<PAGE>
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) January 20, 1998
ASSOCIATES FIRST CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 06-0876639
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
2-44197
(Commission File Number)
250 E. Carpenter Freeway, Irving, Texas 75062-2729
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (972) 652-4000
<PAGE>
Item 5. Other Events.
Associates First Capital Corporation announced its fourth quarter and year end
earnings in a news release dated January 20, 1998. A copy of the news release
is attached as an Exhibit hereto and incorporated by reference herein.
Item 7. Financial Statements and Exhibits
( C ) Exhibits
20 - News release by Associates First Capital Corporation dated
January 20, 1998 with supporting financial schedules.
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 hereunto duly authorized.
ASSOCIATES FIRST CAPITAL CORPORATION
By:/s/ John F. Stillo
----------------------------
Senior Vice President and Comptroller
Date: January 20, 1998
<PAGE>
<PAGE>
FOR IMMEDIATE RELEASE
THE ASSOCIATES 1997 RECORD EARNINGS SURPASS $1 BILLION
DALLAS, January 20, 1998 Associates First Capital
Corporation (The Associates) reported record earnings for the year
ended December 31, 1997, capped by a fourth quarter that was the
best quarter in company history. It was the 23rd consecutive year
of increased earnings, Keith W. Hughes, chairman and chief
executive officer, announced today.
Net earnings in the quarter ended December 31 were $278
million representing a 19% improvement over the same period a year
ago. Full-year net earnings were a record $1.03 billion, 20%
better than the previous year. The earnings per share on a diluted
basis were $0.80 and $2.97 for the quarter and the year,
respectively.
"We are pleased to report record earnings for the year and the
quarter. This improvement was the result of record growth in
earning assets balanced across all operating units combined with
stable profitability," said Mr. Hughes. "Our strong growth and
continued focus on margins, efficiency and credit quality give us
great momentum for 1998. We are proud that we were able to
continue to deliver reliable performance for our shareholders."
Net finance receivables at December 31, 1997, were a record
$55.2 billion, a 19% increase over the prior year. In addition,
the company services $2.9 billion in securitized finance
receivables, comprised of manufactured housing and recreational
vehicle loans. Total managed assets at December 31, 1997 were a
record $60.1 billion, an increase of 19% over the prior year.
Operating Unit Highlights
U.S. consumer operations achieved growth through a strong and
balanced contribution from both its branch system and centralized
operations. The branch system, the largest consumer finance
network in the U.S., showed growth in earning assets and profits.
The centralized operation was expanded, including the opening of a
new loan processing center in Texas where a law permitting home
equity lending was recently enacted.
(more)
The Associates, Page 2
Commercial operations had a strong year with excellent
receivables growth. Each major commercial unit improved its market
position and contributed to the operation's outstanding results.
The fourth-quarter acquisition of AT&T Capital's fleet leasing
operation enhanced the competitive position in that business,
particularly in Canada.
Credit card operations ended 1997 with significantly higher
earning assets and more than 10 million new customers, largely
through acquisitions of the Texaco private label credit card
business and bank card portfolios from The Bank of New York and
JCPenney. The company enhanced its capabilities by bringing on
line three new operations and processing centers.
International operations featured very strong growth
throughout the year. Highlights included the opening of consumer
offices in Taiwan and Costa Rica. The operation continued to
expand in Japan, Mexico, the United Kingdom and Canada, which
included the acquisition of the largest independent consumer
finance company in that market.
Company Description
Associates First Capital Corporation (NYSE: AFS) is a leading
diversified finance company providing consumer and commercial
financing, leasing and related services through 2,265 offices in
the United States and worldwide. Based in Dallas, it is an
indirect, majority-owned subsidiary of Ford Motor Company. On
October 8, 1997, Ford announced its intention to spin off its
remaining shares in The Associates to Ford shareholders,
conditional upon a favorable IRS ruling.
