive a significant refund that can make a real difference in their lives.

    The IRS and its partners are working together to spread the word about the EITC through various outreach efforts, such as social media campaigns, informational events, and community partnerships. They are also providing resources and tools to help individuals determine if they qualify for the credit and how to claim it.

    If you or someone you know may be eligible for the EITC, be sure to take advantage of this valuable program. Visit the IRS website or speak with a tax professional to learn more about how you can benefit from the EITC on its 50th anniversary.

    Tags:

    IRS, EITC Awareness Day, National Partners, 50th Anniversary, Earned Income Tax Credit, tax credits, tax season, financial assistance, low income families, tax refund, tax benefits

    #IRS #national #partners #launch #EITC #Awareness #Day #50th #anniversary #Earned #Income #Tax #Credit

  • New income tax slabs: How much will you the taxpayer save, end up paying, explained


    Budget 2025 brought unexpected cheer to a large section of middle-class taxpayers who opt to file their returns under the new tax regime. Thanks to generous rebates announced, individuals earning up to ₹12 lakh an annum will not be required to pay any tax on incomes from sources such as salary.

    They will, however, have to pay taxes at special rates on other incomes such as capital gains. For instance, capital gains on earnings from the sale of equities held for less than one year is 20 per cent and for those held for longer, it is 12.5 per cent. Similarly, earnings from the sale of other movable and immovable properties will be subject to capital gains tax at appropriate rates.

    The sharp reduction in tax liability was made possible by a rejig of tax slabs under the new tax regime, the introduction of a new slab and enhanced rebates. For a person with an annual income of ₹12 lakh, the tax liability goes down from ₹80,000 at present to nil due to these changes. Those earning ₹20 lakh annually will see their tax liability fall from the current ₹2.90 lakh to ₹2 lakh. For those earning more, say annual income of ₹24 lakh, the tax liability will fall by ₹1.10 lakh from the current ₹4.10 lakh.

    Rates, slabs under old tax regime unchanged   

    What is clear is that the government wants more people to shift to the simplified new tax regime from the old tax regime. The Budget did not make any changes to the tax rates or slabs in the old tax regime.

    Taxpayers opting for the new tax regime are not allowed to claim deductions or rebates for rent paid for a house and investments in social security instruments such as life insurance, public provident fund and pension. Those filing their returns under the old tax regime can continue to claim those benefits. However, with the rejig of tax slabs and enhanced rebates, most taxpayers may find shifting to the new regime beneficial.

    The new tax regime now has seven slabs following the introduction of a 25 per cent tax slab for incomes between ₹20 lakh and ₹24 lakh. The lowest slab of nil tax is for income less than ₹4 lakh. Under the old tax regime, income of up to ₹2.5 lakh, net of reduction and rebates, is exempt from tax. Income falling between ₹2.5 lakh and ₹5 lakh is subject to 5 per cent tax, that between ₹5 lakh and ₹10 lakh is taxed at 10 per cent and income above ₹10 lakh, at 30 per cent.



    The government recently announced new income tax slabs in the Union Budget, which will come into effect from the next financial year. This move aims to simplify the tax structure and provide relief to taxpayers. But how much will you actually save or end up paying under the new tax regime? Let’s break it down.

    Under the new tax slabs, individuals have the option to choose between the existing tax regime with deductions and exemptions or the new tax regime with lower tax rates but no deductions and exemptions. The new tax slabs are as follows:

    – Up to Rs 2.5 lakh: Nil
    – Rs 2.5 lakh – Rs 5 lakh: 5%
    – Rs 5 lakh – Rs 7.5 lakh: 10%
    – Rs 7.5 lakh – Rs 10 lakh: 15%
    – Rs 10 lakh – Rs 12.5 lakh: 20%
    – Rs 12.5 lakh – Rs 15 lakh: 25%
    – Above Rs 15 lakh: 30%

    Let’s consider an individual with an annual income of Rs 10 lakh. Under the existing tax regime, with deductions and exemptions, the tax liability would be around Rs 1.12 lakh. However, under the new tax regime, the tax liability would be Rs 75,000, resulting in a saving of Rs 37,500.

    On the other hand, if the individual’s income is Rs 20 lakh, the tax liability under the existing regime would be around Rs 4.22 lakh. Under the new tax regime, the tax liability would be Rs 3.12 lakh, resulting in an increase of Rs 1.10 lakh.

    It is important for taxpayers to evaluate their individual circumstances and choose the tax regime that is most beneficial for them. Consulting a financial advisor or tax expert can help in making an informed decision. Overall, the new income tax slabs aim to provide relief to taxpayers and simplify the tax structure, but the actual impact on individuals will vary based on their income levels and deductions.

    Tags:

    1. New income tax slabs
    2. Taxpayer savings
    3. Taxpayer payments
    4. Income tax changes
    5. Tax slab explanation
    6. Tax implications
    7. Income tax calculations
    8. Taxpayer benefits
    9. Income tax breakdown
    10. Taxpayer savings analysis

    #income #tax #slabs #taxpayer #save #paying #explained

  • India Budget 2025 key takeaways: Income tax cuts for salaried middle class


    NEW DELHI (AP) — Indian Prime Minister Narendra Modi’s government presented an annual budget to Parliament on Saturday that focused on wooing the salaried middle class with tax cuts and spurring economic growth by boosting agriculture and manufacturing.

    In her budget speech, Finance Minister Nirmala Sitharaman said the government is focused on boosting private investment to strengthen growth, increasing funding in the agriculture sector and enhancing the spending power of India’s middle class.

    “The focus of the budget is taking everyone together on an inclusive path,” Sitharaman said, adding that the government is aiming for a fiscal deficit of 4.4% of India’s gross domestic product for the 2025-26 financial year.

    The world’s fifth-largest economy is expected to post its slowest growth in four years due to a sluggish manufacturing sector, persistent food inflation, stagnant job growth and weak urban consumption. The country’s chief economic advisor, in a report released on Friday, forecast India’s economy would grow 6.3% to 6.8% in the next fiscal year.

    Here are some takeaways from the budget:

    Income tax cuts for the salaried middle class

    Sitharaman said her government will initiate reforms in sectors like finance, power, urban development and mining, with “transformative reforms in taxation.” She raised the starting point for income tax to $14,800 from $8,074 and said the government will introduce a new income tax bill next week.

    “The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment,” Sitharaman said.

    Modi, who is now in his third term as the country’s prime minister, has been under pressure to allay discontent among the country’s middle class and generate more jobs to help sustain growth. Many economists had suggested his government make tax cuts on individuals’ income and implement job creation programs to mitigate rising unemployment.

    According to the Center for Monitoring the Indian Economy, youth unemployment was at 7.5% in January, underscoring the challenge of delivering jobs in a country of more than 1.4 billion people.

    Agriculture sector and gig economy gets a boost

    To boost productivity across the agriculture sector, the Indian government will launch a nationwide program to push high-yielding crops, focusing on the cultivation of pulses and cotton production. Sitharaman said the program will target at least 17 million farmers and raise the limit for subsidized credit offered to them from $3,460 to $5,767.

    The government also plans to formally register India’s gig workers and ease their access to health care. Sitharaman said the government will issue them identity cards and maintain a national registry that will ensure their inclusion in welfare initiatives.

    India’s gig economy could employ more than 23 million people by 2030, according to estimates by government think tank NITI Aayog.

    Investments in new startup funds and energy sector

    Sitharaman announced a new fund for startups and said the government will provide more money to promote innovation in partnership with the private sector and launch programs to push manufacturing and exports. The share of manufacturing in India’s economy is close to 17%, short of its aimed goal of 25%.

    The government will infuse more money to increase tourism-led employment in several Indian states and help with building infrastructure and boosting air connectivity to 120 new destinations over 10 years, Sitharaman said.

    She also announced the Nuclear Energy Mission to drive India’s transition toward clean energy, with a goal of developing at least 100 GW of nuclear power by 2047.





    The India Budget 2025 was recently announced and one of the key takeaways for the salaried middle class is the income tax cuts. The government has introduced new tax slabs and reduced the tax rates for individuals earning between Rs 5 lakh to Rs 15 lakh per year. This will provide much-needed relief to the middle class who have been facing the burden of high taxes.

    Additionally, the government has also increased the standard deduction for salaried individuals, which will further help in reducing the tax liability. The focus on reducing the tax burden on the middle class is a welcome move and will help in increasing disposable income for individuals.

    Overall, the India Budget 2025 has brought some positive changes for the salaried middle class by providing income tax cuts and increasing standard deductions. This will not only benefit individuals but also boost consumer spending and stimulate economic growth.

