Navient Corporation (NASDAQ:NAVI) Q1 2022 Earnings Conference Call April 27, 2022 8:00 AM ET

Company Participants

Nathan Rutledge - Head, IR

Jack Remondi - President & CEO

Joe Fisher - Executive VP & CFO

Conference Call Participants

Mark DeVries - Barclays

Moshe Orenbuch - Credit Suisse

Bill Ryan - Seaport Research

Rick Shane - JP Morgan

Giuliano Bologna - Compass Point

John Hecht - Jefferies

Operator

Good day and thank you for standing by. Welcome to the Navient’s first quarter 2022 earnings call. At this time all participants are in listen only mode. [Operator Instructions]

I would now like to hand the conference over to our speaker today. Mr. Nathan Rutledge, Head of Investor Relations. Sir please go ahead.

Nathan Rutledge

Good morning and welcome to Navient’s first quarter 2022 earnings call. With me today are Jack Remondi, our CEO and Joe Fisher, our CFO. After their prepared remarks, we will open up the call for questions. Before we begin, keep in mind our discussion will contain predictions expectations, forward looking statements and other information about our business that is based on management’s current expectations as of day this presentation.

Actual results in the future may be materially different from those discussed here. It could be due to a variety of factors. Listeners should refer to the discussion of those factors on the company’s Form 10K and other filings with the SEC. During this conference call, we will refer to non-GAAP financial measures including core earnings, adjusted tangible equity ratio, and various other non-GAAP financial measures derived from quarter earnings. Our GAAP results and description of our non-GAAP financial measures and a full reconciliation to GAAP can be found in the first quarter 2022 supplemental earnings disclosure and is posted on the investor page@navient.com.

Thank you and I’ll now turn the call over to Jack.

Jack Remondi

Thank you, Nathan. Good morning, everyone. And thank you for joining us today and for your interest in Navient. Our year is off to a strong start. And we are excited to share with you the results of another very successful quarter. For the quarter, we are $0.90 on adjusted core earnings ahead of our forecasts and consensus. Our earnings were driven by strong across the board performance, for example, net interest income provision for loan losses, fee revenue and operating expense. All outperformed our forecasts and contributed to this quarter’s results. Our ability to deliver consistently strong financial performance is a direct result of our focus on profitably building our growth businesses, actions we’ve taken to minimize exposure to interest rate volatility. Our focus on generating high quality assets and maintaining strong reserves for future credit losses are constant efforts to improve operating efficiency and our disciplined capital allocation.