Wed, Jul 24, 8:33 PM (45 days ago)
SLM Corporation's Q2 2024 financial performance showed a slight decline in net income attributable to common stock, totaling $247 million or $1.11 per diluted share, compared to $261 million or $1.10 per diluted share in Q2 2023. Key drivers included a $14 million decrease in net interest income due to a lower net interest margin and a decrease in average loan balances. Provisions for credit losses were $17 million, down from $18 million in Q2 2023, influenced by $103 million in negative provisions from loan sales and an improved economic outlook. The company recorded $112 million in gains from loan sales, down from $125 million in Q2 2023. Operating expenses increased slightly to $157 million, driven by higher personnel costs and FDIC fees. The effective tax rate decreased slightly to 25.6%. For the first six months of 2024, net income attributable to common stock was $533 million or $2.39 per diluted share, up from $375 million or $1.56 per diluted share in the same period of 2023, mainly due to higher gains on loan sales and lower provisions for credit losses. SLM executed significant loan sales and securitizations, totaling $3.69 billion in the first half of 2024, contributing to gains and improving liquidity. The company also repurchased 4.2 million shares for $89 million under its 2024 Share Repurchase Program. The allowance for credit losses was adjusted based on economic forecasts and portfolio characteristics, reflecting an improved economic outlook and changes in management overlays.