Balance sheet remains strong with an adjusted tangible equity ratio of 9.8%, up from 8.2% a year ago.
Consumer Lending segment NIM was 232 basis points, down from 276 basis points in Q1, impacted by loans entering 91+ days delinquency and related accrued interest reserve adjustments.
Delinquency rates increased: FFELP >90-day delinquency at 10.1%, consumer lending 91+ day delinquency rose to 3%, partly due to disaster forbearance roll-offs.
Loan originations doubled year-over-year, with $443 million in refinance loans this quarter and over $1 billion in total originations year-to-date.
Navient reported core earnings per share of $0.20 in Q2 2025, or $0.21 on a core basis after adjusting for regulatory and restructuring expenses.
Net interest margin (NIM) for the Federal Education Loan segment was 70 basis points, exceeding guidance, with full year NIM expected between 55 and 65 basis points.
Operating expenses declined by $82 million year-over-year to $100 million, driven by business sales and expense reduction initiatives.
Provision expenses were elevated due to macroeconomic outlook deterioration, higher delinquency trends, and increased loan originations.
Returned $40 million to shareholders via share repurchases and dividends; repurchased 1.9 million shares for $24 million.
A $12 million pretax gain from sale of multifamily loans and a $5.5 million noncash deferred tax impairment impacted net income this quarter.
Axos Financial delivered strong Q4 fiscal 2025 results with $856 million net loan growth linked quarter and 6 basis points net interest margin expansion.
Net income was approximately $110.7 million, with diluted EPS of $1.92, compared to $105.2 million and $1.81 respectively in the prior quarter.
Net interest income was $280 million, up 7.7% year-over-year, and net interest margin was 4.84%, up from 4.78% in the prior quarter.
Nonaccrual loans declined by $15 million linked quarter, improving the nonaccrual loans to total loans ratio to 79 basis points.
Noninterest expenses increased 3% from prior quarter, excluding a $2 million legal accrual reversal, with salaries and benefits roughly flat.
Total deposits increased 7.6% year-over-year to $21 billion, with a diverse deposit base supporting organic loan growth.
Adjusted net revenues for Q2 2025 were $405 million with an 18.1% operating margin and adjusted EPS of $2.95, all higher compared to the same period last year.
Advisory revenues were $206 million during the quarter, up 12% year-over-year, driven by a broad set of products and higher average fees.
Compensation ratio was 62% for Q2 and 62.2% for the first half, improved from prior periods due to increased net revenues.
Corporate financing revenues were $35 million, down 31% from the year ago period, completing 26 financings raising $10 billion for clients.
Equity brokerage revenues were $58 million, up 12% year-over-year, with 2.9 billion shares traded for over 1,200 clients.
Fixed income revenues were $54 million, up 21% from Q1 and 37% from the year ago period, driven by depository client activity.
GAAP results included a $5 million restructuring charge related to headcount reductions and vacated office space from the Aviditi Advisors acquisition.
Municipal financing revenues were $42 million, up 66% year-over-year, exceeding market issuance growth of 15%.
Net revenues for the first half of 2025 totaled $789 million, operating income was $142 million with an 18% margin, and diluted EPS was $7.04.
Non-compensation expenses excluding reimbursed deal costs were $69 million for Q2, up 6% year-over-year, driven by legal and professional fees.
Commission revenue increased by 27% year-over-year to a record $516 million, with an additional $15 million in commission revenue lost due to the SEC fee rate reduction to zero mid-quarter.
Customer credit balances rose 34% to a record $144 billion, and client equity increased 34% to $604 billion, outperforming the S&P 500's 11% quarterly gain.
Dividend was increased from $1 per year to $1.28, adjusted for the four-for-one stock split completed in June.
Execution, clearing, and distribution costs rose only 1% despite higher volumes, maintaining a gross transactional profit margin of 82%.
Expenses were well controlled with a 5% staff increase and compensation expense ratio steady at 11% of adjusted net revenues.
Net interest income reached a quarterly record of $860 million, including a one-time $26 million tax credit; adjusted net interest income was $834 million.
Pretax income exceeded $1 billion for the third consecutive quarter, with a pretax profit margin of 75%, a record for the company.
Total assets grew 33% year-over-year to $181 billion, driven by higher segregated cash balances and margin lending.
Dafinchi