# # #
Contact Information
News media: Institutional Investors: Shareholders:
Joe Stroop Dianne Douglas 1-800-446-4420
(972) 652-4743 (972) 652-7294
[email protected] [email protected]
<PAGE>
ASSOCIATES FIRST CAPITAL CORPORATION
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Three Months Ended or at Year Ended or at
($ millions - except earnings per share) 12/31/97 12/31/96 %Change 12/31/97 12/31/96 % Change
<S> <C> <C> <C> <C> <C> <C>
Net earnings
Amount $ 278.0 $ 234.3 19 $ 1,031.7 $ 857.0 20
Return on average equity <F1> <F3> 18.15 % 17.54 % 17.78 % 17.09 %
Return on average adjusted
equity <F1> <F2> <F3> 21.16 20.86 21.10 20.94
Return on average assets <F1> <F3> 2.00 1.96 1.95 1.93
Return on average managed assets <F3> 1.89 1.87 1.86 1.89
Net earnings per share <F4>
Basic $ 0.80 $ 0.68 19 $ 2.98 $ 2.47 20
Diluted 0.80 0.68 18 2.97 2.47 20
Stockholders' equity $ 6,268.6 $ 5,437.5 15
Net finance receivables
Consumer finance $ 37,408.7 $ 31,403.0 19
Commercial finance 17,806.9 15,109.9 18
Total net finance receivables $ 55,215.6 $ 46,512.9 19
Total assets $ 57,232.7 $ 48,268.4 19
Total Managed assets $ 60,154.8 $ 50,378.3 19
Total revenue $ 2,184.3 $ 1,892.6 15 $ 8,278.6 $ 7,098.2 17
Net interest margin (as a % of ANR) <F3> 9.31 % 9.37 % 9.36 % 9.29 %
Efficiency ratio 45.1 44.6 43.7 44.6
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended or at Year Ended or at
12/31/97 9/30/97 12/31/97 12/31/96
<S> <C> <C> <C> <C>
Credit Quality:
60+days contractual delinquency 2.23 % 2.38 % 2.23 % 2.20 %
Credit losses (as a % of ANR) 2.41 2.45 2.40 2.03
Allowance for losses on finance receivables
Amount $ 1,949.9 $ 1,891.4 $ 1,949.9 $ 1,563.1
Percent of net finance
receivables 3.53 % 3.59 % 3.53 % 3.36 %
<FN>
<F1> The year ended 1996 return on equity, return on adjusted equity and return on assets have been
restated to exclude a $1,850 million dividend related to the IPO. If included, these returns for
the year ended December 31, 1996 would have been 18.31%, 22.86%, and 1.89%, respectively.
<F2> Excludes push-down goodwill created by Ford acquisition of foreign affiliates in 1989.
<F3> Adjusted to exclude IPO - related charges in 1996 year-to-date.
<F4> The calculation of basic and diluted net earnings per share is based on FAS 128 which the company
adopted in 1997.
</FN>
/TABLE
<PAGE>
ASSOCIATES FIRST
CAPITAL CORPORATION
QUARTERLY FINANCIAL SUPPLEMENT
<TABLE>
<CAPTION>
Statement of Earnings
Three Months Ended or at Change from Prior Year
Consolidated ($ millions) 12/31/97 9/30/97 12/31/96 Amount Percent
<S> <C> <C> <C> <C> <C>
Revenue
Finance charges $ 1,990.8 $ 1,935.3 $ 1,727.7 $ 263.1 15.2 %
Insurance premiums 110.8 105.5 104.5 6.3 6.0
Investment and other income 82.7 77.3 60.4 22.3 36.9
2,184.3 2,118.1 1,892.6 291.7 15.4
Expenses
Interest expense 739.4 718.8 644.3 95.1 14.8
Operating expenses 633.8 603.0 540.0 93.8 17.4
Provision for losses on finance
receivables 332.5 328.5 291.1 41.4 14.2
Insurance benefits paid or provided 38.2 34.7 38.3 (0.1) (0.3)
1,743.9 1,685.0 1,513.7 230.2 15.2
Earnings before provision for income taxes 440.4 433.1 378.9 61.5 16.2