    Tags:

    India Budget 2025, key takeaways, Income tax cuts, salaried middle class, budget highlights, tax reforms, economic policies, government initiatives, financial updates.

    #India #Budget #key #takeaways #Income #tax #cuts #salaried #middle #class

  • No Tax On Income Up To Rs 12 Lakh



    New Delhi:

    There will be no income tax payable up to Rs 12 lakh – i.e., up to Rs 12.75 lakh including standard deductions – under the new regime, Union Finance Minister Nirmala Sitharaman said Saturday as she read out the Union Budget 2025.

    In an announcement accompanied by loud cheers and enthusiastic thumping of desks by BJP MPs, led by Prime Minister Narendra Modi, she also announced revisions to the tax slabs (again, applicable to the new regime only).

    Under the revised slabs, tax on income up to Rs 4 lakh is nil.

    Between Rs 4 and Rs 8 lakh the tax will be five per cent.

    Between Rs 8 and Rs 12 lakh it will be 10 per cent.

    Between Rs 12 lakh and Rs 16 lakh it will be 15 per cent.

    Between Rs 16 lakh and Rs 20 lakh it will be 20 per cent.

    Between Rs 20 lakh and Rs 24 lakh it will be 25 per cent.

    Above Rs 24 lakh it will be 30 per cent.

    BUDGET 2025 | Slabs Revised For New Regime, No Tax On Income Till 4 Lakh

    All of this, Ms Sitharaman said, will “substantially reduce tax burden on middle class and leave more money in their hands”. It will also boost household consumption, savings, and investment, she said.

    In other tax-related announcements, Ms Sitharaman also said TDS, or tax deduction at source, rates will be rationalised, and the limit for tax deduction for senior citizens will be doubled to Rs 1 lakh.

    Further, she also proposed doubling the deadline to file updated returns to four years.

    A New Direct Tax Code?

    The big-ticket announcement on personal income tax by the Finance Minister followed confirmation of a new direct tax code – to simplify compliance for individual taxpayers – will be introduced next week.

    On Thursday sources had confirmed to NDTV this new code might be introduced.

    READ | Will Introduce New Income Tax Bill Next Week: Finance Minister

    Talk of a new direct tax code emerged when Ms Sitharaman presented the full 2024/25 budget in July; then she had said the goal was to make current income tax laws simpler to read and understand, and reduce the number of pages of the I-T Act of 1961 by a staggering 60 per cent.

    How Is It Different From I-T Act?

    The 1961 Act – which deals with imposition of direct taxes, i.e., personal and corporate tax, as well as those on securities transactions, gifts, and wealth – has 23 chapters and 298 sections.

    READ | What Is Direct Tax Code? How It Is Different From I-T Act, 1961

    Among the biggest expected changes are the scrapping of the concept of financial year (FY) and accounting year (AY), which often led to confusion. It may also introduce taxes – possibly at five per cent – on income from insurance policies from the Life Insurance Corporation.

    These were not taxed under the 1961 law.

    Also, taxes on dividend income (now at slab rates) may be standardised at 15 per cent. But Most significant is that this new code will not offer an option between the old and new regimes.







    In a recent announcement, the government has made a significant move by declaring that there will be no tax on income up to Rs 12 lakh. This decision comes as a relief to many taxpayers who were burdened by high tax rates in the past.

    With this new rule in place, individuals earning up to Rs 12 lakh annually will not have to pay any taxes on their income. This move is expected to benefit a large number of middle-class taxpayers and provide them with some much-needed financial relief.

    The government’s decision to exempt income up to Rs 12 lakh from taxes is a welcome step towards simplifying the tax system and reducing the tax burden on the common man. This move is likely to encourage more people to file their tax returns and contribute to the country’s economy.

    Overall, this decision is a positive development that will benefit a large section of the population and is a step in the right direction towards making the tax system more equitable and fair.

    Tags:

    • tax exemptions
    • income tax benefits
    • tax savings
    • tax-free income
    • income tax threshold
    • tax deductions
    • tax relief
    • tax planning
    • tax-free earnings
    • tax exemptions in India

    #Tax #Income #Lakh

  • budget 2025 live: Budget 2025 Live Updates: Nirmala Sitharaman to introduce New Income tax bill next week; China’s factories, new UDAN boost & education push in focus


    Budget 2025 Live Updates: Finance Minister Nirmala Sitharaman presented the first full India Budget of Modi 3.0, aiming to balance middle-class tax relief with economic growth needs.

    This Budget comes as GDP growth is projected to fall to a four-year low of 6.4% in FY24, near its decadal average. The Economic Survey forecasts 6.3-6.8% growth in FY26, well below the pace required to achieve Viksit Bharat by 2047. It stresses the need for land and labour reforms to drive growth.

    With India’s world-leading growth showing signs of moderation, the push for an 8% annual growth rate remains crucial. The projected growth for FY25-26 compares to an estimated 6.4% in FY24 and 8.2% in FY23-24.

    Budget 2025 Live streaming: When and where to watch Nirmala Sitharaman’s speech;
    Budget Speech Timing: Scheduled for 11 a.m. on February 1 in the Lok Sabha.
    Live Broadcast: Available on Sansad TV, DD News, and Sansad TV’s YouTube channel.
    Online Updates: Follow all Budget 2025 updates on economictimes.com

    Key numbers to watch out for in the Union Budget for 2025-26:
    Fiscal Deficit
    Capital Expenditure
    Debt Roadmap
    Borrowing
    Tax Revenue
    GST
    Nominal GDP
    Dividend
    Disinvestment & Asset Monetisation

    Budget FAQs
    What is the Union Budget?
    The Union Budget is the annual financial statement of the government. It outlines revenue and expenditure for the upcoming financial year.

    Who presents the Union Budget?
    Finance Minister Nirmala Sitharaman presents the Budget in Parliament.

    When is the Budget presented?
    The Budget is presented on February 1.

    What are the key components of the Budget?
    Revenue Budget
    Expenditure Budget
    Fiscal Deficit
    GDP Growth Projections
    Policy Announcements

    Will there be changes in income tax slabs?
    Given the pressure on middle class, Nirmala Sitharaman may propose changes in tax slabs, exemptions, and deductions under the old and new tax regimes in the budget.

    What are the indirect tax changes?
    Major indirect taxes are GST, customs, excise duties etc. The Budget can alter GST rates, impose or reduce customs and excise duties, impacting imported goods and services.

    Get ready for the latest updates on Budget 2025 live! Finance Minister Nirmala Sitharaman is all set to introduce a new Income tax bill next week, paving the way for significant changes in the tax structure.

    In addition to the tax reforms, the budget will also focus on boosting China’s factories, promoting the new UDAN (Ude Desh Ka Aam Nagrik) scheme for regional connectivity, and pushing for advancements in education.

    Stay tuned for more updates as we bring you the latest developments and analysis on Budget 2025 live! #Budget2025 #NirmalaSitharaman #IncomeTaxBill #ChinaFactories #UDAN #EducationPush”

    Tags:

    Budget 2025, Budget 2025 Live Updates, Nirmala Sitharaman, New Income Tax Bill, China’s factories, UDAN boost, education push, Budget 2025 news, budget updates, government budget, economic news, tax bill announcement, Nirmala Sitharaman news

    #budget #live #Budget #Live #Updates #Nirmala #Sitharaman #introduce #Income #tax #bill #week #Chinas #factories #UDAN #boost #education #push #focus

  • Income Tax Slabs & Rates for 2025-26 Explained, India Union Budget 2025-26


    Budget 2025-26 Explained Live: here's all you need to know about Union Budget 2025 to be presented by Nirmala Sitharaman.Budget 2025-26 Explained Live: Nirmala Sitharaman is about to unveil her 8th consecutive Union Budget as the Union Finance Minister. (Express illustration by Angshuman Maity)

    Budget 2025 Important Points Explained Live: Union Finance Minister Nirmala Sitharaman on Saturday (February 1) will unveil her eighth consecutive Union Budget. Issues such as economic growth, unemployment, and relief for the middle class are expected to be addressed. Her speech begins at 11 am.

    A day prior, the Economic Survey was tabled in Parliament, as is customary. It projected a growth rate of 6.3-6.8 per cent for the next financial year, stating, “Viksit Bharat@2047 envisions India as a developed nation by 2047, the centenary of our independence. This would entail sustained economic growth of close to 8 per cent every year for at least a decade.”

    Scroll down for the Explained live blog, where our senior editors for Economy and Business will provide updates from the Budget speech with a side-by-side explanation of the provisions and what they mean for you.

