<PAGE 1>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 1 0 - Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED
MARCH 31, 1995
1-8175
________________________
(Commission file number)
IBM CREDIT CORPORATION
_____________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 22-2351962
_______________________________ ____________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
290 Harbor Drive
P. O. Box 10399
Stamford, Connecticut
06904-2399
________________________________________
(Address of principal executive offices)
203-973-5100
____________________________________________________
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
___ ___
As of May 1, 1995, 899 shares of capital stock, par value $1.00 per
share, were outstanding and held by International Business Machines
Corporation. Aggregate market value of voting stock held by
non-affiliates of registrant at May 1, 1995: NONE.
The registrant meets the conditions set forth in General Instruction
H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with
the reduced disclosure format.
<PAGE 2>
INDEX
_____
Part I - Financial Information: Page
____
Item 1. Financial Statements:
Consolidated Statement of Financial Position
at March 31, 1995 and December 31, 1994. . . . . . . . . 1
Consolidated Statement of Earnings for the three
months ended March 31, 1995 and 1994 . . . . . . . . . . 2
Consolidated Statement of Cash Flows
for the three months ended March 31, 1995 and 1994 . . . 3
Notes to Consolidated Financial Statements . . . . . . . 4
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations. 5
Part II - Other Information. . . . . . . . . . . . . . . . . . 12
<PAGE 3>
<TABLE>
IBM CREDIT CORPORATION
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Dollars in thousands)
<CAPTION>
At At
March 31, December 31,
1995 1994
__________ ____________
<S> <C> <C>
ASSETS:
Cash and cash equivalents. . . . . . . . $ 226,981 $ 614,339
Marketable securities. . . . . . . . . . 121,237 -
Net investment in capital leases . . . . 3,824,393 3,687,971
Equipment on operating leases, net . . . 1,620,431 1,573,242
Loans receivable . . . . . . . . . . . . 1,095,090 1,070,619
Working capital financing receivables. . 2,145,803 2,135,020
Investments and other assets . . . . . . 429,294 382,910
Due and deferred from receivable sales . 164,500 203,614
__________ ___________
Total Assets $9,627,729 $9,667,715
========== ===========
LIABILITIES AND STOCKHOLDER'S EQUITY:
Liabilities:
Short-term debt. . . . . . . . . . . . . $4,602,655 $4,355,038
Due to IBM Corporation and affiliates. . 1,299,935 1,493,449
Interest and other accruals. . . . . . . 445,506 462,277
Deferred income taxes. . . . . . . . . . 642,380 651,911
Long-term debt . . . . . . . . . . . . . 1,478,090 1,458,822
Long-term debt, IBM Corporation. . . . . 125,000 125,000
__________ ___________
Total liabilities. . . . . . . . . . . . 8,593,566 8,546,497
__________ ___________
Stockholder's equity:
Capital stock, par value $1 per share;
Shares authorized: 10,000;
Shares issued and outstanding: 899. . 453,711 453,711
Retained earnings. . . . . . . . . . . . 580,452 667,507
__________ ___________
Total stockholder's equity . . . . . . . 1,034,163 1,121,218
__________ ___________
Total Liabilities & Stockholder's Equity $9,627,729 $9,667,715
========== ===========
<FN>
The accompanying notes are an integral part of this statement.
</FN>
</TABLE>
-1-
<PAGE 4>
<TABLE>
IBM CREDIT CORPORATION
CONSOLIDATED STATEMENT OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31:
(Dollars in thousands)
<CAPTION>
1995 1994
________ ________
<S> <C> <C>
FINANCE AND OTHER INCOME:
Income from leases:
Capital leases . . . . . . . . . . . . $ 61,409 $ 89,623
Operating leases (net of depreciation:
1995- $172,537 and 1994- $156,528). . 50,936 38,788
________ ________
112,345 128,411
Income from loans . . . . . . . . . . . . 26,536 21,063
Income from working capital financing . . 51,198 30,488
Equipment sales . . . . . . . . . . . . . 114,103 150,530
Other income. . . . . . . . . . . . . . . 33,299 29,642
________ ________
Total finance and other income . . . . 337,481 360,134
________ ________
COST AND EXPENSES:
Interest. . . . . . . . . . . . . . . . . 86,296 75,425
Cost of equipment sales . . . . . . . . . 100,835 138,086
Selling, general, and administrative. . . 40,870 40,208
Provision for receivable losses . . . . . 13,706 9,004
________ ________
Total cost and expenses. . . . . . . . 241,707 262,723
________ ________
EARNINGS BEFORE INCOME TAXES. . . . . . . . 95,774 97,411
Provision for income taxes. . . . . . . . . 37,829 38,350
________ ________
NET EARNINGS. . . . . . . . . . . . . . . . $ 57,945 $ 59,061
======== ========
<FN>
The accompanying notes are an integral part of this statement.
