Sallie Mae: Pre-2Q26 Update

研报英文原文证据摘录

Sallie Mae: Pre-2Q26 Update

Deutsche Bank

Research

Rating Company Date

Buy Sallie Mae 9 July 2026

North America Reuters Bloomberg Rating Buy

United States SLM.OQ SLM US Price target (USD) 32.00 Price at 8 Jul 26 23.90

52-week range 34.40 – 18.74

Financial

Consumer Finance Valuation & Risks

Pre-2Q26 Update

Mark DeVries

We update our estimates for Sallie Mae ahead of 2Q26 earnings to reflect recent Research Analyst

+1-212-250-4081 trends in their business intra-quarter. Below are our takeaways and estimate

updates into the quarter. Michael Dunlevy, CFA

Research Associate

+1-212-250-9888

Credit performance, losses, and loss-mitigation actions

• Management described recent loss pressure coming from a small

segment of high-ability-to-pay customers rolling straight to default,

which it attributed to debt-management players exploiting recovery

settlement levels intended for low-ability-to-pay borrowers.

• In response, Sallie Mae terminated its flow contracts for recovery sales

and adjusted internal settlement floors; management estimated a

potential ~$25 million impact to recoveries in 2026 if sales are not

restarted and characterized the issue as modest and contained.

• The company said its loan modification programs are performing

strongly, citing over 80% success during the modification period and exit

success rates approaching 80% after three months back on contractual

payments.

Underwriting and portfolio quality trajectory

• Management said underwriting changes made over the past few years

are now flowing into new repayment cohorts, with only ~5% of current-

year borrowers entering repayment still under older, less stringent

criteria.

Graduate lending growth opportunity and operating investments

• Management framed private lending as a “once in a generation