Sallie Mae Revenue from Collections Up 61% in Second Quarter

by Patrick Lunsford CollectionIndustry.com

Sallie Mae (NYSE: SLM) released earnings today for the second quarter and first half of 2006. Included in the statement was a breakdown of operating units, including collections.

The collections operations for Sallie Mae brought in $67.3 million dollars in the second quarter, up 19% from the first quarter?s total of $56.7 million, and up 61% from the second quarter of 2005. For the first six months of 2006, collections have contributed $124 million in revenue, compared to the $76.7 million brought in over the first six months last year.

Sallie Mae has made a string of acquisitions in the collection industry over the past several years, the last of which was obtaining a majority stake in Arrow Financial in late 2004. The acquisitions have positioned Sallie Mae as one of the largest collection agencies in the country.