</FN>
</TABLE>
-2-
<PAGE 5>
<TABLE>
IBM CREDIT CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31:
(Dollars in thousands) 1995 1994*
<CAPTION>
__________ __________
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings . . . . . . . . . . . . . . . . . $ 57,945 $ 59,061
Adjustments to net earnings:
Depreciation and amortization . . . . . . . . 172,636 156,106
Provision for receivable losses . . . . . . . 13,706 9,004
Decrease in deferred income taxes . . . . . . (11,187) (59,606)
Change in interest and other accruals . . . . (24,463) 31,599
Gross profit on equipment sales . . . . . . . (13,268) (12,444)
Proceeds from equipment sales. . . . . . . . . 114,103 150,530
Decrease in due to IBM Corporation and
affiliates . . . . . . . . . . . . . . . . . (193,514) (446,931)
Other, net . . . . . . . . . . . . . . . . . . 28,480 16,287
__________ __________
Cash provided by (used in) operating activities. 144,438 (96,394)
__________ __________
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in capital leases . . . . . . . . . (461,939) (251,025)
Collection of capital leases, net of income
earned. . . . . . . . . . . . . . . . . . . . 307,862 308,990
Investment in equipment on operating lease . . (262,631) (87,312)
Investment in loans receivable . . . . . . . . (195,286) (81,775)
Collection of loans receivable, net of
interest earned . . . . . . . . . . . . . . . 175,450 127,205
Investment in working capital financing
receivables, net of cash collected. . . . . . (14,789) 108,370
Purchases of marketable securities . . . . . . (121,237) -
Cash payment for business acquired . . . . . . (92,478) -
Redemption of Comdisco, Inc. convertible
subordinated promissory note. . . . . . . . . 25,000 -
Other, net . . . . . . . . . . . . . . . . . . 25,604 (7,151)
__________ __________
Cash (used in) provided by investing activities. (614,444) 117,302
__________ __________
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt . . . 120,000 41,640
Repayment of debt with original maturities:
One year or more. . . . . . . . . . . . . . . (151,853) (383,350)
Within one year, net of debt issued . . . . . 259,501 409,417
Cash dividends paid to IBM Corporation . . . . (145,000) (150,000)
__________ __________
Cash provided by (used in) financing activities. 82,648 (82,293)
__________ __________
Decrease in cash and cash equivalents . . . . . (387,358) (61,385)
Cash and cash equivalents at January 1. . . . . 614,339 609,891
__________ __________
Cash and cash equivalents at March 31 . . . . . $ 226,981 $ 548,506
========== ==========
<FN>
<F1>
The accompanying notes are an integral part of this statement.
<F2>
* Reclassified to conform with 1995 presentation.
</FN>
</TABLE>
-3-
<PAGE 6>
IBM CREDIT CORPORATION
Notes to Consolidated Financial Statements
In the opinion of the management of IBM Credit Corporation (the
Company), all adjustments necessary for a fair statement of the
unaudited results for the three-month periods have been made. These
adjustments are of a normal and recurring nature.
RATIO OF EARNINGS TO FIXED CHARGES:
The ratio of earnings to fixed charges, calculated in accordance with
applicable Securities and Exchange Commission requirements, was 2.10 and
2.28 for the three months ended March 31, 1995 and 1994, respectively.