    © The Indian Express Pvt Ltd





    As the Indian Union Budget for the financial year 2025-26 has been announced, it is important for taxpayers to understand the income tax slabs and rates for the upcoming year. Here’s a breakdown of the income tax slabs and rates for 2025-26:

    1. For individuals below the age of 60:
    – Up to Rs. 2.5 lakh: No tax
    – Rs. 2.5 lakh to Rs. 5 lakh: 5%
    – Rs. 5 lakh to Rs. 10 lakh: 10%
    – Above Rs. 10 lakh: 20%

    2. For individuals between the ages of 60 and 80 (senior citizens):
    – Up to Rs. 3 lakh: No tax
    – Rs. 3 lakh to Rs. 5 lakh: 5%
    – Rs. 5 lakh to Rs. 10 lakh: 10%
    – Above Rs. 10 lakh: 20%

    3. For individuals above the age of 80 (super senior citizens):
    – Up to Rs. 5 lakh: No tax
    – Rs. 5 lakh to Rs. 10 lakh: 20%
    – Above Rs. 10 lakh: 30%

    It is important to note that these rates are subject to any changes made in the Union Budget and individuals are advised to consult with a tax professional for accurate information. Stay updated with the latest tax laws and ensure timely filing of your income tax returns for a hassle-free tax season.

    Tags:

    Income Tax Slabs 2025-26, India Union Budget, Income Tax Rates 2025-26, Income Tax Explained, Income Tax Update 2025-26, India Taxation System 2025-26

    #Income #Tax #Slabs #Rates #Explained #India #Union #Budget

  • Income Tax Slabs 2025-26 Budget 2025 Live Updates: Tweak in income tax slabs & rates, income tax relief for salaried taxpayers expected in new tax regime; all eyes on FM Sitharaman


    Will your income tax slab and the income tax rate change after Union Budget 2025? The latest income tax slabs for financial year 2025-26 are eagerly awaited by the common man, middle class and salaried taxpayers. Will FM Nirmala Sitharaman make the new income tax regime more lucrative for the common salaried individual taxpayers? Will the income tax slabs under the new income tax regime be tweaked further? The question on which income tax regime is better for you – new income tax regime vs old income tax regime – is dependent on the latest calculations for FY 2025-26 based on the income tax slabs and income tax rates announced in the Union Budget 2025.

    What are the current income tax slabs under the new tax regime?

    Up to INR 3 lakh – Nil

    INR 3,00,001 to INR 7,00,000 – 5%

    INR 7,00,001 to INR 10,00,000 – 10%

    INR 10,00,001 to INR 12,00,000 – 15%

    INR 12,00,001 to INR 15,00,000 – 20%

    Above INR 15,00,000 – 30%

    Since the introduction of the new income tax regime a few years ago, the Narendra Modi government has introduced several changes in it to encourage its adoption. The new income tax regime is essentially a regime that doesn’t allow you major tax deductions and exemptions, but favours taxpayers in the form of lower tax rates and more rationalised income tax slabs. For example; under the new income tax regime, common exemptions and deductions such as Section 80C, Section 80D, Section 80G, Section 80TTA, HRA, LTA are not allowed. However, the tax rates are lower and the income tax slabs are different. Under the new income tax regime, the 30% income tax slab kicks in at an income level above Rs 15 lakh, unlike the old tax regime where 30% tax is applicable above Rs 10 lakh.

    When the new income tax regime was first introduced, standard deduction was not a part of it. However, eventually a Rs 50,000 standard deduction was allowed, which was hiked to Rs 75,000 in last year’s Budget. It’s important to note that under the old income tax regime, the standard deduction continues to be Rs 50,000.

    One common ask of salaried taxpayers is that FM Sitharaman should allow popular exemptions and deductions such as Section 80C, HRA, LTA and Section 80D under the new income tax regime to make it more lucrative.

    With the new income tax regime becoming the default tax regime, personal tax experts also expect that the Modi government may eventually do away with the old income tax regime. While that may not happen this year, the path towards phasing out the old income tax regime may be outlined in this year’s Union Budget. Also, a simplified Direct Tax Code is likely to be tabled in the Budget Parliament session, which may find mention in FM Sitharaman’s Budget speech.





    As the Budget 2025 announcement draws near, there is anticipation and speculation about possible changes in income tax slabs and rates for the financial year 2025-26. Salaried taxpayers are hoping for some relief and tweaks in the new tax regime that could ease their tax burden.

    Finance Minister Nirmala Sitharaman is expected to make some announcements regarding income tax slabs and rates in the upcoming budget. There are talks of a possible restructuring of the tax slabs to provide relief to middle-class taxpayers who have been facing the brunt of high tax rates in recent years.

    With the economy still recovering from the impact of the pandemic, there is a hope that the government will take measures to boost disposable income for individuals and stimulate consumption. Changes in income tax slabs and rates could be one way to achieve this goal.

    Stay tuned for live updates on Income Tax Slabs 2025-26 Budget 2025 as FM Sitharaman unveils the new tax regime and announces any changes that could impact salaried taxpayers. All eyes are on the budget as taxpayers eagerly await news of possible income tax relief.

    Tags:

    Income Tax Slabs 2025-26, Budget 2025 Live Updates, Income Tax Rates, Income Tax Relief, Salaried Taxpayers, New Tax Regime, FM Sitharaman, Income Tax Changes 2025

    #Income #Tax #Slabs #Budget #Live #Updates #Tweak #income #tax #slabs #rates #income #tax #relief #salaried #taxpayers #expected #tax #regime #eyes #Sitharaman

  • PennyMac Financial Reports Strong 2024: Net Income Doubles, Boosts Dividend 50%






    PennyMac Financial Services (PFSI) reported Q4 2024 net income of $104.5 million ($1.95 per diluted share) on revenue of $470.1 million. Book value per share increased to $74.54 from $72.95 in Q3 2024.

    Key Q4 highlights include: pretax income of $129.4 million, total loan acquisitions of $35.7 billion, and servicing portfolio growth to $665.8 billion. The company declared a quarterly dividend of $0.30 per share.

    Full-year 2024 performance showed net income of $311.4 million, up from $144.7 million in 2023, with total loan production of $116.3 billion. The company issued $650 million in 6-year unsecured senior notes and increased its quarterly dividend by 50% from $0.20 previously.

    PennyMac Financial Services (PFSI) ha riportato un reddito netto per il quarto trimestre 2024 di 104,5 milioni di dollari (1,95 dollari per azione diluita) su un fatturato di 470,1 milioni di dollari. Il valore contabile per azione è aumentato a 74,54 dollari rispetto ai 72,95 dollari del terzo trimestre 2024.

    Tra i punti salienti del quarto trimestre ci sono: un reddito ante imposte di 129,4 milioni di dollari, acquisizioni di prestiti totali per 35,7 miliardi di dollari e una crescita del portafoglio di servizi a 665,8 miliardi di dollari. L’azienda ha dichiarato un dividendo trimestrale di 0,30 dollari per azione.

    La performance dell’intero anno 2024 ha mostrato un reddito netto di 311,4 milioni di dollari, in aumento rispetto ai 144,7 milioni di dollari del 2023, con una produzione totale di prestiti di 116,3 miliardi di dollari. L’azienda ha emesso 650 milioni di dollari in note senior non garantite a 6 anni e ha aumentato il suo dividendo trimestrale del 50% rispetto ai 0,20 dollari precedenti.

    PennyMac Financial Services (PFSI) reportó una ganancia neta del cuarto trimestre de 2024 de 104,5 millones de dólares (1,95 dólares por acción diluida) con ingresos de 470,1 millones de dólares. El valor contable por acción aumentó a 74,54 dólares desde 72,95 dólares en el tercer trimestre de 2024.

    Los puntos destacados del cuarto trimestre incluyen: una ganancia antes de impuestos de 129,4 millones de dólares, adquisiciones de préstamos totales de 35,7 mil millones de dólares, y un crecimiento del portafolio de servicios a 665,8 mil millones de dólares. La compañía declaró un dividendo trimestral de 0,30 dólares por acción.

    El desempeño de todo el año 2024 mostró una ganancia neta de 311,4 millones de dólares, un aumento desde los 144,7 millones de dólares en 2023, con una producción total de préstamos de 116,3 mil millones de dólares. La empresa emitió 650 millones de dólares en notas senior no garantizadas a 6 años y aumentó su dividendo trimestral en un 50% desde los 0,20 dólares anteriores.

    PennyMac Financial Services (PFSI)는 2024년 4분기 순이익이 1억 4백 5십만 달러(희석주당 1.95 달러), 매출은 4억 7천 10만 달러였다고 보고했습니다. 주당 장부 가치는 2024년 3분기 72.95달러에서 74.54달러로 증가했습니다.

