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<PAGE> 1
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) March 16, 1999
ASSOCIATES FIRST CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 74-1494554
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
1-6154
(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> 2
Item 5. Other Events.
On March 16, 1999, Associates First Capital Corporation (the "Company")
publicly released a 1998 annual report supplement containing financial
information and key data as of and for the years ended December 31, 1994
through December 31, 1998. A copy of the schedule is attached as an Exhibit
hereto and incorporated by reference herein. This information should be read in
conjunction with the Company's financial statements for the relevant periods.
Item 7. Financial Statements and Exhibits
( c ) Exhibits
20- 1998 Annual Report Supplement of Associates First Capital
Corporation.
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: March 16, 1999
<PAGE> 3
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------ -----------
<S> <C>
20 1998 Annual Report Supplement of Associates First Capital
Corporation.
</TABLE>
<PAGE> 1
STATEMENT FROM THE CHAIRMAN
Associates First Capital Corporation has made a commitment that we will do our
utmost to deliver reliable, consistent results over time. This Supplement to our
1998 Annual Report provides information that will demonstrate how we have met
that commitment in each of our lines of business. We are proud of our track
record and our employees who have produced it. Most of all, we are grateful to
our customers, who make it possible.
/s/ KEITH W. HUGHES
Keith W. Hughes
Chairman and Chief Executive Officer
<PAGE> 2
Stock Performance. The Associates is the largest publicly traded finance company
in the United States. The Company's Class A common stock is listed on the New
York Stock Exchange under the symbol "AFS." The chart below shows the
performance of AFS stock and of the S&P 500 since the Company's initial public
offering in 1996.
[STOCK PERFORMANCE GRAPH]
Annual Supplement. This report is a supplement to the Annual Report of
Associates First Capital Corporation for 1998 and should be used only with such
Annual Report. A copy of the 1998 Annual Report may be obtained by calling
1-888-NYSE-AFS.
Additional Information. To learn more about the Associates, visit the Company's
website at http://www.theassociates.com or call 1-888-NYSE-AFS. Securities
analysts and institutional investors may contact the Company's Investor
Relations department at (972) 652-7294.
<PAGE> 3
CONTENTS
<TABLE>
<S> <C>
1 Summary of Key Data
3 Key Products
5 Summary of Key Business Segment Data - Managed Basis
Five Year Financial Trends
9 Selected Earnings Information - Managed Basis
11 Selected Balance Sheet Information
13 Managed Receivables
15 Credit Quality - Managed Basis
17 Funding and Capital
Five Year Product Line Trends
19 Home Equity Receivables
21 Personal Loans/Retail Sales Finance Receivables
23 Truck and Truck Trailer Receivables
25 Credit Card Receivables
27 Equipment Receivables
29 Manufactured Housing Receivables
31 Insurance Statistical Data
Eight Quarter Financial Trends (unaudited)
33 Selected Earnings Information - Managed Basis
35 Selected Balance Sheet Information
37 Managed Receivables
39 Credit Quality - Managed Basis
41 Summary of Information by Country
</TABLE>
<PAGE> 4
1
SUMMARY OF KEY DATA
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Per Share Amounts)
Year Ended or at December 31 1994 1995 1996 1997 1998
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES $ 33,685.7 $ 39,702.5 $ 48,622.8 $ 58,406.5 $ 71,364.3
Growth 5,391.0 6,016.8 8,920.3 9,783.7 12,957.8
Growth Rate 19.1% 17.9% 22.5% 20.1% 22.2%
Internal Growth as a % of Total Growth 90.5 95.0 49.8 63.0 60.4
% of Average Managed Receivables (AMR)
Net Interest Margin 9.00% 9.22% 9.20%(1) 9.06% 8.91%
Net Credit Losses 1.64 1.70 2.00 2.32 2.43
Allowance for Losses $ 1,061.6 $ 1,268.6 $ 1,563.1 $ 1,949.9 $ 1,978.7
- -% of Net Receivables (Owned) 3.15% 3.20% 3.36% 3.53% 3.25%
Loss Coverage Ratio (2) 2.09x 2.03x 1.77x 1.59x 1.74x
Efficiency Ratio 46.7% 46.3% 44.5% 43.5% 43.7%
Net Income $ 603.3 $ 723.1 $ 857.0 $ 1,031.7 $ 1,223.5
- -% Growth 22% 20% 19% 20% 19%
EPS (Diluted) (3) $ 1.04 $ 1.23 $ 1.48 $ 1.75
- -% Growth 19% 20% 18%
Return on Average Adjusted Equity (4) 19.66% 20.26% 20.94% 21.10% 20.30%
Return on Average Managed Assets 1.85 1.89 1.89 1.86 1.78
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO MIX
Managed Receivables
- Secured vs. Unsecured
1994 1998
---- ----
<S> <C> <C>
Unsecured 28% 31%
Secured 72% 69%
</TABLE>
(1) Excludes the effect of the dividend related to the Company's initial public
offering. (See footnote 4 on page 60 of the Annual Report for additional
information.)
(2) See footnote 6 on page 60 of the Annual Report for additional information.
(3) See footnote 1 on page 60 of the Annual Report for additional information.
(4) Excludes push-down goodwill.
<PAGE> 5
2
[PIE CHART]
<TABLE>
<CAPTION>
DIVERSIFIED PORTFOLIO
MANAGED RECEIVABLES
1998
------
<S> <C>
Credit Card 14.4%
Equipment 8.6%
Fleet leasing 2.2%
Home Equity 31.7%
Manufactured Housing 7.3%
Personal Loans/Retail
Sales Finance 16.0%
Recreational Vehicles 2.9%
Truck & Truck Trailer Sales 15.1%
Other 1.8%
</TABLE>
[GRAPH]
<TABLE>
<CAPTION>
MANAGED RECEIVABLES GROWTH
($ in billions) RATE
--------------- ------
<S> <C> <C>
1994 $33.7 19.1%
1995 $39.7 17.9%
1996 $48.6 22.5%
1997 $58.4 20.1%
1998 $71.4 22.2%
</TABLE>
[GRAPH]
<TABLE>
<CAPTION>
BALANCED GROWTH
MANAGED RECEIVABLES
CAGR
($ in billions)
---------------
<S> <C>
Home Equity 16%
Personal Loans/
Retail Sales
Finance 21%
Truck & Truck
Trailer 12%
Credit Card 26%
Equipment 20%
Manufactured
Housing 33%
Fleet Leasing
& Other 91%
</TABLE>
[CHART]
<TABLE>
<CAPTION>
COMPLEMENTARY SOURCES
OF GROWTH
MANAGED RECEIVABLES % ACQ.
------------------- ------
($ in billions)
<S> <C> <C>
1994 $ 5.4 9.5%
1995 $ 6.0 5.0%
1996 $ 8.9 50.2%
1997 $ 9.8 37.0%
1998 $13.0 39.6%
</TABLE>
[CHART]
<TABLE>
<CAPTION>
CONSISTENT EARNINGS IMPROVEMENT
NET INCOME/RETURN ON AVERAGE
ADJUSTED EQUITY
--------------------------------------
RETURN ON
AVERAGE ADJUSTED NET
EQUITY INCOME
---------------- ---------
($ in millions)
<C> <C> <C>
1994 19.7% $ 603.3
1995 20.3% $ 723.1
1996 20.9% $ 857.0
1997 21.1% $1,031.7
1998 20.3% $1,223.5
</TABLE>
<PAGE> 6
3
KEY PRODUCTS
Eighty years ago, The Associates was founded in South Bend, Indiana, to finance
the purchase of automobiles. Today, the Company offers a tremendous diversity of
financial services in 16 markets world-wide. Through its U.S. consumer, credit
card, commercial and international operating units, its primary products and
services include:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
PERSONAL LOANS/ TRUCK AND
HOME EQUITY RETAIL SALES FINANCE TRUCK TRAILER
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PRODUCTS OFFERED: Installment loans Installment loans Retail installment
loans
Lines of credit Revolving credit
Leasing
First mortgages Auto finance
Dealer financing
Second mortgages Home improvement o Wholesale (inventory)
o Factoring
Credit-related insurance Retail sales finance o Business loans
o Direct
o Indirect Truck trailer rental
Credit-related insurance New and used financing
Credit-related insurance
Property and casualty
insurance
Cargo insurance
- ------------------------------------------------------------------------------------------------------------------------
DELIVERY: 3,700 branches 3,700 branches 37 branches
Centralized lending Centralized lending Centralized operations
3 regional service centers 21 regional truck
trailer rental offices
44 district sales offices
- ------------------------------------------------------------------------------------------------------------------------
COUNTRIES: Australia Australia Canada
Canada Canada Japan
Costa Rica Costa Rica Mexico
Hong Kong Hong Kong Puerto Rico
Japan India United Kingdom
Mexico Japan United States
New Zealand Mexico
Puerto Rico New Zealand
Spain Puerto Rico
United Kingdom Spain
United States Sweden
Taiwan
United Kingdom
United States
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Note: Includes January 6, 1999 acquisition of Avco Financial Services. The
Company's recreational vehicle finance operation is not included because it was
sold during the first quarter of 1999.)
<PAGE> 7
4
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURED WAREHOUSE
CREDIT CARDS EQUIPMENT HOUSING AUTO FLEET LEASING AND OTHER
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Bankcards Retail installment Retail financing Auto and light Lines of credit to real
o Visa loans truck fleets estate brokers
o MasterCard Dealer financing
Leasing o Wholesale (inventory) Vehicle management Government
Private label o Factoring services guaranteed loans
credit cards Dealer financing o Business loans o Purchase
o Wholesale (inventory) o Maintenance Employee relocation
Auto club services o Factoring Credit-related insurance o Disposal services
o Business loans o Corporate
Point-of-sale network Property-related o Government
services Financing for insurance
o Construction Municipal financing
Call-center-based equipment
customer services o Material handling
equipment
Technical help-desk o Golf carts
application services o Machine tools
o Telecommunications
Credit-related insurance equipment
Credit-related insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Centralized operations 21 branches 5 regional offices Centralized U.S. and Centralized
Canadian operations operations
9 regional service Centralized operations 17 sales purchase and regional sales
centers offices offices
19 international offices
Centralized operations
- ------------------------------------------------------------------------------------------------------------------------------------
Canada Australia Canada Canada Japan
Japan Canada United States United States United States
United Kingdom France
United States Hong Kong
India
Japan
Mexico
Puerto Rico
United Kingdom
United States
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(Note: Includes January 6, 1999 acquisition of Avco Financial Services. The
Company's recreational vehicle finance operation is not included because it was
sold during the first quarter of 1999.)
