Sallie Mae Loan Portfolio and Originations Rise
October 21 2015 - 9:20PM
Dow Jones News
SLM Corp., known as Sallie Mae, posted higher third-quarter net
interest income as its private education loan portfolio grew 38% to
$10.8 billion, while originations of such loans increased 6% to
$1.7 billion.
The company expects full-year core earnings of 58 cents a share,
the midpoint of previous guidance, and reaffirmed its guidance for
private education loan originations of $4.3 billion.
Core earnings adjust for hedging and derivatives.
Sallie Mae was created in 1973 as a government-sponsored
enterprise, the former Student Loan Marketing Association. Last
year, it was split into two firms: an education-loan manager known
as Navient Corp. and a consumer-banking operation that continued
under the Sallie Mae brand.
For the quarter ended Sept. 30, Sallie Mae earned $40.8 million,
or nine cents a share, compared with $78.1 million, or 18 cents a
share, a year earlier. Year-over-year comparisons reflect a large
gain on loan sales in the 2014 quarter.
Core earnings fell to 10 cents a share from 17 cents a share.
Analysts polled by Thomson Reuters projected 10 cents a share.
Net interest income rose 22% to $175 million.
MeasureOne, which tracks student loans, said in a June report
that private-student-loan lenders provided $6.7 billion to enrolled
undergraduate and graduate students in the first three-quarters of
the 2014-2015 academic year, up 7.4% from a year earlier. The firm
said loan losses continued to fall amid tighter underwriting
standards.
Navy Federal Credit Union, the largest U.S. credit union by
assets, began offering private student loans earlier this year.
Wells Fargo & Co., the second-largest private student lender by
origination volume behind SLM, has also been moving to increase
originations.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 21, 2015 21:05 ET (01:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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