Sallie Mae Reports 6% Increase in Earnings per Share

By Chris Stiles • Friday, January 23 03:31 • Permanent Link

Sallie Mae (NASDAQ: SLM) released its fourth quarter and full-year 2025 financial results. The company reported a 6% increase in GAAP diluted earnings per common share for the full year 2025, coming in at $3.46. Notably, private education loan originations saw a growth of 12.8% from 2024. In 2025, Sallie Mae repurchased 12.8 million shares for $373 million, and the total net charge-offs as a percentage of average loans in repayment was 2.15%.

In the fourth quarter of 2025, Sallie Mae reported a 4% increase in GAAP diluted earnings per common share, reaching $1.12. Private education loan originations also saw a 4% growth compared to the fourth quarter of 2024. During this period, Sallie Mae repurchased 3.8 million shares for $106 million, and the total net charge-offs as a percentage of average loans in repayment (annualized) was 2.42%.

The company provided guidance for the full year 2026, expecting a 5.21% net interest margin for the fourth quarter of 2025, an increase of 29 basis points from the same period in 2024. Additionally, Sallie Mae anticipates a 34.6% efficiency ratio for the fourth quarter of 2025, marking a decrease from 38.5% for the fourth quarter of 2024.

Looking ahead, Sallie Mae forecasts GAAP diluted earnings per common share in the range of $2.70 to $2.80 for the full year 2026, with a projected 12% to 14% growth in private education loan originations year-over-year. The company also expects net charge-offs to fall within the range of $345 million to $385 million and non-interest expenses to be between $750 million and $780 million.

The company's board of directors approved a new $500 million share repurchase program, expected to be completed over the next approximately 24 months ending Feb. 4, 2028. This new program supplements the existing 2024 share repurchase program, which has a remaining capacity of $33 million as of December 31, 2025.

Sallie Mae's CEO, Jonathan Witter, expressed satisfaction with the company's performance in 2025, highlighting the expansion of originations, improvements in the net charge-off rate, and the return of capital to shareholders. Witter also expressed optimism for the future, citing recent reforms to the federal student loan program and the company's strategic partnerships. Today the company's shares have moved -0.52% to a price of $26.85. For the full picture, make sure to review SLM Corp's 8-K report.

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