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MBNA REPORTS 20.1 PERCENT INCREASE IN NET INCOME; 19 PERCENT GROWTH IN MANAGED LOANS; 1.6 MILLION NEW CARDHOLDERS; ANNOUNCES QUARTERLY DIVIDEND

 NEWARK, Del., July 27 /PRNewswire/ -- MBNA Corporation (NYSE: KRB) announced today that net income for the second quarter of 1993 rose 20.1 percent to $46.1 million or $.46 per share, compared with $38.3 million or $.38 per share for the second quarter of 1992. For the first six months of this year, net income rose to $87.9 million or $.88 per share, compared with $74.2 million or $.74 per share for the first half of 1992.
 In addition, MBNA's Board of Directors declared a quarterly dividend of $.24 per share, payable October 1, 1993, to stockholders of record as of September 16, 1993.
 Total managed loans at quarter's end were $10.6 billion, a 19.0 percent increase over second quarter 1992. Year to date, over 1.6 million new cardholders have been added, a 64.0 percent increase in new cardholders over the first half of 1992. The characteristics of these new cardholders are consistent with the superior quality of the Corporation's existing cardholders.
 Delinquency on total managed loans was 3.56 percent at June 30, 1993, down from 3.98 percent at June 30, 1992. Managed loan losses for the second quarter of 1993 were 3.03 percent, down from 3.46 percent for the second quarter of 1992. Delinquency and loan losses continue to be significantly lower than published industry levels.
 Second quarter net income included a tax benefit of $89.8 million related to the recognition of tax deductions for the amortization of customer-based intangible assets. Also included in second quarter net income was a one-time charge of $142.8 million ($89.8 million, net of tax) for the expected early termination of a marketing agreement with an independent third-party marketing organization.
 Net income for the quarter is unaffected by these two offsetting items and rose 20.1 percent.
 The $89.8 million tax benefit was related to the recognition of tax deductions for the amortization of customer-based intangible assets acquired in connection with the 1991 public offering of MBNA's Common Stock, as previously described in MBNA's annual reports to stockholders. Earlier recognition of the benefit was not appropriate because of uncertainties regarding the deductibility of the amortization of the intangible assets. During the second quarter, the U.S. Supreme Court decision in the "Newark Morning Ledger" case affirmed that customer- based intangible assets may be amortized for tax purposes. Because of this significant event, the estimated tax benefit was recognized in the second quarter. Since the tax benefit was a reduction of MBNA's overall taxes, it increased net income dollar for dollar.
 During the second quarter, MBNA charged $142.8 million ($89.8 million, net of tax) to earnings for the expected termination of a marketing agreement with an independent third-party marketing organization. As previously described in its annual reports to stockholders, MBNA has been paying the independent third-party marketing organization a percentage of the net interest margin received from certain credit card and other accounts, subject to certain minimum and maximum levels. Eighteen months after the establishment of a new account, a final payment is made. The lump sum payment has been charged to marketing expense when contractually due. Since it is expected that this agreement will terminate early, MBNA is recognizing the estimated cost of early termination.
 MBNA Corporation, a bank holding company, is the parent of MBNA America Bank, N.A., a national bank with $10.6 billion in managed loans. MBNA, the country's third largest lender through bank credit cards, also provides retail deposit, individual loan, card acceptance, and financial transaction processing services.
 MBNA CORPORATION AND SUBSIDIARIES
 Financial Highlights
 (Unaudited; dollars in thousands, except per-share amounts)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 INCOME STATEMENT DATA FOR THE PERIOD:
 Net interest income $ 123,630 $ 86,240 $ 239,607 $ 164,439
 Net interest margin
