SLM Corp (NASDAQ: SLM) stock rose over 23.2% in the pre-market session of 23rd January, 2020 (Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19. the company’s assets Originated $5.6 billion in Private Education Loans in 2019 (+6% vs. 2018). the company’s Private Education Loan Portfolio grew 13% to $22.9 billion vs. 2018 The Average yield on Private Education Loans had increased 22 basis points to 9.32% in 2019. Overall the company has reported the net interest income was $1.6B, which is a 15% increase compared to 2018
SLM in the fourth quarter of FY 19 has reported the adjusted earnings per share of 33 cents, beating the analysts’ estimates for the adjusted earnings per share of 30 cents, according to analysts polled by FactSet. The company had reported the adjusted revenue growth of 9 percent to $419 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $419 million.
The company expects to sell approximately $3 billion in loans in 2020, dependent upon market conditions. It has been authorized to repurchase up to $600 million in common stock in 2020, under a new share repurchase program, which is effective immediately and expires on Jan. 21, 2022. For full year 2020, the company expects Diluted “Core Earnings” per share to be in the range of $1.85 – $1.91, Provisions for credit losses is expected to be in the range of $285 million – $305 million, Total portfolio net charge-offs is expected to be in the range of $275 million – $285 million, Private Education Loan originations growth to be of 6% and Non-interest expenses is expected to be in the range of $570 million – $580 million. Analysts polled by Thomson Reuters project the company to report profit per share to be of $1.32.
Meanwhile, the company’s total Risk-Based Capital Ratio was of 13.4% at December 31, 2019. Common Equity Tier 1 Risk-Based Capital Ratio was of 12.2% at December 31, 2019. The company had paid common stock dividend of $0.03 per share in Q4 2019. The company had Repurchased $167 million in common stock under the share repurchase program at an average price of $9.86 in 2019. The company has returned Total capital returned to common shareholders in 2019 of $218 million.