SLM Corporation Announces consolidated Unaudited Financial Results for the Fourth Quarter and Year Ended December 30, 2012; Provides Earnings Guidance for the Year of 2012
January 16, 2013 at 09:15 pm
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SLM Corporation announced consolidated unaudited financial results for the fourth quarter and year ended December 30, 2012. For the quarter, the company reported total interest income of $1,426 million against $1,502 million a year ago. Net interest income was $832 million against $879 million a year ago. Income from continuing operations before income tax expense was $504 million against $795 million a year ago. Net income from continuing operations was $348 million or $0.74 per diluted share against $510 million $0.99 per diluted share a year ago. Net income attributable to common stock holders was $343 million $0.74 per diluted share against $506 million $0.74 per diluted share a year ago. The decrease in net income was primarily due to a $300 million decrease in net gains on derivative and hedging activities, a $47 million decline in net interest income and a $22 million increase in provisions for loan losses, which were partially offset by a $43 million increase in gains on debt repurchases and a $35 million decrease in losses on loans and investments, net. Core earnings for the quarter were $257 million ($0.55 diluted earnings per share), compared with $268 million ($0.51 diluted earnings per share) for the year-ago quarter.
For the year, the company reported total interest income of $5,769 million against $5,930 million a year ago. Net interest income was $3,208 million against $3,529 million a year ago. Income from continuing operations before income tax expense was $1,433 million against $927 million a year ago. Net income from continuing operations was $936 million or $1.90 per diluted share against $337 million $1.12 per diluted share a year ago. Net income attributable to common stock holders was $919 million $1.90 per diluted share against $615 million $1.18 per diluted share a year ago. The increase in net income was primarily due to a $331 million decrease in net losses on derivative and hedging activities, a $215 million decrease in provisions for loan losses, a $104 million decrease in operating expenses and a $107 million increase in gains on debt repurchases, which more than offset the $321 million decline in net interest income. Core earnings for the year were $1.06 billion ($2.16 per diluted earnings per share), compared with $977 million ($1.83 per diluted earnings per share) for 2011.
The company expects 2013 results to be at private education loan originations of at least $4 billion. Fully diluted 2013 core earnings per share of $2.30.
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Companyâs primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customersâ total finance charges. Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.
SLM Corporation Announces consolidated Unaudited Financial Results for the Fourth Quarter and Year Ended December 30, 2012; Provides Earnings Guidance for the Year of 2012