Provision for income taxes 162.4 162.2 144.6 17.8 12.3
Net earnings $ 278.0 $ 270.9 $ 234.3 $ 43.7 18.7 %
Average Net Finance Receivables $ 53,784.6 $ 52,334.4 $ 46,269.3 $ 7,515.3 16.2 %
Balance Sheet Items ($ millions)
Total assets:
End of period $ 57,232.7 $ 54,354.6 $ 48,268.4 $ 8,964.3 18.6 %
Average 55,718.4 53,914.5 47,932.8 7,785.6 16.2
Managed Assets
End of period 60,154.8 57,427.5 50,378.3 9,776.5 19.4 %
Average 58,722.0 56,636.0 49,891.6 8,830.4 17.7
Debt 49,198.6 46,584.3 41,104.7 8,093.9 19.7
Stockholders' equity:
End of period 6,268.6 6,016.6 5,437.5
Per share (whole $) 18.09 17.37 15.69
Average 6,127.2 5,906.4 5,341.5
Debt-to-equity 7.84 x 7.74 x 7.55 x
Debt-to-adjusted equity <F1> 8.83 8.85 8.89
Key Ratios
Net interest margin 9.31 % 9.30 % 9.37 %
Efficiency ratio 45.1 44.2 44.6
Net earnings per share (whole $) <F2>
Basic $ 0.80 $ 0.78 $ 0.68 $ 0.12 18.7 %
Diluted 0.80 0.78 0.68 0.12 18.1
Equivalent shares for basic EPS
calculation 346,445 346,423 346,654 (209) (0.1)
<FN>
<F1) Excludes push-down goodwill created by Ford acquisition of foreign affiliates in 1989.
<F2) The calculation of basic and diluted net earnings per share is based on FAS 128 which the
company adopted in 1997.
</FN>
</TABLE>
<PAGE>
ASSOCIATES FIRST
CAPITAL CORPORATION
QUARTERLY FINANCIAL SUPPLEMENT
<TABLE>
<CAPTION>
Receivables/Servicing Portfolios
Change from Prior Year
Receivables ($ millions) 12/31/97 9/30/97 12/31/96 Amount Percent
<S> <C> <C> <C> <C> <C>
Consumer
Home equity lending $ 18,796.0 $ 18,255.4 $ 16,691.4 $ 2,104.6 12.6 %
Personal lending and
retail sales finance 8,731.6 8,581.2 7,425.1 1,306.5 17.6
Credit card 8,211.7 8,094.7 6,023.8 2,187.9 36.3
Manufactured housing 1,669.4 1,246.9 1,262.7 406.7 32.2
37,408.7 36,178.2 31,403.0 6,005.7 19.1
Commercial
Truck and truck trailer 9,688.9 9,200.5 8,598.3 1,090.6 12.7
Equipment 5,300.5 5,027.9 4,571.8 728.7 15.9
Auto Fleet Leasing 1,551.1 1,158.4 1,090.8 460.3 42.2
Recreational Vehicles 444.0 447.1 490.5 (46.5) (9.5)
Warehouse and Other 822.4 665.7 358.5 463.9 129.4
17,806.9 16,499.6 15,109.9 2,697.0 17.8
Net finance receivables $ 55,215.6 $ 52,677.8 $ 46,512.9 $ 8,702.7 18.7 %
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended or at Change From Prior Year
Servicing Portfolios ($ millions) 12/31/97 9/30/97 12/31/96 Amount Percent
<S> <C> <C> <C> <C> <C>
Manufactured Housing
Outstanding net receivables:
End of period $ 1,857.5 $ 1,927.3 $ 1,284.8 $ 572.7 44.6 %
Average 1,892.4 1,757.2 1,102.5 789.9 71.6
Finance charge yield 11.13 % 11.20 % 11.25 % (0.12)pts.
60+days contractual delinquency 1.42 1.12 0.71 0.71
Credit losses (as a % of ANR) 1.30 1.29 0.51 0.79
Recreational Vehicles
Outstanding net receivables:
End of period $ 1,064.6 $ 1,145.6 $ 825.1 $ 239.5 29.0
Average 1,111.2 964.3 856.3 254.9 29.8
Finance charge yield 9.49 % 9.49 % 9.50 % (0.01)pts.
60+days contractual delinquency 0.09 0.05 0.05 0.04
Credit losses (as a % of ANR) 0.28 0.46 0.30 (0.02)
Total Servicing Portfolios
Outstanding net receivables:
End of period $ 2,922.1 $ 3,072.9 $ 2,109.9 $ 812.2 38.5
Average 3,003.6 2,721.5 1,958.8 1,044.8 53.3
Finance charge yield 10.52 % 10.59 % 10.48 % 0.04 pts.
