Slm Corporation · NASDAQ:SLM
Slm — Barclays Global Financial Conference 2020
13 slides from Slm's conference presentation, Sep 14, 2020
Slide 1: Barclays Global Financial Conference
Exhibit 99.1 Barclays Global Financial Conference September 14, 2020 Jonathan Witter, CEO 1
Slide 2: Forward-Looking Statements and Disclaimer
Forward-Looking Statements and Disclaimer Cautionary Note Regarding Forward-Looking Statements The following information is current as of September 14, 2020 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial re
Slide 3: Today's Discussion Points
Presented by: Today’s Discussion Points: • Sallie Mae is an outstanding franchise • Our business model’s resiliency has been proven while navigating the challenges from COVID-19 • Our investment thesis is simple • We have a clear strategy to create value Jonathan Witter CEO 3
Slide 4: Sallie Mae is an Outstanding Franchise
Sallie Mae is an Outstanding Franchise Sallie Mae is the market-leading brand for private education loans driven by brand recognition, rigorous underwriting methodology and industry-leading customer service. Top ranked and highly recognized brand 2,400+ actively managed university relationships Indu
Slide 5: Proven Resiliency During the COVID-19 Pandemic
Proven Resiliency During the COVID-19 Pandemic Credit Return to School3 And Originations4 • Forbearance as a % of loans in repayment and • 97% of our top schools have announced plans for forbearance has been reduced from the mid-teen the 2020/2021 Academic Year. peak in Q2 2020, to 5.72% on Aug. 31,
Slide 6: Simple But Powerful Investment Thesis
Simple But Powerful Investment Thesis Attractive • Consistent earnings growth is driven by top line growth and efficiency Earnings Profile • Sallie Mae is the leader in the private education loan market that is growing 6+% a year • Well-proven and disciplined underwriting model leveraging data and e
Slide 7: Clear Strategy to Ensure Appropriate Valuation
Clear Strategy to Ensure Appropriate Valuation Maximize the Optimize the value Maintain a rigorous Change the profitability and of our brand and and predictable narrative around growth of our core our attractive client capital allocation private student business base and return program lending to ad
Slide 8: Maximize the Profitability and Growth of the Core Business
Maximize the Profitability and Growth of the Core Business Maximize Revenue Manage Unit Costs Drive penetration at all schools Strong fixed cost discipline Increase market share by fully meeting Efficiency effectiveness across all areas student funding needs We will focus on top- Enhanced risk-adjus
Slide 9: Optimize the Value of the Brand and Attractive Client Base
Optimize the Value of the Brand and Attractive Client Base % 2M 91 We know our customers’ finances, Borrowers and Customers complete payment patterns, indebtedness cosigners their program We have the relationship and knowledge Graduates who benefit from the investment5 to assist our customers with t
Slide 10: Maintain Rigorous Capital Allocation and Return Program
Maintain Rigorous Capital Allocation and Return Program Invest in High ROE Growth Share Repurchase • Continue to focus on high-quality Private • Completed 2019 share repurchase Education Loan originations, including program in Q1 2020 deeper penetration of graduate school market • $3.1B in Private E
Slide 11: Changing the Narrative
Changing the Narrative In the current political narrative regarding student loan reform, there have been three main areas of focus that include free college, debt forgiveness and bankruptcy reform. We expect our business to perform well even under leading reform proposals. Free College Debt Forgiven
Slide 12: Executing This Strategy Supports Our Investment Thesis
Executing This Strategy Supports Our Investment Thesis Enhances our Attractive Maximize the Optimize the value Earnings Profile profitability and of our brand and growth of our core our attractive client business base Reduces Real and Perceived Risk We have a proven Maintain a rigorous Change the bu
Slide 13: Footnotes
Footnotes 1. J.D. Power 2019 Certified Customer Service Program recognition is based on successful completion of an evaluation and exceeding a customer satisfaction benchmark through a survey of recent servicing interactions. For more information, visit www.jdpower.com/ccc. 2. Source: MeasureOne CBA