Navient Corporation Reports Unaudited Earnings Results for the Fourth Quarter and Year Ended December 31, 2014
January 21, 2015 at 04:43 pm EST
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Navient Corporation reported unaudited earnings results for the fourth quarter and year ended December 31, 2014. For the quarter, the company reported diluted earnings were $0.53 per share, down 15% from $0.62 per share in fourth quarter of 2013 and lower than the $0.54 per share. Total income was $1.3 billion, down 8% from $1.41 billion reported for the same period last year. Net income attributable to company was $217 million against $274 million a year ago. Return on assets was 0.63% against 0.76% a year ago. Net interest income was $614 million against $789 million a year ago. Income from continuing operations before income tax expense was $421 million against $340 million a year ago. Net income from continuing operations was $262 million against $211 million a year ago. The decrease in net income was primarily due to a $175 million decline in net interest income, a $28 million decrease in asset recovery revenue and a $58 million after-tax decrease in income from discontinued operations.
For the year, the company reported net income attributable to company was $1,149 million against $1,418 million a year ago. Diluted earnings per common share attributable to was $2.69 against $3.12 per share a year ago. Return on assets was 0.59% against 0.82% a year ago. Net interest income was $2,667 million against $3,167 million a year ago. Income from continuing operations before income tax expense was $1,837 million against $2,087 million a year ago. Net income from continuing operations was $1,149 million against $1,311 million a year ago. The decrease in net income was primarily due to a $500 million decline in net interest income, a $302 million decrease in gains on sales of loans and investments, a $106 million after-tax decrease in income from discontinued operations, a $42 million decrease in debt repurchase gains, and higher restructuring and other reorganization costs of $41 million.
Navient Corporation provides technology-enabled education finance and business processing solutions. The Company operates through three segments: Federal Education Loans, Consumer Lending and Business Processing. In the Federal Education Loans segment, it owns Federal Family Education Loan Program (FFELP) loans and performs servicing on this portfolio. It also service FFELP Loans owned by other institutions. In the Consumer Lending segment, it owns originates and services in-school and refinance Private Education Loans. In the Business Processing segment, it provides business processing solutions, such as omnichannel contact center services, workflow processing, and revenue cycle optimization. It offers solutions to federal agencies, state governments, tolling and parking authorities, and other public sector clients. The Company's clients include hospitals, hospital systems, medical centers, large physician groups, other healthcare providers and public health departments.