60+days contractual delinquency 0.94 0.71 0.45 0.49
Credit losses (as a % of ANR) 0.92 1.00 0.42 0.50
/TABLE
<PAGE>
ASSOCIATES FIRST
CAPITAL CORPORATION
QUARTERLY FINANCIAL SUPPLEMENT
<TABLE>
<CAPTION>
Credit Quality/Credit Loss Reserves
Three Months Ended or at
60+Days Contractual Delinquency 12/31/97 9/30/97 12/31/96
<S> <C> <C> <C>
Consumer
Home equity lending 2.22 % 2.28 % 2.12 %
Personal lending and
retail sales finance 3.44 3.40 3.32
Credit card 3.98 3.99 4.22
Manufactured housing 1.15 1.34 1.34
Total Consumer 2.84 2.90 2.77
Commercial
Truck and truck trailer 1.22 1.50 1.45
Equipment 0.91 1.30 0.67
Auto Fleet Leasing 0.61 0.70 0.20
Total Commercial 1.00 1.31 1.05
Total 2.23 % 2.38 % 2.20 %
Net Credit Losses to ANR
Consumer
Home equity lending 1.00 % 1.02 % 0.72 %
Personal lending and retail sales
finance 5.57 5.47 5.44
Credit card 7.05 7.07 7.41
Manufactured housing 0.78 0.68 1.56
Total Consumer 3.41 3.43 3.13
Commercial
Truck and truck trailer 0.32 0.33 0.38
Equipment 0.22 0.36 0.49
Auto Fleet Leasing 0.18 0.22 0.12
Total Commercial 0.26 0.30 0.40
Total 2.41 % 2.45 % 2.26 %
Credit Loss Reserves
Allowance for losses:
Balance at end of period $ 1,949.9 $ 1,891.4 $ 1,563.1
To net finance receivables 3.53 % 3.59 % 3.36 %
Multiple to net credit
losses (Trailing 4 Qtrs) 1.59 x 1.62 x 1.77 x
</TABLE>
<PAGE>
THE ASSOCIATES
1996 - 1997 QUARTERLY FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
1996 1997
Three Months Ended or At Full Three Months Ended or Full
3/31 6/30 9/30 12/31 Year 3/31 6/30 9/30 12/31 Year
($ millions - except earnings per share)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net earnings
Amount $ 192.3 $ 200.2 $ 230.2 $ 234.3 $ 857.0 $ 237.8 $ 245.0 $ 270.9 $ 278.0 $ 1,031.7
Return on average
equity (3) 16.56 % 16.38 % 17.79 % 17.54 % 17.09 % 17.36 % 17.22 % 18.34 % 18.15 % 17.78 %
Return on average
adjusted
equity<F1><F2> 20.13 20.58 21.69 20.86 20.94 20.95 20.53 21.74 21.16 21.10
Return on average
assets <F3> 1.92 1.88 1.95 1.96 1.93 1.94 1.89 2.01 2.00 1.95
Return on average
managed assets<F3> 1.92 1.84 1.91 1.87 1.89 1.85 1.80 1.91 1.89 1.86
Net earnings per share <F2>
Basic $ 0.55 $ 0.58 $ 0.66 $ 0.68 $ 2.47 $ 0.69 $ 0.71 $ 0.78 $ 0.80 $ 2.98
Diluted $ 0.55 $ 0.58 $ 0.66 $ 0.68 $ 2.47 $ 0.68 $ 0.71 $ 0.78 $ 0.80 $ 2.97
Stockholder's
equity $ 3,088.9 $ 5,106.9 $ 5,254.7 $ 5,437.5 $ 5,437.5 $ 5,558.7 $ 5,821.0 $ 6,016.6 $ 6,268.6 $ 6,268.6
Net finance receivables
Consumer finance $28,595.8 $30,165.8 $31,534.7 $31,403.0 31,403.0 $32,400.8 $35,546.8 $36,178.2 $37,408.7 $37,408.7
