Oct. 19 (Bloomberg) -- SLM Corp. reported earnings that exceeded analyst estimates after the student lender known as Sallie Mae increased loan originations and delinquency rates fell.
A net loss of $47 million, or 10 cents per share, compares with a net loss of $495 million, or $1.06, in the year-earlier period, the Newark, Delaware-based company said today in a statement distributed by Business Wire. SLM’s core earnings were $188 million, or 36 cents per share, from $202 million, or 37 cents per share in the year-ago period. Seven analysts surveyed by Bloomberg estimated an average of 35 cents.
Sallie Mae is overhauling its business after Congress passed legislation last year prohibiting private companies from originating government-backed loans, which had been 80 percent of its business. The lender originated $1.1 billion in student debt in the third quarter from $835 million in the same period of 2010, the company said. Late payments of 90 days or more fell to 5 percent from 5.7 percent.
The company has gained 5.9 percent this year. It fell 2.5 percent to $13.33 today.
--Editors: Pierre Paulden, Alan Goldstein
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