Navien treports Q4 core EPS 21c, consensus 77c

Net interest income decreased by $63 million primarily as a result of a $21 million increase in mark-to-market losses on fair value hedges recorded in interest expense, the paydown of the FFELP and Private Education Loan portfolios and an increase in interest rates. Provisions for loan losses increased $38 million from $17 million to $55 million. “We are announcing three actions intended to deliver better value to our shareholders: Outsourcing student loan servicing and creating a variable expense model; initiating the exploration of strategic options, including possible divestment, for our business processing division; and streamlining our shared service infrastructure and corporate footprint,” said David Yowan, president and CEO, Navient. “These targeted actions are intended to simplify our business, reduce our expense base, and increase our financial and operating flexibility.”