SLM Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the Full Year 2016; Announces Unaudited Consolidated Net Charge-Offs for the Fourth Quarter Ended December 31, 2015
January 20, 2016 at 04:30 pm
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SLM Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, the company reported net interest income of $187,846,000 compared to $150,676,000 a year ago. Income before income tax expense was $144,760,000 against $44,182,000 a year ago. Net income attributable to the company common stock was $84,856,000 against $14,862,000 a year ago. Diluted earnings per share were $0.20 against $0.03 a year ago. The year-over-year increase was primarily attributable to a $37-million increase in net interest income, a $58-million increase in gains on sales of loans, and a $4-million decrease in total expenses, which were offset by a $30-million increase in income tax expense. Core earnings attributable to the company common stock were $84,632,000 or $0.20 per diluted share against $14,900,000 or $0.03 per diluted share a year ago. Return on assets was 2.49% against 0.62% a year ago. Return on equity in the quarter was 22.5%, compared with 11.7% in third quarter 2015 and 4.7% in the year-ago quarter.
For the full year, the company reported net interest income of $702,499,000 compared to $578,479,000 a year ago. Income before income tax expense was $439,064,000 against $333,752,000 a year ago. Net income attributable to the company common stock was $254,689,000 against $181,286,000 a year ago. Diluted earnings per share were $0.59 against $0.42 a year ago. Core earnings attributable to the company common stock were $253,551,000 or $0.59 per diluted share against $182,373,000 or $0.42 per diluted share a year ago. Return on assets was 2.04% against 1.68% a year ago. Full year return on common equity was 18.3% compared to 15.2% in 2014.
The company provided earnings guidance for the full year 2016. For the period, the company expected diluted core earnings per share between $0.49 and $0.51, $4.6 billion in originations and an improvement in the operating efficiency ratio of 8% to 10%. The tax rate will continue to be around 39%.
For the quarter, the company's net charge-offs was $18,380,000 against $9,847,000 a year ago.
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 Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the Full Year 2016; Announces Unaudited Consolidated Net Charge-Offs for the Fourth Quarter Ended December 31, 2015