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DUFF & PHELPS: HOUSEHOLD BANK, F.S.B. DEBT SECURITIES RATED

 CHICAGO, Oct. 15 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to the debt securities of Household Bank, f.s.b. as follows: short-term certificates of deposit Duff 1, long-term certificates of deposit "A" (Single-A), and subordinated notes "A-" (Single-A-Minus).
 The ratings reflect a steady improvement in financial performance over the past several years. Earnings have improved from a loss in 1988 to $66 million in 1992 and $54 million in the first half of 1993. Return on assets equaled 0.74 percent in 1992 and 1.09 percent in the first half of 1993. Profitability has been augmented beginning this year by the success of the GM card, more than offsetting reduced earnings in the mortgage banking business due to an acceleration of mortgage loan prepayments. The bank has built its core deposit funding capabilities through acquisitions, reducing reliance upon other sources of funding. Capital ratios as measured by core leverage have improved to 5.6 percent at 6/30/93 from 5.1 percent at yearend 1992 and 4.2 percent at yearend 1991. Asset quality measures have modestly deteriorated the last two years, primarily the result of worsening economic conditions in Southern California. Importantly, the reserve for loan losses has been built during this period from 0.64 percent of receivables at yearend 1991 to 1.11 percent at June 30, 1993.
 Household Bank, f.s.b. is a wholly owned subsidiary of Household International. Household Bank had receivables owned or serviced of $19.1 billion at June 30. The owned portfolio of $7.6 billion at June 30 divided 49 percent residential real estate, 11 percent non-mortgage consumer, 37 percent credit cards, and 3 percent other.
 -0- 10/15/93
 /CONTACT: Daryl R. Leehaug of Duff & Phelps Credit Rating Co., 312-368-3124/


CO: Household Bank, f.s.b. ST: IN: FIN SU: RTG

LG -- NY066 -- 2846 10/15/93 15:15 EDT
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Date:Oct 15, 1993
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