SLM SLM (SLM) Q3 FY26 earnings call
Sallie Mae delivered a strong operational quarter with record loan originations driven by significant growth in graduate loans and expanded its strategic funding model with a new partnership. However, the company adjusted its full-year outlook, raising net charge-off guidance due to specific third-party debt resolution issues and lowering EPS guidance after deciding to retain loans on its balance sheet rather than sell into unfavorable capital market conditions. This reflects a disciplined capital allocation approach amidst market volatility.
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SLM operating KPIs by quarter
| KPI | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | This call 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.