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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 1996
AMERICAN GENERAL FINANCE CORPORATION
(Exact Name of Registrant as Specified in Charter)
Indiana 1-6155 35-0416090
(State or Other (Commission File (IRS Employer
Jurisdiction of Number) Identification
Incorporation) No.)
601 N.W. Second Street, Evansville, IN 47708
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (812) 424-8031
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Item 5. Other Events.
On April 23, 1996, American General Finance Corporation (the "Company")
issued an Earnings Release announcing certain unaudited financial results of
the Company for the three-month period ended March 31, 1996.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits. The following Exhibit is filed as part of this Report:
Exhibit
Number Description
99 Earnings Release issued by American General Finance
Corporation on April 23, 1996 regarding certain of its
unaudited financial results for the three-month period
ended March 31, 1996.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this Report to be signed on its behalf by
the undersigned thereunto duly authorized.
AMERICAN GENERAL FINANCE CORPORATION
Dated: April 24, 1996 By: /S/ GEORGE W. SCHMIDT
George W. Schmidt
Controller and
Assistant Secretary
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EXHIBIT INDEX
Exhibit
Number Description
99 Earnings Release issued by American General
Finance Corporation on April 23, 1996 regarding
certain of its unaudited financial results for
the three-month period ended March 31, 1996.
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EXHIBIT 99
Bryan Binyon
Treasurer
American General Finance, Inc.
812-468-5195
AMERICAN GENERAL FINANCE CORPORATION
REPORTS RESULTS FOR FIRST QUARTER 1996
HIGHLIGHTS:
- Total delinquencies improve due to management actions
- Overall first quarter results in line with expectations
- Receivable volume down with the focus on credit quality
EVANSVILLE, IN, APRIL 23, 1996.-- American General Finance Corporation s
results for the first quarter of 1996 were in line with management
expectations producing net income of $30 million compared to 1995 first
quarter net income of $61 million. The results were impacted by the
anticipated higher level of charge-offs and operating expenses associated with
the high rate of growth in the retail and non-real estate receivables during
the past two years.
Compared to year-end 1995, total 60-day+ delinquencies improved to 4.05% from
4.15% reflecting a decrease in delinquent accounts of more than $25 million.
While this initial indication of a positive credit quality trend is viewed
favorably, the company is maintaining a conservative outlook by holding its
allowance for finance receivable losses to 6.10% at the end of the first
quarter.
Compared to the first quarter of 1995, revenues were up due to higher yields
for the first quarter of 1996 partially offset by a decreased level of
average net receivables. Net finance receivables were down 4.6% from year-end
1995 due to lower receivable volume attributed to the emphasis on credit
quality improvement during the first quarter.
While delinquencies and charge-offs are expected to remain above historical
levels throughout 1996, management believes the improvement programs
implemented in late 1995 and throughout 1996 are addressing the overall credit
quality issues and laying a strong foundation for improved future results.
American General Finance Corporation and its subsidiaries are engaged in the
consumer finance and related credit insurance business. The company,
headquartered in Evansville, Indiana, has assets of $9.1 billion and operates
1,361 offices in 39 states, Puerto Rico, and the U.S. Virgin Islands.
Products and services are provided to over 3 million low-to-middle income
American families. The company offers direct consumer and home equity loans,
indirect retail sales financing, credit cards; and credit and non-credit
insurance.
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FINANCIAL HIGHLIGHTS:
(Dollars in Millions, Annualized Percentages)
For the Quarter Ended March 31, 1996 1995
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Revenues:
Finance Charges $ 362 $ 358
Insurance 51 54
Other 22 18
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Total Revenues $ 435 $ 430
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Net Income $ 30 $ 61
Finance Charge Yield 18.13% 17.94%
Charge-Off Ratio 5.53% 2.82%
Return on Assets 1.28% 2.70%
Return on Equity 8.23% 18.07%
At: 3/31/96 12/31/95
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Total Assets $9,055 $9,485
Real Estate Loans $2,781 $2,817
Non-Real Estate Loans 2,529 2,694
Retail Sales Finance 1,970 2,132
Credit Cards 541 558
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Total Net Finance Receivables $7,821 $8,201
Allowance for Finance Receivable Losses 1Q96 1995
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Balance at beginning of period $ 482 $ 226
Provision for finance receivable losses 107 574
Allowance related to net (transferred)
acquired receivables and other -- (7)
Charge-offs, net of recoveries (112) (311)
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Balance at end of period $ 477 $ 482
60-Day+ Delinquency Ratios 3/31/96 12/31/95
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Real Estate Loans 2.20% 2.01%
Non-Real Estate Loans 6.07 6.37
Retail Sales Finance 3.68 3.76
Credit Cards 4.78 4.85
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Total 4.05% 4.15%
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