Advanta reports fourth quarter and full year 1996 earnings; posts 29% increase in net income.

SPRING HOUSE, Pa.--(BUSINESS WIRE)--Jan. 23, 1997--Advanta Corp. (NASDAQ:ADVNB;ADVNA) Tuesday announced earnings for both the fourth quarter and full year 1996.

For the fourth quarter of 1996, Advanta reported earnings per share of $1.00 and net income of $45.2 million, increases of 18% and 20%, respectively, over fourth quarter 1995. For the full year, earnings per share rose to $3.89 and net income was $175.7 million, up 22% and 29%, respectively, over 1995 results.

At Dec. 31, 1996, the company's portfolio of managed receivables increased 33%, or $4.1 billion to $16.3 billion, over the $12.2 billion recorded at year-end 1995.

Dennis Alter, chairman, stated, "I am pleased to report that in 1996 Advanta maintained the growth of its current businesses and accelerated its expansion into new ventures."

"Advanta continued to add new talent to its management team. Our most recent member, Dave Brooks joined the Office of the Chairman last week as our president and chief operating officer," remarked Alex W. "Pete" Hart, chief executive officer.

Highlights included the following items: -0-

--  Total managed credit cards grew 27% or $2.7 billion in 1996 to
    reach $12.7 billion at year-end.  The company added 340,000 new
    new credit card accounts during the fourth quarter, raising the
    total to 5.7 million.  This represented a 17% advance over the
    number of accounts reported at year-end 1995.

--  Expansion of mortgage and personal finance businesses as
    demonstrated by a year-over-year 53% or $956 million growth in
    receivables to $2.8 billion.  Additionally, Advanta Mortgage
    services $3.7 billion of mortgages for third parties, a
    year-over-year increase of nearly 500%.

--  Growth of business services managed receivables by $446
    million or 118%, led by the rapid expansion of the business card.

--  Leveraging technology and investing for the future resulted
    in an operating expense ratio of 3.07% for the fourth quarter
    1996.  This ratio for the comparable quarter 1995 was 2.93%.
    Included in the operating expense ratio is spending on new
    technology, research and talent to support future growth and
    opportunities.

--  Return on common equity for the fourth quarter 1996 was
    23.7%, versus 25.5% for the comparable quarter of the prior year.
    For the full year 1996, return on common equity totalled
    25.3%, compared with 26.2% for 1995.

--  As previously disclosed, the company adopted a new charge-
    off methodology relating to credit card bankruptcies in the third
    quarter 1996.  As anticipated, that change had an impact in the
    fourth quarter 1996 similar to the amount in the third quarter.

--  The consolidated managed charge-off rate increased to 3.9%
    in fourth quarter 1996, up from 2.3% for same quarter 1995 and
    the 3.2% posted in the third quarter.  The charge-off rate on
    managed credit cards was 4.6% for the fourth quarter 1996,
    compared to 2.6% in 1995 and the 3.7% recorded in the third
    quarter.

--  The consolidated 30+ day delinquency rate rose to 5.4% at
    Dec. 31, above the 3.3% reported for the prior year's end and
    the 4.2% reported for the third quarter.  The managed credit card
    30+ day delinquency rate was 5.0%, above the 2.6% of the year ago
    period and the 3.9% reported in the third quarter.  1996 credit
    quality figures reflect the adoption of the new bankruptcy charge-
    off methodology.

--  The managed net interest margin for the fourth quarter 1996
    was 6.89%, up from the 5.88% in the previous year's fourth
    quarter and the 6.19% reported for the third quarter.  At year-
    end, 34% of the managed credit card portfolio consisted of
    receivables in their introductory rate period; these accounts
    will contractually reprice upward over the course of the next
    three quarters.
-0-
    With nearly 6 million customers, over $19 billion in managed
assets and 3,500 employees, Advanta is a rapidly growing consumer
financial services enterprise.  The company proudly serves consumers
and small businesses through high quality, innovative offerings of
credit cards, mortgages, leases, insurance and deposit products.
-0-
                    ADVANTA AND SUBSIDIARIES
                      FINANCIAL HIGHLIGHTS
             ($ in millions, except per share data)


                                 Three Months Ended      % Change
                                    Dec. 31,            1996 versus
                                 1996      1995           1995
                                 ----      ----         -----------