<PAGE> 8
5
SUMMARY OF KEY BUSINESS SEGMENT DATA
MANAGED BASIS
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Domestic International Finance Segment
Consumer Commercial ----------------------------------------------------------------------------
Finance Finance United Other Segment Company
At December 31, 1998 Segment Segment Japan Kingdom Canada International Total Total
--------- --------- --------- --------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
Home Equity $20,470.1 $ $ 1,464.2 $ 175.9 $ 381.4 $ 130.7 $ 2,152.2 $22,622.3
Personal Loans/
Retail Sales Finance 6,354.6 3,993.3 252.9 613.5 244.9 5,104.6 11,459.2
Truck and Truck Trailer 10,651.2 132.4 132.4 10,783.6
Credit Card 9,622.0 94.7 574.5 5.6 674.8 10,296.8
Equipment 5,757.8 291.2 65.0 356.2 6,114.0
Manufactured Housing 5,193.5 5,193.5
Recreational Vehicles 2,036.9 2,036.9
Auto Fleet Leasing 1,589.7 1,589.7
Warehouse and Other 732.7 493.6 42.0 42.0 1,268.3
--------- --------- --------- --------- --------- --------- -------- ---------
TOTAL $37,179.4 $25,722.7 $ 5,594.2 $ 1,294.5 $ 1,000.5 $ 573.0 $8,462.2 $71,364.3
========= ========= ========= ========= ========= ========= ========= =========
</TABLE>
The Company has three reportable business segments: domestic consumer finance,
commercial finance and international finance. The domestic consumer finance
segment includes the Company's U.S. consumer and credit card business units.
These business units have been aggregated into one reportable segment in the
discussion that follows due to their similar operating characteristics.
Domestic Consumer Finance Segment. The domestic consumer finance segment of the
Company offers a variety of consumer financing products and services to
customers throughout the United States (excluding Hawaii, which is included in
the international finance segment). Finance products and services offered by
this segment include home equity and personal loans, retail sales finance,
VISA(R)and MasterCard(R)bankcards and private label credit cards and emergency
roadside assistance and auto club services. The acquisition of SPS Transaction
Services, Inc., in October 1998 further enhanced the segment's consumer and
commercial private label credit card product offerings and expanded the
segment's product offerings to include point-of-sale network services,
call-center-based customer services and technical help-desk application
services. In addition, the Company, through certain subsidiaries and third
parties, makes available various credit-related and other insurance products to
its domestic consumer finance segment customers, including credit life, credit
accident and health, accidental death and dismemberment, involuntary
unemployment and personal property insurance.
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1996 1997 1998
---------- ---------- ----------
<S> <C> <C> <C>
Finance Receivables $ 27,145.1 $ 32,338.2 $ 37,179.4
Total Revenue 4,528.8 5,326.4 5,877.8
Net Interest Margin 2,723.1 3,251.7 3,505.0
- as a % of Average Managed Receivables (AMR) 10.81% 10.67% 10.27%
60+Days Contractual Delinquency as a % of Managed Gross Receivables 2.95 2.97 3.55
Net Credit Losses as a % of AMR 3.04 3.56 3.62
Segment Earnings $ 810.1 $ 891.8 $ 997.3
</TABLE>
<PAGE> 9
6
[CHART]
<TABLE>
<CAPTION>
MANAGED RECEIVABLES SEGMENT EARNINGS
($ in billions) ($ in millions)
----------------------- ------------------------
1996 1997 1998 1996 1997 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Domestic Consumer $27.1 $32.3 $37.2 $810.1 $891.8 $997.3
Commercial $18.1 $21.8 $25.7 $303.9 $392.1 $471.0
International $ 3.4 $ 4.3 $ 8.5 $290.6 $356.1 $472.2
</TABLE>
[CHART]
<TABLE>
<CAPTION>
DOMESTIC CONSUMER FINANCE SEGMENT
-----------------------------------------
FINANCE RECEIVABLES SEGMENT EARNINGS
($ in billions) ($ in millions)
------------------- ----------------
<S> <C> <C>
1996 $27.1 $810.1
1997 $32.3 $891.8
1998 $37.2 $997.3
</TABLE>
<PAGE> 10
7
Commercial Finance Segment. The commercial finance segment offers a variety of
commercial financing products to customers in the United States and Canada.
Finance products and services offered by this segment include retail and
wholesale financing and leasing products and services for heavy-duty (Class 8)
and medium-duty (Classes 3 through 7) trucks and truck trailers and
construction, material handling and other industrial and communications
equipment. The Company also provides a wide range of retail and wholesale
financing products and services to the manufactured housing industry. In
addition, the Company engages in a number of other commercial activities,
including auto fleet leasing and fleet management services, government
guaranteed lending, employee relocation services and municipal finance.
Recreational vehicle finance products were also offered until the sale of the
Company's recreational vehicle finance operations in the first quarter of 1999.
The Company, through certain subsidiaries and third parties, also makes
available various credit-related and other insurance products to its commercial
finance segment customers, including commercial auto and dealers' open lot
physical damage, credit life and motor truck cargo insurance. The Company also
offers commercial auto liability insurance in certain states.
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1996 1997 1998
---------- ---------- ----------
<S> <C> <C> <C>
Finance Receivables $ 18,053.0 $ 21,790.3 $ 25,722.7
Total Revenue 1,776.2 2,127.0 2,527.1
Net Interest Margin 675.6 849.6 983.9
- as a % of Average Managed Receivables (AMR) 4.20% 4.34% 4.14%
60+Days Contractual Delinquency as a % of Managed Gross Receivables 1.03 1.04 1.24
Net Credit Losses as a % of AMR 0.34 0.37 0.48
Segment Earnings $ 303.9 $ 392.1 $ 471.0
</TABLE>
International Finance Segment. The international finance segment offers a
variety of consumer financing products and services to customers in Japan,
Canada, the United Kingdom, Puerto Rico, Hawaii, Mexico, Costa Rica and Taiwan.
The Company also offers commercial financing products in the United Kingdom,
Puerto Rico and, to a lesser extent, Mexico and Japan. Commercial finance
products offered in Canada are managed by and included in the Company's
commercial finance segment. The Company, through subsidiaries and other third
parties, also offers various credit-related and other insurance products to its
international finance segment customers, including credit life, credit accident
and health, accidental death and dismemberment, involuntary unemployment and
personal property insurance.
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1996 1997 1998
---------- ---------- ----------
<S> <C> <C> <C>
Finance Receivables $ 3,424.7 $ 4,278.0 $ 8,462.2
Total Revenue 855.3 1,017.1 1,624.6
Net Interest Margin 664.6 784.7 1,255.9
- as a % of Average Managed Receivables (AMR) 21.09% 20.34% 19.02%
60+Days Contractual Delinquency as a % of Managed Gross Receivables 1.62 1.93 2.58
Net Credit Losses as a % of AMR 2.14 2.42 3.26
Segment Earnings $ 290.6 $ 356.1 $ 472.2
</TABLE>
<PAGE> 11
8
[CHART]
<TABLE>
<CAPTION>
COMMERCIAL FINANCE SEGMENT
-----------------------------------------
FINANCE RECEIVABLES SEGMENT EARNINGS
($ in billions) ($ in millions)
------------------- ----------------
<S> <C> <C>
1996 $18.1 $303.9
1997 $21.8 $392.1
1998 $25.7 $471.0
</TABLE>
[CHART]
<TABLE>
<CAPTION>
INTERNATIONAL FINANCE SEGMENT
-----------------------------------------
FINANCE RECEIVABLES SEGMENT EARNINGS
($ in billions) ($ in millions)
------------------- ----------------
<S> <C> <C>
1996 $ 3.4 $290.6
1997 $ 4.3 $356.1
1998 $ 8.5 $472.2
</TABLE>
<PAGE> 12
9
FIVE YEAR FINANCIAL TRENDS
SELECTED EARNINGS INFORMATION - MANAGED BASIS
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Per Share Amounts)
Year Ended December 31 1994 1995
-------------------------------------------- -----------------------------------------
Amount % Growth % of AMR Amount % Growth % of AMR
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Finance Charges $ 4,445.2 20% 14.34% $ 5,560.8 25% 15.15%
Insurance Premiums 329.0 21 1.06 370.6 13 1.01
Investment and Other Income 151.6 13 0.49 175.8 16 0.48
---------- -------- ---------- ------
4,925.8 20 15.89 6,107.2 24 16.64
EXPENSES
Interest Expense 1,657.3 17 5.34 2,177.9 31 5.93
Operating Expense 1,456.1 20 4.70 1,754.7 21 4.78
Provision for Losses 647.1 21 2.09 834.0 29 2.27
Insurance Benefits Paid or Provided 147.9 24 0.48 142.5 (4) 0.39
---------- -------- ---------- ------
3,908.4 19 12.61 4,909.1 26 13.37
---------- -------- ---------- ------
EARNINGS BEFORE PROVISION FOR TAXES 1,017.4 24 3.28 1,198.1 18 3.27
PROVISION FOR INCOME TAXES 414.1 27 1.33 475.0 15 1.30
---------- -------- ---------- ------
NET EARNINGS $ 603.3 22% 1.95% $ 723.1 20% 1.97%
========== ======== ========== ======
EPS (Diluted) (2) $ 1.04
Average Diluted
Shares Outstanding (000) (2) 693,309
KEY RATIOS
Net Interest Margin (% AMR) 9.00% 9.22%
Efficiency Ratio 46.66 46.34
Effective Tax Rate 40.70 39.64
Return on Average Assets 1.85 1.89
Return on Average Managed Assets 1.85 1.89
Return on Average Equity 14.70 15.66
Return on Average Adjusted Equity (3) 19.66 20.26
Average Managed Receivables (AMR) $ 30,990 $ 36,694
Average Managed Assets 32,662 38,294
Average Equity 4,106 4,619
Average Adjusted Equity (3) 3,173 3,679
</TABLE>
(1) Excludes the effect of the dividend related to the Company's initial public
offering. (See footnote 4 on page 60 of the Annual Report for additional
information.)
(2) See footnote 1 on page 60 of the Annual Report for additional information.
(3) Excludes the push-down goodwill created by Ford's acquisition of foreign
affiliates of the Company in 1989.
