The following is a summary of the SLM Corporation (SLM) Q1 2024 Earnings Call Transcript:
Financial Performance:
SLM Corporation reported an increase in GAAP diluted EPS of $1.27 in Q1 2024, a rise from $0.47 in the same period in 2023.
The company noted a 6% increase in loan originations, up to $2.6 billion in Q1 2024.
Net private education loan charge-offs decreased by 29 basis points from the last quarter of 2023 to $83 million, a figure better than anticipated.
Though the company recorded a decline in net interest income of 4%, generating $387 million in the first quarter of 2024.
There was a significant $2.1 billion loan sales execution, contributing to a gain of $143 million.
SLM Corporation continued with its stock buyback program, purchasing 1.3 million shares at an average cost of $20.32.
Business Progress:
SLM Corporation showed improved credit metrics during Q1 2024, maintaining a positive trend that had begun in 2023.
The company successfully reduced delinquency rates from 3.1% in Q1 2023 to 2.7% in Q1 2024.
There's a plan to sell more loans in 2024, with the volume and timing being guided by market conditions and balance sheet growth targets.
Due to a key competitor's recent market exit, growth opportunities are anticipated.
Reaffirmation of the 2024 guidance was done, owing to the positive performance trends.
The company's focus on its loan modification program resulting in reduced delinquencies.
With a more programmatic buyback program this year, additional opportunities are expected as the year progresses.
More details: SLM Corp IR
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