SLM Corp · Q4 2022 earnings

Briefing

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.

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.

Headline financials

Revenue & EPS history

For 2023, Sallie Mae anticipates diluted Non-GAAP “Core Earnings” 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.