<PAGE> 13
10
<TABLE>
<CAPTION>
1996 1997 1998
- ----------------------------------------- ---------------------------------------- -------------------------------------
Amount % Growth % of AMR Amount % Growth % of AMR Amount % Growth % of AMR
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 6,578.1 18% 14.81% $ 7,832.2 19% 14.53% $ 9,215.0 18% 14.29%
402.1 8 0.90 420.7 5 0.78 471.5 12 0.73
180.1 2 0.41 217.6 21 0.41 343.0 58 0.53
- ----------- ----------- ----------- ---------- ----------- ----------
7,160.3 17 16.12 8,470.5 18 15.72 10,029.5 18 15.55
2,514.8 15 5.61(1) 2,946.2 17 5.47 3,470.2 18 5.38
2,002.9 14 4.51 2,339.6 17 4.34 2,798.0 20 4.34
1,089.8 31 2.45 1,399.0 28 2.60 1,662.7 19 2.58
148.2 4 0.34 145.7 (2) 0.27 158.1 9 0.24
- ----------- ----------- ----------- ---------- ----------- ----------
5,755.7 17 12.91 6,830.5 19 12.68 8,089.0 18 12.54
- ----------- ----------- ----------- ---------- ----------- ----------
1,404.6 17 3.21 1,640.0 17 3.04 1,940.5 18 3.01
547.6 15 1.23 608.3 11 1.13 717.0 18 1.11
- ----------- ----------- ----------- ---------- ----------- ----------
$ 857.0 19% 1.98% $ 1,031.7 20% 1.91% $ 1,223.5 19% 1.90%
=========== =========== =========== ========== =========== ==========
$ 1.23 $ 1.48 $ 1.75
694,902 659,887 699,871
9.20%(1) 9.06% 8.91%
44.54 43.50 43.71
38.99 37.09 36.95
1.93(1) 1.95 1.90
1.89(1) 1.86 1.78
17.09(1) 17.78 17.94
20.94(1) 21.10 20.30
$ 44,420 $ 53,900 $ 64,506
46,100 55,364 68,837
5,099(1) 5,801 6,822
4,227(1) 5,033 6,124
</TABLE>
<PAGE> 14
11
FIVE YEAR FINANCIAL TRENDS
SELECTED BALANCE SHEET INFORMATION
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1994 1995 1996 1997 1998
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and Cash Equivalents $ 606.0 $ 532.2 $ 446.9 $ 433.2 $ 4,665.6
Investments in Securities 605.1 881.1 1,097.5 1,242.4 6,678.7
Net Finance Receivables 33,685.7 39,702.5 46,512.9 55,215.6 60,939.0
Allowance for Losses (1,061.6) (1,268.6) (1,563.1) (1,949.9) (1,978.7)
Insurance Policy Claims and Reserves (565.7) (625.4) (712.9) (783.6) (1,463.9)
Push-down Goodwill (1) 969.1 911.4 797.0 691.5 740.3
Other Goodwill 385.2 367.5 409.4 412.5 1,150.1
Other Assets 659.7 803.2 1,280.7 1,971.0 4,444.3
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS $ 35,283.5 $ 41,303.9 $ 48,268.4 $ 57,232.7 $ 75,175.4
========== ========== ========== ========== ==========
LIABILITIES & STOCKHOLDERS' EQUITY
Notes Payable
Commercial Paper $ 11,807.4 $ 12,902.9 $ 15,907.9 $ 19,483.5 $ 24,144.3
Bank Loans 624.5 844.4 1,167.3 1,487.1 1,565.5
Accounts Payable and Accruals 1,108.6 1,382.9 1,726.2 1,765.5 3,342.4
Long-Term Debt (2)
Senior Notes 17,164.4 21,230.8 23,604.0 27,802.6 37,171.4
Subordinated and Capital Notes 141.8 141.8 425.5 425.4 425.3
Stockholders' Equity 4,436.8 4,801.1 5,437.5 6,268.6 8,526.5
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 35,283.5 $ 41,303.9 $ 48,268.4 $ 57,232.7 $ 75,175.4
========== ========== ========== ========== ==========
Managed Receivables $ 33,685.7 $ 39,702.5 $ 48,622.8 $ 58,406.5 $ 71,364.3
Managed Assets 35,283.5 41,303.9 50,378.3 60,154.8 80,878.3
ALLOWANCE FOR LOSSES
Beginning Balance $ 892.3 $ 1,061.6 $ 1,268.6 $ 1,563.1 $ 1,949.9
Provision for Losses 647.1 834.0 1,086.5 1,378.1 1,283.5
Losses Sustained (626.8) (757.1) (1,032.5) (1,454.0) (1,424.6)
Recoveries 118.2 132.9 147.2 224.9 237.7
Other 30.8 (2.8) 93.3 237.8 (67.8)
---------- ---------- ---------- ---------- ----------
Ending Balance $ 1,061.6 $ 1,268.6 $ 1,563.1 $ 1,949.9 $ 1,978.7
========== ========== ========== ========== ==========
-% of Net Receivables 3.15% 3.20% 3.36% 3.53% 3.25%
Loss Coverage Ratio (3) 2.09x 2.03x 1.77x 1.59x 1.74x
</TABLE>
(1) Goodwill created by Ford's acquisition of foreign affiliates of the Company
in 1989.
(2) Including current maturities of long-term debt.
(3) See footnote 6 on page 60 of the Annual Report for additional information.
(4) See footnote 1 on page 60 of the Annual Report for additional information.
(5) Net of capital contributions from Ford and excludes one-time dividend
related to the Company's initial public offering in 1996. (See footnote 4
on page 60 of the Annual Report for additional information.)
(6) Excludes push-down goodwill.
<PAGE> 15
12
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Per Share Amounts)
Year Ended or at December 31 1994 1995 1996 1997 1998
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C>
Key Data
Book Value per Share (4) $ $ 6.92 $ 7.84 $ 9.05 $ 11.72
Dividends per Share of Common Stock (4) 0.100 0.200 0.205
Net Dividends Declared (5) 73.0 118.0 148.0 138.6 142.0
Payout Ratio 12% 16% 17% 13% 12%
Adjusted Capital Formation Rate 18 17 18 19 19
End of Period Shares Outstanding (millions) (4) 693.3 693.3 693.0 727.2
Fixed Charge Coverage Ratio 1.61x 1.55x 1.57x 1.59x 1.60x
Debt-to-Equity 6.67 7.29 7.55 7.84 7.40
Debt-to-Adjusted Equity (6) 8.54 9.00 8.89 8.83 8.12
Debt-to-Tangible Equity 9.61 9.94 9.71 9.52 9.51
</TABLE>
[CHART]
<TABLE>
<CAPTION>
LOSS COVERAGE RATIO
OWNED RECEIVABLES
-----------------
(x)
<S> <C>
1994 2.09
1995 2.03
1996 1.77
1997 1.59
1998 1.74
</TABLE>
[LEVERAGE CHART]
<PAGE> 16
13
FIVE YEAR FINANCIAL TRENDS
MANAGED RECEIVABLES
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1994 1995
------------------------------------ -----------------------------------
Amount % Total % Growth Amount % Total % Growth
------ ------- -------- ------ ------- --------
END OF PERIOD OUTSTANDINGS
<S> <C> <C> <C> <C> <C> <C>
Home Equity $ 12,449.9 36.9% 14.8% $ 14,316.3 36.0% 15.0%
Personal Loans/Retail Sales Finance 5,420.3 16.1 20.9 6,225.1 15.7 14.8
Truck and Truck Trailer 6,739.7 20.0 20.4 7,724.0 19.5 14.6
Credit Card 4,076.5 12.1 24.3 4,984.6 12.6 22.3
Equipment 2,947.1 8.8 18.5 3,781.7 9.5 28.3
Manufactured Housing 1,681.1 5.0 29.3 2,049.3 5.2 21.9
Recreational Vehicles
Auto Fleet Leasing 303.2 0.9 8.8 330.8 0.8 9.1
Warehouse and Other 67.9 0.2 N/M 290.7 0.7 N/M
---------- ----- ---------- -----
Total $ 33,685.7 100.0% 19.1% $ 39,702.5 100.0% 17.9%
========== ===== ========== =====
SOURCE OF GROWTH
Internal $ 4,876.2 90.5% 17.3% $ 5,713.4 95.0% 17.0%
Acquisitions 514.8 9.5 1.8 303.4 5.0 0.9
---------- ----- ----- ---------- ----- -----
Total $ 5,391.0 100.0% 19.1% $ 6,016.8 100.0% 17.9%
========== ===== ===== ========== ===== =====
AVERAGE OUTSTANDINGS
Home Equity $ 11,649.1 37.6% $ 13,383.1 36.5%
Personal Loans/Retail Sales Finance 4,952.7 16.0 5,822.7 15.9
Truck and Truck Trailer 6,169.0 19.9 7,231.9 19.7
Credit Card 3,677.5 11.8 4,530.5 12.3
Equipment 2,716.6 8.8 3,364.4 9.1
Manufactured Housing 1,490.8 4.8 1,865.2 5.1
Recreational Vehicles
Auto Fleet Leasing 290.9 0.9 317.0 0.9
Warehouse and Other 43.6 0.2 179.3 0.5
---------- ----- ---------- -----
Total $ 30,990.2 100.0% $ 36,694.1 100.0%
========== ===== ========== =====
</TABLE>
<PAGE> 17
14
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1996 1997
---------------------------------- -----------------------------------
Amount % Total % Growth Amount % Total % Growth
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
END OF PERIOD OUTSTANDINGS
Home Equity $16,691.4 34.3% 16.6% $18,796.0 32.2% 12.6%
Personal Loans/Retail Sales Finance 7,425.1 15.3 19.3 8,731.6 14.9 17.6
Truck and Truck Trailer 8,598.3 17.7 11.3 9,688.9 16.6 12.7
Credit Card 6,023.8 12.4 20.8 8,323.7 14.3 38.2
Equipment 4,571.8 9.4 20.9 5,300.5 9.1 15.9
Manufactured Housing 2,547.5 5.2 24.3 3,526.9 6.0 38.4
Recreational Vehicles 1,315.6 2.7 1,665.4 2.8 26.6
Auto Fleet Leasing 1,090.8 2.3 N/M 1,551.1 2.7 42.2
Warehouse and Other 358.5 0.7 23.3 822.4 1.4 129.4
--------- --------- --------- ---------
Total $48,622.8 100.0% 22.5% $58,406.5 100.0% 20.1%
========= ========= ========= =========
SOURCE OF GROWTH
Internal $ 4,444.8 49.8% 11.2% $ 6,167.6 63.0% 12.7%
Acquisitions 4,475.5 50.2 11.3 3,616.1 37.0 7.4
--------- --------- --------- --------- --------- ---------
Total $ 8,920.3 100.0% 22.5% $ 9,783.7 100.0% 20.1%
========= ========= ========= ========= ========= =========
AVERAGE OUTSTANDINGS
Home Equity $15,503.5 34.9% $17,604.3 32.7%
Personal Loans/Retail Sales Finance 6,836.9 15.4 8,136.5 15.1
Truck and Truck Trailer 8,172.6 18.4 9,005.4 16.7
Credit Card 5,717.8 12.9 8,058.1 14.9
Equipment 4,269.2 9.6 4,866.7 9.0
Manufactured Housing 2,315.7 5.2 3,030.3 5.6
Recreational Vehicles 755.3 1.7 1,521.3 2.8
Auto Fleet Leasing 672.7 1.5 1,173.3 2.2
Warehouse and Other 176.1 0.4 503.8 1.0
--------- -------- -------- --------
Total $44,419.8 100.0% $53,899.7 100.0%
========= ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1998
----------------------------------
Amount % Total % Growth
--------- --------- ---------
<S> <C> <C> <C>
END OF PERIOD OUTSTANDINGS
Home Equity $22,622.3 31.7% 20.4%
Personal Loans/Retail Sales Finance 11,459.2 16.0 31.2
Truck and Truck Trailer 10,783.6 15.1 11.3
Credit Card 10,296.8 14.4 23.7
Equipment 6,114.0 8.6 15.3
Manufactured Housing 5,193.5 7.3 47.3
Recreational Vehicles 2,036.9 2.9 22.3
Auto Fleet Leasing 1,589.7 2.2 2.5
Warehouse and Other 1,268.3 1.8 54.2
--------- ---------
Total $71,364.3 100.0% 22.2%
========= =========
SOURCE OF GROWTH
Internal $ 7,829.7 60.4% 13.4%
Acquisitions 5,128.1 39.6 8.8
--------- --------- ---------
Total $12,957.8 100.0% 22.2%
========= ========= =========
AVERAGE OUTSTANDINGS
Home Equity $20,921.4 32.4%
Personal Loans/Retail Sales Finance 10,214.3 15.8
Truck and Truck Trailer 10,246.4 15.9
Credit Card 8,551.7 13.3
Equipment 5,717.2 8.9
Manufactured Housing 4,393.3 6.8
Recreational Vehicles 1,880.1 2.9
Auto Fleet Leasing 1,584.3 2.5
Warehouse and Other 997.1 1.5
--------- --------
Total $64,505.8 100.0%
========= ========
</TABLE>
<PAGE> 18
15
FIVE YEAR FINANCIAL TRENDS
CREDIT QUALITY - MANAGED BASIS
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1994 1995
----------------- -----------------
Amount % Amount %
------ ------ ------ ------
<S> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables) (1)
Home Equity $191.9 1.46% $284.6 1.90%
Personal Loans/Retail Sales Finance 151.6 2.35 190.1 2.58
Truck and Truck Trailer 21.0 0.28 61.8 0.72
Credit Card 119.0 2.92 170.2 3.41
Equipment 9.5 0.29 24.5 0.57
Manufactured Housing 16.4 0.56 23.3 0.73
Recreational Vehicles
Auto Fleet Leasing 0.7 0.21 0.7 0.18
TOTAL $510.3 1.35% $755.4 1.71%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $133.2 1.14% $138.6 1.04%
Personal Loans/Retail Sales Finance 186.4 3.76 235.6 4.05
Truck and Truck Trailer 6.0 0.10 14.6 0.20
Credit Card 170.4 4.63 213.0 4.70
Equipment 1.9 0.07 6.9 0.20
Manufactured Housing 9.9 0.66 15.5 0.83
Recreational Vehicles
Auto Fleet Leasing (0.2) (0.06) 0.2 0.05
TOTAL $508.6 1.64% $624.2 1.70%
</TABLE>
(1) Includes unearned finance income.
