SALLIE MAE REPORTS THIRD-QUARTER 2018 FINANCIAL RESULTS
Diluted Earnings Per Share Up 35 Percent From Year-Ago Quarter to $0.23
Private Education Loan Originations Increase 12 Percent From Year-Ago Quarter to $2.1 Billion
Provision for Private Education Loan Losses Declines 20 Percent From Year-Ago Quarter
Net Interest Income Increases 26 Percent From Year-Ago Quarter to $357 Million
NEWARK, Del., Oct 22, 2018 — Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released third-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 third-quarter 2018, the company increased its diluted earnings per share 35 percent to $0.23, grew its private education loan originations 12 percent to $2.1 billion, reduced its provision for private education loan losses 20 percent to $42 million, and increased its net interest income 26 percent to $357 million, all compared with the third quarter of 2017.
“Our continued focus on customer experience enhancements and application process efficiencies have resulted in another outstanding peak season with undergraduates, graduates, and parents selecting Sallie Mae to make the dream of higher education a reality,” said Raymond J. Quinlan, Chairman and CEO, Sallie Mae. “Strong brand perception, credit quality, and repayment performance are the foundation of our expanding franchise.”
For the third-quarter 2018, GAAP net income was $104 million, compared with $76 million in the year-ago quarter. GAAP net income attributable to the company’s common stock was $100 million ($0.23 diluted earnings per share) in the third-quarter 2018, compared with $73 million ($0.17 diluted earnings per share) in the year-ago quarter. The year-over-year increase was primarily attributable to a $75 million increase in net interest income and a $20 million decrease in income tax expense as a result of the reduction of the federal statutory corporate income tax rate from 35 to 21 percent, which were offset by a $15 million increase in provisions for credit losses, a $7 million increase in losses on derivatives and hedging activities, net, and a $34 million increase in total non-interest expenses.
Third-quarter 2018 results vs. third-quarter 2017 included:
Net interest income of $357 million, up 26 percent.
Net interest margin of 6.00 percent, up 15 basis points.
Private education loan originations of $2.1 billion, up 12 percent.
Average private education loans outstanding of $19.3 billion, up 19 percent.
Average yield on the private education loan portfolio was 9.16 percent, up 66 basis points.
Private education loan provision for loan losses was $42 million, down from $53 million.
Private education loans in forbearance were 3.4 percent of private education loans in repayment and forbearance, up from 3.2 percent.
Private education loan delinquencies as a percentage of private education loans in repayment were 2.3 percent, down from 2.6 percent.
Personal loan originations of $167 million and personal loan acquisitions of $109 million.
Average personal loans outstanding of $1.1 billion, up from $86 million.
Average yield on the personal loan portfolio was 11.03 percent, up 137 basis points.
Personal loan provision for loan losses was $26 million.
The following information was filed by Slm Corp (SLM) on Monday, October 22, 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: 0001628280-18-012761 Submitted to the SEC: Mon Oct 22 2018 5:21:35 PM EST Accepted by the SEC: Mon Oct 22 2018 Period: Sunday, September 30, 2018 Industry: Personal Credit Institutions