This post was originally published on this site.
This article first appeared on GuruFocus.
-
GAAP Diluted EPS (Q4 2025): $1.12
-
GAAP Diluted EPS (Full Year 2025): $3.46, up from $2.68 in 2024
-
Private Education Loan Originations (Q4 2025): $1.02 billion
-
Private Education Loan Originations (Full Year 2025): $7.4 billion, 6% increase over 2024
-
Net Charge-Offs (Q4 2025): $98 million
-
Net Charge-Offs (Full Year 2025): $346 million, representing 2.5% of average private education loans in repayment
-
Share Repurchases (Q4 2025): 3.8 million shares for $106 million
-
Share Repurchases (Full Year 2025): 12.8 million shares for $373 million
-
Net Interest Margin (Q4 2025): 5.21%
-
Net Interest Margin (Full Year 2025): 5.24%
-
Noninterest Expenses (Full Year 2025): $659 million, a 2.6% increase year over year
-
Efficiency Ratio (2025): 33.2%
-
Liquidity (End of Q4 2025): 18.6% of total assets
-
Total Risk-Based Capital (End of Q4 2025): 12.4%
-
Common Equity Tier 1 Capital (End of Q4 2025): 11.1%
Release Date: January 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
SLM Corp (NASDAQ:SLM) reported a successful year with a strong outlook for 2026, highlighting the robustness of the private student lending sector.
-
The company delivered its inaugural private credit strategic partnership, combining predictable earnings with capital efficiency and risk transfer benefits.
-
SLM Corp (NASDAQ:SLM) achieved a GAAP diluted EPS of $3.46 for the full year 2025, up from $2.68 in 2024, indicating strong financial performance.
-
The company repurchased 12.8 million shares for $373 million in 2025, demonstrating a commitment to returning capital to shareholders.
-
SLM Corp (NASDAQ:SLM) announced a new two-year $500 million share repurchase authorization, indicating confidence in its financial position and future prospects.
-
The company’s net charge-offs for private education loans were $346 million for the full year 2025, representing 2.5% of average loans in repayment.
-
Private education loans delinquent 30 days or more increased to 4% at the end of 2025, up from 3.7% at the end of 2024.
-
Noninterest expenses for the full year increased to $659 million, a 2.6% rise from 2024, reflecting higher costs.
-
SLM Corp (NASDAQ:SLM) anticipates private education loan portfolio growth to be flat to slightly negative in 2026 due to strategic partnership growth.
-
The company expects noninterest expenses to rise significantly in 2026, driven by onetime investments and higher marketing costs.
Q: Can you talk about how the postponement of wage garnishment and treasury offset will impact the performance of in-school and private student loans? A: Jonathan Witter, CEO, explained that while many customers have federal loans, most federal loan customers do not have Sallie Mae private student loans. The postponement is a net benefit for those with federal loans who are severely delinquent, but it is not expected to significantly impact Sallie Mae’s business due to the different customer bases.
Q: How should we think about modeling growth given the $5 billion opportunity from the grad price changes coming into effect in July? A: Peter Graham, CFO, noted that the incremental PLUS volume this year will be modest, as it will only affect new freshmen and graduate students starting in the fall. The growth is expected to increase measurably over the next two to three years until it reaches a steady state.
Q: What are the expected volumes for partnerships and loan sales in 2026, and how will they impact the numbers for the year? A: Peter Graham, CFO, stated that the first strategic partnership has a minimum commitment of $2 billion in new originations. Approximately 30% of originations will be designated for sale in the partnership, with seasonality affecting sales volumes. Seasoned portfolio sales will depend on capital needs and market conditions.
Q: Can you elaborate on the expected increase in noninterest expenses for 2026 and how you measure the ROI of those investment dollars? A: Jonathan Witter, CEO, emphasized that the investment is driven by a significant opportunity for growth due to the PLUS reform, which could increase originations by up to 70%. The company has strong governance around return measurement and expects marketing efficiency to improve over time as the program matures.
Q: How confident are you in the credit outlook for 2026, given the current job environment for new graduates? A: Peter Graham, CFO, expressed confidence in the loan modification program’s success, with 75% of the 2023 cohort current at year-end. Jonathan Witter, CEO, noted that while unemployment rates for new grads are slightly elevated, the company is well-prepared to support customers during the transition from school to employment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.