Commercial finance 12,475.3 13,423.7 14,490.4 15,109.9 15,109.9 15,300.3 16,070.4 16,499.6 17,806.9 17,806.9
Total net finance
Receiables $41,071.1 $43,589.5 $46,025.1 $46,512.9 $46,512.9 $47,701.1 $51,617.2 $52,677.8 $55,215.6 $55,215.6
Total assets $42,525.1 $45,116.4 $47,550.6 $48,268.4 $48,268.4 $49,210.8 $53,041.2 $54,354.6 $57,232.7 $57,232.7
Total Managed assets $42,525.1 $45,834.4 $49,337.3 $50,378.3 $50,378.3 $51,809.0 $55,507.9 $57,427.5 $60,154.8 $60,154.8
Total revenue $ 1,645.0 $ 1,717.0 $ 1,843.6 $ 1,892.6 $ 7,098.2 $ 1,926.7 $ 2,049.5 $ 2,118.1 $ 2,184.3 $ 8,278.6
Net interest margin
(as a % of ANR) <F3> 9.30 % 9.29 % 9.21 % 9.37 % 9.29 % 9.46 % 9.47 % 9.30 % 9.31 % 9.36 %
Efficiency ratio 44.8 % 44.5 % 44.4 % 44.6 % 44.6 % 42.4 % 42.9 % 44.2 % 45.1 % 43.7 %
Credit Quality:
60+Days contractual
Delinquency 1.78 % 1.80 % 2.05 % 2.20 % 2.20 % 2.25 % 2.25 % 2.38 % 2.23 % 2.23 %
Credit losses
(as a % of ANR) 1.74 % 1.95 % 2.14 % 2.26 % 2.03 % 2.31 % 2.45 % 2.45 % 2.41 % 2.40 %
<PAGE>
Allowance for losses
on finance receivables
Amount $ 1,368.8 $ 1,469.0 $ 1,535.1 $ 1,563.1 $ 1,563.1 $ 1,675.9 $ 1,849.5 $ 1,891.4 $ 1,949.9 $ 1,949.9
Percent of net
finance
receivables 3.33 % 3.37 % 3.34 % 3.36 % 3.36 % 3.51 % 3.58 % 3.59 % 3.53 % 3.53 %
<FN>
<F1> Excludes push-down goodwill created by Ford acquisition of foreign affiliates in 1989.
<F2> The calculation of basic and diluted net earnings per share is based on FAS 128 which the company adopted in 1997.
<F3> The first and second quarters of 1996 exclude one-time charges related to the company's initial public offering.
</FN>
</TABLE>
<PAGE>
1996 - 1997 QUARTERLY FINANCIAL SUPPLEMENT
<TABLE>
<CAPTION>
Receivables/Servicing Portfolio
1996 1997
Three Months Ended or At Full Three Months Ended or At Full
$ 3/31 6/30 9/30 12/31 Year 3/31 6/30 9/30 12/31 Year
Receivables ($ millions)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Consumer
Home equity
lending $ 14,591.9 $ 15,145.5 $ 16,743.2 $ 16,691.4 $ 16,691.4 $ 16,965.5 $ 17,547.2 $ 18,255.4 $ 18,796.0 $ 18,796.0
Personal
lending and
retail sales
finance 6,455.6 6,765.1 7,324.7 7,425.1 7,425.1 7,677.1 8,385.4 8,581.2 8,731.6 8,731.6
Credit card 5,399.7 5,979.5 5,970.6 6,023.8 6,023.8 6,691.3 8,240.4 8,094.7 8,211.7 8,211.7
Manufactured
housing 2,148.6 2,275.7 1,496.2 1,262.7 1,262.7 1,066.9 1,373.8 1,246.9 1,669.4 1,669.4
Total
Consumer 28,595.8 30,165.8 31,534.7 31,403.0 31,403.0 32,400.8 35,546.8 36,178.2 37,408.7 37,408.7
Commercial
Truck and
truck
trailer 7,910.2 8,241.4 8,449.2 8,598.3 8,598.3 8,687.3 8,970.6 9,200.5 9,688.9 9,688.9
