SALLIE MAE REPORTS SECOND-QUARTER 2018 FINANCIAL RESULTS
Diluted Earnings Per Share Up 60 Percent From Year-Ago Quarter to $0.24
Private Education Loan Originations Increase 13 Percent From Year-Ago Quarter to $487 Million
Provision for Private Education Loan Losses Declines 6 Percent From Year-Ago Quarter
Net Interest Income Increases 26 Percent From Year-Ago Quarter to $341 Million
NEWARK, Del., July 24, 2018 — Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released second-quarter 2018 financial results that include growth in diluted earnings per share and private education loan originations, a lower provision for private education loan losses, and increased net interest income. In the second-quarter 2018, the company increased its diluted earnings per share 60 percent to $0.24, grew its private education loan originations 13 percent to $487 million, reduced its provision for private education loan losses 6 percent to $46 million, and increased its net interest income 26 percent to $341 million, all compared with the second quarter of 2017.
“We enter this peak student loan processing season with customer experience enhancements that simplify the process for undergraduates, graduate students, and their parents, and a full product set to meet their needs,” said Raymond J. Quinlan, Chairman and CEO. “Our product diversification efforts continue as we seek to build long-term relationships with our customers and enhance franchise value.”
For the second-quarter 2018, GAAP net income was $110 million, compared with $71 million in the year-ago quarter. GAAP net income attributable to the company’s common stock was $106 million ($0.24 diluted earnings per share) in the second-quarter 2018, compared with $67 million ($0.15 diluted earnings per share) in the year-ago quarter. The year-over-year increase was primarily attributable to a $71 million increase in net interest income, which was offset by a $13 million increase in provisions for credit losses, and a $24 million increase in total non-interest expenses. The reduction of the federal statutory corporate income tax rate from 35 percent to 21 percent because of the tax cuts enacted in 2017 contributed approximately $21 million to net income and $0.05 diluted earnings per share.
Second-quarter 2018 results vs. second-quarter 2017 included:
Net interest income of $341 million, up 26 percent.
Net interest margin of 6.14 percent, up 23 basis points.
Private education loan originations of $487 million, up 13 percent.
Average private education loans outstanding of $18.8 billion, up 20 percent.
Average yield on the private education loan portfolio was 9.03 percent, up 70 basis points.
Private education loan provision for loan losses was $46 million, down from $49 million.
Private education loans in forbearance were 3.4 percent of private education loans in repayment and forbearance, up from 3.3 percent.
Private education loan delinquencies as a percentage of private education loans in repayment were unchanged at 2.2 percent.
Personal loan originations of $93 million and personal loan acquisitions of $277 million.
Average personal loans outstanding of $815 million, up from $61 million.
Average yield on the personal loan portfolio was 10.65 percent, up 137 basis points.
Personal loan provision for loan losses was $16 million.
The following information was filed by Slm Corp (SLM) on Tuesday, July 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: SLM CIK: 1032033 Form Type:10-Q Quarterly Report Accession Number: 0001628280-18-009560 Submitted to the SEC: Tue Jul 24 2018 4:34:15 PM EST Accepted by the SEC: Tue Jul 24 2018 Period: Saturday, June 30, 2018 Industry: Personal Credit Institutions