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FIRST USA REPORTS INCREASED NET INCOME FOR FOURTH QUARTER, FISCAL 1992

FIRST USA REPORTS INCREASED NET INCOME FOR FOURTH QUARTER, FISCAL 1992
 DALLAS, July 23 /PRNewswire/ -- First USA, Inc., (NYSE: FUS) today reported net income of $6.2 million, or $0.23 per share, for the fourth fiscal quarter ended June 30, 1992, compared with net income of $1.4 million, or $0.06 per share, for the fourth fiscal quarter of 1991. Net income for fiscal year 1992 was $17.2 million, or $0.60 per share. This compares with net income of $2.8 million, or $0.09 per share, for fiscal year 1991.
 Net income for fiscal years 1992 and 1991 is after a non-cash charge each year related to the amortization of the customer base intangible resulting from the 1989 buy-out of First USA. For the fiscal years 1992 and 1991, the non-cash charge was $54.0 million and $52.1 million, respectively. The intangible will be fully amortized in August 1997.
 "We are pleased with the strength of earnings and with the overall growth of the company," said John C. Tolleson, chairman and chief executive officer. "During fiscal 1992, First USA benefitted from strong loan growth, an increased net interest margin and improving credit quality, trends which we believe continue as we begin fiscal 1993."
 Initial Public Offering
 During the quarter ended June 30, 1992, First USA completed an initial public offering which generated net proceeds of $40.8 million. First USA used $33 million of the net proceeds to repurchase preferred and common stock held by its former parent. The remainder of the net proceeds was used to reduce senior debt. First USA's initial public offering was priced on May 27, 1992, at $9.50 per share, and shares closed trading on July 22, 1992, at $13.625.
 Key Operating Measures
 Average managed credit card loans increased 25.9 percent to $2.1 billion in fiscal 1992. Managed credit card loans at June 30, 1992, were $2.3 billion.
 During fiscal 1992, First USA opened 570,098 new credit card accounts, an increase of 66.1 percent over the 343,248 new accounts opened during fiscal 1991.
 Credit card charge volume on a managed basis was $3.3 billion during fiscal 1992, up 28.1 percent from fiscal 1991.
 The net interest margin for First USA increased 39.6 percent to 5.08 percent in 1992 from 3.64 percent in 1991.
 Despite continued economic weakness nationwide, a key measure of credit quality improved during the 1992 fiscal year. The managed credit card loan delinquency rate declined 21.1 percent during the year from 4.92 percent at June 30, 1991, to 3.88 percent at June 30, 1992, which is First USA's lowest delinquency rate in the past six years.
 The company also reported that merchant processing volume grew 66.6 percent in fiscal 1992 to $5.9 billion.
 First USA, Inc. is a financial services company specializing in the credit card business and is among the largest providers of Visa and MasterCard services in the nation. First USA Inc.'s two principal operating units are First USA Bank and First USA Merchant Services, Inc. First USA Bank provides Visa and MasterCard services nationwide and had 3.1 million credit cards issued at June 30, 1992. First USA Merchant Services, Inc. processes merchant credit card transactions for more than 139,000 merchant locations.
 FIRST USA, INC. AND SUBSIDIARIES
 Financial Highlights
 (dollars in thousands, except per share data)
 fourth quarter fiscal 1992 & 1991
 June 30, Percent
 1992 1991 Change
 For the Quarter
 Income before income taxes $8,103 $2,047 295.8
 Net income $6,187 $1,415 337.2
 Net income per share $0.23 $0.06 283.3
 Credit card data
 Average managed loans $2,215,812 $1,926,129 15.0
 Charge volume $917,012 $707,203 29.7
 New accounts 155,280 99,343 56.3
 Merchant volume
 Sales dollars processed $1,778,928 $1,024,087 73.7
 Items processed 35,214,000 23,180,000 51.9
 At Quarter End
 Managed credit card loans (A) $2,307,708 $2,010,444 14.8
 Less: Securitizations 604,809 550,000 10.0
 Credit card loans $1,702,899 $1,460,444 16.6
 Total assets $2,486,820 $2,201,824 12.9
 Merchant locations 139,733 118,177 18.2
 Ratios
 First USA, Inc.
 Net interest margin (in percents) 5.75 4.18 37.6
 Return on assets (in percents) 1.01 0.26 288.5
 Return on stockholders'
 equity (in percents) 21.88 7.51 191.3
 First USA Bank
 Managed credit card
 delinquency (in percents) 3.88 4.92 (21.1)
 Managed net credit losses
 (in percents) 4.07 3.93 3.6
 Managed net interest margin
 (in percents) 7.58 6.80 11.5
 Return on assets (in percents) 2.43 2.34 3.8
 Return on stockholder's equity
 (in percents) 27.41 23.92 14.6
 Common Stock
 Weighted average common and common
 equivalent shares 23,019,206 21,668,524
 Initial Public Offering price per
 share at May 27, 1992 $ 9.50
 Closing price per share
 at June 30, 1992 $ 11.25
 Increase 18.4 percent
 (A) Managed Loan Data includes loans sold in credit card securitization transactions and the Company's on-balance sheet loan portfolio.
 FIRST USA, INC. AND SUBSIDIARIES
 Financial Highlights
 (dollars in thousands, except per share data)
 1992 1991 Change
 For the Quarter
 Income before income taxes $23,276 $5,297 339.4
 Net income $17,168 $2,760 522.0
 Net income per share $0.60 $0.09 566.7
 Credit card data
 Average managed loans $2,128,558 $1,690,647 25.9
 Charge volume $3,292,244 $2,569,457 28.1
 New accounts 570,098 343,248 66.1
 Merchant volume
 Sales dollars processed $5,890,144 $3,535,026 66.6
 Items processed 120,985,000 81,740,000 48.0
 At Year End
 Managed credit card loans (A) $2,307,708 $2,010,444 14.8
 Less: Securitizations 604,809 550,000 10.0
 Credit card loans $1,702,899 $1,460,444 16.6
 Total assets $2,486,820 $2,201,824 12.9
 Merchant locations 139,733 118,177 18.2
 Ratios
 First USA, Inc.
 Net interest margin (in percents) 5.08 3.64 39.6
 Return on assets (in percents) 0.73 0.14 412.4
 Return on stockholders'
 equity (in percents) 18.67 3.72 401.9
 First USA Bank
 Managed credit card delinquency
 (in percents) 3.88 4.92 (21.1)
 Managed net credit losses
 (in percents) 4.03 3.62 11.3
 Managed net interest margin
 (in percents) 7.21 6.74 7.0
 Return on assets (in percents) 2.33 2.43 (4.1)
 Return on stockholder's equity
 (in percents) 25.66 23.77 8.1
 Common Stock
 Weighted average common and common
 equivalent shares 22,095,847 21,579,522
 Initial Public Offering price per
 share at May 27, 1992 $ 9.50
 Closing price per share $ 11.25
 at June 30, 1992
 Increase 18.4 percent
 (A) Managed Loan Data includes loans sold in credit card securitization transactions and the Company's on-balance sheet loan portfolio.
 -0- 7/23/92
 /CONTACT: George A. McCane of First USA, 214-746-8547/
 (FUS) CO: First USA Inc. ST: Texas IN: FIN SU: ERN


SH -- NY018 -- 2329 07/23/92 09:39 EDT
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