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Sep 30, 2022

SLM Q3 2022 Earnings Report

Reported a net income of $73 million and private education loan originations increased by 13 percent.

Key Takeaways

Sallie Mae reported third-quarter GAAP net income attributable to common stock of $73 million, or $0.29 per diluted share. Private education loan originations increased 13 percent from the year-ago quarter to $2.4 billion. The company completed $1.0 billion in private education loan sales during the quarter, resulting in a $75 million gain.

GAAP net income of $75 million, up 3%.

Net interest income of $370 million, up 3%.

Private education loan originations of $2.4 billion, up 13%.

Sold $1.0 billion in private education loans; there were no private education loans sales in the year-ago period.

Total Revenue
$370M
Previous year: $358M
+3.4%
EPS
$0.29
Previous year: $0.24
+20.8%
Net Interest Margin
5.27%
Previous year: 5.03%
+4.8%
Private Ed Loan Originations
$2.4B
Previous year: $2.1B
+14.3%
Cash and Equivalents
$4.85B
Previous year: $2.72B
+78.3%
Total Assets
$29.1B
Previous year: $28.8B
+1.2%

SLM

SLM

SLM Revenue by Segment

Forward Guidance

For 2022, the company expects full-year diluted non-GAAP ā€œCore Earningsā€ per common share of $2.50 - $2.60, 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, and full-year non-interest expenses of $555 million - $565 million.

Positive Outlook

  • Full-year diluted non-GAAP ā€œCore Earningsā€ per common share of $2.50 - $2.60.
  • 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.