Advanta reports record second quarter earnings of $33.4 million and 80 cents per share.HORSHAM Horsham (hôr`shəm), town (1991 pop. 38,356) and district, West Sussex, SE England. Horsham is known primarily for its agricultural and merchandising activities, but it also serves as an engineering center. , Pa.--(BUSINESS WIRE)--July 20, 1995--Advanta Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADVNB;ADVNA ADVNA Advanta Corporation (stock symbol) ) Thursday Thursday: see week. announced record quarterly earnings for the second quarter 1995 with net income of $33.4 million and earnings per share of 80 cents, increases of 30% and 27%, respectively, over the $25.8 million and 63 cent per share results reported for the second quarter 1994. Earnings for the first quarter 1995 totalled $30.8 million or 74 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . From June June: see month. 1994, the company's portfolio of managed receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed increased by $3.4 billion or 58% to $9.4 billion at June 30, 1995. "We are pleased that the continuing growth in the business and strong credit quality have produced our twenty-fourth consecutive record quarter," commented Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Greenawalt, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . Highlights for the second quarter include the following items: -0-
o Managed credit card receivables at June 30 of $7.5 billion
posted a 67% increase over the $4.5 billion level last June.
o The managed credit card 30+ day delinquency rate was unchanged
from the second quarter last year at a favorable 2.0%.
o The charge-off rate on managed credit cards dropped to 2.5%,
compared to 2.7% in the year ago quarter.
o The company added over 450,000 new credit card accounts during
the quarter compared to 344,000 in the second quarter of 1994.
o The managed net interest margin for the quarter of 5.96% rose
slightly from 5.94% in the first quarter, and is down from
6.95% in the comparable period of 1994. Rapid growth in new
credit card business with low introductory rates decreased
average yields.-0-
With over four million customers, $10.6 billion in managed assets and more than 2,000 employees, Advanta Advanta is an American banking company. Currently, it controls two banks, Advanta Bank Corp and Advanta National Bank. The banking corporation is not associated with Advanta Energy Corp., an energy consulting practice based in California. is a rapidly growing consumer financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. 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
(Dollars in millions except per share data)
Three Months Ended % Change
June 30, 1995 versus
1995 1994 1994
OPERATING RESULTS
Net Revenues(1) $143.8 $106.9 35%
Provision for Losses $ 8.6 $ 15.4 (44%)
Operating Expenses $ 83.9 $ 69.2 21%
Net Income $ 33.4 $ 25.8 30%
Earnings Per Common Share $ .80 $ .63 27%
Average Shares 41.8 41.2 1%
Return on Equity 26.91% 27.23% (1%)
Managed Net Interest Margin 5.96% 6.95% (14%)
Six Months Ended % Change
June 30, 1995 versus
1995 1994 1994
OPERATING RESULTS
Net Revenues(1) $279.4 $206.6 35%
Provision for Losses $ 17.5 $ 22.3 (21%)
Operating Expenses $162.0 $123.0 32%
Net Income $ 64.2 $ 50.7 27%
Earnings Per Common Share $ 1.54 $ 1.23 25%
Average Shares 41.6 41.0 2%
Return on Equity 26.78% 27.49% (3%)
Managed Net Interest Margin 5.95% 7.15% (17%)
(1) 1994 amount excludes $18.4 million gain on sale of credit card relationships.
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in millions except per share data)
% change
June 1995
June 30, March 31, June 30, versus
1995 1995 1994 June 1994
FINANCIAL CONDITION
Gross Receivables
- Owned $ 1,868 $ 1,622 $ 1,330 40%
- Managed $ 9,371 $ 8,610 $ 5,933 58%
Total Assets - Owned $ 3,058 $ 2,846 $ 2,192 40% - Managed $10,561 $ 9,834 $ 6,795 55% Deposits $ 1,098 $ 1,005 $ 1,041 5% Stockholders' Equity $511 $475 $389 31% Book Value Per Common Share $ 12.69 $ 11.87 $ 9.88 28% Equity/Owned Assets 16.70% 16.69% 17.76% (6%) CREDIT QUALITY Reserves as a % of Impaired Assets Owned Credit Cards 187.4% 185.4% 186.0% 1% Owned Mortgages 10.4% 13.5% 31.1% (67%) Owned Receivables 110.2% 106.0% 103.1% 7% Net Charge-off Rate Managed Credit Cards 2.5% 2.2% 2.7% (7%) Managed Mortgages 0.7% 1.2% 1.8% (61%) Managed Receivables 2.1% 2.1% 2.5% (16%) 30+ Day Delinquency Rate Managed Credit Cards 2.0% 2.1% 2.0% 0% Managed Mortgages 4.8% 4.7% 5.6% (14%) Managed Receivables 2.7% 2.8% 2.9% (7%)-0- -- Statistical Supplement Available Upon Request -- CONTACT: Advanta, Horsham Janet Janet: see Clouet, Jean. JANET - Joint Academic NETwork Point, VP/Investor Relations, 215/784-5335 |
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