SLM (SLM) investor relations material

Executive summary

• Q2 2026 delivered GAAP net income attributable to common stock of $55 million ($0.29 per diluted share), down from $67 million in Q2 2025, driven by lower net interest income and higher operating expenses.

• Private Education Loan originations reached $716 million, up 4.5% year-over-year, with graduate loan originations up 29% and market share increasing by 1.7% sequentially.

• Product suite expansion included new medical, dental, and parent loans, driving significant growth in applications across segments.

• Maintained preferred lender status with over 2,100 schools and continued focus on credit quality and loss mitigation.

• Strategic actions included $420 million in loan sales, $500 million in new unsecured Senior Notes issuance, and a $200 million accelerated share repurchase.

Financial highlights

• Net interest income was $333 million, down from $377 million in Q2 2025; total non-interest income rose to $68 million from $27 million year-over-year.

• Net charge-offs were $113 million, up from $94 million YoY, attributed to third-party debt resolution practices.

• Provision for credit losses was $126 million, down from $149 million YoY.

• Non-interest expenses increased to $195 million, mainly due to investments in product enhancements and higher personnel, marketing, and technology costs.

• Net interest margin was 4.75%, down from 5.31% in Q2 2025.

Outlook and guidance

• Full-year 2026 diluted EPS expected between $3.10 and $3.20.

• Private Education Loan originations projected to grow 12%–14% year-over-year.

• Net charge-off guidance narrowed to $365–$385 million for 2026, reflecting adjusted recovery practices.

• Non-interest expenses forecasted at $750–$780 million for the year.

• Efficiency ratio expected to improve as investments normalize and fee-based revenue grows.