ACQUISITION OF CHRYSLER SYSTEMS INC.:
On February 8, 1995, the Company acquired all of the issued and
outstanding stock of Chrysler Systems Inc. and certain of its affiliates
for $133.5 million. The acquisition was consummated pursuant to a share
purchase agreement with certain Chrysler Corporation subsidiaries (the
Seller). The purchase price was funded by the Company's cash on hand
and credits issued to the Seller that are to be applied against certain
future obligations to the Company. IBM CS Systems, Inc., as the company
is now known, buys, sells and leases data processing equipment, and
provides related technology management services such as equipment
procurement and asset management. The transaction was accounted for as
a purchase and IBM CS Systems, Inc. is included in the Company's
consolidated financial statements from the date of acquisition.
RELATED PARTY TRANSACTIONS:
The Company provides capital equipment financing at market rates to
International Business Machines Corporation (IBM) and affiliated
companies for both IBM and non-IBM products. During the first three
months of 1995, the Company originated $45.5 million of such financing,
compared with $60.4 million for the first three months of 1994.
Included in the Company's lease and loan portfolio was approximately
$858.2 million and $927.2 million, related to IBM and affiliated
companies, at March 31, 1995 and December 31, 1994, respectively. Of
these amounts, $745.7 million and $752.1 million were included in the
Company's operating lease portfolio at March 31, 1995 and December 31,
1994, respectively. The pretax income earned from operating leases to
IBM and affiliated companies, net of depreciation expense, was
approximately $19.3 million and $10.2 million in the first quarter of
1995 and the first quarter of 1994, respectively.
-4-
<PAGE 7>
Item 2.
IBM CREDIT CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
For the three months ended March 31, 1995, the Company originated
financing for $3.2 billion of equipment, software and services. Net
earnings for the three months ended March 31, 1995, were $57.9 million,
yielding an annualized return on average equity of 22.3 percent.
As previously described in the Notes to Consolidated Financial
Statements, on February 8, 1995, the Company acquired all of the issued
and outstanding stock of Chrysler Systems Inc. and certain of its
affiliates. Refer to the note on page 4, Acquisition of Chrysler
Systems Inc., for details.
FINANCING ORIGINATED
The Company originated financing for $3.2 billion of equipment, software
and services in the first three months of 1995, compared with $2.1
billion in the same 1994 period. Capital equipment financing for end
users increased by 88 percent to $1,049.6 million. The increase in
capital equipment financing originated is primarily the result of
increased placements of new equipment with third-party end users in the
first quarter of 1995, compared with the first quarter of 1994, together
with an increase in the proportion of IBM products and services financed
by the Company. Working capital financing for dealers and remarketers
of information industry products increased by 36 percent to $2,140.2
million. This growth reflects an increase in the volumes of IBM's
workstation products financed by the Company throughout the first three
months of 1995, as well as increased volumes of financing provided to
information technology resellers for non-IBM products.
Capital equipment financings for end users comprised purchases of $693.9
million of information handling systems from IBM, financing originated
for installment receivables of $23.1 million, other financing primarily
for IBM software and services of $172.1 million, installment and lease
financing for state and local government customers of $99.4 million for
the account of IBM, and other financing of $61.1 million for equipment
and services, as well as selected complementary non-IBM equipment that
meets IBM customers' total solution requirements. The purchases of
$693.9 million from IBM consisted of $439.8 million for capital leases
and $254.1 million for operating leases.
-5-
<PAGE 8>
REMARKETING ACTIVITIES
In addition to originating new financing, the Company remarkets used IBM
equipment. This equipment is primarily sourced from the conclusion of
lease transactions and is typically remarketed in cooperation with the
IBM sales force. The equipment is generally leased or sold to end
users. These transactions may be with existing lessees or, when
equipment is returned, with new customers. At March 31, 1995, the
investment in remarketed equipment on capital and operating leases
totaled $612.3 million, a decrease of 2 percent from the 1994 year-end
investment of $623.7 million. Income from leases and gross profit on
equipment sales, net of write-downs in residual values of certain leased
equipment, are included in remarketing activities. Contributions from
remarketing activities amounted to $38.5 million for the first three
months of 1995, an increase of 3 percent compared with $37.2 million for
the same 1994 period.
ASSETS
Total assets decreased to $9.6 billion at March 31, 1995, compared with
$9.7 billion at December 31, 1994. This decrease is primarily the
result of payments to IBM of a dividend of $145.0 million and a current
tax liability of $175.0 million, offset in part by financings originated
exceeding cash collections on capital leases, loans receivable and
working capital financing receivables during the first three months of
1995.
