Mr. Cooper Group Inc (COOP, Financial) released its Q3 2023 earnings report on October 25, 2023, revealing a strong financial performance. The company reported a total net income of $275 million, equivalent to a return on common equity (ROCE) of 26.2%. The Servicing segment recorded a pretax income of $361 million, contributing significantly to the overall performance.
Performance Highlights
Mr. Cooper Group Inc (COOP, Financial) reported a book value per share and tangible book value per share of $65.38 and $62.78 respectively. The company's Servicing unpaid principal balance (UPB) grew by 10% year-over-year to $937 billion, establishing Mr. Cooper as the nation's largest servicer. The company also repurchased 1.0 million shares of common stock for $58 million and successfully closed acquisitions of Home Point Capital and Roosevelt Management Company.
Chairman and CEO Jay Bray commented, “Our impressive performance, highlighted by rising return on equity, strong book value per share growth, robust capital, and record liquidity, reflects the strength of our balanced business model. With our servicing portfolio now at $937 billion, Mr. Cooper’s consistent track record of growth has propelled us to the nation’s leading servicer, one step closer to achieving our $1 trillion target.”
Financial Tables Summary
The company's unaudited condensed consolidated statements of operations showed a total revenue of $574 million for the three months ending September 30, 2023, compared to $486 million for the three months ending June 30, 2023. Net income for the same periods stood at $275 million and $142 million respectively. The unaudited condensed consolidated balance sheets revealed total assets of $13,427 million as of September 30, 2023, compared to $13,144 million as of June 30, 2023.
Future Outlook
Despite the strong performance, the company disclosed that Vice Chairman and President Chris Marshall plans to retire by the end of 2024. The company has initiated a search process to identify his successor. As Mr. Cooper Group Inc (COOP, Financial) continues to focus on operational excellence and strategic initiatives, it is well-positioned to drive higher returns and sustained growth into the future.
