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Dec 31, 2023

SLM Q4 2023 Earnings Report

Sallie Mae reported strong fourth-quarter results, driven by an increase in net income and strategic execution.

Key Takeaways

Sallie Mae reported a GAAP net income attributable to common stock of $164 million, or $0.72 per diluted share, for the fourth quarter of 2023. Private education loan originations reached $839 million, up 2% year-over-year. The company's board approved a new $650 million share repurchase program, reflecting a commitment to shareholder returns.

GAAP net income increased by 319% to $168 million.

Net interest income rose by 1% to $386 million.

Private education loan originations grew by 2% to $839 million.

Private education loan net charge-offs decreased from 3.15% to 2.43%.

Total Revenue
$386M
Previous year: $381M
+1.2%
EPS
$0.72
Previous year: -$0.33
-318.2%
Net Interest Margin
5.37%
Previous year: 5.37%
+0.0%
Cash and Equivalents
$4.15B
Previous year: $4.62B
-10.1%
Total Assets
$29.2B
Previous year: $28.8B
+1.2%

SLM

SLM

SLM Revenue by Segment

Forward Guidance

For 2024, Sallie Mae expects full-year diluted Non-GAAP ā€œCore Earningsā€ per common share of $2.60 - $2.70, full-year Private Education Loan originations year-over-year growth of 7% - 8%, full-year total loan portfolio net charge-offs of $340 million - $370 million, or 2.2% - 2.4% of average loans in repayment, and full-year non-interest expenses of $635 million - $655 million.

Positive Outlook

  • Full-year diluted Non-GAAP ā€œCore Earningsā€ per common share of $2.60 - $2.70.
  • Full-year Private Education Loan originations year-over-year growth of 7% - 8%.
  • Full-year total loan portfolio net charge-offs of $340 million - $370 million.
  • Full-year total loan portfolio net charge-offs of 2.2% - 2.4% of average loans in repayment.
  • Full-year non-interest expenses of $635 million - $655 million.