Equipment 3,961.1 4,207.9 4,434.6 4,571.8 4,571.8 4,679.7 4,887.4 5,027.9 5,300.5 5,300.5
Auto Fleet
Leasing 337.4 347.6 1,051.4 1,090.8 1,090.8 1,116.3 1,160.2 1,158.4 1,551.1 1,551.1
Recreational
Vehicles - 415.6 323.9 490.5 490.5 461.3 608.7 447.1 444.0 444.0
Warehouse and
Other 266.6 211.2 231.3 358.5 358.5 355.7 443.5 665.7 822.4 822.4
Total
Commercial 12,475.3 13,423.7 14,490.4 15,109.9 15,109.9 15,300.3 16,070.4 16,499.6 17,806.9 17,806.9
Total net owned
finance
receivables$41,071.1 $ 43,589.5 $ 46,025.1 $ 46,512.9 $ 46,512.9 $ 47,701.1 $ 51,617.2 $ 52,677.8 $ 55,215.6 $ 55,215.6
Servicing Portfolio ($ millions)
Manufactured housing
Outstanding Net Receivables:
End of Period - $ - $ 913.4 $ 1,284.8 $ 1,284.8 $ 1,645.4 $ 1,587.1 $ 1,927.3 $ 1,857.5 $ 1,857.5
Average - - 228.3 1,102.5 369.6 1,465.1 1,616.3 1,757.2 1,892.4 1,571.2
Finance Charge
Yield - % - % 11.11 % 11.25 % 11.23 % 11.27 % 11.27 % 11.20 % 11.13 % 11.13 %
60+Days contractual
delinquency - - 0.28 0.71 0.71 0.71 1.05 1.12 1.42 1.42
Credit losses (as a
% of ANR) - - 0.21 0.51 0.31 0.68 0.79 1.29 1.30 1.11
Recreational Vehicles
Outstanding Net Receivables:
End of Period - $ 718.0 $ 873.3 $ 825.1 $ 825.1 $ 952.8 $ 879.6 $ 1,145.6 $ 1,064.6 $ 1,064.6
Average - 755.2 769.7 856.3 495.2 870.5 928.1 964.3 1,111.2 988.5
Finance Charge
Yield - % 9.50 % 9.50 % 9.50 % 9.49 % 9.49 % 9.48 % 9.49 % 9.49 % 9.49 %
60+Days contractual
delinquency - 0.06 0.05 0.05 0.05 0.07 0.07 0.05 0.09 0.09
Credit losses (as
a % of ANR) - 0.25 0.32 0.30 0.32 0.31 0.34 0.46 0.28 0.34
Total Servicing Portfolios
Outstanding Net Receivables:
End of Period - $ 718.0 $ 1,786.7 $ 2,109.9 $ 2,109.9 $ 2,598.2 $ 2,466.7 $ 3,072.9 $ 2,922.1 $ 2,922.1
Average - 755.2 998.0 1,958.8 864.8 2,335.6 2,544.0 2,721.5 3,003.6 2,559.7
Finance Charge
Yield - % 9.50 % 10.37 % 10.48 % 10.48 % 10.60 % 10.62 % 10.59 % 10.52 % 10.52 %
60+Days contractual
delinquency - 0.06 0.17 0.45 0.45 0.48 0.70 0.71 0.94 0.94
Credit losses (as a
% of ANR) - 0.25 0.30 0.42 0.31 0.54 0.63 1.00 0.92 0.85
/TABLE
<PAGE>
1996 - 1997 QUARTERLY FINANCIAL SUPPLEMENT
<TABLE>
<CAPTION>
Credit Quality/Credit Loss Reserves
60+Days Contractual Delinquency
1996 1997
Three Months Ended or At Full Three Months Ended or At Full
3/31 6/30 9/30 12/31 Year 3/31 6/30 9/30 12/31 Year
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Consumer
Home equity
lending 1.92 % 1.82 % 1.95 % 2.12 % 2.12 % 2.15 % 2.12 % 2.28 % 2.22 % 2.22 %
Personal
lending and
retail sales
finance 2.81 2.84 3.05 3.32 3.32 3.32 3.34 3.40 3.44 3.44