<PAGE> 19
16
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
1996 1997 1998
Year Ended or at December 31 --------------------- ----------------------- -----------------------
Amount % Amount % Amount %
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables) (1)
Home Equity $ 369.3 2.12% $ 434.7 2.22% $ 639.3 2.74%
Personal Loans/Retail Sales Finance 287.1 3.32 342.6 3.44 469.3 3.74
Truck and Truck Trailer 139.5 1.45 131.9 1.22 146.3 1.22
Credit Card 254.2 4.22 324.2 3.92 485.1 4.73
Equipment 34.6 0.67 54.7 0.91 57.7 0.84
Manufactured Housing 34.3 0.99 54.5 1.29 131.3 2.31
Recreational Vehicles 0.5 0.04 1.3 0.08 1.3 0.07
Auto Fleet Leasing 2.3 0.20 10.2 0.61 19.6 1.09
TOTAL $ 1,122.1 2.11% $1,355.1 2.15% $1,951.9 2.57%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $ 133.9 0.86% $ 182.7 1.04% $ 230.8 1.10%
Personal Loans/Retail Sales Finance 317.2 4.64 428.1 5.26 579.2 5.67
Truck and Truck Trailer 26.5 0.32 28.5 0.32 49.7 0.48
Credit Card 370.6 6.48 572.1 7.10 630.8 7.38
Equipment 17.0 0.40 14.2 0.29 11.5 0.20
Manufactured Housing 20.9 0.90 26.3 0.87 53.3 1.21
Recreational Vehicles 1.8 0.23 4.6 0.30 4.4 0.24
Auto Fleet Leasing 0.5 0.08 1.9 0.16 1.0 0.07
TOTAL $ 888.6 2.00% $1,250.0 2.32% $1,566.0 2.43%
</TABLE>
<PAGE> 20
17
FIVE YEAR FINANCIAL TRENDS
FUNDING AND CAPITAL
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Per Share Amounts)
Year Ended or at December 31 1994 1995
--------------------------------------- --------------------------------------
Amount % Total Avg. Rate Amount % Total Avg. Rate
------ ------- --------- ------ ------- ---------
<S> <C> <C> <C> <C> <C> <C>
DEBT
Short-Term:
Commercial Paper $ 11,807.4 39.7% 5.89% $ 12,902.9 36.7% 5.73%
Bank Loans 624.5 2.1 6.82 844.4 2.4 6.48
----------- ---------- ---------- -----------
Total 12,431.9 41.8 5.94 13,747.3 39.1 5.78
----------- ---------- ---------- -----------
Long-Term: (1)
Senior 17,164.4 57.7 7.14 21,230.8 60.5 6.91
Subordinated 141.8 0.5 8.08 141.8 0.4 8.09
----------- ---------- ---------- -----------
Total 17,306.2 58.2 7.15 21,372.6 60.9 6.92
----------- ---------- ---------- -----------
Total Debt $ 29,738.1 100.0% 6.64% $ 35,119.9 100.0% 6.47%
=========== ========== ========== ===========
CREDIT FACILITIES OUTSTANDING $ 9,446.9 $ 10,560.4
Maturities
Due in Less than 1 Year $ 14,837.4 49.9% $ 16,914.0 48.1%
Due in 1-2 Years 3,049.3 10.3 3,676.8 10.5
Due in 2+ Years 11,851.4 39.8 14,529.1 41.4
----------- ---------- ---------- -----------
Total $ 29,738.1 100.0% $ 35,119.9 100.0%
=========== ========== ========== ===========
TERM DEBT PLACEMENTS
U.S. Domestic Underwritten $ 2,400.0 51.0% $ 3,700.0 60.2%
International Underwritten
Global Underwritten
Medium Term Notes and Other 2,306.0 49.0 2,443.0 39.8
----------- ---------- ---------- -----------
Total $ 4,706.0 100.0% $ 6,143.0 100.0%
=========== ========== ========== ===========
CAPITAL SECURITIES
Equity
Per Share (2) $ 6.40 $ 6.92
Amount $ 4,436.8 13.0% $ 4,801.1 12.0%
Debt 29,738.1 87.0 35,119.9 88.0
----------- ---------- ---------- -----------
Total $ 34,174.9 100.0% $ 39,921.0 100.0%
=========== ========== ========== ===========
KEY RATIOS
Debt-to-Equity 6.67x 7.29x
Debt-to-Adjusted Equity (3) 8.54 9.00
Debt-to-Tangible Equity 9.61 9.94
Servicing Portfolio, End of Period
% of Managed Assets
</TABLE>
(1) Including current maturities of long-term debt.
(2) See footnote 1 on page 60 of the Annual Report for additional information.
(3) Excludes push-down goodwill.
<PAGE> 21
18
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Per Share Amounts)
Year Ended or at December 31 1996 1997
----------------------------------------- ----------------------------------------
Amount % Total Avg. Rate Amount % Total Avg. Rate
------ ------- --------- ------ ------- ---------
<S> <C> <C> <C> <C> <C> <C>
DEBT
Short-Term:
Commercial Paper $ 15,907.9 38.7% 5.74% $ 19,483.5 39.6% 5.85%
Bank Loans 1,167.3 2.8 7.80 1,487.1 3.0 7.56
------------- --------- ------------- ---------
Total 17,075.2 41.5 5.88 20,970.6 42.6 5.97
------------- --------- ------------- ---------
Long-Term: (1)
Senior 23,604.0 57.4 6.83 27,802.6 56.5 6.57
Subordinated 425.5 1.1 7.25 425.4 0.9 7.25
------------- --------- ------------- ---------
Total 24,029.5 58.5 6.84 28,228.0 57.4 6.58
------------- --------- ------------- ---------
Total Debt $ 41,104.7 100.0% 6.44% $ 49,198.6 100.0% 6.32%
============= ========= ============= =========
CREDIT FACILITIES OUTSTANDING $ 12,590.1 $ 15,055.4
Maturities
Due in Less than 1 Year $ 20,806.2 50.6% $ 25,655.8 52.2%
Due in 1-2 Years 4,213.3 10.3 5,875.3 11.9
Due in 2+ Years 16,085.2 39.1 17,667.5 35.9
------------- --------- ------------- ---------
Total $ 41,104.7 100.0% $ 49,198.6 100.0%
============= ========= ============= =========
TERM DEBT PLACEMENTS
U.S. Domestic Underwritten $ 3,350.0 55.9% $ 4,900.0 60.1%
International Underwritten 900.0 15.0 2,101.0 25.8
Global Underwritten
Medium Term Notes and Other 1,743.0 29.1 1,150.0 14.1
------------- --------- ------------- ---------
Total $ 5,993.0 100.0% $ 8,151.0 100.0%
============= ========= ============= =========
CAPITAL SECURITIES
Equity
Per Share (2) $ 7.84 $ 9.05
Amount $ 5,437.5 11.7% $ 6,268.6 11.3%
Debt 41,104.7 88.3 49,198.6 88.7
------------- --------- ------------- ---------
Total $ 46,542.2 100.0% $ 55,467.2 100.0%
============= ========= ============= =========
KEY RATIOS
Debt-to-Equity 7.55x 7.84x
Debt-to-Adjusted Equity (3) 8.89 8.83
Debt-to-Tangible Equity 9.71 9.52
Servicing Portfolio, End of Period $ 2,109.9 $ 2,922.1
% of Managed Assets 4.2% 4.9%
<CAPTION>
(Dollar Amounts in Millions, Except Per Share Amounts)
Year Ended or at December 31 1998
---------------------------------------------
Amount % Total Avg. Rate
------ ------- ---------
<S> <C> <C> <C>
DEBT
Short-Term:
Commercial Paper $ 24,144.3 38.1% 5.20%
Bank Loans 1,565.5 2.5 5.49
------------- ----------
Total 25,709.8 40.6 5.21
------------- ----------
Long-Term: (1)
Senior 37,171.4 58.7 6.11
Subordinated 425.3 0.7 7.25
------------- ----------
Total 37,596.7 59.4 6.12
------------- ----------
Total Debt $ 63,306.5 100.0% 5.75%
============= ==========
CREDIT FACILITIES OUTSTANDING $ 19,129.4
Maturities
Due in Less than 1 Year $ 33,364.4 52.7%
Due in 1-2 Years 4,649.4 7.3
Due in 2+ Years 25,292.7 40.0
------------- ----------
Total $ 63,306.5 100.0%
============= ==========
TERM DEBT PLACEMENTS
U.S. Domestic Underwritten $ 5,125.0 38.7%
International Underwritten 1,328.0 10.0
Global Underwritten 4,800.0 36.2
Medium Term Notes and Other 2,006.0 15.1
------------- ----------
Total $ 13,259.0 100.0%
============= ==========
CAPITAL SECURITIES
Equity
Per Share (2) $ 11.72
Amount $ 8,526.5 11.9%
Debt 63,306.5 88.1
------------- ----------
Total $ 71,833.0 100.0%
============= ==========
KEY RATIOS
Debt-to-Equity 7.40x
Debt-to-Adjusted Equity (3) 8.12
Debt-to-Tangible Equity 9.51
Servicing Portfolio, End of Period $ 5,702.9
% of Managed Assets 7.1%
</TABLE>
(1) Including current maturities of long-term debt.
