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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.

Total Revenue
$381M
Previous year: $367M
+3.9%
EPS
-$0.33
Previous year: $1.05
-131.4%
Net Interest Margin
5.37%
Previous year: 5.13%
+4.7%
Gross Profit
$381M
Cash and Equivalents
$4.62B
Previous year: $4.33B
+6.5%
Total Assets
$28.8B
Previous year: $29.2B
-1.4%

SLM

SLM

SLM Revenue by Segment

Forward Guidance

For 2023, Sallie Mae anticipates diluted Non-GAAP ā€œCore Earningsā€ 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 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income