Credit card 3.29 3.40 4.18 4.22 4.22 3.83 3.81 3.99 3.98 3.98
Manufactured
housing 0.64 0.74 1.24 1.34 1.34 1.41 1.00 1.34 1.15 1.15
Total Consumer 2.24 2.25 2.58 2.77 2.77 2.75 2.75 2.90 2.84 2.84
Commercial
Truck and truck
trailer 0.74 0.93 1.17 1.45 1.45 1.58 1.53 1.50 1.22 1.22
Equipment 0.75 0.71 0.76 0.67 0.67 0.92 0.94 1.30 0.91 0.91
Auto fleet
leasing 0.22 0.19 0.14 0.20 0.20 0.50 0.64 0.70 0.61 0.61
Total
Commercial 0.73 0.80 0.93 1.05 1.05 1.23 1.20 1.31 1.00 1.00
-
Total 1.78 % 1.80 % 2.05 % 2.20 % 2.20 % 2.25 % 2.25 % 2.38 % 2.23 % 2.23 %
Net Credit Losses to ANR
Consumer
Home equity
lending 0.89 % 0.97 % 0.89 % 0.72 % 0.86 % 1.08 % 1.05 % 1.02 % 1.00 % 1.04 %
Personal
lending and
retail sales
finance 3.66 4.16 5.14 5.44 4.64 4.60 5.29 5.47 5.57 5.26
Credit card 5.63 6.09 6.62 7.41 6.48 7.13 7.27 7.07 7.05 7.13
Manufactured
housing 0.78 0.87 0.97 1.56 1.00 0.71 0.46 0.68 0.78 0.65
Total Consumer 2.39 2.67 2.97 3.13 2.80 3.29 3.50 3.43 3.41 3.38
<PAGE>
Commercial
Truck and truck
trailer 0.28 0.28 0.35 0.38 0.32 0.31 0.30 0.33 0.32 0.32
Equipment 0.24 0.42 0.42 0.49 0.40 0.23 0.36 0.36 0.22 0.29
Auto fleet
leasing 0.04 0.09 0.04 0.12 0.08 0.07 0.18 0.22 0.18 0.16
Total Commercial 0.25 0.32 0.33 0.40 0.33 0.24 0.30 0.30 0.26 0.27
Total 1.74 % 1.95 % 2.14 % 2.26 % 2.03 % 2.31 % 2.45 % 2.45 % 2.41 % 2.40 %
Credit Loss Reserves
Allowance for losses:
Balance
at end of
period $ 1,368.8 $ 1,469.0 $ 1,535.1 $ 1,563.1 $ 1,563.1 $ 1,675.9 1,849.5 $ 1,891.4 $ 1,949.9 $ 1,949.9
To net finance
receivables 3.33 % 3.37 % 3.34 % 3.36 % 3.36 % 3.51 % 3.58 % 3.59 % 3.53 % 3.53 %
Multiple to net
credit losses
(Trailing 4 Qtrs)2.09 x 2.04 x 1.93 x 1.77 x 1.77 x 1.70 x 1.70 x 1.62 x 1.59 x 1.59 x
</TABLE>
<PAGE>
1996 - 1997 QUARTERLY FINANCIAL SUPPLEMENT
<TABLE>
<CAPTION>
Statement of Earnings
($ millions - except earnings per share)
1996 1997
Three Months Ended or At Full Three Months Ended or At Full
Consolidated 3/31 6/30 9/30 12/31 Year 3/31 6/30 9/30 12/31 Year
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenue
Finance
charges $ 1,505.0 $ 1,567.6 $ 1,680.7 $ 1,727.7 $ 6,481.0 $ 1,761.7 $ 1,872.4 $ 1,935.3 $ 1,990.8 $ 7,560.2
Insurance
premiums 93.1 100.5 104.0 104.5 402.1 99.1 105.3 105.5 110.8 420.7
Investment
and other
income 46.9 48.9 58.9 60.4 215.1 65.9 71.8 77.3 82.7 297.7
1,645.0 1,717.0 1,843.6 1,892.6 7,098.2 1,926.7 2,049.5 2,118.1 2,184.3 8,278.6
Expenses
Interest expense 580.5 593.5 637.7 644.3 2,456.0 637.4 679.6 718.8 739.4 2,775.2
Operating
expense 461.2 483.2 518.5 540.0 2,002.9 531.2 571.6 603.0 633.8 2,339.6