Marketable securities, presented in the Consolidated Statement of
Financial Position at amortized cost which approximates market value,
included U.S. treasury securities of $108.7 million and corporate debt
securities of $12.5 million at March 31, 1995. The Company intends to
hold these securities to maturity.
LIABILITIES AND STOCKHOLDER'S EQUITY
The assets of the business were financed with $6,205.7 million of debt
at March 31, 1995. Total short-term and long-term debt increased by
approximately $266.8 million, from $5,938.9 million at December 31,
1994. This increase was primarily the result of increases in long-term
debt of $19.3 million, commercial paper outstanding of $194.7 million,
medium-term notes of $24.7 million and other short-term debt of $28.1
million. Included in long-term debt at March 31, 1995 and December 31,
1994 was $125.0 million payable to IBM at market terms and conditions,
maturing on November 1, 1997.
The Company has available $2.7 billion of a shelf registration with the
Securities and Exchange Commission. This shelf registration allows the
Company rapid access to domestic financial markets. In addition, a
subsidiary of the Company has available $450.0 million of a separate
shelf registration for asset backed securities. The Company also has
commercial paper and medium-term note programs.
-6-
<PAGE 9>
LIABILITIES AND STOCKHOLDER'S EQUITY (continued)
The Company is an authorized borrower of up to $1.6 billion under a
$10.0 billion IBM committed global credit facility, and has a liquidity
agreement with IBM for $500.0 million. The Company has no borrowings
outstanding under the committed global credit facility or the liquidity
agreement. The Company also has the option, as approved by the Board of
Directors on September 30, 1994, to sell, assign, pledge or transfer up
to $4.0 billion of assets to third parties through December 31, 1995.
During the fourth quarter of 1994, the Company and IBM signed master
loan agreements providing additional funding flexibility to each other.
These agreements allow for short-term (up to 270-day) funding, made
available at market terms and conditions, upon the request of either the
Company or IBM. There are no borrowings outstanding under these
agreements. These financing sources, along with the Company's
internally generated cash and medium-term note and commercial paper
programs, provide flexibility to the Company to fund its lease and loan
portfolio and working capital requirements and to service debt.
The Company uses currency related and interest rate related agreements
to lower costs of funding its business, to diversify sources of funding,
or to manage interest rate and currency exposures arising from
mismatches between assets and liabilities. The Company enters into such
financial instruments solely for hedging purposes. The Company does not
enter into such financial instrument transactions for trading or other
speculative purposes. The Company routinely evaluates existing and
potential counterparty credit exposures associated with such financial
instrument transactions to ensure that these exposures remain within
credit guidelines. The Company does not anticipate any material adverse
effect on its financial position resulting from its use of these
instruments, nor does it anticipate nonperformance by any of its
counterparties.
Due to IBM Corporation and affiliates decreased by $193.5 million to
$1,299.9 million at March 31, 1995, from $1,493.4 million at December
31, 1994. This decrease was primarily attributable to the current tax
liability payment of $175.0 million made to IBM in the first quarter of
1995. Due to IBM Corporation and affiliates includes amounts of trade
payables arising from purchases of equipment for term leases and
installment receivables, working capital financing receivables for
dealers and remarketers, and software license fees, typically with terms
comparable to those offered to other IBM customers, unless the Company
is participating in IBM product promotions. Also included in due to IBM
Corporation and affiliates are income taxes currently payable under the
intercompany tax allocation agreement.
Total stockholder's equity at March 31, 1995, was $1,034.2 million, down
approximately $87.1 million from year-end 1994. The decline in
stockholder's equity reflects the payment of $145.0 million in dividends
to IBM in the first quarter of 1995, offset by net earnings of $57.9
million for the first three months of 1995.
At March 31, 1995, the Company's debt-to-equity ratio was 6.0:1,
compared with 5.3:1 at year-end 1994, and 6.2:1 at March 31, 1994.
