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Jun 30, 2022

SLM Q2 2022 Earnings Report

Reported strong second-quarter results driven by a gain on sale of private education loans and positive trends in college enrollment and originations.

Key Takeaways

Sallie Mae reported a strong second quarter with GAAP net income of $340 million, up 144% year-over-year. The results were driven by a $240 million gain on the sale of $2.1 billion in private education loans. The company is raising its originations expectations and updating EPS and charge-off guidance.

GAAP net income of $342 million, up 144%, driven by a $240 million gain on sale of $2.1 billion private education loans.

Net interest income of $363 million, up 7%.

Private education loan originations of $616 million, up 16%.

Repurchased 20 million shares of common stock for $360 million.

Total Revenue
$363M
Previous year: $339M
+7.1%
EPS
$1.29
Previous year: $0.45
+186.7%
Cash and Equivalents
$3.65B
Previous year: $4.5B
-18.8%
Total Assets
$27.5B
Previous year: $28.9B
-4.9%

SLM

SLM

Forward Guidance

For 2022, Sallie Mae expects diluted non-GAAP ā€œCore Earningsā€ per common share of $2.50 - $2.70, Private Education Loan originations year-over-year growth of 9% - 11%, total loan portfolio net charge-offs of $325 million - $345 million, and non-interest expenses of $555 million - $565 million.

Positive Outlook

  • Full-year diluted non-GAAP ā€œCore Earningsā€ per common share of $2.50 - $2.70.
  • Full-year Private Education Loan originations year-over-year growth of 9% - 11%.
  • Full-year total loan portfolio net charge-offs of $325 million - $345 million.
  • Full-year non-interest expenses of $555 million - $565 million.