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Mar 31, 2025
SLM Q1 2025 Earnings Report
SLM reported strong net income growth and increased loan originations in Q1 2025.
Key Takeaways
Sallie Mae delivered a solid Q1 2025, with $301 million in net income and $656 million in revenue. EPS was strong at $1.40, supported by increased gains on loan sales and a stable credit performance amid macroeconomic caution.
Net income attributable to common stock reached $301 million.
Private education loan originations increased by 7% year-over-year.
EPS was $1.40, with gains on loan sales rising by $45 million YoY.
Company repurchased 1 million shares in Q1 2025 for $31 million.
Forward Guidance
SLM expects stable performance through 2025, supported by modest loan growth and improved charge-off metrics, though macroeconomic uncertainty remains a watchpoint.
Positive Outlook
- EPS guidance for 2025 is $3.00 to $3.10.
- Loan originations expected to grow 6% to 8%.
- Net charge-offs expected to remain within 2.0% to 2.2%.
- Continued stable credit performance projected.
- Share repurchase program has $372M capacity remaining.
Challenges Ahead
- Macroeconomic uncertainty continues to pose risks.
- Net interest margin declined YoY by 22 basis points.
- Increase in provision for credit losses from prior year.
- Slight increase in delinquencies YoY to 3.58%.
- Total interest income down slightly from Q1 2024.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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