SLM (SLM) investor relations material

Executive summary

• GAAP diluted EPS was $0.63 in Q3 2025, reversing a prior year loss, with net income of $132 million and 6% year-over-year growth in private education loan originations to $2.94 billion.

• Graduate loan originations rose 11% year-over-year, and average FICO at approval was 756, with 94.5%–95% of new loans cosigned.

• Return on common equity reached 24.3% and return on assets was 1.9% for Q3 2025.

• Completed $1.9–$1.94 billion in loan sales, generating $136 million in gains and releasing $119 million in provisions, and repurchased 5.6 million shares at an average price of $29.45–$29.47.

• Maintained optimism for long-term private student lending growth and strategic positioning for Plus Reform opportunities.

Financial highlights

• Net interest income for Q3 2025 was $373 million, up $14 million year-over-year, with net interest margin at 5.18%, 18 basis points higher than the prior year.

• Provision for credit losses dropped to $179 million from $271 million, aided by a $119 million provision release from loan sales.

• Non-interest expenses were $180 million, up from $171–$172 million in Q3 2024, aligning with full-year outlook.

• Total non-interest income increased to $173 million, driven by gains on loan sales.

• Return on assets was 1.9% for Q3 2025.

Outlook and guidance

• Full-year 2025 GAAP diluted EPS expected between $3.20 and $3.30, with 5%–6% origination growth and net charge-offs projected at 2.0%–2.2% of average loans in repayment.

• Non-interest expenses for 2025 forecasted at $655 million–$675 million.

• All other 2025 outlook elements, including originations growth, net charge-offs, and non-interest expense, are reaffirmed.

• Anticipates launching a multi-year partnership to drive fee-based revenues and expects to sell additional loan portfolios in Q4 or early 2026.

• Liquidity is expected to remain strong through 2025, with a significant buffer of cash and liquid investments.