The following is a summary of the Navient Corporation (NAVI) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Navient Corporation reported GAAP EPS of $0.64 and core EPS of $0.47 in Q1 2024.

• The company saw an increase in their accrual by $12 million connected with the CFPB litigation.

• FFELP prepayments had a growth, reaching $1.6 billion in the quarter from the $700 million last year.

• The Revenue in Navient's Business Processing division saw a growth, increasing to $77 million with an EBITDA margin of 11%.

Business Progress:

• Navient has undertaken strategic initiatives to decrease expenses, enhance net cash flows and improve ROI.

• Through an agreement with MOHELA, partial outsourcing of services is in progress with transitions set to begin in Q2 2024.

• A divestment process for the Business Processing division has been initiated and potential buyers are being considered.

• 900 Navient employees are expected to transition to MOHELA, including frontline servicing colleagues and shared service/corporate essential employees.

• Loan origination growth at Earnest has had a strong start, focusing on high-quality borrowers. Origination volume for Q1 2024 was up 50% compared to last year while expectations for total educational loan originations is set at $1.4 billion for 2024.

• With its strategic actions, Navient aims to finalize plans and continue implementation within the year with completion projected by end of 2025.

More details: Navient IR

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