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Jun 30, 2023

SLM Q2 2023 Earnings Report

Second quarter GAAP net income attributable to common stock of $261 million, or $1.10 per diluted share.

Key Takeaways

Sallie Mae reported strong second-quarter results driven by a focus on maximizing the profitability of its core business. The company executed a successful loan sale and share buyback, and continued to innovate with the transaction with Scholly.

GAAP net income was $265 million, down 23% year-over-year.

Net interest income was $387 million, up 7% year-over-year.

Private education loan originations were $651 million, up 6% year-over-year.

The company repurchased 16 million shares of common stock in the second quarter of 2023.

Total Revenue
$387M
Previous year: $363M
+6.6%
EPS
$1.1
Previous year: $1.29
-14.7%
Net Interest Margin
5.52%
Private Ed Loan Originations
$651M
Cash and Equivalents
$3.88B
Previous year: $3.65B
+6.2%
Total Assets
$27.7B
Previous year: $27.5B
+0.8%

SLM

SLM

SLM Revenue by Segment

Forward Guidance

For 2023, Sallie Mae expects 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 5% - 6%, full-year total loan portfolio net charge-offs of $345 million - $385 million, and full-year non-interest expenses of $610 million - $620 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 5% - 6%.
  • Full-year total loan portfolio net charge-offs of $345 million - $385 million.
  • Full-year non-interest expenses of $610 million - $620 million.