NEWARK, DE — Sallie Mae (Nasdaq: SLM) reported lower second-quarter profit as declining interest income and higher operating expenses outweighed a rise in noninterest income, underscoring pressure on the private student lender’s core lending economics.
Net income attributable to common shareholders fell to $54.9 million, or 29 cents per diluted share, from $67.3 million, or 32 cents per share, a year earlier. Total net income declined to $58.5 million from $71.3 million.
Net interest income dropped 11.7% to $332.8 million from $376.8 million as loan interest income declined to $539.9 million from $597.6 million. Total interest expense also decreased, falling to $269.2 million from $279.9 million, but the reduction was not enough to offset weaker interest revenue…