(2) See footnote 1 on page 60 of the Annual Report for additional information.
(3) Excludes push-down goodwill.
<PAGE> 22
19
FIVE YEAR PRODUCT LINE TRENDS
HOME EQUITY RECEIVABLES
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Average Balances)
Year Ended or at December 31 1994 1995 1996 1997 1998
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
U.S. Domestic Branch $ 5,610.4 $ 6,391.9 $ 7,770.7 $ 9,110.4 $ 7,540.8
U.S. Domestic Centralized 5,844.8 6,798.5 7,665.3 8,317.4 12,929.3
International 994.7 1,125.9 1,255.4 1,368.2 2,152.2
----------- ----------- ----------- ----------- -----------
Total $ 12,449.9 $ 14,316.3 $ 16,691.4 $ 18,796.0 $ 22,622.3
=========== =========== =========== =========== ===========
% OF MANAGED RECEIVABLES
U.S. Domestic Branch 45% 45% 47% 49% 33%
U.S. Domestic Centralized 47 47 46 44 57
International 8 8 7 7 10
----------- ----------- ----------- ----------- -----------
Total 100% 100% 100% 100% 100%
=========== =========== =========== =========== ===========
GROWTH IN MANAGED RECEIVABLES
Amount $ 1,601.5 $ 1,866.4 $ 2,375.1 $ 2,104.6 $ 3,826.3
Rate 14.8% 15.0% 16.6% 12.6% 20.4%
CREDIT QUALITY
60+Days Contractual Delinquency $ 191.9 $ 284.6 $ 369.3 $ 434.7 $ 639.3
% of Managed Gross Receivables 1.46% 1.90% 2.12% 2.22% 2.74%
Net Losses $ 133.2 $ 138.6 $ 133.9 $ 182.7 $ 230.8
% of AMR 1.14% 1.04% 0.86% 1.04% 1.10%
OTHER INFORMATION
Number of Accounts 308,607 347,864 389,451 420,384 492,325
Average Account Balance $ 40,342 $ 41,155 $ 42,859 $ 44,712 $ 45,950
% Variable Rate 46% 36% 26% 15% 13%
% First Mortgages 75 75 77 79 73
</TABLE>
<PAGE> 23
20
[CHART]
<TABLE>
<CAPTION>
HOME EQUITY RECEIVABLES
MANAGED RECEIVABLES GROWTH IN MANAGED RECEIVABLES VARIABLE RATE LOANS
------------------- ----------------------------- -------------------
($ in billions) (%) (% of Managed Receivables)
<S> <C> <C> <C>
1994 $ 12.4 14.8% 46%
1995 $ 14.3 15.0% 36%
1996 $ 16.7 16.6% 26%
1997 $ 18.8 12.6% 15%
1998 $ 22.6 20.4% 13%
</TABLE>
[PIE CHART]
<TABLE>
<CAPTION>
MANAGED RECEIVABLES BY
DELIVERY CHANNEL
1998
----------------------
<S> <C>
International 10%
U.S. Domestic Branch 33%
U.s. Domestic Centralized 57%
</TABLE>
<PAGE> 24
21
FIVE YEAR PRODUCT LINE TRENDS
PERSONAL LOANS/RETAIL SALES FINANCE RECEIVABLES
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Average Balances)
Year Ended or at December 31 1994 1995 1996 1997 1998
---------- ---------- ---------- ---------- ----------
NET RECEIVABLES
<S> <C> <C> <C> <C> <C>
U.S. Domestic Branch $ 3,875.0 $ 4,278.3 $ 4,901.0 $ 5,497.3 $ 5,055.5
U.S. Domestic Centralized 313.9 474.4 885.5 1,219.5 1,299.1
International 1,231.4 1,472.4 1,638.6 2,014.8 5,104.6
---------- ---------- ---------- ---------- ----------
Total $ 5,420.3 $ 6,225.1 $ 7,425.1 $ 8,731.6 $ 11,459.2
========== ========== ========== ========== ==========
% OF NET RECEIVABLES
U.S. Domestic Branch 71% 69% 66% 63% 44%
U.S. Domestic Centralized 6 8 12 14 11
International 23 23 22 23 45
---------- ---------- ---------- ---------- ----------
Total 100% 100% 100% 100% 100%
========== ========== ========== ========== ==========
GROWTH IN RECEIVABLES
Amount $ 935.3 $ 804.8 $ 1,200.0 $ 1,306.5 $ 2,727.6
Rate 20.9% 14.8% 19.3% 17.6% 31.2%
CREDIT QUALITY
60+Days Contractual Delinquency $ 151.6 $ 190.1 $ 287.1 $ 342.6 $ 469.3
% of Gross Receivables 2.35% 2.58% 3.32% 3.44% 3.74%
Net Losses $ 186.4 $ 235.6 $ 317.2 $ 428.1 $ 579.2
% of ANR 3.76% 4.05% 4.64% 5.26% 5.67%
OTHER INFORMATION
PERSONAL LOANS
Number of Accounts 1,499,515 1,681,780 1,942,567 2,169,414 3,020,151
Average Account Balance $ 2,470 $ 2,507 $ 2,579 $ 2,621 $ 2,763
RETAIL SALES FINANCE
Number of Accounts 929,766 1,082,270 1,294,336 1,395,198 1,708,743
Average Account Balance $ 1,846 $ 1,856 $ 1,866 $ 2,182 $ 1,823
</TABLE>
<PAGE> 25
22
<TABLE>
<CAPTION>
PERSONAL LOANS/RETAIL SALES FINANCE RECEIVABLES
----------------------------------------------------------------------------
PERSONAL RETAIL SALES
LOANS FINANCE
NET GROWTH IN NUMBER OF NUMBER OF
RECEIVABLES RECEIVABLES ACCOUNTS ACCOUNTS
----------- ----------- -------- --------
($ in billions) % (in thousands) (in thousands)
<C> <C> <C> <C> <C>
1994 $ 5.4 20.9% 1,500 930
1995 $ 6.2 14.8% 1,682 1,082
1996 $ 7.4 19.3% 1,943 1,294
1997 $ 8.7 17.6% 2,169 1,395
1998 $11.5 31.2% 3,020 1,709
</TABLE>
[PIE CHART]
<TABLE>
<CAPTION>
PERSONAL LOANS/RETAIL SALES FINANCE RECEIVABLES
- -----------------------------------------------
NET RECEIVABLES BY DELIVERY CHANNEL
1998
<S> <C>
U.S. Domestic Centralized 11%
U.S. Domestic Branch 44%
International 45%
</TABLE>
<PAGE> 26
23
FIVE YEAR PRODUCT LINE TRENDS
TRUCK AND TRUCK TRAILER RECEIVABLES
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Average Balances)
Year Ended or at December 31 1994 1995 1996 1997 1998
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
NET RECEIVABLES
Installment $ 4,894.9 $ 5,371.5 $ 6,249.3 $ 6,983.5 $ 7,730.6
Lease 1,094.2 1,304.8 1,498.3 1,773.5 2,029.6
Wholesale 750.6 1,047.7 850.7 931.9 1,023.4
---------- ---------- ---------- ---------- ----------
Total $ 6,739.7 $ 7,724.0 $ 8,598.3 $ 9,688.9 $ 10,783.6
========== ========== ========== ========== ==========
% OF NET RECEIVABLES
Installment 73% 69% 73% 72% 72%
Lease 16 17 17 18 19
Wholesale 11 14 10 10 9
---------- ---------- ---------- ---------- ----------
Total 100% 100% 100% 100% 100%
========== ========== ========== ========== ==========
GROWTH IN RECEIVABLES
Amount $ 1,141.3 $ 984.3 $ 874.3 $ 1,090.6 $ 1,094.7
Rate 20.4% 14.6% 11.3% 12.7% 11.3%
CREDIT QUALITY
60+Days Contractual Delinquency $ 21.0 $ 61.8 $ 139.5 $ 131.9 $ 146.3
% of Gross Receivables 0.28% 0.72% 1.45% 1.22% 1.22%
Net Losses $ 6.0 $ 14.6 $ 26.5 $ 28.5 $ 49.7
% of ANR 0.10% 0.20% 0.32% 0.32% 0.48%
OTHER INFORMATION
INSTALLMENT AND LEASING RECEIVABLES
Number of Accounts 164,076 177,789 197,070 223,236 240,737
Average Account Balance $ 36,502 $ 37,552 $ 39,314 $ 39,228 $ 40,543
WHOLESALE RECEIVABLES
Number of Dealers 711 734 787 754 839
Average Balance per Dealer $1,055,696 $1,427,384 $1,080,940 $1,235,942 $1,219,785
</TABLE>
<PAGE> 27
24
[CHART]
<TABLE>
<CAPTION>
TRUCK AND TRUCK TRAILER RECEIVABLES
------------------------------------------------------------------------
NET RECEIVABLES GROWTH IN RECEIVABLES NUMBER OF DEALERS
--------------- --------------------- -----------------
($ in billions) %
<C> <C> <C> <C>
1994 $ 6.7 20.4% 711
1995 $ 7.7 14.6% 734
1996 $ 8.6 11.3% 787
1997 $ 9.7 12.7% 754
1998 $10.8 11.3% 839
</TABLE>
[PIE CHART]
<TABLE>
<CAPTION>
NET RECEIVABLES
BY TYPE
1998
<S> <C>
Wholesale 9%
Lease 19%
Installment 72%
</TABLE>
<PAGE> 28
25
FIVE YEAR PRODUCT LINE TRENDS
CREDIT CARD RECEIVABLES
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Average Balances)
Year Ended or at December 31 1994 1995 1996 1997 1998
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
U.S. Bankcard $ 3,574.4 $ 4,280.9 $ 5,169.5 $ 6,356.0 $ 6,086.0
U.S. Private Label 460.5 577.1 635.4 1,483.2 3,536.0
International 41.6 126.6 218.9 484.5 674.8
----------- ----------- ----------- ----------- -----------
Total $ 4,076.5 $ 4,984.6 $ 6,023.8 $ 8,323.7 $ 10,296.8
=========== =========== =========== =========== ===========
% OF MANAGED RECEIVABLES
U.S. Bankcard 88% 86% 86% 76% 59%
U.S. Private Label 11 11 10 18 34
International 1 3 4 6 7
----------- ----------- ----------- ----------- -----------
Total 100% 100% 100% 100% 100%
=========== =========== =========== =========== ===========
GROWTH IN MANAGED RECEIVABLES
Amount $ 798.0 $ 908.1 $ 1,039.2 $ 2,299.9 $ 1,973.1
Rate 24.3% 22.3% 20.8% 38.2% 23.7%
CREDIT QUALITY
60+Days Contractual Delinquency $ 119.0 $ 170.2 $ 254.2 $ 324.2 $ 485.1
% of Managed Gross Receivables 2.92% 3.41% 4.22% 3.92% 4.73%
Net Losses $ 170.4 $ 213.0 $ 370.6 $ 572.1 $ 630.8
% of AMR 4.63% 4.70% 6.48% 7.10% 7.38%
OTHER INFORMATION
U.S. BANKCARD
Number of Accounts 2,511,100 2,943,493 3,191,347 3,555,095 3,478,864
Average Account Balance $ 1,423 $ 1,454 $ 1,620 $ 1,788 $ 1,749
% Revolving 94% 95% 96% 96% 96%
