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Jun 30, 2020

SLM Q2 2020 Earnings Report

Reported a GAAP loss per share due to an increase in the provision for credit losses related to the estimated future economic impacts of COVID-19.

Key Takeaways

Sallie Mae reported second-quarter 2020 financial results, with a GAAP loss per share of $0.23. This loss was primarily driven by a $243 million increase to the provision for credit losses, which was allocated for the estimated future economic impacts of COVID-19. The company originated $497 million in private education loans during the quarter, and the private education loan portfolio totaled $19.8 billion at the end of the quarter.

Net interest income decreased by 12% to $349 million.

Private education loan originations decreased by 7% to $497 million.

Ending private education loans outstanding, net, decreased by 7% to $19.8 billion.

Private education loan provision for loan losses increased from $71 million to $229 million.

Total Revenue
$349M
Previous year: $397M
-12.1%
EPS
-$0.22
Previous year: $0.31
-171.0%
Net Interest Margin
4.55%
Cash and Equivalents
$4.99B
Previous year: $4B
+24.8%
Total Assets
$30.4B
Previous year: $29.6B
+2.8%

SLM

SLM

SLM Revenue by Segment

Forward Guidance

Due to economic uncertainties resulting from COVID-19, the company withdrew guidance for 2020 earlier in 2020.