Slm Corporation · NASDAQ:SLM
Slm — Barclays Capital 2010 Global Financial Services Conference
9 slides from Slm's conference presentation, Sep 14, 2010
Slide 1: SLM Corporation Barclays Capital 2010 Global Financial Services Conference
SLM CORPORATION Barclays Capital 2010 Global Financial Services Conference 9/14/10
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS results to be materially different from those reflected in such forward looking statements These factors include among This Presentation contains forward-looking statements and information based on management’s current expectations as of the date of this presentation. Stat
Slide 3: Segment and Core Earnings Consolidated Statements of Income
SEGMENT AND “CORE EARNINGS” CONSOLIDATED STATEMENTS OF INCOME — (Dollars in millions) (Unaudited) Six Months Ended June 30, 2010 Total “Core Total Lending APG Other Earnings” Adjustments GAAP Interest Income: FFELP Stafford and Other Student Loans $598 $- $- $598 $10 $608 FFELP Consolidation Loans 7
Slide 4: Private Credit
PRIVATE CREDIT Volume Consumer deleveraging continues to impact the US economy 2010 Private student loan originations projected to be $2.2 Bn Portfolio Performance Delinquency trends signal improving portfolio performance 2010 provision expected to be $1.3 Bn Medium Term Outlook Continued improvemen
Slide 5: SLM Services Fee Income
SLM SERVICES FEE INCOME Six Months Ended June 30, 2010 $458 Million Loan Servicing including ED Servicing Contract Collections- Non Mortgage, $39 Largest collector of defaulted FFELP loans Other, $20 Saving For College, $58 Guarantor Servicing, $59 Contingency Collections, $168 Collecting on behalf
Slide 6: Operating Expense Reductions
OPERATING EXPENSE REDUCTIONS Continued need to align operating expenses with origination volume 2 of 5 major facilities recently closed Investments on system upgrades masking initial reductions Committed to reducing operating expenses by $300+ million by 2012 7
Slide 7: FFELP Portfolio Generates Significant Cash
FFELP PORTFOLIO GENERATES SIGNIFICANT CASH From FFELP Loan Portfolio Total Cash Flows from Projected Excess Spread = $9.0 Bn Total Cash Flows from Projected Servicing Revenues = $5.8 Bn From Trust Servicing Projected guarantor servicing revenues = $0.4 Bn Projected guarantor collection revenues = $0
Slide 8: Projected Cash Flows from FFELP Portfolio
PROJECTED CASH FLOWS FROM FFELP PORTFOLIO ($ in Millions) 2nd Half 2010 2011 2012 2013 2014 2015 2016 2017 Projected FFELP Average Balance $121,701 $113,758 $102,673 $92,342 $82,915 $74,750 $66,815 $59,271 Projected Excess Spread $454 $943 $878 $807 $718 $674 $606 $554 Projected Servicing Revenue $4
Slide 9: GAAP to Core Earnings Reconciliation
GAAP TO CORE EARNINGS RECONCILIATION ($in thousands, except per share amounts) Quarters Ended June 30, 2010 June 30, 2009 Dollars Diluted EPS Dollars Diluted EPS GAAP net income (loss) attributable to SLM Corporation Adjustment from GAAP to “Core Earnings” $337,818 $0.63 $(122,720) $(0.32 Net impact
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