Navient Corporation (NAVI) has reported 48.76 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $145 million, or $0.48 a share in the quarter, compared with $283 million, or $0.78 a share for the same period last year.
Revenue during the quarter dropped 27.22 percent to $500 million from $687 million in the previous year period. Net interest income for the quarter dropped 29.48 percent over the prior year period to $378 million. Non-interest income for the quarter fell 17.34 percent over the last year period to $224 million.
Navient Corporation has made provision of $102 million for loan losses during the quarter, down 15 percent from $120 million in the same period last year.
"We are proud of our strong track record of supporting customer success, and 2016 was no exception," said Jack Remondi, president and chief executive officer, Navient. "Our federal loan customers are 31 percent less likely to default, and federal loans we service are more likely to be enrolled in income-driven repayment plans than comparable servicers. More than 500,000 student loan customers successfully paid off their loans in 2016. Private education loan performance in 2016 was exceptional, and, when combined with the improving jobs market, creates a favorable outlook for credit in 2017."
Assets, liabilities fall
Total assets stood at $121,136 million as on Dec. 31, 2016, down 9.68 percent compared with $134,112 million on Dec. 31, 2015. On the other hand, total liabilities stood at $117,413 million as on Dec. 31, 2016, down 9.76 percent from $130,113 million on Dec. 31, 2015.
Net loans stood at $111,070 million as on Dec. 31, 2016, down 9.62 percent compared with $122,892 million on Dec. 31, 2015.
Shareholders equity stood at $3,723 million as on Dec. 31, 2016, down 6.90 percent or $276 million from year-ago.
Return on assets moved down 37 basis points to 0.49 percent in the quarter from 0.86 percent in the last year period.