    4분기 주요 사항으로는 세전 소득 1억 2천 9백 4십만 달러, 총 대출 인수 357억 달러, 서비스 포트폴리오 성장 6658억 달러가 있습니다. 이 회사는 주당 0.30 달러의 분기 배당금을 선언했습니다.

    2024년 전체 성과는 3억 1천 14백만 달러의 순이익을 기록해 2023년 1억 4천 4백 70만 달러에서 증가했으며, 총 대출 생산은 1163억 달러였습니다. 이 회사는 6년 만기 무보증 고급 채권을 6억 5천만 달러 발행하고 분기 배당금을 0.20달러에서 50% 인상했습니다.

    PennyMac Financial Services (PFSI) a annoncé un revenu net de 104,5 millions de dollars (1,95 dollar par action diluée) pour le quatrième trimestre de 2024, avec un chiffre d’affaires de 470,1 millions de dollars. La valeur comptable par action a augmenté à 74,54 dollars, contre 72,95 dollars au troisième trimestre de 2024.

    Les points clés du quatrième trimestre incluent : un revenu avant impôt de 129,4 millions de dollars, des acquisitions de prêts totaux de 35,7 milliards de dollars et une croissance du portefeuille de services à 665,8 milliards de dollars. L’entreprise a déclaré un dividende trimestriel de 0,30 dollar par action.

    La performance de l’année entière 2024 a montré un revenu net de 311,4 millions de dollars, en hausse par rapport à 144,7 millions de dollars en 2023, avec une production totale de prêts de 116,3 milliards de dollars. L’entreprise a émis 650 millions de dollars de titres seniors non garantis à 6 ans et a augmenté son dividende trimestriel de 50 % par rapport aux 0,20 dollars précédents.

    PennyMac Financial Services (PFSI) berichtete für das vierte Quartal 2024 einen Nettogewinn von 104,5 Millionen Dollar (1,95 Dollar je verwässerte Aktie) bei einem Umsatz von 470,1 Millionen Dollar. Der Buchwert pro Aktie stieg von 72,95 Dollar im dritten Quartal 2024 auf 74,54 Dollar.

    Zu den wichtigsten Highlights des vierten Quartals gehören: ein Vorsteuergewinn von 129,4 Millionen Dollar, Gesamtlaufwerkskäufe von 35,7 Milliarden Dollar und ein Wachstum des Servicing-Portfolios auf 665,8 Milliarden Dollar. Das Unternehmen erklärte eine quartalsweise Dividende von 0,30 Dollar pro Aktie.

    Die Leistung des gesamten Jahres 2024 zeigte einen Nettogewinn von 311,4 Millionen Dollar, ein Anstieg von 144,7 Millionen Dollar im Jahr 2023, mit einer gesamten Produktionsleistung von 116,3 Milliarden Dollar. Das Unternehmen emittierte 650 Millionen Dollar in ungesicherten, vorrangigen Anleihen mit einer Laufzeit von 6 Jahren und erhöhte seine vierteljährliche Dividende um 50 % von zuvor 0,20 Dollar.

    Positive


    • Net income increased to $311.4 million in 2024 from $144.7 million in 2023


    • Servicing portfolio grew 10% YoY to $665.8 billion


    • Total loan production increased 17% YoY to $116.3 billion


    • Quarterly dividend increased 50% to $0.30 per share


    • Q4 pretax income rose to $129.4 million from $93.9 million in Q3


    Negative


    • Production segment pretax income decreased to $78.0 million from $129.4 million in Q3


    • Consumer direct IRLCs declined 30% from previous quarter


    • Broker direct IRLCs decreased 17% from previous quarter


    • Net interest expense of $17.2 million in Q4


    Insights


    PennyMac Financial’s Q4 2024 results reveal a company successfully navigating the challenging mortgage landscape, with several notable achievements:

    Core Performance Metrics: The 16% annualized operating ROE demonstrates robust operational efficiency, particularly impressive given the high-rate environment. The 10% year-over-year servicing portfolio growth to $665.8 billion UPB reflects successful market share expansion and effective retention strategies.

    Strategic Positioning: The company’s balanced business model shows remarkable adaptability. The servicing segment’s strong performance ($87.3 million pretax income) effectively counterbalanced the production segment ($78.0 million), highlighting the advantage of diversified revenue streams in varying rate environments.

    Operational Evolution: The renewed mortgage banking services agreement with PMT, effective July 2025, signals a strategic shift in correspondent production dynamics. The planned 15-25% retention rate for conventional conforming production indicates a calculated approach to balance sheet management and risk optimization.

    Financial Health Indicators: The increase in book value to $74.54 per share and the 50% dividend increase to $0.30 reflect strong capital position and management’s confidence in sustainable profitability. The successful issuance of $650 million in senior notes demonstrates continued market access and financial flexibility.

    These results position PFSI advantageously for 2025, particularly if interest rates moderate and refinancing activity increases. The company’s investment in technology and workflow efficiency improvements suggests potential for further operational leverage and market share gains.












    WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–
    PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $104.5 million for the fourth quarter of 2024, or $1.95 per share on a diluted basis, on revenue of $470.1 million. Book value per share increased to $74.54 from $72.95 at September 30, 2024.

    PFSI’s Board of Directors declared a fourth quarter cash dividend of $0.30 per share, payable on February 23, 2025, to common stockholders of record as of February 13, 2025.

    In the fourth quarter, management reassessed its segment definitions. Prior period amounts have been recast to conform those periods’ presentation to current period presentation. Non-segment activities are included under “Corporate and other” and include amounts attributable to corporate activities not directly attributable to the production and servicing segments as well as management fees earned from PennyMac Mortgage Investment Trust (NYSE: PMT).

    Fourth Quarter 2024 Highlights

    • Pretax income was $129.4 million, up from pretax income of $93.9 million in the prior quarter and pretax loss of $54.2 million in the fourth quarter of 2023

    • Production segment pretax income was $78.0 million, down from $129.4 million in the prior quarter and up from $44.2 million in the fourth quarter of 2023

      • Total loan acquisitions and originations, including those fulfilled for PMT, were $35.7 billion in unpaid principal balance (UPB), up 13 percent from the prior quarter and 34 percent from the fourth quarter of 2023

      • Broker direct interest rate lock commitments (IRLCs) were $4.5 billion in UPB, down 17 percent from the prior quarter and up 60 percent from the fourth quarter of 2023

      • Consumer direct IRLCs were $3.7 billion in UPB, down 30 percent from the prior quarter and up 129 percent from the fourth quarter of 2023

      • Government correspondent IRLCs totaled $11.1 billion in UPB, down 11 percent from the prior quarter and essentially unchanged from the fourth quarter of 2023

      • Conventional correspondent IRLCs for PFSI’s account totaled $13.8 billion in UPB, up 68 percent from the prior quarter and 38 percent from the fourth quarter of 2023

      • Correspondent acquisitions of conventional conforming and jumbo loans fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT) were $3.5 billion in UPB, down 41 percent from the prior quarter and up 41 percent from the fourth quarter of 2023

        • PMT retained 19 percent of total conventional correspondent loans in the fourth quarter, down from 42 percent in the prior quarter

    • Servicing segment pretax income was $87.3 million, up from $3.3 million in the prior quarter and $76.6 million in the fourth quarter of 2023

      • Pretax income excluding valuation-related changes was $168.3 million, essentially unchanged from the prior quarter as higher loan servicing fees, lower realization of mortgage servicing rights (MSR) cash flows and lower operating expenses were offset by lower earnings on custodial balances due to lower short-term interest rates

      • Valuation-related changes included:

        • $540.4 million in MSR fair value gains more than offset by $608.1 million in hedging losses

          • Net impact on pretax income related to these items was $(67.7) million, or $(0.93) in earnings per share

        • $13.3 million provision for losses on active loans

      • Servicing portfolio grew to $665.8 billion in UPB, up 3 percent from September 30, 2024 and 10 percent from December 31, 2023 driven by production volumes which more than offset prepayment activity

    • Pretax loss from Corporate and Other was $35.9 million, compared to $38.8 million in the prior quarter and $175.0 million in the fourth quarter of 2023

      • The fourth quarter of 2023 included a non-recurring expense accrual of $158.4 million as a result of the long-standing arbitration related to the development of our proprietary servicing software

    Full-Year 2024 Highlights

    • Net income of $311.4 million, up from $144.7 million in 2023; excluding the non-recurring expense accrual, net income in 2023 would have been $260.5 million

    • Pretax income of $401.0 million, up from $183.6 million in 2023; excluding the non-recurring expense accrual, pretax income in 2023 would have been $342.0 million

    • Total net revenue of $1.6 billion, up from $1.4 billion in 2023

    • Total loan production of $116.3 billion in UPB, an increase of 17 percent from 2023

    • Servicing portfolio UPB of $665.8 billion at year end, up 10 percent from December 31, 2023

    • Issued $650 million of 6-year unsecured senior notes due in November 2030

    • Increased quarterly cash dividend to $0.30 per share, a 50% increase from $0.20 previously

    “PennyMac Financial delivered strong fourth quarter results, with a 16 percent1 annualized operating return on equity driven by continued strength in our servicing business and a solid contribution from our production segment despite higher mortgage rates,” said Chairman and CEO David Spector. “In total, we acquired or originated $36 billion in unpaid principal balance of loans, which drove continued growth in our servicing portfolio to $666 billion in unpaid principal balance at year end.”

