Sallie Mae posted a lower profit and declining net interest income in the second quarter, even as it said it is still seeing demand for private education loans.
The student loan lender Thursday reported a profit of $54.9 million, or 29 cents a share, compared with $67.3 million, or 32 cents a share, a year earlier. The lower profit was "consistent with expectations," the company said, adding that the profit represents continued private education loan demand.
Net interest income fell to $332.8 million from $376.8 million, while the net interest margin fell to 4.75% from 5.31%.
Analysts polled by FactSet anticipated earnings of 44 cents a share on $346.2 million in net interest income.
Shares in Sallie Mae fell 5.8% to $22.78 in after-hours trading on Thursday.
Private education loan originations rose 4.5% from the same period a year earlier.
The company reaffirmed its guidance for full-year earnings per share between $3.10 and $3.20.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
July 23, 2026 16:50 ET (20:50 GMT)
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