Q3 2024 SLM Corp Earnings Call Transcript
Key Points
- SLM Corp (SLM) experienced a successful peak season with a 13% growth in private education loan originations compared to the previous year.
- The company reported a 17% increase in committed volume, reflecting strong demand and effective market positioning.
- Credit performance showed sustained improvements, with net charge-offs for private education loans decreasing by 45 basis points year-over-year.
- SLM Corp (SLM) continued its capital return strategy by repurchasing 5.3 million shares and announced an increase in the fourth quarter dividend.
- The company maintained a solid liquidity position, ending the quarter with liquidity at 19.9% of total assets and a strong capital base with a total risk-based capital of 12.9%.
- SLM Corp (SLM) reported a GAAP net loss per common share of $0.23, primarily due to the allowance required for new commitments.
- Net interest margin (NIM) decreased to 5%, reflecting compression as funding rates caught up to asset yields.
- Total provision for credit losses increased to $271 million, driven by successful peak season volume.
- Private education loans delinquent 30 days or more increased to 3.6% of loans in repayment, indicating some pressure in early-stage delinquencies.
- Non-interest expenses rose to $172 million, slightly higher than the previous quarter, despite higher levels of originations.
Welcome to the Sallie Mae third quarter 2024 earnings conference call. (Operator Instructions) I would now like to turn the call over to Melissa Bronaugh, Head of Investor Relations. Please go ahead.
Thank you, Madison. Good evening, and welcome to Sallie Mae's third quarter 2024 earnings call. It is my pleasure to be here today with Jon Witter, our CEO; and Pete Graham, our CFO. After the prepared remarks, we will open the call for questions. Before we begin, keep in mind our discussion will contain predictions, expectations, and forward-looking statements.
Actual results in the future may be materially different from those discussed here due to a variety of factors. Listeners should refer to the discussion of those factors in the company's Form 10-Q and other filings with the SEC.
For Sallie Mae, these factors include, among others, results of operations, financial conditions and/or cash flows as well as any potential impacts of various external factors on our business. We
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