Navient released lower first-quarter 2017 financial results and the purchase of JPMorgan Chase’s $6.9 billion education loan portfolio.
“With the acquisition of nearly $7 billion of education loans, we again demonstrate our capability to successfully execute large, complex transactions for the benefit of our customers and shareholders,” said Jack Remondi, CEO of Navient. “This transaction, combined with new business processing solutions contracts in the quarter, delivers on our business strategy to add significant assets to our portfolio and grow our fee businesses.”
For the first-quarter 2017, GAAP (Generally Accepted Accounting Principles) net income was $88 million, compared with $181 million for the year-ago quarter.
Core earnings for the quarter were $107 million compared with $147 million during the same period a year ago.
The decrease in diluted core earnings per share was primarily the result of an $82 million reduction in net interest income primarily due to the amortization of the portfolio, partially offset by a $4 million reduction in provisions for loan losses, a $5 million increase in fee revenue, a $9 million decrease in operating expenses, and fewer shares outstanding due to common share repurchases.
Navient reports core earnings because management makes its financial decisions based on such measures.
