Wilmington-based Navientreported higher earnings in the third quarter.
Share prices rose more than 6 percent on Tuesday after earnings exceededforecasts.
Generally Accepted Accounting Principles’ net income was $145 million compared to $114 million during the same period a year earlier.
CEO Jack Remondi stated, “Navient delivered outstanding results for the quarter. Our performance included contributions across all business segments and demonstrates the potential of our business strategy. We delivered an 18 percent return-on-equity, on higher net interest margins, record quarterly loan originations, continued strength in credit and higher business processing margins. We are exceeding all of our financial targets and I am looking forward to a strong finish in the fourth quarter.”
Navient announced that its Board of Directors approved a new share repurchase program for up to$1 billionof the company’s outstanding common stock.
“This new share repurchase program demonstrates our ongoing ability to generate capital and our commitment to return excess capital to our shareholders,” said Remondi. “We are focused on maintaining appropriate leverage that supports our credit ratings and enhances ongoing access to financing. And our capital return policy is consistent with this objective.”
Navient services student loans and offers business processing solutions.
Stock in the company has been affected by continuing legal actions related to its student loan collection practices. The company has defended its actions, noting that delinquencies are below industry averages.