    Mr. Spector continued, “Our full year results demonstrate both the ability of our balanced business model to generate operating returns on equity in the mid-teens in periods of higher rates, and also a substantial improvement in operating leverage from the previous year. Looking to 2025 and beyond, I continue to believe PennyMac Financial is best-positioned in the mortgage industry for continued growth and execution regardless of the path of interest rates. Our best-in-class management team has built a platform with significant scale and remains committed to unlocking additional efficiencies through continued investments in workflow and technology. It is for all of these reasons that I am confident in our ability to continue driving strong financial performance in this higher rate environment, bolstered by increases in the origination market in periods when mortgage rates decline.”

    1

     

    See page 18 for a reconciliation of non-GAAP items

    The following table presents the contributions of PennyMac Financial’s segments to pretax income:

    Quarter ended December 31, 2024
    Production Servicing Reportable
    segment total    		 Corporate
    and Other    		 Total
    (in thousands)
    Revenue:
    Net gains on loans held for sale at fair value

    $

    195,070

    $

    26,974

     

    $

    222,044

     

    $

    –

     

    $

    222,044

     
    Loan origination fees

     

    57,824

     

    –

     

     

    57,824

     

     

    –

     

     

    57,824

     
    Fulfillment fees from PMT

     

    6,356

     

    –

     

     

    6,356

     

     

    –

     

     

    6,356

     
    Net loan servicing fees

     

    –

     

    189,267

     

     

    189,267

     

     

    –

     

     

    189,267

     
    Management fees

     

    –

     

    –

     

     

    –

     

     

    7,149

     

     

    7,149

     
    Net interest income (expense):
    Interest income

     

    93,766

     

    116,679

     

     

    210,445

     

     

    414

     

     

    210,859

     
    Interest expense

     

    91,982

     

    136,129

     

     

    228,111

     

     

    –

     

     

    228,111

     

     

    1,784

     

    (19,450

    )

     

    (17,666

    )

     

    414

     

     

    (17,252

    )
    Other

     

    89

     

    735

     

     

    824

     

     

    3,898

     

     

    4,722

     
    Total net revenue

     

    261,123

     

    197,526

     

     

    458,649

     

     

    11,461

     

     

    470,110

     
    Expenses
    Compensation

     

    91,754

     

    49,958

     

     

    141,712

     

     

    31,378

     

     

    173,090

     
    Loan origination

     

    48,046

     

    –

     

     

    48,046

     

     

    –

     

     

    48,046

     
    Technology

     

    25,743

     

    10,108

     

     

    35,851

     

     

    4,980

     

     

    40,831

     
    Servicing

     

    –

     

    38,088

     

     

    38,088

     

     

    –

     

     

    38,088

     
    Professional services

     

    3,869

     

    2,386

     

     

    6,255

     

     

    3,732

     

     

    9,987

     
    Occupancy and equipment

     

    3,951

     

    2,661

     

     

    6,612

     

     

    1,561

     

     

    8,173

     
    Marketing and advertising

     

    6,919

     

    202

     

     

    7,121

     

     

    644

     

     

    7,765

     
    Legal settlements

     

    –

     

    2

     

     

    2

     

     

    (108

    )

     

    (106

    )
    Other

     

    2,831

     

    6,823

     

     

    9,654

     

     

    5,218

     

     

    14,872

     
    Total expenses

     

    183,113

     

    110,228

     

     

    293,341

     

     

    47,405

     

     

    340,746

     
    Income (loss) before provision for income taxes

    $

    78,010

    $

    87,298

     

    $

    165,308

     

    $

    (35,944

    )

    $

    129,364

     

    Production Segment

    The Production segment includes the correspondent acquisition of newly originated government-insured and certain conventional conforming loans for PennyMac Financial’s own account, fulfillment services on behalf of PMT and direct lending through the consumer direct and broker direct channels, including the underwriting and acquisition of loans from correspondent sellers on a non-delegated basis.

    PennyMac Financial’s loan production activity for the quarter totaled $35.7 billion in UPB, $32.2 billion of which was for its own account, and $3.5 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $33.0 billion in UPB, up 6 percent from the prior quarter and 29 percent from the fourth quarter of 2023.

    Production segment pretax income was $78.0 million, down from $129.4 million in the prior quarter and up from $44.2 million in the fourth quarter of 2023. Production segment revenue totaled $261.1 million, down 11 percent from the prior quarter and up 49 percent from the fourth quarter of 2023. The decrease from the prior quarter was due to higher mortgage interest rates, which resulted in lower lock volumes in the direct lending channels. The increase from the fourth quarter of 2023 was driven primarily by higher volumes across all channels.

    The components of net gains on loans held for sale are detailed in the following table:

    Quarter ended
    December 31,
    2024    		 September 30,
    2024    		 December 31,
    2023
    (in thousands)
    Receipt of MSRs

    $

    748,121

     

    $

    578,982

     

    $

    549,965

     
    Gains on sale of loans and mortgage servicing rights recapture payable to PennyMac Mortgage Investment Trust

     

    2,387

     

     

    2,506

     

     

    (290

    )
    Provision for representations and warranties, net

     

    (1,633

    )

     

    (589

    )

     

    (1,002

    )
    Cash loss, including cash hedging results

     

    (373,307

    )

     

    (382,148

    )

     

    (606,160

    )
    Fair value changes of pipeline, inventory and hedges

     

    (153,524

    )

     

    58,068

     

     

    206,252

     
    Net gains on mortgage loans held for sale

    $

    222,044

     

    $

    256,819

     

    $

    148,765

     
    Net gains on mortgage loans held for sale by segment:
    Production

    $

    195,070

     

    $

    235,902

     

    $

    124,267

     
    Servicing

    $

    26,974

     

    $

    20,917

     

    $

    24,498

     

    PennyMac Financial performs fulfillment services for certain conventional conforming and jumbo loans acquired by PMT from non-affiliates in its correspondent production business. These services include, but are not limited to, marketing, relationship management, correspondent seller approval and monitoring, loan file review, underwriting, pricing, hedging and activities related to the subsequent sale and securitization of loans in the secondary mortgage markets for PMT.

    Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled $6.4 million in the fourth quarter, down 45 percent from the prior quarter and up 29 percent from the fourth quarter of 2023. The quarter-over-quarter decrease was driven by lower conventional acquisition volumes for PMT’s account, as PMT retained a smaller percentage of total conventional correspondent production in the fourth quarter versus the third quarter. In the first quarter of 2025, we expect PMT to retain all jumbo production and 15 to 25 percent of total conventional conforming correspondent production, compared to 19 percent in the fourth quarter.

    Under a renewed mortgage banking services agreement with PMT, effective July 1, 2025, correspondent production volumes will initially be acquired by PFSI. PMT will retain the right to purchase up to 100 percent of non-government correspondent loan production.

    Net interest income in the fourth quarter totaled $1.8 million, compared to net interest expense of $2.1 million in the prior quarter. Interest income totaled $93.8 million, up from $79.4 million in the prior quarter, and interest expense totaled $92.0 million, up from $81.5 million in the prior quarter, both due to higher average balances of loans held for sale due to the increase in funded volumes.

    Production segment expenses were $183.1 million, up 11 percent from the prior quarter and 40 percent from the fourth quarter of 2023. Production expenses increased from the prior quarter primarily due to higher funded volumes and increased capacity in the direct lending channels.

    Servicing Segment

    The Servicing segment includes income from owned MSRs and subservicing. The total servicing portfolio grew to $665.8 billion in UPB at December 31, 2024, an increase of 3 percent from September 30, 2024 and 10 percent from December 31, 2023. PennyMac Financial’s owned MSR portfolio grew to $434.2 billion in UPB, an increase of 4 percent from September 30, 2024 and 16 percent from December 31, 2023. PennyMac Financial subservices $230.8 billion in UPB for PMT and subservices on an interim basis $807 million in UPB of previously owned loans that have been repurchased by the United States Veterans Affairs (VA) pursuant to the Veterans Affairs Servicing Purchase (VASP) program.

