Sallie Mae reports stronger second quarter earnings

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Sallie Mae reported higher earnings in the second quarter.

The student lender, based in the Stanton-Christiana area south of Newark, has a customer service site in the New Castle area.

Shares of Sallie Mae were trading at $9.28 on Friday, off the 52-week high of more than $12.

“During the second quarter, we celebrated our five-year anniversary as a standalone bank and further diversified our consumer product offerings with the launch of a new credit card suite designed to help customers build their credit, said Raymond Quinlan, CEO. “Results of the quarter reflect strong originations and operating efficiency as we continue to leverage technology to innovate the experience for our customers. Students and their families are the focus of our work, and it’s gratifying that 91 percent of our customers complete their course of study and believe their college education opened opportunities they would not have had without it. We are proud that more families choose Sallie Mae over all other private student lenders combined, and as new families send their children to college, we are ready to assist them with market-leading products, rates, and service.”

There has been increasing concern about heavy student loan debt crippling the finances of borrowersfor decades.

As Quinlan noted, Sallie Mae became a student loan bank five years ago and spun off servicing and other operations to a publicly-traded company known as Navient. Navient is based in Wilmington.

Second Quarter 2019 highlights vs. second-quarter 2018 highlights

  • Private education loan originations totaled $532 million.
  • Second-quarter net income of $150 million, up from $110 million during the same period a year earlier.
  • Net interest income of $397 million, up 16 percent.
  • Private education loan originations of $532 million, up 9 percent.
  • Average private education loans outstanding of $21.7 billion, up 16 percent.
  • Private education loan provision for loan losses was $71 million, up from $46 million.
  • Private education loans in forbearance were 3.6 percent of private education loans in repayment and forbearance, up from 3.4 percent.
  • Private education loan delinquencies as a percentage of private education loans in repayment were 2.7 percent, up from 2.2 percent.
  • Personal loans outstanding of $1.1 billion, up 14 percent.
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