SLM Corp (NASDAQ: SLM) has reported the adjusted earnings per share of $0.10 in the fourth quarter of FY 17, missing the analysts’ estimates for the adjusted earnings per share of $0.19 as per Thomson Reuters. The company had reported the adjusted revenue growth of 26 percent to $309.19 million in the fourth quarter of FY 17. Overall, for the fourth-quarter 2017, the GAAP net income was $47 million, compared with $70 million in the year-ago quarter. In the fourth-quarter 2017, GAAP net income attributable to the company’s common stock was $44 million, compared with $65 million in the year-ago quarter. After adjusting the effect of the Tax Act, the core earnings growth was due to a 22-percent increase in the private education loan portfolio, an improved net interest margin, and operating efficiency improvements.

Moreover, in the fourth quarter of FY 17, the private education loan originations grew 4 percent to $634 million. In the 4Q 2017, the net interest income grew 26 percent to $309 million and net interest margin of 6.00 percent, up 45 basis points. The average private education loans outstanding grew 23 percent to $17.3 billion. The average yield on the private education loan portfolio was 8.61 percent, which is up 53 basis points. The private education loan provision for loan losses has increased to $49 million from $43 million. The private education loans in forbearance have increased to 3.7 percent of private education loans in repayment and forbearance from 3.5 percent. Private education loan delinquencies as a percentage of private education loans in repayment were 2.4 percent, which is up from 2.1 percent.

For the 2018, SLM expects full-year diluted core earnings per share to be in the range of $0.97 – $1.01, full-year private education loan originations to be $5.0 billion and full-year non-GAAP operating efficiency ratio is expected to be in the range of 37 percent – 38 percent. SLM has planned to make investments in 2018 which will accelerate the diversification of its consumer lending platform into the personal loan and credit card businesses. Further, the company will invest in several technology infrastructure projects, including migrating infrastructure to the cloud. These investments that the company will make total up to $30 million and are expected to add revenue and improve efficiency in future years.

SLM stock lost over  3.1% on Jan 18th, 2018 (as of 9:32AM EST; Source: Google Finance).