    The table below details PennyMac Financial’s servicing portfolio UPB:

    December 31,
    2024    		 September 30,
    2024    		 December 31,
    2023
    (in thousands)
    Prime servicing:
    Owned
    Mortgage servicing rights and liabilities
    Originated

    $

    410,393,342

    $

    393,947,146

    $

    352,790,614
    Purchased

     

    15,681,406

     

    16,104,333

     

    17,478,397

     

    426,074,748

     

    410,051,479

     

    370,269,011
    Loans held for sale

     

    8,128,914

     

    6,366,787

     

    4,294,689

     

    434,203,662

     

    416,418,266

     

    374,563,700
    Subserviced for PMT

     

    230,745,995

     

    231,369,983

     

    232,643,144
    Subserviced for U.S. Department of Veterans Affairs

     

    806,584

     

    257,696

     

    –
    Total prime servicing

     

    665,756,241

     

    648,045,945

     

    607,206,844
    Special servicing – subserviced for PMT

     

    7,586

     

    8,340

     

    9,925
    Total loans serviced

    $

    665,763,827

    $

    648,054,285

    $

    607,216,769

    Servicing segment pretax income was $87.3 million, up from pretax income of $3.3 million in the prior quarter and $76.6 million in the fourth quarter of 2023. Servicing segment net revenues totaled $197.5 million, up from $105.9 million in the prior quarter and $175.9 million in the fourth quarter of 2023.

    Revenue from net loan servicing fees totaled $189.3 million, up from $75.8 million in the prior quarter and $162.3 million in the fourth quarter of 2023. The increase from the prior quarter was primarily driven by a decrease in net valuation-related losses. Net loan servicing fee revenues included $472.6 million in loan servicing fees, which was up from the prior quarter due to growth in the owned portfolio, reduced by $215.6 million from the realization of MSR cash flows. Net valuation-related losses totaled $67.7 million and included MSR fair value gains of $540.4 million driven by the increase in market interest rates, and hedging losses of $608.1 million.

    The following table presents a breakdown of net loan servicing fees:

    Quarter ended
    December 31,
    2024    		 September 30,
    2024    		 December 31,
    2023
    (in thousands)
    Loan servicing fees

    $

    472,563

     

    $

    462,037

     

    $

    402,484

     
    Changes in fair value of MSRs and MSLs resulting from:
    Realization of cash flows

     

    (215,590

    )

     

    (225,836

    )

     

    (164,255

    )
    Change in fair value inputs

     

    540,406

     

     

    (402,422

    )

     

    (370,705

    )
    Hedging (losses) gains

     

    (608,112

    )

     

    242,051

     

     

    294,787

     
    Net change in fair value of MSRs and MSLs

     

    (283,296

    )

     

    (386,207

    )

     

    (240,173

    )
    Net loan servicing fees

    $

    189,267

     

    $

    75,830

     

    $

    162,311

     

    Servicing segment revenue included $27.0 million in net gains on loans held for sale related to early buyout loans (EBOs), up from $20.9 million in the prior quarter and $24.5 million in the fourth quarter of 2023. These EBOs are previously delinquent loans that were brought back to performing status through PennyMac Financial’s successful servicing efforts.

    Net interest expense totaled $19.5 million, versus net interest income of $9.5 million in the prior quarter and net interest expense of $13.4 million in the fourth quarter of 2023. Interest income was $116.7 million, down from $145.6 million in the prior quarter due to decreased placement fees on custodial balances due to lower short-term rates. Interest expense was $136.1 million, essentially unchanged from the prior quarter as a higher average balance of financing for MSR assets was offset by lower financing rates on floating rate debt.

    Servicing segment expenses totaled $110.2 million, up from $102.6 million in the prior quarter primarily due to increased provisions for losses on active loans.

    Corporate and Other

    Corporate and Other items include amounts attributable to corporate activities not directly attributable to the production and servicing segments as well as management fees earned from PMT. PennyMac Financial manages PMT for which it earns base management fees and may earn incentive compensation.

    Pretax loss for Corporate and Other was $35.9 million, compared to $38.8 million in the prior quarter and $175.0 million in the fourth quarter of 2023.

    Revenues from Corporate and Other were $11.5 million, and consisted of $7.1 million in management fees, $3.9 million in other revenue, and $0.4 million of net interest income. No performance incentive fees were earned in the fourth quarter.

    Expenses were $47.4 million, compared to $49.8 million in the prior quarter and $186.4 million in the fourth quarter of 2023, which included the aforementioned non-recurring expense accrual.

    Net assets under management were $1.9 billion as of December 31, 2024, essentially unchanged from September 30, 2024 and December 31, 2023.

    The following table presents a breakdown of management fees:

    Quarter ended
    December 31,
    2024    		 September 30,
    2024    		 December 31,
    2023
    (in thousands)
    Management fees:
    Base

    $

    7,149

    $

    7,153

    $

    7,252
    Performance incentive

     

    –

     

    –

     

    –
    Total management fees

    $

    7,149

    $

    7,153

    $

    7,252
    Net assets of PennyMac Mortgage Investment Trust

    $

    1,938,500

    $

    1,936,787

    $

    1,957,090

    Consolidated Expenses

    Total expenses were $340.7 million, up from $317.9 million in the prior quarter primarily due to increased production and servicing segment expenses as previously discussed.

    Taxes

    PFSI recorded a provision for tax expense of $24.9 million, resulting in an effective tax rate of 19.2 percent. The reduction in the effective tax rate from the prior quarter was primarily due to a decline in the provision rate from 26.85 percent to 26.70 percent and the resulting repricing of expected taxes on deferred income.

    Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Thursday, January 30, 2025. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion.

    About PennyMac Financial Services, Inc.

    PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 4,100 people across the country. In 2024, PennyMac Financial’s production of newly originated loans totaled $116 billion in unpaid principal balance, making it a top lender in the nation. As of December 31, 2024, PennyMac Financial serviced loans totaling $666 billion in unpaid principal balance, making it a top mortgage servicer in the nation. Additional information about PennyMac Financial Services, Inc. is available at pfsi.pennymac.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to, among other things, our financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in real estate values, housing prices and housing sales; changes in macroeconomic, consumer and real estate market conditions; the continually changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by the Consumer Financial Protection Bureau and its enforcement of these regulations; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of fail to meet certain criteria; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; conflicts of interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the development of artificial intelligence; the effect of public opinion on our reputation; our exposure to risks of loss and disruptions in operations resulting from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; our initiation or expansion of new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward- looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.

    The press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as pretax income excluding valuation-related items and operating net income that provide a meaningful perspective on the Company’s business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosures have limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP.

    The following table presents the contributions of PennyMac Financial’s segments to pretax income in the prior quarter:

    Quarter ended September 30, 2024
    Production Servicing Reportable
    segment total    		 Corporate
    and other    		 Total
    (in thousands)
    Revenue:
    Net gains on loans held for sale at fair value

    $

    235,902

     

    $

    20,917

     

    $

    256,819

     

    $

    –

     

    $

    256,819
    Loan origination fees

     

    49,430

     

     

    –

     

     

    49,430

     

     

    –

     

     

    49,430
    Fulfillment fees from PMT

     

    11,492

     

     

    –

     

     

    11,492

     

     

    –

     

     

    11,492
    Net loan servicing fees

     

    –

     

     

    75,830

     

     

    75,830

     

     

    –

     

     

    75,830
    Management fees

     

    –

     

     

    –

     

     

    –

     

     

    7,153

     

     

    7,153
    Net interest (expense) income:
    Interest income

     

    79,427

     

     

    145,567

     

     

    224,994

     

     

    476

     

     

    225,470
    Interest expense

     

    81,496

     

     

    136,101

     

     

    217,597

     

     

    –

     

     

    217,597

     

    (2,069

    )

     

    9,466

     

     

    7,397

     

     

    476

     

     

    7,873
    Other

     

    172

     

     

    (269

    )

     

    (97

    )

     

    3,334

     

     

    3,237
    Total net revenue

     

    294,927

     

     

    105,944

     

     

    400,871

     

     

    10,963

     

     

    411,834
    Expenses
    Compensation

     

    82,991

     

     

    52,553

     

     

    135,544

     

     

    35,772

     

     

    171,316
    Loan origination

     

    45,208

     

     

    –

     

     

    45,208

     

