Navient Corporation reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, on GAAP basis, the company's net income attributable to the company of $145 million or $0.48 diluted earnings per share, compared with $283 million or $0.78 diluted earnings per share for the year-ago quarter. Return on assets was 0.49% against 0.86% a year ago. Net interest income was $378 million against $536 million a year ago. Net income from continuing operations was $145 million against $283 million a year ago. Income from continuing operations before income tax expense was $241 million against $447 million a year ago. On core basis, the company's net income attributable to the company was $129 million or $0.43 diluted earnings per share, compared with $169 million or $0.47 diluted earnings per share for the year-ago quarter. The decrease in diluted core earnings per share was primarily the result of a $72 million reduction in net interest income primarily due to the amortization of the portfolio and an $11 million increase in operating expenses, partially offset by an $18 million reduction in provisions for loan losses and fewer shares outstanding due to common share repurchases. Return on assets was 0.43% against 0.51% a year ago.

For the year, on GAAP basis, the company's net income attributable to the company of $681 million or $2.12 diluted earnings per share, compared with $984 million or $2.58 diluted earnings per share a year ago. Return on assets was 0.55% against 0.73% a year ago. The decrease in diluted earnings per share was primarily due to a $516 million decrease in net interest income, a $49 million decrease in net gains on derivative and hedging activities, a $36 million decrease in servicing revenue, a $33 million increase in operating expenses, a $20 million decrease in gains on debt repurchases and a $10 million decrease in other income. Net interest income was $1,705 million against $2,221 million a year ago. Income from continuing operations was $681 million against $983 million a year ago. Income from continuing operations before income tax expense was $1,108 million against $1,580 million a year ago. On core basis, the company's net income attributable to the company was $587 million or $1.82 diluted earnings per share, compared with $681 million or $1.79 diluted earnings per share a year ago. Return on assets was 0.48% against 0.50% a year ago.

For the quarter, the company reported total net charge-offs of $130 million, down $11 million from $141 million in fourth-quarter 2015.

For the year 2017, the company expects core earnings per share to be between $1.80 and $1.84, excluding expenses associated with regulatory costs.