U.S. PRIVATE LABEL
Number of Accounts 3,070,699 3,220,182 3,159,820 7,037,686 10,467,313
Average Account Balance $ 150 $ 179 $ 201 $ 211 $ 338
% Revolving 78% 80% 80% 75%
INTERNATIONAL
Number of Accounts 56,466 82,414 118,887 216,909 279,835
Average Account Balance $ 737 $ 1,536 $ 1,841 $ 2,234 $ 2,411
% Revolving 98% 96% 95% 72%
</TABLE>
<PAGE> 29
26
[CHART]
<TABLE>
<CAPTION>
CREDIT CARD RECEIVABLES
GROWTH IN
MANAGED RECEIVABLES MANAGED RECEIVABLES
------------------- -------------------
<S> <C> <C>
1994 $ 4.1 24.3%
1995 $ 5.0 22.3%
1996 $ 6.0 20.8%
1997 $ 8.3 38.2%
1998 $10.3 23.7%
</TABLE>
[PIE CHART]
<TABLE>
<CAPTION>
CREDIT CARD RECEIVABLES
MANAGED RECEIVABLES
BY TYPE
1998
-----------------------
<S> <C>
International 7%
U.S. Private Label 34%
U.S. Bankcard 59%
</TABLE>
[CHART]
<TABLE>
<CAPTION>
CREDIT CARD RECEIVABLES
1998 CREDIT PROFILE
(% Revolving)
-----------------------
<S> <C>
U.S. Bankcard 96%
U.S. Private Label 75%
International 72%
</TABLE>
<PAGE> 30
27
FIVE YEAR PRODUCT LINE TRENDS
EQUIPMENT RECEIVABLES
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Average Balances)
Year Ended or at December 31 1994 1995 1996 1997 1998
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
NET RECEIVABLES
Installment $ 1,805.3 $ 2,057.1 $ 2,524.0 $ 2,788.4 $ 3,079.5
Lease 588.4 1,054.8 1,376.3 1,752.8 2,070.2
Wholesale 553.4 669.8 671.5 759.3 964.3
----------- ----------- ----------- ----------- -----------
Total $ 2,947.1 $ 3,781.7 $ 4,571.8 $ 5,300.5 $ 6,114.0
=========== =========== =========== =========== ===========
% OF NET RECEIVABLES
Installment 61% 54% 55% 53% 50%
Lease 20 28 30 33 34
Wholesale 19 18 15 14 16
----------- ----------- ----------- ----------- -----------
Total 100% 100% 100% 100% 100%
=========== =========== =========== =========== ===========
GROWTH IN RECEIVABLES
Amount $ 461.0 $ 834.5 $ 790.1 $ 728.7 $ 813.5
Rate 18.5% 28.3% 20.9% 15.9% 15.3%
CREDIT QUALITY
60+Days Contractual Delinquency $ 9.5 $ 24.5 $ 34.6 $ 54.7 $ 57.7
% of Gross Receivables 0.29% 0.57% 0.67% 0.91% 0.84%
Net Losses $ 1.9 $ 6.9 $ 17.0 $ 14.2 $ 11.5
% of ANR 0.07% 0.20% 0.40% 0.29% 0.20%
OTHER INFORMATION
INSTALLMENT AND LEASING RECEIVABLES
Number of Accounts 116,019 129,276 164,476 176,919 195,025
Average Account Balance $ 20,632 $ 24,072 $ 23,713 $ 25,668 $ 26,405
WHOLESALE RECEIVABLES
Number of Dealers 953 993 1,126 1,184 1,195
Average Balance per Dealer $ 580,693 $ 674,522 $ 596,359 $ 641,301 $ 806,946
</TABLE>
<PAGE> 31
28
[CHART]
<TABLE>
<CAPTION>
EQUIPMENT RECEIVABLES
------------------------------------------------
NET GROWTH IN NUMBER OF
RECEIVABLES RECEIVABLES DEALERS
----------- ----------- -------
($ in billions) %
<S> <C> <C> <C>
1994 $ 2.9 18.5% 953
1995 $ 3.8 28.3% 993
1996 $ 4.6 20.9% 1,126
1997 $ 5.3 15.9% 1,184
1998 $ 6.1 15.3% 1,195
</TABLE>
[PIE CHART]
<TABLE>
<CAPTION>
EQUIPMENT RECEIVABLES
---------------------
NET RECEIVABLES
BY TYPE
1998
---------------------
<S> <C>
Wholesale 16%
Lease 34%
Installment 50%
</TABLE>
<PAGE> 32
29
FIVE YEAR PRODUCT LINE TRENDS
MANUFACTURED HOUSING RECEIVABLES
<TABLE>
<CAPTION>
(Dollar Amounts in Millions, Except Average Balances)
Year Ended or at December 31 1994 1995 1996 1997 1998
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
MANAGED RECEIVABLES
Retail $ 1,341.1 $ 1,616.8 $ 2,105.7 $ 3,061.5 $ 4,524.9
Wholesale 340.0 432.5 441.8 465.4 668.6
----------- ----------- ----------- ----------- -----------
Total $ 1,681.1 $ 2,049.3 $ 2,547.5 $ 3,526.9 $ 5,193.5
=========== =========== =========== =========== ===========
% OF MANAGED RECEIVABLES
Retail 80% 79% 83% 87% 87%
Wholesale 20 21 17 13 13
----------- ----------- ----------- ----------- -----------
Total 100% 100% 100% 100% 100%
=========== =========== =========== =========== ===========
GROWTH IN MANAGED RECEIVABLES
Amount $ 380.6 $ 368.2 $ 498.2 $ 979.4 $ 1,666.6
Rate 29.3% 21.9% 24.3% 38.4% 47.3%
CREDIT QUALITY
60+Days Contractual Delinquency $ 16.4 $ 23.3 $ 34.3 $ 54.5 $ 131.3
% of Managed Gross Receivables 0.56% 0.73% 0.99% 1.29% 2.31%
Net Losses $ 9.9 $ 15.5 $ 20.9 $ 26.3 $ 53.3
% of AMR 0.66% 0.83% 0.90% 0.87% 1.21%
OTHER INFORMATION
RETAIL RECEIVABLES
Number of Accounts 60,052 66,762 75,962 94,469 122,613
Average Account Balance $ 22,332 $ 24,217 $ 27,720 $ 32,407 $ 36,904
WHOLESALE RECEIVABLES
Number of Dealers 958 976 926 848 952
Average Balance per Dealer $ 354,906 $ 443,135 $ 477,106 $ 548,821 $ 702,311
</TABLE>
<PAGE> 33
30
[CHART]
<TABLE>
<CAPTION>
MANUFACTURED HOUSING RECEIVABLES
--------------------------------------------------------------------------------------------
MANAGED RECEIVABLES GROWTH IN MANAGED RECEIVABLES NUMBER OF DEALERS
------------------- ----------------------------- -----------------
($ in billions) (%)
<S> <C> <C> <C>
1994 $ 1.7 29.3% 958
1995 $ 2.0 21.9% 976
1996 $ 2.5 24.3% 926
1997 $ 3.5 38.4% 848
1998 $ 5.2 47.3% 952
</TABLE>
<TABLE>
<CAPTION>
MANAGED RECEIVABLES BY TYPE
---------------------------
1998
----
<S> <C>
Wholesale 13%
Retail 87%
</TABLE>
<PAGE> 34
31
FIVE YEAR PRODUCT LINE TRENDS
INSURANCE STATISTICAL DATA
<TABLE>
<CAPTION>
(Dollar Amounts in Millions)
Year Ended or at December 31 1994 1995
------------------------------- --------------------------------
AMOUNT % TOTAL % GROWTH AMOUNT % TOTAL % GROWTH
-------- ----- ---- -------- ----- ---
<S> <C> <C> <C> <C> <C> <C>
NET WRITTEN PREMIUM
Credit Life, Accident and Other Related $ 242.4 52.1% 24.2% $ 240.6 49.0% (0.7)%
Physical Damage 168.7 36.2 21.5 180.3 36.8 6.9
Other Casualty 54.5 11.7 52.7 69.6 14.2 27.7
-------- ----- -------- -----
Total $ 465.6 100.0% 25.9% $ 490.5 100.0% 5.3%
======== ===== ======== =====
PREMIUM REVENUE
Credit Life, Accident and Other Related $ 148.1 45.0% 19.8% $ 164.8 44.4% 11.3%
Physical Damage 136.7 41.6 16.9 148.5 40.1 8.6
Other Casualty 44.2 13.4 45.4 57.3 15.5 29.6
-------- ----- -------- -----
Total $ 329.0 100.0% 21.4% $ 370.6 100.0% 12.6%
======== ===== ======== =====
Investment Income $ 47.3 14.3% $ 68.5 44.8%
Benefits Paid or Provided $ 147.9 24.4% $ 142.5 (3.7)%
as a % of Premium Revenue (Loss Ratio) 45.0% 38.5%
</TABLE>
[CHART]
<TABLE>
<CAPTION>
NET WRITTEN PREMIUM
-------------------
($ in millions)
<S> <C>
1994 $ 465.6
1995 $ 490.5
1996 $ 544.3
1997 $ 608.7
1998 $ 591.6
</TABLE>
<TABLE>
<CAPTION>
NET WRITTEN PREMIUM BY PRODUCT
------------------------------
1998
----
<S> <C>
Other Casualty 17.6%
Credit Life, Accident and
Other Related 49.0%
Physical Damage 33.4%
</TABLE>
<PAGE> 35
32
<TABLE>
<CAPTION>
1996 1997 1998
- --------------------------------------- --------------------------------------- -------------------------------------
AMOUNT % TOTAL % GROWTH AMOUNT % TOTAL % GROWTH AMOUNT % TOTAL % GROWTH
- -------- ------- --------- -------- --------- --------- -------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 282.2 51.8% 17.3% $ 307.1 50.5% 8.8% $ 290.1 49.0% (5.5)%
186.2 34.2 3.3 210.3 34.5 12.9 197.8 33.4 (5.9)
75.9 14.0 9.1 91.3 15.0 20.3 103.7 17.6 13.6
- -------- ----- -------- ----- -------- -----
$ 544.3 100.0% 11.0% $ 608.7 100.0% 11.8% $ 591.6 100.0% (2.8)%
======== ===== ======== ===== ======== =====
$ 183.8 45.7% 11.5% $ 201.4 47.9% 9.6% $ 210.6 44.7% 4.6%
155.1 38.6 4.4 152.9 36.3 (1.4) 171.2 36.3 12.0
63.2 15.7 10.3 66.4 15.8 5.1 89.7 19.0 35.1
- -------- ----- -------- ----- -------- -----
$ 402.1 100.0% 8.5% $ 420.7 100.0% 4.6% $ 471.5 100.0% 12.1%
======== ===== ======== ===== ======== =====
$ 71.7 4.7% $ 82.6 15.2% $ 98.5 19.2%
$ 148.2 4.0% $ 145.7 (1.7)% $ 158.1 8.5%
36.9% 34.6% 33.5%
</TABLE>
[CHART]
<TABLE>
<CAPTION>
PREMIUM REVENUE
---------------
($ in millions)
<S> <C>
1994 $ 329.0
1995 $ 370.6
1996 $ 402.1
1997 $ 420.7
1998 $ 471.5
</TABLE>
<TABLE>
<CAPTION>
PREMIUM REVENUE BY PRODUCT
--------------------------
1998
----
<S> <C>
Other Casualty 19.0%
Credit Life, Accident and
Other Related 44.7%
Physical Damage 36.3%
</TABLE>
<PAGE> 36
33
EIGHT QUARTER FINANCIAL TRENDS
SELECTED EARNINGS INFORMATION (UNAUDITED) - MANAGED BASIS