OPERATING RESULTS

Net Revenues                  $240.9      $185.4           30%

Provision for Losses          $ 29.9      $ 25.2           19%

Operating Expenses            $143.7      $102.4           40%

Net Income(1)                 $ 45.2      $ 37.6           20%

Earnings per Common Share(1)  $ 1.00      $  .85           18%

Average Shares                  45.2        44.3            2%

Return on Common Equity         23.7%       25.5%          (7%)

Managed Net Interest Margin     6.89        5.88           17%


                                  Year Ended             % Change
                                    Dec. 31,            1996 versus
                                 1996      1995           1995
                                 ----      ----         -----------

OPERATING RESULTS

Net Revenues(2)               $851.0      $615.9           38%

Provision for Losses          $ 96.9      $ 53.3           82%

Operating Expenses            $523.0      $350.7           49%

Net Income(1)                 $175.7      $136.7           29%

Earnings per Common Share(1)  $ 3.89      $ 3.20           22%

Average Shares                  45.1        42.7            6%

Return on Common Equity         25.3%       26.2%          (3%)

Managed Net Interest Margin     6.32        5.87            8%

(1)  1996 earnings per share and net income are reported net of the
impact of the capital securities transaction.
(2) Full year 1996 amount excludes a $33.8 million gain on the sale of
credit card relationships.

                    ADVANTA AND SUBSIDIARIES
                      FINANCIAL HIGHLIGHTS
              ($ in millions, except per share data)

                                                             % Change
                                                            Dec. 1996
                            Dec. 31,   Sept. 30,  Dec. 31,    versus
                             1996        1996       1995    Dec. 1995
                            --------   ---------  --------  ---------
FINANCIAL CONDITION
-------------------

Managed Receivables(1)
-------------------
  Credit Cards               $12,691    $12,711    $10,031       27%
  Personal Finance Loans(A)  $ 2,754    $ 2,346    $ 1,797       53%
  Business Loans(B)          $   823    $   725    $   378      118%
  Other Loans                $    21    $    15    $     9      125%

Total Managed Receivables    $16,289    $15,797    $12,215       33%

Total Managed Assets         $19,217    $18,357    $13,977       38%

Stockholders' Equity         $   852    $   798    $   673       27%

Book Value Per
 Common Share                $ 18.06    $ 17.14    $ 14.35       26%

Equity/Managed Assets(C)        4.95%      4.35%      4.81%       3%

Reserve for Credit Losses    $  89.2    $   77.6   $  53.5       67%

Customer Accounts          5,984,488   5,854,627 5,031,484       19%

CREDIT QUALITY
--------------

Managed Net Charge-off Rate
For the Quarter ended -
-----------------------
  Credit Cards(D)                4.6%        3.7%      2.6%
  Personal Finance Loans(A)      0.7%        0.7%      0.8%
  Business Loans(B)              2.6%        2.1%      2.0%
  Total Receivables(E)           3.9%        3.2%      2.3%

Managed 30+ Day Delinquency Rate
--------------------------------
  Credit Cards(D)                5.0%        3.9%      2.6%
  Personal Finance Loans(A)      7.1%        5.4%      5.9%
  Business Loans(B)              7.3%        6.7%      9.3%
  Total Receivables(E)           5.4%        4.2%      3.3%

(A)  Effective Dec. 31, 1996 includes Mortgages and Auto Loans.
     Prior periods of 1996 have been restated.
(B)  Includes Leases and Business Cards beginning in 1996.
(C)  Equity includes capital securities and stockholders' equity.
(D)  Fourth quarter 1996 figures reflect the adoption of a new
     charge-off methodology.  Without this change, managed credit
     card charge-off  and delinquency rates for the fourth quarter
     1996 would have been 5.1% and 4.6%, respectively.
(E)  Fourth quarter 1996 figures reflect the adoption of a new
     charge-off methodology.  Without this change, total managed
     charge-off and delinquency rates for the fourth quarter 1996
     would have been 4.3% and 5.3%, respectively.
(1)  Managed figures combine both owned and securitized receivables.

-0-

--Statistical Supplement Available Upon Request--

CONTACT: Advanta Corp., Spring House

Janet Point, VP, Investor Relations, 215/444-5335