SLM Corporation Reports Mixed Q3 Results, Net Loss, and Strategic Developments

SLM Corporation (Sallie Mae) reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, total interest income was $653 million, a slight increase from $652 million in the same period of 2023. However, net interest income decreased to $359 million from $385 million, reflecting a 7% decline attributed to a 43-basis point decrease in net interest margin and a reduction in average Private Education Loans and FFELP Loans outstanding. The net income for the quarter was a loss of $45 million, compared to a profit of $29 million in the prior year, resulting in a basic loss per share of $0.23, down from earnings of $0.11.

For the nine months ended September 30, 2024, net income increased to $497 million from $413 million in 2023, with diluted earnings per share rising to $2.18 from $1.69. Total interest income for this period rose to $1.958 billion, up from $1.924 billion, while total non-interest income surged to $340 million from $190 million, marking a 79% increase.

The company’s total assets as of September 30, 2024, reached $30.013 billion, up from $29.169 billion at the end of 2023. Cash and cash equivalents also increased to $4.490 billion from $4.150 billion. However, total investments decreased to $2.192 billion from $2.558 billion, and long-term borrowings rose to $6.037 billion from $5.228 billion.

SLM Corporation executed two significant securitizations in 2024, raising approximately $1.536 billion in gross proceeds from the sale of Private Education Loans. The company recognized $255 million in gains from the sale of approximately $3.69 billion of Private Education Loans, compared to $128 million from $2.10 billion in the same period of 2023.

In terms of strategic developments, SLM Corporation repurchased 9.6 million shares of common stock for $204 million under its 2024 Share Repurchase Program. The company also declared dividends of $116 million for the third quarter, up from $100 million in the same period last year.

The provision for credit losses for the third quarter of 2024 was $109 million, significantly higher than $44 million in the same quarter of 2023, influenced by new loan commitments. The allowance for credit losses as of September 30, 2024, stood at $1.414 billion, reflecting a slight increase from $1.411 billion a year earlier.

Overall, SLM Corporation's financial performance in the third quarter of 2024 showed a mixed picture, with increased net income for the nine-month period but a notable loss in the most recent quarter, alongside strategic actions in share repurchases and loan sales.