(Dollar Amounts in Millions, Except Per Share Amounts)
<TABLE>
<CAPTION>
1997
---------------------------------------------------------
1ST QUARTER 2ND QUARTER
-------------------------- --------------------------
AMOUNT %GROWTH %AMR AMOUNT %GROWTH %AMR
------ ------- ---- ------ ------- ----
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Finance Charges $ 1,821.5 21% 14.43% $ 1,938.3 22% 14.64%
Insurance Premiums 99.1 6 0.79 105.3 5 0.80
Investment and Other Income 45.6 (3) 0.36 52.2 18 0.39
--------- ----- --------- -----
1,966.2 20 15.58 2,095.8 21 15.83
EXPENSES
Interest Expense 674.0 16 5.34 721.5 19 5.45
Operating Expense 531.2 15 4.21 571.6 18 4.32
Provision for Losses 347.4 38 2.75 377.0 36 2.85
Insurance Benefits Paid or Provided 36.1 6 0.29 36.7 (1) 0.27
--------- ----- --------- -----
1,588.7 20 12.59 1,706.8 22 12.89
--------- ----- --------- -----
Earnings Before Provision for Taxes 377.5 19 2.99 389.0 19 2.94
Provision for Income Taxes 139.7 12 1.11 144.0 13 1.09
--------- ----- --------- -----
Net Earnings $ 237.8 24% 1.88% $ 245.0 22% 1.85%
========= ===== =========
EPS (Diluted) (1) $ 0.34 $ 0.35
Average Diluted
Shares Outstanding (000) (1) 695,516 695,073
KEY RATIOS
Net Interest Margin (% AMR) 9.09% 9.19%
Efficiency Ratio 42.29 42.73
Effective Tax Rate 37.01 37.01
Return on Average Assets 1.94 1.89
Return on Average Managed Assets 1.85 1.80
Return on Average Equity 17.36 17.22
Return on Average Adjusted Equity (2) 20.95 20.53
Average Managed Receivables (AMR) $ 50,484 $ 52,949
Average Managed Assets 51,489 54,508
Average Equity 5,479 5,690
Average Adjusted Equity (2) 4,698 4,909
</TABLE>
<TABLE>
<CAPTION>
1997
---------------------------------------------------------------
3RD QUARTER 4TH QUARTER
----------------------------- ------------------------------
AMOUNT %GROWTH %AMR AMOUNT %GROWTH %AMR
------ ------- ---- ------ ------- ----
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Finance Charges $ 2,004.5 17% 14.54% $ 2,067.9 16% 14.53%
Insurance Premiums 105.5 1 0.76 110.8 6 0.78
Investment and Other Income 57.6 21 0.42 62.2 50 0.43
--------- ----- --------- -----
2,167.6 17 15.72 2,240.9 16 15.74
EXPENSES
Interest Expense 761.7 17 5.52 789.0 17 5.54
Operating Expense 603.0 16 4.38 633.8 17 4.45
Provision for Losses 335.1 25 2.43 339.5 16 2.39
Insurance Benefits Paid or Provided 34.7 (10) 0.25 38.2 N/M 0.27
--------- ----- --------- -----
1,734.5 17 12.58 1,800.5 16 12.65
--------- ----- --------- -----
Earnings Before Provision for Taxes 433.1 14 3.14 440.4 16 3.09
Provision for Income Taxes 162.2 7 1.17 162.4 12 1.14
--------- ----- --------- -----
Net Earnings $ 270.9 18% 1.97% $ 278.0 19% 1.95%
========= ===== ========= =====
EPS (Diluted) (1) $ 0.39 $ 0.40
Average Diluted
Shares Outstanding (000) (1) 696,339 696,602
KEY RATIOS
Net Interest Margin (% AMR) 9.02% 8.99%
Efficiency Ratio 43.97 44.83
Effective Tax Rate 37.47 36.87
Return on Average Assets 2.01 2.00
Return on Average Managed Assets 1.91 1.89
Return on Average Equity 18.34 18.15
Return on Average Adjusted Equity (2) 21.74 21.16
Average Managed Receivables (AMR) $ 55,129 $ 56,928
Average Managed Assets 56,636 58,722
Average Equity 5,906 6,127
Average Adjusted Equity (2) 5,123 5,393
</TABLE>
(1) See footnote 1 on page 60 of the Annual Report for additional information.
(2) Excludes push-down goodwill.
Note: % Growth represents the percentage change from the same quarter in the
prior year.
<PAGE> 37
34
<TABLE>
<CAPTION>
1998
--------------------------------------------------------------------------------------------------------------------------------
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER
--------------------------- ------------------------------ ---------------------------- -----------------------------
AMOUNT %GROWTH %AMR AMOUNT %GROWTH %AMR AMOUNT %GROWTH %AMR AMOUNT %GROWTH %AMR
------ ------- ---- ------ ------- ---- ------ ------- ---- ------ ------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 2,123.0 17% 14.25% $ 2,257.7 16% 14.36% $ 2,330.8 16% 14.32% $ 2,503.5 21% 14.37%
112.4 13 0.75 104.1 (1) 0.66 110.0 4 0.67 145.0 31 0.83
52.9 16 0.36 70.4 35 0.45 83.6 45 0.51 136.1 119 0.79
--------- ----- --------- ----- --------- ----- --------- -----
2,288.3 16 15.36 2,432.2 16 15.47 2,524.4 16 15.50 2,784.6 24 15.99
806.6 20 5.42 855.4 19 5.44 882.6 16 5.42 925.6 17 5.31
620.0 17 4.16 671.4 17 4.27 705.2 17 4.33 801.4 26 4.60
372.9 7 2.50 410.0 9 2.61 397.9 19 2.44 481.9 42 2.77
42.8 19 0.29 30.5 (17) 0.19 34.2 (1) 0.21 50.6 32 0.29
--------- ----- --------- ----- --------- ----- --------- -----
1,842.3 16 12.37 1,967.3 15 12.51 2,019.9 16 12.40 2,259.5 25 12.97
--------- ----- --------- ----- --------- ----- --------- -----
446.0 18 2.99 464.9 20 2.96 504.5 16 3.10 525.1 19 3.02
165.0 18 1.10 172.0 19 1.10 186.9 15 1.15 193.1 19 1.11
--------- ----- --------- ----- --------- ----- --------- -----
$ 281.0 18% 1.89% $ 292.9 20% 1.86% $ 317.6 17% 1.95% $ 332.0 19% 1.91%
========= ===== ========= ===== ========= ===== ========= =====
$ 0.40 $ 0.42 $ 0.46 $ 0.47
697,529 697,180 696,453 708,240
8.83% 8.92% 8.90% 9.06%
43.09 43.42 43.87 44.32
37.00 37.00 37.04 36.79
1.91 1.94 1.97 1.83
1.82 1.77 1.84 1.71
17.61 17.82 18.68 17.64
20.17 20.16 20.94 19.85
$ 59,614 $ 62,890 $ 65,109 $ 69,688
61,801 66,245 69,149 77,613
6,382 6,577 6,803 7,525
5,670 5,894 6,154 6,796
</TABLE>
<PAGE> 38
35
EIGHT QUARTER FINANCIAL TRENDS
SELECTED BALANCE SHEET INFORMATION (UNAUDITED)
(Dollar Amounts in Millions, Except Per Share Amounts)
<TABLE>
<CAPTION>
1997
-----------------------------------------------------------------
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and Cash Equivalents $ 344.4 $ 148.3 $ 427.4 $ 433.2
Investments in Securities 1,208.7 1,218.4 1,195.4 1,242.4
Net Finance Receivables 47,701.1 51,617.2 52,677.8 55,215.6
Allowance for Losses (1,675.9) (1,849.5) (1,891.4) (1,949.9)
Insurance Policy Claims and Reserves (724.8) (748.2) (776.6) (783.6)
Push-down Goodwill (1) 743.1 798.7 739.2 691.5
Other Goodwill 403.5 400.1 419.7 412.5
Other Assets 1,210.7 1,456.2 1,563.1 1,971.0
----------- ----------- ----------- -----------
Total Assets $ 49,210.8 $ 53,041.2 $ 54,354.6 $ 57,232.7
=========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes Payable
Commercial Paper $ 17,897.7 $ 19,293.8 $ 19,546.8 $ 19,483.5
Bank Loans 342.8 448.0 472.3 1,487.1
Accounts Payable and Accruals 1,735.4 1,640.8 1,753.7 1,765.5
Long-Term Debt (2)
Senior Notes 23,250.7 25,412.2 26,139.8 27,802.6
Subordinated and Capital Notes 425.5 425.4 425.4 425.4
Stockholders' Equity 5,558.7 5,821.0 6,016.6 6,268.6
----------- ----------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 49,210.8 $ 53,041.2 $ 54,354.6 $ 57,232.7
=========== =========== =========== ===========
Managed Receivables $ 50,299.3 $ 54,083.9 $ 55,862.7 $ 58,406.5
Managed Assets 51,809.0 55,507.9 57,427.5 60,154.8
ALLOWANCE FOR LOSSES
Beginning Balance $ 1,563.1 $ 1,675.9 $ 1,849.5 $ 1,891.4
Provision for Losses 344.5 372.6 328.5 332.5
Losses Sustained (328.2) (360.7) (375.8) (389.3)
Recoveries 53.1 51.7 55.3 64.8
Other 43.4 110.0 33.9 50.5
----------- ----------- ----------- -----------
Ending Balance $ 1,675.9 $ 1,849.5 $ 1,891.4 $ 1,949.9
=========== =========== =========== ===========
- -% of Net Receivables 3.51% 3.58% 3.59% 3.53%
Loss Coverage Ratio (3) 1.70x 1.70x 1.62x 1.59x
KEY DATA
Book Value per Share (4) $ 8.02 $ 8.40 $ 8.68 $ 9.05
Dividends per Share of Common Stock (4) 0.050 0.050 0.050 0.050
Net Dividends Declared 34.7 34.6 34.6 34.7
Payout Ratio 15% 14% 13% 12%
Adjusted Capital Formation Rate (annualized) 18 18 19 19
End of Period Shares Outstanding (millions) (4) 693.2 692.9 692.9 693.0
Fixed Charge Coverage Ratio 1.59x 1.57x 1.60x 1.59x
Debt-to-Equity 7.54 7.82 7.74 7.84
Debt-to-Adjusted Equity (5) 8.73 9.10 8.85 8.83
Debt-to-Tangible Equity 9.49 9.85 9.58 9.52
</TABLE>
(1) Goodwill created by Ford's acquisition of foreign affiliates of the Company
in 1989.
