SLM (SLM) Q3 2025 earnings summary

Executive summary

• Net income attributable to common stock was $132 million for Q3 2025, reversing a $50 million loss in Q3 2024, with diluted EPS of $0.63 and return on common equity of 24.3%.

• Private education loan originations reached $2.94 billion in Q3 2025, up 6% year-over-year, with graduate loan originations up 11% and average FICO at approval of 756.

• 5.6 million shares were repurchased at an average price of $29.45, reducing outstanding shares by 55% since 2020, with $138 million remaining under the repurchase program.

• Strong credit performance was reflected in lower net charge-offs and stabilization in late-stage delinquencies.

• GAAP net income for the nine months was $500 million, up from $483 million year-over-year.

Financial highlights

• Net interest income was $373 million, up $14 million year-over-year, with net interest margin at 5.18%.

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

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

• Gains on sales of loans were $136 million in Q3 2025, reflecting $1.94 billion in 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, reflecting the impact of designating loans as held for sale.

• Private education loan originations projected to grow 5%–6% year-over-year.

• Net charge-offs for the total loan portfolio expected at 2.0%–2.2% of average loans in repayment.

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

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