Sallie Mae Tops Q4 Earnings on Y/Y Rise in NII & Non-Interest Income

Sallie Mae SLM reported fourth-quarter 2025 earnings per share (EPS) of $1.12, which increased from 50 cents in the prior-year quarter. The metric topped the Zacks Consensus Estimate by 18.2%.The quarterly results benefited from a rise in net interest income (“NII”), lower provisions for credit losses and higher non-interest income, partially offset by an increase in expenses.The company’s GAAP net income attributable to common stock was $229 million compared with $107 million in the year-ago quarter. For 2025, EPS of $3.46 increased from $2.68 in 2024. The metric topped the Zacks Consensus Estimate by 18.2%. The company’s GAAP net income attributable to common stock was $729 million compared with $590 million in the year-ago quarter.Sallie Mae’s NII & Expenses RiseFourth-quarter NII totaled $377 million, up from $362 million in the prior-year quarter. The reported figure beat the Zacks Consensus Estimate by 0.4%. The quarterly net interest margin was 5.21%, expanding 29 basis points year over year.Full-year 2025 NII was $1.5 billion, up from $1.48 billion in 2024. The reported figure matched the Zacks Consensus Estimate.Quarterly non-interest income was $77 million, significantly higher than $28 million in the year-ago quarter.Non-interest expenses increased 4.7% year over year to $157 million.SLM’s Credit Quality MixedIn the fourth quarter, the company reported provision benefits of $19 million, in contrast to provisions of credit losses of $108 million in the prior-year quarter, primarily reflecting the release of reserves associated with loan sales.Net charge-offs for private education loans were $98 million, up from $95 million in the year-ago quarter.Private education loan net charge-offs, as a percentage of average loans in repayment (annualized), were 2.42%, marginally higher than 2.38% in the prior-year quarter.Sallie Mae’s Balance Sheet PositionAs of Dec. 31, 2025, deposits totaled $21.1 billion, relatively flat compared with the year-ago quarter.Private education loans held for investment, net, were $20.3 billion, down modestly from $20.9 billion in the prior-year quarter.In the reported quarter, private education loan originations increased 4% year over year to approximately $1.0 billion.SLM’s Share Repurchase UpdateIn the fourth quarter, SLM repurchased 3.8 million shares for $106 million.For the full-year 2025, the company repurchased 12.8 million shares for $373 million under its 2024 share buyback program.Final Thoughts on SLMSallie Mae delivered a strong fourth-quarter performance, driven by solid net interest income growth, higher non-interest income and a favorable provision for credit losses. Stable loan originations and continued capital return remain positives. However, elevated charge-off levels warrant close monitoring going forward.SLM Corporation Price, Consensus and EPS Surprise SLM Corporation price-consensus-eps-surprise-chart | SLM Corporation QuoteCurrently, SLM carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performances of Other BanksHancock Whitney Corp.’s HWC fourth-quarter 2025 earnings per share of $1.49 beat the Zacks Consensus Estimate by a penny. Further, the bottom line rose 6.4% from the prior year quarter.HWC’s results benefited from an increase in non-interest income and NII. Higher loans and deposits were another positive. However, higher expenses alongside increased provisions were headwinds. WaFd, Inc.’s WAFD first-quarter fiscal 2026 (ended Dec. 31) earnings of 79 cents per share beat the Zacks Consensus Estimate of 76 cents. The bottom line also jumped 46% year over year. WAFD’s results reflected higher NII, a surge in non-interest income and lower expenses. However, credit costs remained elevated, with provisions for credit losses recorded in the quarter.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SLM Corporation (SLM): Free Stock Analysis Report WaFd, Inc. (WAFD): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks