Q4 2024 SLM Corp Earnings Call Transcript
Key Points
- SLM Corp (SLM) delivered strong results in 2024, with private education loan originations increasing by 10% over 2023, surpassing their revised guidance.
- The company achieved a GAAP diluted EPS of $2.68 for the full year, marking an 11.2% increase from 2023.
- Credit quality of originations improved, with cosigner rates increasing to 90% and average FICO scores rising to 752.
- Net charge-offs for private education loans decreased to 2.2% of average loans in repayment, down from 2.4% in 2023.
- SLM Corp (SLM) continued its capital return strategy, repurchasing 2 million shares in the fourth quarter and reducing shares outstanding by 52% since January 2020.
- The company finished the year $0.02 below its revised guidance range for 2024 full year GAAP diluted EPS due to pressure from originations growth.
- Net interest margin (NIM) for the full year was 5.19%, lower than previous quarters, due to funding rates catching up to asset yields.
- Private education loans delinquent 30 days or more increased slightly to 3.7% at the end of 2024 from 3.6% in the previous quarter.
- The provision for credit losses was $108 million in the fourth quarter, reflecting higher originations and commitment volumes than estimated.
- The company's guidance for 2025 suggests a lower origination growth rate of 6% to 8%, indicating potential challenges in maintaining the high growth seen in 2024.
Welcome to the Sallie Mae fourth-quarter and full-year 2024 earnings conference call.
(Operator Instructions)
I would now like to turn the call over to Melissa Bronaugh, Managing Vice President, Head of FP&A and Investor Relations. Please go ahead.
Thank you, Davin. Good evening, and welcome to Sallie Mae's Fourth Quarter and Full Year 2024 Earnings Call. It's 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-K 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
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