CORRECTION Advanta corrects and replaces previous earnings announcement.

HORSHAM, Pa.--(BUSINESS WIRE)--Jan. 24, 1995--Advanta (NASDAQ: ADVNB; ADVNA) Tuesday announced record earnings for both the fourth quarter and full year 1994. For the quarter, Advanta reported earnings per share of 70 cents and net income of $28.6 million, increases of 25% and 24%, respectively, over fourth quarter 1993. For the full year, earnings per share rose to $2.58 and total net income was $106.1 million, increasing 32% and 36%, respectively, over 1993 results before extraordinary item. At December 31, 1994, the Company's portfolio of managed receivables increased by $2.9 billion to $8.2 billion, or 56% over December 31, 1993. Total managed credit card receivables expanded by $2.6 billion during the year, bringing total credit card outstandings to $6.5 billion at year-end 1994, a 67% increase.

Dennis Alter, chairman and chief executive officer, commented, "Advanta's sixth consecutive year of record earnings provides evidence of the Company's ability to manage sucessfully through a changing environment." Richard Greenawalt, president and chief operating officer, noted that the Company's performance in 1994 was led by strong receivable growth and improving credit quality in the credit card business. "In the fourth quarter alone, Advanta expanded its credit card receivables by $1.4 billion, building a strong foundation for continued growth into the future."

Highlights include the following items:

-- Continued strong receivable growth demonstrated by the 49% year-over-year increase in total average managed receivables to $7.3 billion for the fourth quarter. From the third quarter, average managed receivables grew 17%;

-- Improved loss rates as the managed credit card charge-off rate fell to 2.1% in the fourth quarter from 2.9% in the year-earlier period and 2.4% in the third quarter. The consolidated managed charge-off rate declined to 2.0% in the fourth quarter, down from 2.7% in the year-earlier period and 2.2% in the third quarter;

-- The 30-plus day delinquency rate on managed credit cards declined to 2.0% at December 31, down from 2.4% in the year-ago quarter and 2.1% in the September quarter; the consolidated 30-plus day delinquency rate also fell, totalling 2.7% in the fourth quarter, down from 3.6% in the previous fourth quarter, and 2.9% in the third quarter;

-- The fourth quarter managed net interest margin fell to 6.06% from 7.64% in the year-earlier quarter and 6.79% in the third quarter primarily due to introductory pricing on new credit card receivables and a lag in the repricing associated with the increase in rates during the quarter;

-- The Company added nearly 700,000 new credit card accounts during the fourth quarter versus 310,000 in the previous year's fourth quarter and 190,000 in the third quarter; new credit card accounts generated in 1994 totalled 1.5 million versus 853,000 in 1993;

-- Disciplined cost management resulted in an operating expense ratio of 3.60% in the fourth quarter, compared to 3.95% in the comparable year-ago period and 3.40% in the third quarter;

-- Return on equity of 26.6% for the quarter and 27.0% for the full year. With four million customers, $9.3 billion in managed assets and more than 1,700 employees, Advanta is a rapidly growing consumer financial services company. The Company's primary businesses are credit card and mortgage services, as well as small-ticket equipment leasing, credit insurance and deposit products.

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                         ADVANTA AND SUBSIDIARIES
                           FINANCIAL HIGHLIGHTS
               (Dollars in millions except per share data)
                              Three Months Ended           % Change
                                December 31,            1994 versus
                              1994          1993            1993
OPERATING RESULTS
Net Revenues                  $127.3        $ 94.8          34.3%
Provision for Losses          $  6.2        $  8.2         (24.8%)
Operating Expenses(1)         $ 77.7        $ 51.7          50.4%
Net Income                    $ 28.6        $ 23.0          24.3%
Earnings Per Common Share     $  .70        $  .56          25.0%
Average Shares                  40.8          41.2          (1.1%)
Return on Equity               26.56%        27.58%         (3.7%)
Managed Net Interest Margin     6.06          7.64         (20.7%)

                                  Year Ended               % Change
                                 December 31,            1994 versus
                              1994           1993            1993
OPERATING RESULTS
Net Revenues(2)               $447.8         $334.2          34.0%
Provision for Losses          $ 34.2         $ 29.8          14.8%
Operating Expenses(1)         $266.8         $181.2          47.3%
Net Income
  Before extraordinary item   $106.1         $ 77.9          36.1%
  After extraordinary item    $106.1         $ 76.6          38.4%
Earnings Per Common Share
  Before extraordinary item   $ 2.58         $ 1.95          32.3%
  After extraordinary item    $ 2.58         $ 1.92          34.4%
Average Shares                  41.0           39.8           3.2%
Return on Equity               26.97%         27.50%         (1.9%)
Managed Net Interest Margin     6.72           7.77         (13.5%)

(1) Operating expenses have been restated for all periods presented
to include the amortization of credit card deferred acquisition
expenses which previously had been netted against net interest
income.

(2) Full year 1994 figure excludes $18.4 million gain on sale of credit card
relationships.

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                             ADVANTA AND SUBSIDIARIES
                               FINANCIAL HIGHLIGHTS
                      (Dollars in millions except per share data)
                                                            % Change
                           December 31,   December 31,    1994 versus
                                1994          1993            1993
FINANCIAL CONDITION
Gross Receivables
  Owned                       $1,964         $1,277           53.8%
  Managed                     $8,155         $5,246           55.5%
Total Assets
  Owned                       $3,094         $2,140           44.6%
  Managed                     $9,285         $6,109           52.0%
Deposits                      $1,159         $1,255           (7.6%)
Stockholders' Equity          $  442         $  343           28.9%
Book Value Per Common Share   $11.12         $ 8.82           26.1%
Equity/Owned Assets            14.27%         16.01%         (10.9%)
CREDIT QUALITY
Reserves as a % of
 Impaired Assets
   Owned Credit Cards          186.5%         183.7%           1.5%
   Owned Mortgages              18.9%          38.2%         (50.5%)
   Total Owned Receivables      96.1%         138.6%         (30.7%)
Net Charge-off Rate for the Year
   Managed Credit Cards          2.5%           3.5%         (28.6%)
   Managed Mortgages             1.7%           1.3%          30.8%
   Total Managed Receivables     2.3%           2.9%         (20.7%)
30-Plus Day Delinquency Rate
   Managed Credit Cards          2.0%           2.4%         (16.7%)
   Managed Mortgages             4.9%           6.6%         (25.8%)
   Total Managed Receivables     2.7%           3.6%         (25.0%)
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Statistical Supplement Available Upon Request

CONTACTS: Advanta, Horsham

Janet Point, vice president

investor relations 

215/784-5335