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Dec 31, 2022
SLM Q4 2022 Earnings Report
Sallie Mae's financial performance was marked by a net loss, driven by increased provisions for credit losses and a write-down of non-marketable equity securities, though net interest income and private education loan originations saw increases.
Key Takeaways
Sallie Mae reported a GAAP net loss attributable to common stock of $81 million, or $0.33 loss per share, for the fourth quarter of 2022. This was influenced by a $297 million provision for credit losses and a $60 million write-down of an investment. Despite the loss, net interest income increased by 4% and private education loan originations rose by 11%.
GAAP net loss was $77 million, a decrease of 125%.
Net interest income increased to $381 million, up 4%.
Private education loan originations grew to $819 million, an 11% increase.
The company repurchased 10 million shares of common stock.
Forward Guidance
For 2023, Sallie Mae anticipates diluted Non-GAAP “Core Earnings” per common share between $2.50 and $2.70, along with private education loan originations growth of 5% to 6%. They also project a total loan portfolio net charge-offs of $345 million to $385 million and non-interest expenses ranging from $610 million to $620 million.
Positive Outlook
- Full-year diluted Non-GAAP “Core Earnings” 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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