Fannie Mae, the nation's largest purchaser of home loans, on Thursday reported second-quarter net income of $752.7 million, 12.7% more than a year earlier.

Earnings per share, at 69 cents, were in line with analysts' estimates.

First-half net income was $1.49 billion, up 12.5%.

"Selective repurchases of common shares provided an additional element of support to earnings-per-share growth during the quarter," said James A. Johnson, chairman and chief executive officer.

The company bought back 11.7 million shares of common stock in the quarter and 16.9 million in the half.

Fannie Mae was holding $297 billion of loans at midyear, 2.1% more than on March 31 and 10.4% more than at midyear 1996.

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