SLM SLM (SLM) Q2 FY26 earnings call
Sallie Mae delivered strong Q2 FY26 results, marked by robust loan originations and improved credit quality in new loans, alongside successful loan modification programs. The company is actively preparing for the federal PLUS reform opportunity, with early indicators for new products exceeding expectations. While navigating increased net charge-offs due to changes in recovery strategies, management remains confident in the portfolio's underlying health and expects margin expansion in the second half of the year.
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SLM operating KPIs by quarter
| KPI | Mar 2026 Q1 FY26 | This call Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Common equity tier 1 ratio (CET1) | 12.4%Total risk-based capital was 13.7%, and common equity Tier 1 capital was 12.4%.Source: earnings call transcript | 11.8%At the end of the second quarter, total risk-based capital was 13.1% and common equity Tier 1 capital was 11.8%.Source: earnings call transcript | 11.2%Total risk-based capital was 12.5% and common equity Tier 1 capital was 11.2%.Source: earnings call transcript | -0.6 pt |
| Efficiency ratio | 30.6%This increase primarily reflects targeted investments to support growth particularly across our graduate lending programs, while maintaining a strong efficiency ratio of 30.6% for the quarter.Source: earnings call transcript | 48.6%Importantly, revenue growth from servicing and recurring program management fees more than offset a significant portion of these investments, resulting in an efficiency ratio of 48.6%, an increase of just 7 percentage points year-over-year.Source: earnings call transcript | — | +18 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.