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Sep 30
SLM Q3 2025 Earnings Report
Reported solid financial performance with higher net income and strong loan origination growth.
Key Takeaways
Sallie Mae (SLM) posted a strong Q3 2025 with GAAP net income of $132 million and diluted EPS of $0.63. Net interest margin improved to 5.18%, and private education loan originations grew to $2.9 billion, supported by disciplined expense management and credit performance improvements.
GAAP net income of $132 million, up significantly year-over-year.
Net interest margin expanded to 5.18%, reflecting improved funding efficiency.
Private education loan originations reached $2.9 billion, a 6% increase from last year.
Provision for credit losses declined due to loan sale-related reserve releases.
SLM
SLM
Forward Guidance
For full-year 2025, Sallie Mae expects GAAP diluted EPS of $3.20–$3.30, private education loan origination growth of 5–6%, total loan portfolio net charge-offs of 2.0–2.2%, and non-interest expenses between $655–$675 million.
Positive Outlook
- Guided for 5–6% year-over-year loan origination growth.
- Stable credit performance expected through 2025.
- Projected EPS growth to $3.20–$3.30 range.
- Maintains strong capital ratios and liquidity position.
- Continued focus on expense discipline and profitability.
Challenges Ahead
- Potential headwinds from higher funding costs.
- Expected net charge-offs between 2.0–2.2% could pressure margins.
- Macroeconomic uncertainty could affect origination volumes.
- Higher competition in private loan market may limit pricing flexibility.
- Regulatory and policy risks in student lending remain elevated.