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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 29, 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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<PAGE>
Item 5. Other Events.
On April 29, 1998, 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, 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 April 29, 1998
regarding certain of its unaudited
financial results for the three-month
period ended March 31, 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: April 30, 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 April 29, 1998
regarding certain of its unaudited
financial results for the three-month
period ended March 31, 1998.
EXHIBIT 99
NEWS RELEASE
[LOGO]
AMERICAN GENERAL FINANCE
A Subsidiary of American General Corporation
P.O.Box 59 - Evansville, IN 47701
Contact:
Bryan A. Binyon, Treasurer
(812) 468-5195
Robert A. Cole, Senior Vice President
Risk Manangement and Chief Financial Officer
(812) 468-5601
AMERICAN GENERAL FINANCE CORPORATION
REPORTS EARNINGS GROWTH FOR FIRST QUARTER 1998
Highlights for the quarter:
- - Earnings increase 10%
- - Total portfolio grows
- - Credit quality strengthens
EVANSVILLE, IN, APRIL 29, 1998 American General Finance
Corporation reports first quarter 1998 earnings of $46
million, a 10% increase over the same period last year. The
improved results are attributable to continued asset growth
and improved portfolio credit quality.
The company successfully grew finance receivables during
the first quarter despite the seasonal liquidations that
occur as customers repay borrowings from year-end holiday
shopping. The growth in assets was led by an increase in
real estate secured receivables, which now represent more
than 53% of American General Finance's total receivables
portfolio.
Improved credit quality results were a significant
contributor to the earnings increase as net charge-offs
decreased to 2.71% compared to 3.83% for first quarter
1997. The delinquency ratio also improved by decreasing to
3.52% compared to 3.61% at year-end 1997, while the
allowance for losses as of first quarter-end 1998 remained
strong at 4.55%.
Management believes the strong first quarter results for
1998 further demonstrate the company's successful strategy
of quality growth, increased real estate secured lending
and enhances risk management technology. With a network of
more than 1,300 branches and its strengthened operations
and technology, American General Finance is well positioned
to actively participate in the growth and consolidation
opportunities of today's financial services industry.
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 $9.4 billion and
operates 1,306 offices in 40 states, Puerto Rico, and the
U.S. Virgin Islands. Products and services are provided to
2.3 million low-to-middle income American families. The
company offers direct consumer and home equity loans,
retail sales financing, and other credit-related products.
Certain information included in this press release is
forward looking and involves risks and uncertainties,
including general economic and competitive conditions, that
could significantly impact expected results. Investors are
also directed to other risks and uncertainties discussed in
documents filed by the company with the Securities and
Exchange Commission.
<PAGE>
<PAGE>
AMERICAN GENERAL FINANCE CORPORATION
Financial Highlights
(dollars in millions, annualized percentages)
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
____________________
1998 1997
______ ______
<S> <C> <C>
Total Revenues $ 386 $ 380
Interest Expense 119 110
Operating Expenses 123 114
Provision for Finance Receivable Losses 48 66
Insurance Benefits and Losses 22 24
______ _____
Total Expenses $ 312 $ 314
Income before Taxes 74 66
Income Tax Expense 28 24
_____ _____
Net Income $ 46 $ 42
===== =====
Finance Charge Yield 16.47% 17.07%
Charge-off Ratio 2.71% 3.83%
______ ______
Risk-Adjusted Yield 13.76% 13.24%
Return on Assets 1.98% 1.78%
Return on Equity 13.20% 12.35%
AT: 3/31/98 3/31/97
______ ______
Total Assets $ 9,377 $ 9,294
Real Estate Loans 4,210 3,707
Non-Real Estate Loans 2,425 2,310
Retail Sales Finance 1,244 1,250
______ ______
Total Net Finance Receivables $ 7,879 $ 7,267
<CAPTION>
ALLOWANCE FOR FINANCE RECEIVABLE LOSSES 1Q 98 1Q 97
_____ _____
<S> <C> <C>
Balance at Beginning of Period $ 363 $ 385
Provision for Finance Receivable Losses 48 66
Charge-offs, Net of Recoveries
(53) (71)
______ _____
Balance at End of Period $ 358 $
380
3/31/98 3/31/97
______ ______
Allowance as a % of Net Finance Receivables 4.55% 5.23%
<CAPTION>
60+ DAY DELINQUENCY RATIOS 3/31/98 12/31/97 3/31/97
______ _______ ______
<S> <C> <C> <C>
Real Estate Loans 2.77% 2.59%
2.37%
Non-Real Estate Loans 5.28% 5.71%
6.00%
Retail Sales Finance 2.41% 2.45% 2.90%
______ _______ ______
Total Net Finance Receivables 3.52% 3.61%
3.77%
</TABLE>
