Fannie Mae reported Tuesday that it earned $924.9 million in the first quarter, 12.2% more than a year earlier. Per-share earnings rose 9%, to 88 cents

Franklin D. Raines, chairman and chief executive officer, said that the company issued $100 billion in mortgage-backed securities, and that its portfolio grew at an annual rate of 25%.

Lawrence M. Small, president and chief operating officer, attributed the earnings rise to higher net interest income and lower credit-related costs.

Net interest income rose 12%, to $1.2 billion, reflecting a $104 billion increase in the average net mortgage balance, he said. The balance rose because of an surge, beginning in last year's second quarter, in mortgage purchases.

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