-7-
<PAGE 10>
TOTAL CASH USED BEFORE DIVIDENDS
Total cash used before dividends was $242.4 million for the three months
ended March 31, 1995, compared with total cash provided before dividends
of $88.6 million for the same 1994 period. Total cash used before
dividends reflects $391.8 million of cash used in investing and
financing activities before dividends, offset by $149.4 million of cash
provided by operating activities for the first three months of 1995.
Cash and cash equivalents at March 31, 1995, totaled $227.0 million, a
decrease of $387.4 million compared with the balance at December 31,
1994.
INCOME FROM LEASES
Income from leases decreased by 13 percent to $112.3 million for the
three months ended March 31, 1995, from $128.4 million for the same 1994
period. This decline resulted from lower asset balances in the lease
portfolio in the first quarter of 1995, compared with the same 1994
period, which in turn were primarily caused by the securitization and
sale of capital lease receivables in the third quarter of 1994. The
income from leases recognized by IBM CS Systems, Inc. partially offset
this decline. Income from leases includes lease income resulting from
remarketing transactions. Lease income from remarketing transactions
was $25.2 million for the three months ended March 31, 1995, an increase
of 2 percent from the comparable 1994 period.
On a periodic basis, the Company reassesses the future residual values
of its portfolio of leases. In accordance with generally accepted
accounting principles, anticipated increases in specific future residual
values may not be recognized before realization and are thus a source of
potential future profits. Anticipated decreases in specific future
residual values, considered to be other than temporary, must be
recognized currently.
A review of the Company's $581.7 million residual value portfolio at
March 31, 1995, indicated that the overall estimated future value of the
portfolio continues to be greater than the value currently recorded. No
material declines in the future residual value of leased equipment were
identified, nor reductions recorded, in either the first quarter of 1995
or the first quarter of 1994.
INCOME FROM LOANS
Income from loans increased by 26 percent to $26.5 million for the three
months ended March 31, 1995, compared with the respective 1994 period.
This increase resulted from higher asset balances, which in turn were
primarily the result of an increase in financing originated for software
and services during 1994 and the first three months of 1995. This
increase was partially offset by the securitization and sale of loan
receivables in the third quarter of 1994.
-8-
<PAGE 11>
INCOME FROM WORKING CAPITAL FINANCING
Income from working capital financing increased by 68 percent to $51.2
million for the three months ended March 31, 1995, compared with the
same 1994 period. This increase was primarily due to growth in the
average working capital financing receivables outstanding and generally
higher interest rates charged during the first three months of 1995,
compared with the same 1994 period. The growth in average working
capital financing receivables outstanding primarily reflects increased
originations as discussed in the "Financing Originated" section.
EQUIPMENT SALES
Equipment sales amounted to $114.1 million for the first quarter of
1995, compared with $150.5 million for the same period in 1994. The
revenue associated with outright sales and sales-type leases is included
in equipment sales. Company-owned equipment may be sold or leased to
existing lessees or, when equipment is returned, to new customers.
Gross profit on equipment sales for the first quarter of 1995 increased
to $13.3 million, compared with $12.4 million for the same 1994 period.
The gross profit margin for the first quarter of 1995 was 11.6 percent,
up from 8.3 percent for the first quarter of 1994. This increase is
primarily due to higher margins realized on high-end processors during
the first quarter of 1995, compared with the same 1994 period, because
of market demand which generally exceeded supply.
OTHER INCOME
Other income increased by approximately 13 percent to $33.3 million for
the first quarter of 1995, from $29.6 million for the same 1994 period.
This increase is largely attributable to a $5.0 million pretax gain the
Company recognized upon Comdisco, Inc.'s redemption of the convertible
subordinated promissory note on March 1, 1995.
Included in other income is interest income earned on cash and cash
equivalents and notes, as well as fees for managing IBM's state and
local government installment and lease financing receivables portfolio,
and fees for the servicing of financing receivables sold.
TOTAL FINANCE AND OTHER INCOME
Total finance and other income decreased by 6 percent to $337.5 million
for the first quarter of 1995, from $360.1 million for the same 1994
period. This decline was largely due to reductions in income from
leases and equipment sales, partially offset by increases in income from
loans, income from working capital financing and other income.
