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SALLIE MAE REPORTS FOURTH QUARTER, FULL 1991 RESULTS

 SALLIE MAE REPORTS FOURTH QUARTER, FULL 1991 RESULTS
 WASHINGTON, Jan. 13 /PRNewswire/ -- The Student Loan Marketing


Association (Sallie Mae) (NYSE: SLM) today reported net income of $345.1 million for the year ended Dec. 31, 1991, up 15 percent over net income of $300.9 million in 1990. Earning per common share of $3.55 in 1991 were up 20 percent from the $2.96 earned in 1990.
 Fourth quarter 1991 net income was $91.1 million, or 95 cents per common share, compared with net income of $78.0 million, or 79 cents per common share, in the fourth quarter of 1990 and net income of $87.2 million, or 90 cents per common share, in the third quarter of 1991.
 "Throughout 1991, Sallie Mae has not only benefited form continued strength in student loan purchases, but has improved yields on those newly purchased student loans, taken advantage of good funding opportunities and maintained steady servicing costs," said Lawrence A. Hough, president and chief executive officer of Sallie Mae.
 For the fourth quarter of 1991, he said, Sallie Mae's margin also benefited from enhanced spreads on its student loan portfolio, the result of recent substantial declines in the 91-day Treasury bill rate and Sallie Mae's matched funding strategy. "If Treasury bill rates remain at today's levels throughout 1992, Sallie Mae's margins will widen substantially," Hough said.
 "Such a rate environment would result in 1992 earnings per share growth exceeding the aggressive 15 percent long-term annual growth objectives we have shared with investors."
 At Dec. 31, 1991, Sallie Mae's total assets were $45.3 billion, up 10 percent over total assets of $41.1 billion at year-end 1990. Student loan purchase volume of $1.5 billion in the fourth quarter brought outstandings at year-end 1991 to $22.1 billion, up 15 percent from year-end 1990.
 Warehousing advances -- collateralized loans to education lenders as well as loans to schools for plant and equipment -- at the end of 1991 were $9.7 billion, compared to $9.5 billion at Dec. 31, 1990, and $8.7 billion at Sept. 30, 1991.
 During the year, Sallie Mae issued $12.9 billion of term debt in the capital markets, including $3.1 billion in the fourth quarter. Sallie Mae took advantage of favorable funding spreads to the 91-day Treasury bill to extend the average maturities of its newly-issued Treasury-bill tied liabilities from an average of thee years in 1990 to four in 1991. Yields on most of the corporation's assets are generally tied to the 91-day Treasury bill, including student loans, which have an average life of 5.2 years.
 Most of those student loans are Guaranteed Student Loans on which the federal government pays the holder an interest supplement based on Treasury bill rates whenever the fixed interest rate paid by the borrowers produces less than a market rate of return. In low rate environments, the fixed rates paid by borrowers become de facto floors. Since Sallie Mae funds its student loans with liabilities tied to the Treasury bill, its cost of funds has continued to decline, while student loans are yielding the floor rates.
 As part of its ongoing management of the relationship of its equity accounts to its debt, Sallie Mae in 1991 repurchased 5.4 million shares of common stock and common stock equivalents, including 465,000 shares in the fourth quarter.
 At year-end, there were outstanding a total of 92.7 million common shares, including 10.6 million voting common shares and 82.1 million non-voting common shares.
 Sallie Mae, a federally chartered, stockholder-owned corporation, is the major financial intermediary serving the education credit market. By buying insured student and parent loans and providing other financial services to financial and educational institutions, Sallie Mae replenishes local supplies of education credit. The corporation owns about 30 percent of all guaranteed education loans outstanding today.
 -0- 1/13/92
 /CONTACT: Gisela Vallandigham, 202-298-3147, or Ross Kleinman, 202-298-3013, both of Sallie Mae/
 (SLM) CO: Sallie Mae ST: District of Columbia IN: FIN SU: ERN


TW -- DC016 -- 9122 01/13/92 13:07 EST
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Date:Jan 13, 1992
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