Navient (JSM) Earnings Call Presentation

Strategic Actions - Navient is planning to outsource student loan servicing to create a variable expense model and facilitate corporate cost reduction[3] - The company is exploring strategic options for its business processing division, including potential divestment, to further reduce corporate costs[3] - Navient intends to streamline shared services infrastructure and corporate footprint, beginning in 2024 and implementing over the next 18 to 24 months[3] Financial Performance & Key Business Components - Navient's Net Interest Income (NII) decreased by 67.7% from $2667 million in 2014 to $862 million in 2023[9] - The company's P/E multiple declined by 30.2% from 9.6x in 2014 to 6.7x in 2023[10] - Legacy loan portfolios have decreased from $134 billion in 2014 to $46 billion in 2023[7] - Earnest's net revenue after provision for loan losses increased by 207% from $60 million in 2020 to $184 million in 2023[45] - The company projects $12878 million in loan cash flows net of secured financing, with approximately 50% expected in the next 5 years[22] Earnest Brand & Financial Counseling Platform - Earnest has successfully developed a distinct brand and market positioning, with attributes like empathetic, ethical, and fair[35] - The number of users on Earnest's financial counseling platform has increased from 405 thousand in 2019 to 1748 thousand in 2023[38]