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Sallie Mae sees net income decrease YOY in Q4'16

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Sallie Mae sees net income decrease YOY in Q4'16

Sallie Mae reported fourth-quarter 2016 net income attributable to common stock of $64.7 million, or 15 cents per share, compared with $84.9 million, or 20 cents per share, in the year-ago quarter.

The decrease was related to a $58 million decrease in gains on sales of loans, net, and $13 million increases in both provision for credit losses and total noninterest expenses, offset by a $58 million increase in net interest income and a $12 million decrease in income tax expense.

Fourth-quarter 2016 core earnings attributable to common stock were $67.4 million, or 15 cents per share, compared with $84.6 million, or 20 cents per share, in the year-ago period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 14 cents.

The private education loan portfolio totaled $14.06 billion in the fourth quarter of 2016, up from $10.58 billion in the fourth quarter of 2015. Delinquencies as a percentage of private education loans in repayment were 2.1%, down from 2.2% a year ago.

Deposits at Sallie Mae Bank totaled $13.4 billion as of Dec. 31, 2016, compared with $11.5 billion as of Dec. 31, 2015.

For the full year 2016, the company posted net income attributable to common stock of $229.1 million, or 53 cents per share, compared with $254.7 million, or 59 cents per share, in 2015. Core earnings attributable to common stock for the year were $231.1 million, or 53 cents per share, compared with $253.6 million, or 59 cents per share, in the previous year.

The S&P Capital IQ consensus normalized EPS estimate for 2016 was 52 cents.

For the full year 2017, Sallie Mae expects to report core EPS of between 67 cents and 69 cents. The company also expects full-year private education loan originations of $4.9 billion.

The S&P Capital IQ consensus normalized EPS estimate for 2017 is 68 cents.