-9-
<PAGE 12>
INTEREST EXPENSE
As a result of the rising interest rate environment, interest expense
increased by 14 percent to $86.3 million for the three months ended
March 31, 1995, compared with $75.4 million for the same period in 1994.
The Company's year-to-date average cost of debt through March 31, 1995,
increased to 5.89 percent, from 4.66 percent for the same period in
1994.
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES
Selling, general, and administrative expenses increased 2 percent to
$40.9 million for the first quarter of 1995, from $40.2 million for the
same 1994 period. This increase is primarily a result of expenses
incurred by IBM CS Systems, Inc. since the acquisition date.
PROVISION FOR RECEIVABLE LOSSES
The Company's portfolio of capital equipment leases and loans is
predominantly with investment grade customers. The Company generally
retains ownership or takes a security interest in any underlying
equipment financed. The portfolio is diversified by geography, industry,
and individual unaffiliated customer.
With the continued growth of the Company's working capital financing
business in 1994 and the first quarter of 1995, the concentration of
such financings for certain large dealers and remarketers of information
industry products has become more significant. Such loans are typically
collateralized by the inventory and accounts receivable of the dealers
and remarketers. The Company does not believe that this risk will have
a material adverse effect on its financial position or results of
operations.
The provision for receivable losses increased to $13.7 million for the
quarter ended March 31, 1995, compared with $9.0 million for the same
period in 1994. This increase reflects the growth in the amount of
capital equipment and working capital financing originated during the
first three months of 1995, the Company's timely recognition of probable
receivable losses, and its revised estimate of the recoverability of
specific receivables.
NET EARNINGS
Net earnings decreased by 2 percent to $57.9 million for the first
quarter of 1995, compared with $59.1 million for the same 1994 period.
The Company's expanding working capital financing business and large and
profitable capital equipment remarketing operations contributed to a
favorable performance during the first quarter of 1995.
RETURN ON AVERAGE EQUITY
The results for the first three months of 1995 yielded an annualized
return on average equity of 22.3 percent, compared with 22.2 percent for
the comparable 1994 period.
-10-
<PAGE 13>
NEW ACCOUNTING STANDARDS
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards (SFAS) 114, "Accounting by Creditors for Impairment
of a Loan," in May 1993 and SFAS 118, "Accounting by Creditors for
Impairment of a Loan--Income Recognition and Disclosures," an amendment
of SFAS 114, in October 1994. These standards prescribe impairment
measurements and reporting related to certain loans. SFAS 114 and SFAS
118 are effective for fiscal years beginning after December 15, 1994.
The Company implemented SFAS 114 and SFAS 118, effective January 1,
1995. The implementation had no material impact on the Company's
financial position and results of operations.
CLOSING DISCUSSION
The Company's resources continue to be sufficient to enable it to carry
out its mission of offering customers competitive leasing and financing
and providing information technology remarketers with inventory and
accounts receivable financing which contribute to the growth and
stability of IBM earnings.
-11-
<PAGE 14>
[SIGNATURE]
Part II - Other Information
___________________________
Item 1. Legal Proceedings
__________________________
None material.
Item 6(b). Reports on Form 8-K
_______________________________
No reports on Form 8-K have been filed during the first three months
of 1995.
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.
IBM CREDIT CORPORATION
______________________
(Registrant)
Date: May 11, 1995 By: /s/Allison R. Schleicher
____________ _____________________________
(Allison R. Schleicher)
Vice President, Finance
and Chief Financial Officer
-12-
<TABLE> <S> <C>
<ARTICLE>5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM IBM CREDIT CORPORATION'S CONSOLIDATED FINANCIAL STATEMENTS AT AND
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 226,981
<SECURITIES> 121,237
<RECEIVABLES> 1,095,090
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 9,627,729
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 453,711
0
0
<OTHER-SE> 580,452
<TOTAL-LIABILITY-AND-EQUITY> 9,627,729
<SALES> 114,103
<TOTAL-REVENUES> 337,481
<CGS> 100,835
<TOTAL-COSTS> 100,835
<OTHER-EXPENSES> 40,870
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<INCOME-TAX> 37,829
<INCOME-CONTINUING> 57,945
<DISCONTINUED> 0
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<NET-INCOME> 57,945
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<EPS-DILUTED> 0
</TABLE>