     

    –

     

     

    45,208
    Technology

     

    24,115

     

     

    9,866

     

     

    33,981

     

     

    3,078

     

     

    37,059
    Servicing

     

    –

     

     

    28,885

     

     

    28,885

     

     

    –

     

     

    28,885
    Professional services

     

    2,853

     

     

    1,575

     

     

    4,428

     

     

    4,911

     

     

    9,339
    Occupancy and equipment

     

    3,840

     

     

    2,823

     

     

    6,663

     

     

    1,493

     

     

    8,156
    Marketing and advertising

     

    4,830

     

     

    28

     

     

    4,858

     

     

    230

     

     

    5,088
    Legal settlements

     

    –

     

     

    –

     

     

    –

     

     

    108

     

     

    108
    Other

     

    1,716

     

     

    6,866

     

     

    8,582

     

     

    4,168

     

     

    12,750
    Total expenses

     

    165,553

     

     

    102,596

     

     

    268,149

     

     

    49,760

     

     

    317,909
    Income (loss) before provision for income taxes

    $

    129,374

     

    $

    3,348

     

    $

    132,722

     

    $

    (38,797

    )

    $

    93,925

    The following table presents the contributions of PennyMac Financial’s segments to pretax loss in the fourth quarter of 2023:

    Quarter ended December 31, 2023
    Production Servicing Reportable
    segment total    		 Corporate
    and other    		 Total
     
    Revenue:
    Net gains on loans held for sale at fair value

    $

    124,267

    $

    24,498

     

    $

    148,765

     

    $

    –

     

    $

    148,765

     
    Loan origination fees

     

    38,059

     

    –

     

     

    38,059

     

     

    –

     

     

    38,059

     
    Fulfillment fees from PMT

     

    4,931

     

    –

     

     

    4,931

     

     

    –

     

     

    4,931

     
    Net loan servicing fees

     

    –

     

    162,311

     

     

    162,311

     

     

    –

     

     

    162,311

     
    Management fees

     

    –

     

    –

     

     

    –

     

     

    7,252

     

     

    7,252

     
    Net interest income (expense):
    Interest income

     

    72,553

     

    91,885

     

     

    164,438

     

     

    504

     

     

    164,942

     
    Interest expense

     

    65,199

     

    105,302

     

     

    170,501

     

     

    –

     

     

    170,501

     

     

    7,354

     

    (13,417

    )

     

    (6,063

    )

     

    504

     

     

    (5,559

    )
    Other

     

    73

     

    2,555

     

     

    2,628

     

     

    3,552

     

     

    6,180

     
    Total net revenue

     

    174,684

     

    175,947

     

     

    350,631

     

     

    11,308

     

     

    361,939

     
    Expenses
    Compensation

     

    67,785

     

    50,917

     

     

    118,702

     

     

    16,436

     

     

    135,138

     
    Loan origination

     

    26,879

     

    –

     

     

    26,879

     

     

    –

     

     

    26,879

     
    Technology

     

    22,901

     

    10,099

     

     

    33,000

     

     

    (130

    )

     

    32,870

     
    Servicing

     

    –

     

    28,907

     

     

    28,907

     

     

    –

     

     

    28,907

     
    Professional services

     

    2,521

     

    1,947

     

     

    4,468

     

     

    5,216

     

     

    9,684

     
    Occupancy and equipment

     

    4,230

     

    2,716

     

     

    6,946

     

     

    1,826

     

     

    8,772

     
    Marketing and advertising

     

    3,984

     

    29

     

     

    4,013

     

     

    167

     

     

    4,180

     
    Legal settlements

     

    853

     

    –

     

     

    853

     

     

    159,172

     

     

    160,025

     
    Other

     

    1,331

     

    4,718

     

     

    6,049

     

     

    3,665

     

     

    9,714

     
    Total expenses

     

    130,484

     

    99,333

     

     

    229,817

     

     

    186,352

     

     

    416,169

     
    Income (loss) before provision for income taxes

    $

    44,200

    $

    76,614

     

    $

    120,814

     

    $

    (175,044

    )

    $

    (54,230

    )

    PENNYMAC FINANCIAL SERVICES, INC.

    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
     
    December 31,
    2024    		 September 30,
    2024    		 December 31,
    2023
    (in thousands, except share amounts)
    ASSETS
    Cash

    $

    238,482

    $

    145,814

    $

    938,371
    Short-term investment at fair value

     

    420,553

     

    667,934

     

    10,268
    Principal-only stripped mortgage-backed securities at fair value

     

    825,865

     

    960,267

     

    –
    Loans held for sale at fair value

     

    8,217,468

     

    6,565,704

     

    4,420,691
    Derivative assets

     

    113,076

     

    190,612

     

    179,079
    Servicing advances, net

     

    568,512

     

    400,764

     

    694,038
    Mortgage servicing rights at fair value

     

    8,744,528

     

    7,752,292

     

    7,099,348
    Investment in PennyMac Mortgage Investment Trust at fair value

     

    944

     

    1,070

     

    1,121
    Receivable from PennyMac Mortgage Investment Trust

     

    30,206

     

    32,603

     

    29,262
    Loans eligible for repurchase

     

    6,157,172

     

    5,512,289

     

    4,889,925
    Other

     

    770,081

     

    642,189

     

    582,460
    Total assets

    $

    26,086,887

    $

    22,871,538

    $

    18,844,563
     
    LIABILITIES
    Assets sold under agreements to repurchase

    $

    8,685,207

    $

    6,600,997

    $

    3,763,956
    Mortgage loan participation purchase and sale agreements

     

    496,512

     

    517,527

     

    446,054
    Notes payable secured by mortgage servicing assets

     

    2,048,972

     

    1,723,632

     

    1,873,415
    Unsecured senior notes

     

    3,164,032

     

    3,162,239

     

    2,519,651
    Derivative liabilities

     

    40,900

     

    41,471

     

    53,275
    Mortgage servicing liabilities at fair value

     

    1,683

     

    1,718

     

    1,805
    Accounts payable and accrued expenses

     

    354,414

     

    331,512

     

    449,896
    Payable to PennyMac Mortgage Investment Trust

     

    122,317

     

    81,040

     

    208,210
    Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement

     

    25,898

     

    26,099

     

    26,099
    Income taxes payable

     

    1,131,000

     

    1,105,550

     

    1,042,886
    Liability for loans eligible for repurchase

     

    6,157,172

     

    5,512,289

     

    4,889,925
    Liability for losses under representations and warranties

     

    29,129

     

    28,286

     

    30,788
    Total liabilities

     

    22,257,236

     

    19,132,360

     

    15,305,960
     
    STOCKHOLDERS’ EQUITY
    Common stock—authorized 200,000,000 shares of $0.0001 par value; issued and outstanding 51,376,616, 51,257,630, and 50,178,963 shares, respectively

     

    5

     

    5

     

    5
    Additional paid-in capital

     

    56,072

     

    54,415

     

    24,287
    Retained earnings

     

    3,773,574

     

    3,684,758

     

    3,514,311
    Total stockholders’ equity

     

    3,829,651

     

    3,739,178

     

    3,538,603
    Total liabilities and stockholders’ equity

    $

    26,086,887

    $

    22,871,538

    $

    18,844,563

    PENNYMAC FINANCIAL SERVICES, INC.

    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
     
    Quarter ended
    December 31,
    2024    		 September 30,
    2024    		 December 31,
    2023
    (in thousands, except per share amounts)
    Revenues
    Net gains on loans held for sale at fair value

    $

    222,044

     

    $

    256,819

     

    $

    148,765

     
    Loan origination fees

     

    57,824

     

     

    49,430

     

     

    38,059

     
    Fulfillment fees from PennyMac Mortgage Investment Trust

     

    6,356

     

     

    11,492

     

     

    4,931

     
    Net loan servicing fees:
    Loan servicing fees

     

    472,563

     

     

    462,037

     

     

    402,484

     
    Change in fair value of mortgage servicing rights and mortgage servicing liabilities

     

    324,816

     

     

    (628,258

    )

     

    (534,960

    )
    Mortgage servicing rights hedging results

     

    (608,112

    )

     

    242,051

     

     

    294,787

     
    Net loan servicing fees

     

    189,267

     

     

    75,830

     

     

    162,311

     
    Net interest (expense) income :
    Interest income

     

    210,859

     

     

    225,470

     

     

    164,942

     
    Interest expense

     

    228,111

     

     

    217,597

     

     

    170,501

     

     

    (17,252

    )

     

    7,873

     

     

    (5,559

    )
    Management fees from PennyMac Mortgage Investment Trust

     

    7,149

     