 (percent)(A) 9.15 7.02 9.08 6.51
 Provision for possible
 credit losses 25,042 25,046 52,158 50,602
 Other operating income 173,444 135,480 322,397 270,193
 Other operating expense 198,770 136,388 370,103 267,119
 Net income (B) 46,061 38,344 87,877 74,238
 PER SHARE DATA FOR THE PERIOD (C):
 Earnings(B) $ 0.46 $ 0.38 $ 0.88 $ 0.74
 Dividends 0.24 0.22 0.48 0.44
 Book value 7.06 6.19
 RATIOS:
 Return on average
 assets (percent) 2.82 2.67 2.75 2.53
 Return on end of period
 stockholders' equity 26.42 25.15 25.34 24.35
 Average receivables to
 average deposits 88.92 68.28 88.42 66.37
 Stockholders' equity to
 total assets 10.69 11.06
 Loan Portfolio:
 Delinquency(E) 3.39 3.89
 Net credit losses 2.44 2.95 2.59 3.00
 Managed Loans(F):
 Delinquency 3.56 3.98
 Net credit losses 3.03 3.46 3.15 3.36
 Net interest margin(A) 8.55 7.02 8.41 6.77
 MANAGED LOAN DATA (F):
 At Period End:
 Credit card loans
 held for
 securitization $ 873,000 $ 890,000
 Loan portfolio 2,845,553 2,370,907
 Securitized loans 6,860,373 5,625,384
 Total managed
 loans $10,578,926 $8,886,291
 Average:
 Credit card loans
 held for
 securitization 605,121 998,791 648,000 801,593
 Loan portfolio 3,505,783 2,398,656 3,374,843 2,572,495
 Securitized loans 6,162,364 5,367,784 6,031,764 5,334,127
 Total managed
 loans $10,273,268 $8,765,231 $10,054,607 $8,708,215
 For the Period:
 Sales and cash
 advance volume $ 4,279,937 $3,581,348 $ 8,055,123 $6,674,220
 BALANCE SHEET DATA AT PERIOD END:
 Investment securities
 and money market
 instruments $ 1,592,589 $1,394,020
 Credit card loans
 held for
 securitization 873,000 890,000
 Credit card loans 2,162,741 1,761,932
 Other consumer loans 682,812 608,975
 Total loans 2,845,553 2,370,907
 Reserve for possible
 credit losses (97,580) (97,580)
 Net loans 2,747,973 2,273,327
 Total assets 6,542,635 5,545,989
 Total deposits 4,707,622 4,757,744
 Stockholders' equity 699,207 613,165
 AVERAGE BALANCE SHEET DATA:
 Investment securities
 and money market
 instruments 1,323,450 1,562,786 1,316,920 1,732,954
 Credit card loans held
 for securitization 605,121 998,791 648,000 801,593
 Credit card loans 2,842,205 1,799,603 2,721,118 1,978,292
 Other consumer loans 663,578 599,053 653,725 594,203
 Total loans 3,505,783 2,398,656 3,374,843 2,572,495
 Reserve for possible
 credit losses (97,580) (97,580) (97,580) (97,580)
 Net loans 3,408,203 2,301,076 3,277,263 2,474,915
 Total assets 6,547,334 5,771,648 6,444,340 5,897,781
 Total deposits 4,623,076 4,975,587 4,549,604 5,083,997
 Stockholders' equity 675,452 586,574 671,442 588,552
 Weighted average common
 shares outstanding and
 common stock equivalents
 (000) (C) 99,866 99,987 99,922 100,194 (A) Net interest margin is presented on a fully taxable equivalent
 basis. (B) Net income in 1993 includes an $89.8 million tax benefit,
 related to the recognition of tax deductions for the
 amortization of customer-based intangible assets acquired in
 connection with the 1991 public offering of the Corporation's
 Common Stock and a one-time charge of $142.8 million ($89.8
 million, net of tax) for the expected early termination of a
 marketing agreement with an independent third-party marketing
 organization. (C) Per share data and weighted average common shares outstanding
 and common stock equivalents for 1992 reflect the two-for-one
 split of the Corporation's common shares effected in the form of
 a dividend on February 12, 1993. (D) Earnings per share data is computed using weighted average
 shares outstanding (including common stock equivalents). (E) Loan portfolio delinquency does not include credit card loans
 held for securitization or securitized loans. (F) Managed loans include the Corporation's loan portfolio, credit
 card loans held for securitization, and securitized loans.
 /delval/
 -0- 7/27/93
 /CONTACT: David W. Spartin, executive vice president-Investor Relations of MBNA, 800-362-6255 or 302-456-8588/
 (KRB)


CO: MBNA Corporation; MBNA America Bank, N.A. ST: Delaware IN: FIN SU: ERN DIV

CC -- PH021 -- 6258 07/27/93 13:05 EDT
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Date:Jul 27, 1993
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