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Jun 30, 2021

SLM Q2 2021 Earnings Report

Reported GAAP net income attributable to common stock of $139 million and core earnings attributable to common stock of $144 million.

Key Takeaways

Sallie Mae reported a strong second quarter in 2021, with GAAP net income of $139 million, or $0.44 per diluted share, and core earnings of $144 million, or $0.45 per diluted share. The company originated $533 million in private education loans and repurchased 23 million shares of common stock, reducing the total common stock outstanding by 19% since the beginning of the year.

GAAP net income of $140 million, up 265%.

Net interest income of $339 million, down 3%.

Private education loan originations of $533 million, up 7%.

Repurchased $439 million of common stock under share repurchase programs.

Total Revenue
$339M
Previous year: $349M
-2.9%
EPS
$0.45
Previous year: -$0.22
-304.5%
Net Interest Margin
4.7%
Previous year: 4.55%
+3.3%
Cash and Equivalents
$4.5B
Previous year: $4.99B
-9.9%
Total Assets
$28.9B
Previous year: $30.4B
-4.9%

SLM

SLM

SLM Revenue by Segment

Forward Guidance

For 2021, the company expects diluted GAAP earnings per common share of $3.15 - $3.25, Private Education Loan originations year-over-year growth of 6% - 7%, total loan portfolio net charge-offs of $215 million - $225 million, and non-interest expenses of $525 million - $535 million.

Positive Outlook

  • Full-year diluted GAAP earnings per common share of $3.15 - $3.25.
  • Full-year Private Education Loan originations year-over-year growth of 6% - 7%.
  • Full-year total loan portfolio net charge-offs of $215 million - $225 million.
  • Full-year non-interest expenses of $525 million - $535 million.