Provision for
losses on
finance
receivables 252.3 275.7 267.4 291.1 1,086.5 344.5 372.6 328.5 332.5 1,378.1
Insurance
benefits
paid or
provided 34.2 37.0 38.7 38.3 148.2 36.1 36.7 34.7 38.2 145.7
1,328.2 1,389.4 1,462.3 1,513.7 5,693.6 1,549.2 1,660.5 1,685.0 1,743.9 6,638.6
Earnings before
provision for
income taxes 316.8 327.6 381.3 378.9 1,404.6 377.5 389.0 433.1 440.4 1,640.0
Provision for
income taxes 124.5 127.4 151.1 144.6 547.6 139.7 144.0 162.2 162.4 608.3
Net earnings $ 192.3 $ 200.2 $ 230.2 $ 234.3 $ 857.0 $ 237.8 $ 245.0 $ 270.9 $ 278.0 $ 1,031.7
Average Net
Finance
Receivables $40,382.1 $ 42,292.8 $ 45,280.7 $ 46,269.3 $ 43,554.9 $ 47,555.6 $ 50,416.7 $ 52,334.4 $ 53,784.6 $ 51,110.5
Balance Sheet Items
Total assets:
End of
Period $42,525.1 $ 45,116.4 $ 47,550.6 $ 48,268.4 $ 48,268.4 $ 49,210.8 $ 53,041.2 $ 54,354.6 $ 57,232.7 $ 57,232.7
Average 41,801.5 43,814.5 47,263.7 47,932.8 45,235.3 49,153.6 51,963.6 53,914.5 55,718.4 52,804.6
Managed assets:
End of
Period 42,525.1 45,834.4 49,337.3 50,378.3 50,378.3 51,809.0 55,507.9 57,427.5 60,154.8 60,154.8
Average 41,801.5 44,569.7 48,261.7 49,891.6 46,100.1 51,489.2 54,507.6 56,636.0 58,722.0 55,364.3
Debt 37,919.5 38,615.8 40,790.0 41,104.7 41,104.7 41,916.7 45,579.4 46,584.3 49,198.6 49,198.6
Stockholders' equity:
End of
Period 3,088.9 5,106.9 5,254.7 5,437.5 5,437.5 5,558.7 5,821.0 6,016.6 6,268.6 6,268.6
Per Share
End of period 8.91 14.73 15.16 15.69 15.69 16.04 16.80 17.37 18.09 18.09
Average 3,959.6 4,093.3 5,176.3 5,341.5 4,679.4 5,479.4 5,690.0 5,906.4 6,127.2 5,801.2
Debt-to-equity 7.65 x 7.52 x 7.75 x 7.55 x 7.55 x 7.54 x 7.82 x 7.74 x 7.84 x 7.84 x
Debt-to-
adjusted
equity <F1> 9.36 9.07 9.27 8.89 8.89 8.73 9.10 8.85 8.83 8.83
Key Ratios
Net interest
Margin <F2> 9.30 % 9.29 % 9.21 % 9.37 % 9.29 % 9.46 % 9.47 % 9.30 % 9.31 % 9.36 %
Efficiency
ratio 44.8 44.5 44.4 44.6 44.6 42.4 42.9 44.2 45.1 43.7
Net earnings
per share <F3>
Basic $ 0.55 $ 0.58 $ 0.66 $ 0.68 $ 2.47 $ 0.69 $ 0.71 $ 0.78 $ 0.80 $ 2.98
Diluted 0.55 0.58 0.66 0.68 2.47 0.68 0.71 0.78 0.80 2.97
Equivalent
shares for
diluted EPS
calculation 346,654 346,654 346,654 346,654 346,654 347,758 347,537 348,170 348,301 347,943
<FN>
<F1> Excludes push-down goodwill created by Ford acquisition of foreign affiliates in 1989.
<F2> The first and second quarters of 1996 exclude one-time charges related to the company's initial public offering.
<F3> The calculation of basic and diluted net earnings per share is based on FAS 128 which the company adopted in 1997.
</FN>
</TABLE>
