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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):
October 28, 1998
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 October 28, 1998, American General Finance Corporation
(the "Company") issued an Earnings Release announcing certain
unaudited financial results of the Company for the three- and
nine-month periods ended September 30, 1998.
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 October 28, 1998
regarding certain of its unaudited
financial results for the three- and nine-month periods ended
September 30, 1998.
<PAGE>
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: October 28, 1998 By: /s/ GEORGE W. SCHMIDT
George W. Schmidt
Controller and Assistant
Secretary
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description
99 Earnings Release issued by American General
Finance Corporation on October 28, 1998
regarding certain of its unaudited
financial results for the three- and nine-month periods ended
September 30, 1998.
NEWS RELEASE
[LOGO]
American General Finance
A Subsidiary of American General Corporation
P. O. Box 59 - Evansville, Indiana 47701
Contact:
Bryan A. Binyon, Treasurer
(812) 468-5195
AMERICAN GENERAL FINANCE CORPORATION
REPORTS INCREASED EARNINGS
FOR THIRD QUARTER 1998
Highlights for the quarter:
- - Earnings increased 13%
- - Real estate portfolio grew
- - Charge-off ratio improved
EVANSVILLE, IN, OCTOBER 28, 1998 - American General Finance
Corporation reports third quarter 1998 net income of $49
million, a 13% increase over the same period last year.
The improved results are attributable to asset growth and
improved portfolio credit quality.
Finance receivables grew at an annualized rate of 9% during
the third quarter bringing total net receivables to more
than $8.6 billion. The growth was led by an increase in
real estate receivables which represented 56% of the total
receivables portfolio as of September 30, 1998, up from 51%
a year ago.
Improved charge-offs were a significant contributor to the
earnings increase as net charge-offs for the quarter
improved to 2.44% compared to 3.28% for third quarter 1997.
The 60-day+ delinquency ratio of 3.77% at September 30,
1998 improved from 3.85% at September 30, 1997. As with
others in the consumer finance industry, the company's
delinquency was up from its June 30, 1998 level of 3.45%.
The allowance for losses at September 30, 1998 remained
strong at 4.12% of finance receivables.
The company attributes the improved profitability for 1998
to a focus on quality growth. Management believes that,
with the company's vast branch network, risk management
technology and financial strength, American General Finance
is positioned for continued profitable growth through
existing origination channels and acquisitions.
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American General Finance Corporation and its subsidiaries
are engaged in the consumer finance and credit insurance
business. The company, headquartered in Evansville,
Indiana, has assets of $10 billion and operates 1,306
offices in 40 states, Puerto Rico, and the U.S. Virgin
Islands. Products and services are provided to more than 2
million American families. The company offers direct
consumer and home equity loans, retail sales financing, and
other credit-related products.
All statements, trend analyses, and other information
contained in this report and elsewhere (such as other
filings by the company with the Securities and Exchange
Commission, press releases, presentations by management of
the company, or oral statements) relative to trends in the
company's operations or financial results, as well as other
statements including words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend," and other similar
expressions, constitute forward-looking statements under
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are made based upon management's
current expectations and beliefs concerning future
developments and their potential effects upon the company.
There can be no assurance that future developments
affecting the company will be those anticipated by
management. Actual results may differ materially from
those included in the forward-looking statements.
These forward-looking statements involve risks and
uncertainties including, but not limited to, the following:
(1) changes in general economic conditions, including the
performance of financial markets, interest rates, and the
level of personal bankruptcies; (2) competitive,
regulatory, or tax changes that affect the cost of or
demand for the company's products; (3) the company's
ability to achieve Year 2000 readiness for significant
systems and operations on a timely basis; (4) adverse
litigation results or resolution of litigation; and (5)
the company's failure to achieve anticipated levels of
expense savings from cost-saving initiatives. Readers are
also directed to other risks and uncertainties discussed in
other documents filed by the company with the Securities
and Exchange Commission. The company undertakes no
obligation to update or revise any forward-looking
information, whether as a result of new information, future
developments, or otherwise.
<PAGE>
American General Finance Corporation
FINANCIAL HIGHLIGHTS:
(Dollars in Millions, Annualized Percentages)
For the Three Months For the Nine Months
Ended September 30 Ended September 30
1998 1997 1998 1997
Total Revenues $404 $378 $1,183 $1,135
Interest Expense 128 115 369 335
Operating Expenses 127 117 374 346
Provision for Finance
Receivable Losses 51 54 149 182
Loss on Sale of
Non-Strategic Assets 0 0 0 42
Insurance Losses and
Loss Adjustments 21 23 65 69
____ ____ ____ ____
Total Expenses 327 309 957 974
Income Before Provision
for Income Tax 77 69 226 161
Provision for Income
Tax 28 25 84 59
____ ____ _____ _____
Net Income $ 49 $ 44 $ 142 $ 102
____ ____ _____ _____
Earnings Before Loss on
Sale of Non-Strategic
Assets $ 49 $ 44 $ 142 $ 129
Finance Charge Yield 15.73% 16.82% 16.09% 16.95%
Charge-off Ratio 2.44% 3.28% 2.59% 3.61%
______ ______ ______ ______
Risk Adjusted Yield 13.29% 13.54% 13.50% 13.34%
Return on Assets 1.95% 2.00% 1.96% 1.48%
Return on Equity 13.25% 13.23% 13.24% 10.02%
AT: 9/30/98 9/30/97
_______ _______
Total Assets $10,166 $8,770
Real Estate Loans 4,862 3,761
Non-Real Estate Loans 2,491 2,409
Retail Sales Finance 1,271 1,176
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Total Net Finance
Receivables $ 8,624 $7,346
Allowance for Finance
Receivable Losses 3Q98 3Q97
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Balance at Beginning of
Period $ 356 $ 376
Provision for Finance
Receivable Losses 51 54
Charge-offs, Net of Recoveries (51) (60)
______ ______
Balance at End of Period $ 356 $ 370
9/30/98 9/30/97
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Allowance as a % of Net
Finance Receivables 4.12% 5.05%
60-Day+ Delinquency Ratios 9/30/98 9/30/97
_______ _______
Real Estate Loans 3.11% 2.53%
Non-Real Estate Loans 5.71% 6.32%
Retail Sales Finance 2.25% 2.64%
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Total Net Finance
Receivables 3.77% 3.85%
