(Corrects analyst estimate for adjusted earnings per share in third paragraph of story published Jan. 16.)
SLM Corp. (SLM:US), the student lender known as Sallie Mae, reported a fourth-quarter profit decline of 22 percent.
Net income fell to $270 million, or 60 cents per share, compared with $348 million, or 74 cents, in the year-earlier period, the Newark, Delaware-based company said today in a statement distributed by Business Wire.
SLM’s earnings excluding items such as the market gains and losses of derivatives contracts was 75 cents a share, above the average estimate of 73 cents by six analysts (SLM:US) surveyed by Bloomberg.
Sallie Mae is remaking its business after legislation passed in 2010 cut companies out of the market for government-guaranteed debt. The lender is splitting into two firms, separating its education-loan arm from its consumer-lending unit.
Both companies will initially be owned by existing shareholders, according to a May 29 regulatory filing. SLM held about $104.6 billion of loans originated under the government’s Federal Family Education Loan Program as of Dec. 31, according to today’s statement.
Sallie Mae made $524 million in private education loans in the fourth quarter, a 2 percent increase, according to the statement. The lender matched its forecast of $3.8 billion of originations in 2013 and projects $4 billion this year.
The charge-off rate, or the percentage of loans that have been written off, was 2.9 percent, down from 4.2 percent a year ago, the company said. The proportion of payments more than 90 days late fell to 4.1 percent from 4.6 percent.
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