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FORM 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: March 12, 1997
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HOUSEHOLD FINANCE CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-75 36-1239445
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
2700 Sanders Road, Prospect Heights, Illinois 60070
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 847/564-5000
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Item 5. Other Events
Set forth in the Exhibit hereto is selected owned and managed
financial information for Household Finance Corporation and
subsidiaries (the "Company") as of and for the year ended
December 31, 1996.
Item 7. Financial Statements and Exhibits
(a) Financial statements of business acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
No. Exhibit
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99 Selected owned and managed financial information with
respect to the operations of Household Finance Corporation
and subsidiaries as of and for the year ended December 31,
1996.
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SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION
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(Registrant)
By: /s/ David A. Schoenholz
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David A. Schoenholz
Vice President,
Chief Accounting Officer and
Chief Financial Officer,
(a Principal Financial Officer),
Director and on behalf of
Household Finance Corporation
Dated: March 12, 1997
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EXHIBIT INDEX
Exhibit No. Exhibit
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99 Selected owned and managed financial information with respect
to the operations of Household Finance Corporation and
subsidiaries as of and for the year ended December 31, 1996.
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EXHIBIT 99
<TABLE>
<CAPTION>
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1. Receivables
In millions.
At December 31 1996
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<S> <C>
Home equity $ 2,513.9
Visa/MasterCard 6,308.9
Private label 3,807.0
Other unsecured 2,564.4
Commercial 892.6
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Total owned receivables 16,086.8
Accrued finance charges 215.8
Credit loss reserve for owned receivables (671.5)
Unearned credit insurance premiums and claims reserves (82.6)
Amounts due and deferred from receivables sales 1,404.8
Reserve for receivables serviced with limited recourse (561.6)
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Total owned receivables, net 16,391.7
Receivables serviced with limited recourse 12,509.4
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Total managed receivables, net $28,901.1
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</TABLE>
The outstanding balance of receivables serviced with limited recourse
consisted of the following:
<TABLE>
<CAPTION>
In millions.
At December 31 1996
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<S> <C>
Home equity $ 4,337.5
Visa/MasterCard 5,043.5
Private label 517.0
Other unsecured 2,611.4
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Total $12,509.4
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</TABLE>
The combination of receivables owned and receivables serviced with limited
recourse, which the company considers its managed portfolio, is shown below:
<TABLE>
<CAPTION>
In millions.
At December 31 1996
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<S> <C>
Home equity $ 6,851.4
Visa/MasterCard 11,352.4
Private label 4,324.0
Other unsecured 5,175.8
Commercial 892.6
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Managed receivables $28,596.2
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</TABLE>
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The following table sets forth the activity in the company's credit loss
reserves:
<TABLE>
<CAPTION>
In millions.
Year ended December 31 1996
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<S> <C>
Credit loss reserves for owned receivables at January 1 $ 531.8
Provision for credit losses-owned receivables 522.8
Owned receivables charged off (528.4)
Recoveries on owned receivables 74.7
Portfolio acquisitions, net 70.6
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Total credit loss reserves for owned receivables at
December 31 671.5
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Credit loss reserves for receivables serviced with limited
recourse at January 1 334.2
Provision for credit losses-receivables serviced with
limited recourse 568.1
Receivables charged off (356.0)
Recoveries 17.1
Portfolio acquisitions, net (1.8)
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Total credit loss reserves for receivables serviced
with limited recourse at December 31 561.6
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Total credit loss reserves for managed receivables at
December 31 $ 1,233.1
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</TABLE>
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2. Managed Consumer Two-Month-and-Over Contractual Delinquency Ratios
<TABLE>
<CAPTION>
1996 Quarter End
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4 3 2 1
---- ---- ---- ----
<S> <C> <C> <C> <C>
Home equity 3.62% 3.59% 3.47% 3.36%
Visa/MasterCard 2.90 2.64 1.99 2.61
Private label 5.95 5.68 5.25 4.93
Other unsecured 7.04 6.79 6.59 6.50
---- ---- ---- ----
Total 4.33% 4.14% 3.70% 4.01%
==== ==== ==== ====
</TABLE>
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3. Managed Consumer Net Chargeoff Ratios
<TABLE>
<CAPTION>
Full Year 1996 Quarter Annualized
---------------------------------
1996 4 3 2 1
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Home equity .99% 1.22% .96% .91% .85%
Visa/MasterCard 4.17 3.90 3.99 4.40 4.67
Private label 3.30 3.78 3.78 4.08 5.05
Other unsecured 5.10 5.53 5.57 4.31 4.85
---- ---- ---- ---- ----
Total 3.31% 3.51% 3.45% 3.29% 3.50%
==== ==== ==== ==== ====
</TABLE>
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4. Nonperforming Assets
<TABLE>
<CAPTION>
In millions.
At December 31 1996
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<S> <C>
Nonaccrual managed receivables $ 519.9
Accruing managed consumer receivables 90 or
more days delinquent 405.7
Renegotiated commercial loans 12.9
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Total nonperforming managed receivables 938.5
Real estate owned 112.1
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Total nonperforming managed assets $1,050.6
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Managed credit loss reserves as a percent
of nonperforming managed receivables 131.4%
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</TABLE>