Navient Corp

NAVI

Equity

ISIN US63938C1080 / Valor 24150322

NASDAQ (2024-12-24)

USD 13.52+2.11%

Navient Corp
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About company

Navient Corp, originally known as the Student Loan Marketing Association or "Sallie Mae," was established as a Government-Sponsored Enterprise (GSE) to facilitate the student loan program initiated by the Higher Education Act of 1965. The company has evolved from its initial role to become a major player in the servicing and management of student loans in the United States. Navient specializes in the administration and collection of student loans, offering a range of services to assist borrowers with loan repayment strategies, including loan consolidation, refinancing, and customized payment plans tailored to individual financial situations. Over the years, Navient has expanded its portfolio to include asset management and business processing solutions, catering to both government and private sector clients. Despite its diversification, the core of Navient's business remains focused on navigating the complexities of student loan servicing and providing support to borrowers aiming to manage and repay their educational debts.

Summarized from source with an LLMView SourceSector: Finance

Net Income

Navient Corp reported a GAAP net income of $36 million for the second quarter of 2024, translating to $0.32 diluted earnings per share. The company's Core Earnings stood at $33 million, or $0.29 diluted earnings per share.

Significant Items

The financial results for Navient Corp's second quarter of 2024 included a net reduction to pre-tax income of $35 million. This was primarily due to $16 million in restructuring expenses and $12 million in regulatory-related expenses, along with a $7 million write-off of loan premium due to FFELP Loan prepayments.

Federal Education Loans Segment

In the Federal Education Loans segment, Navient Corp achieved a net income of $28 million for the second quarter of 2024. The net interest margin for this segment was 0.36%, and the company successfully finalized a servicing outsourcing agreement with MOHELA.

Consumer Lending Segment

Navient Corp's Consumer Lending segment reported a net income of $60 million for the second quarter of 2024. The net interest margin for this segment was 2.89%, and the company originated $278 million in Private Education Loans during the quarter.

Capital & Funding

During the second quarter of 2024, Navient Corp repurchased $38 million of common shares and paid $17 million in common stock dividends. The company also issued $728 million of asset-backed securities and maintained a GAAP equity-to-asset ratio of 4.9%.

Summarized from source with an LLMView Source

Key figures

-29.3%1Y

-37.6%3Y

-2.94%5Y

Performance

27.9%1Y

35.5%3Y

46.8%5Y

Volatility