Dec 31, 2020

SLM Q4 2020 Earnings Report

Reported GAAP net income attributable to common stock and core earnings net income attributable to common stock.

Key Takeaways

Sallie Mae reported a GAAP Net Income Attributable to Common Stock of $431 million, or $1.13 per diluted share, and a “Core Earnings” Net Income Attributable to Common Stock of $440 million, or $1.15 per diluted share for Q4 2020.

Net interest income of $367 million, down 13%.

Private education loan originations of $627 million, down 13%.

Private education loan provisions for credit losses was $(353) million, down from $82 million.

Reserve release of $206 million as a result of transferring $2.9 billion of loans to held-for-sale in Dec. 2020, in anticipation of Jan. 2021 sale; equivalent to $0.41 diluted earnings per common share for the full-year 2020.

Total Revenue
$367M
Previous year: $419M
-12.5%
EPS
$1.15
Previous year: $0.33
+248.5%
Net Interest Margin
4.82%
Previous year: 5.41%
-10.9%
Cash and Equivalents
$4.46B
Previous year: $5.56B
-19.9%
Total Assets
$30.8B
Previous year: $32.7B
-5.9%

SLM

SLM

SLM Revenue by Segment

Forward Guidance

For 2021, the company expects the following:

Positive Outlook

  • Full-year diluted GAAP earnings per common share of $2.20 - $2.40.
  • Full-year Private Education Loan originations year-over-year growth of 6% - 7%.
  • Full-year total loan portfolio net charge-offs of $260 million - $280 million.
  • Full-year non-interest expenses of $525 million - $535 million.