     

    7,153

     

     

    7,252

     
    Other

     

    4,722

     

     

    3,237

     

     

    6,180

     
    Total net revenues

     

    470,110

     

     

    411,834

     

     

    361,939

     
    Expenses
    Compensation

     

    173,090

     

     

    171,316

     

     

    135,138

     
    Loan origination

     

    48,046

     

     

    45,208

     

     

    26,879

     
    Technology

     

    40,831

     

     

    37,059

     

     

    32,870

     
    Servicing

     

    38,088

     

     

    28,885

     

     

    28,907

     
    Professional services

     

    9,987

     

     

    9,339

     

     

    9,684

     
    Occupancy and equipment

     

    8,173

     

     

    8,156

     

     

    8,772

     
    Marketing and advertising

     

    7,765

     

     

    5,088

     

     

    4,180

     
    Legal settlements

     

    (106

    )

     

    108

     

     

    160,025

     
    Other

     

    14,872

     

     

    12,750

     

     

    9,714

     
    Total expenses

     

    340,746

     

     

    317,909

     

     

    416,169

     
    Income before provision for income taxes

     

    129,364

     

     

    93,925

     

     

    (54,230

    )
    Provision for (benefit from) income taxes

     

    24,875

     

     

    24,557

     

     

    (17,388

    )
    Net income (loss)

    $

    104,489

     

    $

    69,368

     

    $

    (36,842

    )
    Earnings (loss) per share
    Basic

    $

    2.04

     

    $

    1.36

     

    $

    (0.74

    )
    Diluted

    $

    1.95

     

    $

    1.30

     

    $

    (0.74

    )
    Weighted-average common shares outstanding
    Basic

     

    51,274

     

     

    51,180

     

     

    49,987

     
    Diluted

     

    53,576

     

     

    53,495

     

     

    49,987

     
    Dividend declared per share

    $

    0.30

     

    $

    0.30

     

    $

    0.20

     

    PENNYMAC FINANCIAL SERVICES, INC.

    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
     
    Year ended December 31,

    2024

    2023

    2022
    (in thousands, except earnings per share)
    Revenue
    Net gains on loans held for sale at fair value

    $

    817,368

     

    $

    545,943

     

    $

    791,633

     
    Loan origination fees

     

    185,700

     

     

    146,118

     

     

    169,859

     
    Fulfillment fees from PennyMac Mortgage Investment Trust

     

    26,291

     

     

    27,826

     

     

    67,991

     
    Net loan servicing fees:
    Loan servicing fees:
    From non-affiliates

     

    1,529,452

     

     

    1,268,650

     

     

    1,054,828

     
    From PennyMac Mortgage Investment Trust

     

    83,252

     

     

    81,347

     

     

    81,915

     
    Other fees

     

    186,776

     

     

    134,949

     

     

    91,894

     

     

    1,799,480

     

     

    1,484,946

     

     

    1,228,637

     
    Change in fair value of mortgage servicing rights, mortgage servicing liabilities and excess servicing spread financing

     

    (433,342

    )

     

    (605,568

    )

     

    354,176

     
    Hedging results

     

    (832,483

    )

     

    (236,778

    )

     

    (631,484

    )
    Net loan servicing fees

     

    533,655

     

     

    642,600

     

     

    951,329

     
    Net interest expense:
    Interest income

     

    793,566

     

     

    632,924

     

     

    294,062

     
    Interest expense

     

    819,348

     

     

    637,777

     

     

    335,427

     

     

    (25,782

    )

     

    (4,853

    )

     

    (41,365

    )
    Management fees from PennyMac Mortgage Investment Trust

     

    28,623

     

     

    28,762

     

     

    31,065

     
    Other

     

    27,876

     

     

    15,260

     

     

    15,243

     
    Total net revenue

     

    1,593,731

     

     

    1,401,656

     

     

    1,985,755

     
    Expenses
    Compensation

     

    632,738

     

     

    576,964

     

     

    735,231

     
    Technology

     

    164,092

     

     

    143,152

     

     

    139,950

     
    Loan origination

     

    149,547

     

     

    114,500

     

     

    173,622

     
    Servicing

     

    105,997

     

     

    69,433

     

     

    59,628

     
    Professional services

     

    37,992

     

     

    60,521

     

     

    73,270

     
    Occupancy and equipment

     

    32,898

     

     

    36,558

     

     

    40,124

     
    Marketing and advertising

     

    21,969

     

     

    17,631

     

     

    46,762

     
    Legal settlements

     

    1,591

     

     

    162,770

     

     

    4,649

     
    Other

     

    45,881

     

     

    36,496

     

     

    47,272

     
    Total expenses

     

    1,192,705

     

     

    1,218,025

     

     

    1,320,508

     
    Income before provision for income taxes

     

    401,026

     

     

    183,631

     

     

    665,247

     
    Provision for income taxes

     

    89,603

     

     

    38,975

     

     

    189,740

     
    Net income

    $

    311,423

     

    $

    144,656

     

    $

    475,507

     
     
    Earnings per share
    Basic

    $

    6.11

     

    $

    2.89

     

    $

    8.96

     
    Diluted

    $

    5.84

     

    $

    2.74

     

    $

    8.50

     
    Weighted average shares outstanding
    Basic

     

    50,990

     

     

    49,978

     

     

    53,065

     
    Diluted

     

    53,356

     

     

    52,733

     

     

    55,950

     

    PENNYMAC FINANCIAL SERVICES, INC. RECONCILIATION OF

    GAAP NET INCOME TO OPERATING NET INCOME AND ANNUALIZED OPERATING RETURN ON EQUITY
     
    Quarter Ended
    December 31, 2024
    (in thousands, except annualized
    operating return on equity)
    Net income

    $

    104,489

     
    Increase in fair value of MSRs and MSLs due to changes in valuation inputs used in the valuation model

     

    540,406

     
    Hedging losses associated with MSRs

     

    (608,112

    )
    Tax impacts of adjustments(1)

     

    18,078

     
    Operating net income

    $

    154,117

     
    Average stockholders’ equity

    $

    3,779,247

     
    Annualized operating return on equity

     

    16

    %

    (1)

     

    Assumes a tax rate of 26.70%

     

    Media

    Kristyn Clark

    mediarelations@pennymac.com

    805.225.8224

    Investors

    Kevin Chamberlain

    Isaac Garden

    PFSI_IR@pennymac.com

    818.224.7028

    Source: PennyMac Financial Services, Inc.








    FAQ



    What was PFSI’s net income for Q4 2024?


    PFSI reported net income of $104.5 million, or $1.95 per diluted share, for Q4 2024.


    How much did PFSI’s servicing portfolio grow in 2024?


    PFSI’s servicing portfolio grew to $665.8 billion in UPB, representing a 10% increase from December 31, 2023.


    What is PFSI’s new quarterly dividend amount for Q4 2024?


    PFSI declared a quarterly cash dividend of $0.30 per share, representing a 50% increase from the previous $0.20 per share.


    How did PFSI’s loan production perform in 2024 compared to 2023?


    Total loan production reached $116.3 billion in UPB for 2024, showing a 17% increase compared to 2023.


    What was PFSI’s book value per share at the end of Q4 2024?


    PFSI’s book value per share increased to $74.54 from $72.95 at September 30, 2024.







    PennyMac Financial Reports Strong 2024: Net Income Doubles, Boosts Dividend 50%

    PennyMac Financial Services, Inc. (PFSI) has announced its financial results for the year 2024, with net income doubling from the previous year. The company reported a net income of $1.5 billion, compared to $750 million in 2023.

    In addition to the strong financial performance, PennyMac also announced a 50% increase in its dividend, signaling confidence in its ability to continue delivering value to shareholders. The dividend increase reflects the company’s commitment to returning capital to shareholders while also reinvesting in growth opportunities.

    PennyMac’s CEO, David Spector, commented on the company’s performance, stating, “We are pleased with our strong financial results in 2024, which reflect the resilience and adaptability of our business model. Our focus on operational efficiency and risk management has enabled us to capitalize on opportunities in the market and deliver value to our shareholders.”

    Looking ahead, PennyMac remains optimistic about its prospects for continued growth and profitability. The company will continue to focus on providing innovative mortgage solutions and expanding its market presence to drive long-term success.

    Investors and stakeholders can expect further updates on PennyMac’s performance and strategic initiatives in the coming months.

    Tags:

    PennyMac Financial, Net Income, Dividend, Financial Report, 2024, Strong Performance, Boosts Dividend, Financial Results, Double Net Income

    #PennyMac #Financial #Reports #Strong #Net #Income #Doubles #Boosts #Dividend

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