(2) Including current maturities of long-term debt.
(3) See footnote 6 on page 60 of the Annual Report for additional information.
(4) See footnote 1 on page 60 of the Annual Report for additional information.
(5) Excludes push-down goodwill.
<PAGE> 39
36
<TABLE>
<CAPTION>
1998
--------------------------------------------------------------------------
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and Cash Equivalents $ 681.7 $ 364.8 $ 1,094.3 $ 4,665.6
Investments in Securities 1,406.9 5,263.2 5,213.4 6,678.7
Net Finance Receivables 57,631.3 55,695.8 57,550.4 60,939.0
Allowance for Losses (2,014.9) (1,848.7) (1,865.0) (1,978.7)
Insurance Policy Claims and Reserves (790.5) (795.3) (794.1) (1,463.9)
Push-down Goodwill (1) 686.7 641.6 650.9 740.3
Other Goodwill 407.6 578.3 577.3 1,150.1
Other Assets 2,559.2 3,510.4 3,678.1 4,444.3
----------- ----------- ----------- -----------
Total Assets $ 60,568.0 $ 63,410.1 $ 66,105.3 $ 75,175.4
=========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes Payable
Commercial Paper $ 22,904.3 $ 23,236.0 $ 24,362.3 $ 24,144.3
Bank Loans 636.6 674.8 224.7 1,565.5
Accounts Payable and Accruals 2,069.8 2,124.8 2,294.0 3,342.4
Long-Term Debt (2)
Senior Notes 28,028.5 30,269.1 31,831.9 37,171.4
Subordinated and Capital Notes 425.4 425.4 425.3 425.3
Stockholders' Equity 6,503.4 6,680.0 6,967.1 8,526.5
----------- ----------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 60,568.0 $ 63,410.1 $ 66,105.3 $ 75,175.4
=========== =========== =========== ===========
Managed Receivables $ 61,048.8 $ 64,311.8 $ 66,153.4 $ 71,364.3
Managed Assets 63,564.0 68,132.1 70,649.8 80,878.3
ALLOWANCE FOR LOSSES
Beginning Balance $ 1,949.9 $ 2,014.9 $ 1,848.7 $ 1,865.0
Provision for Losses 365.0 342.8 253.5 322.2
Losses Sustained (394.6) (349.2) (318.4) (362.4)
Recoveries 59.0 43.2 75.0 60.5
Other 35.6 (203.0) 6.2 93.4
----------- ----------- ----------- -----------
Ending Balance $ 2,014.9 $ 1,848.7 $ 1,865.0 $ 1,978.7
=========== =========== =========== ===========
- -% of Net Receivables 3.50% 3.32% 3.24% 3.25%
Loss Coverage Ratio (3) 1.56x 1.51x 1.70x 1.74x
KEY DATA
Book Value per Share (4) $ 9.38 $ 9.65 $ 10.06 $ 11.72
Dividends per Share of Common Stock (4) 0.050 0.050 0.050 0.055
Net Dividends Declared 34.7 34.6 34.7 38.0
Payout Ratio 12% 12% 11% 11%
Adjusted Capital Formation Rate (annualized) 18 18 19 19
End of Period Shares Outstanding (millions) (4) 693.1 692.6 692.6 727.2
Fixed Charge Coverage Ratio 1.58x 1.59x 1.62x 1.62x
Debt-to-Equity 7.99 8.17 8.15 7.40
Debt-to-Adjusted Equity (5) 8.95 9.06 9.01 8.12
Debt-to-Tangible Equity 9.61 9.99 9.90 9.51
</TABLE>
(1) Goodwill created by Ford's acquisition of foreign affiliates of the Company
in 1989.
(2) Including current maturities of long-term debt.
(3) See footnote 6 on page 60 of the Annual Report for additional information.
(4) See footnote 1 on page 60 of the Annual Report for additional information.
(5) Excludes push-down goodwill.
<PAGE> 40
37
EIGHT QUARTER FINANCIAL TRENDS
MANAGED RECEIVABLES
(Dollar Amounts in Millions)
<TABLE>
<CAPTION>
1997
-------------------------------------------------------------------------
1ST QUARTER 2ND QUARTER
---------------------------------- ------------------------------------
AMOUNT %TOTAL %GROWTH AMOUNT %TOTAL %GROWTH
------ ------ ------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
END OF PERIOD OUTSTANDINGS
Home Equity $ 16,965.5 33.7% 6.6% $ 17,547.2 32.5% 13.7%
Personal Loans/
Retail Sales Finance 7,677.1 15.3 13.6 8,385.4 15.5 36.9
Truck and Truck Trailer 8,687.3 17.3 4.1 8,970.6 16.6 13.0
Credit Card 6,691.3 13.3 44.3 8,240.4 15.2 92.6
Equipment 4,679.7 9.3 9.4 4,887.4 9.0 17.8
Manufactured Housing 2,712.3 5.4 25.9 2,960.9 5.5 36.7
Recreational Vehicles 1,414.1 2.8 29.9 1,488.3 2.8 21.0
Auto Fleet Leasing 1,116.3 2.2 9.4 1,160.2 2.1 15.7
Warehouse and Other 355.7 0.7 (3.1) 443.5 0.8 98.7
----------- ----- ----------- -----
TOTAL $ 50,299.3 100.0% 13.8% $ 54,083.9 100.0% 30.1%
=========== ===== =========== =====
SOURCE OF GROWTH
Internal $ 490.6 29.3% 4.0% $ 1,936.1 51.2% 15.4%
Acquisitions 1,185.9 70.7 9.8 1,848.5 48.8 14.7
----------- ----- ----------- -----
TOTAL $ 1,676.5 100.0% 13.8% $ 3,784.6 100.0% 30.1%
=========== ===== =========== =====
AVERAGE OUTSTANDINGS
Home Equity $ 16,776.0 33.2% $ 17,198.0 32.5%
Personal Loans/
Retail Sales Finance 7,538.7 15.0 7,943.7 15.0
Truck and Truck Trailer 8,617.8 17.1 8,821.0 16.6
Credit Card 7,383.1 14.6 8,383.5 15.8
Equipment 4,592.7 9.1 4,770.8 9.0
Manufactured Housing 2,720.1 5.4 2,833.6 5.4
Recreational Vehicles 1,410.7 2.8 1,456.7 2.7
Auto Fleet Leasing 1,102.5 2.2 1,139.6 2.2
Warehouse and Other 341.9 0.6 401.9 0.8
----------- ----- ----------- -----
TOTAL $ 50,483.5 100.0% $ 52,948.8 100.0%
=========== ===== =========== =====
</TABLE>
<TABLE>
<CAPTION>
1997
----------------------------------------------------------------------
3RD QUARTER 4TH QUARTER
--------------------------------- ----------------------------------
AMOUNT %TOTAL %GROWTH AMOUNT %TOTAL %GROWTH
------ ------ ------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
END OF PERIOD OUTSTANDINGS
Home Equity $ 18,255.4 32.7% 16.1% $ 18,796.0 32.2% 11.8%
Personal Loans/
Retail Sales Finance 8,581.2 15.3 9.3 8,731.6 14.9 7.0
Truck and Truck Trailer 9,200.5 16.5 10.3 9,688.9 16.6 21.2
Credit Card 8,206.7 14.7 (1.6) 8,323.7 14.3 5.7
Equipment 5,027.9 9.0 11.5 5,300.5 9.1 21.7
Manufactured Housing 3,174.2 5.7 28.8 3,526.9 6.0 44.5
Recreational Vehicles 1,592.7 2.8 28.1 1,665.4 2.8 18.3
Auto Fleet Leasing 1,158.4 2.1 (0.6) 1,551.1 2.7 135.6
Warehouse and Other 665.7 1.2 N/M 822.4 1.4 94.2
----------- ----- ----------- -----
TOTAL $ 55,862.7 100.0% 13.2% $ 58,406.5 100.0% 18.2%
=========== ===== =========== =====
SOURCE OF GROWTH
Internal $ 1,685.4 94.7% 12.5% $ 2,055.5 80.8% 14.7%
Acquisitions 93.4 5.3 0.7 488.3 19.2 3.5
----------- ----- ----------- -----
TOTAL $ 1,778.8 100.0% 13.2% $ 2,543.8 100.0% 18.2%
=========== ===== =========== =====
AVERAGE OUTSTANDINGS
Home Equity $ 17,890.6 32.5% $ 18,541.6 32.6%
Personal Loans/
Retail Sales Finance 8,448.4 15.3 8,673.8 15.2
Truck and Truck Trailer 9,120.2 16.6 9,423.1 16.5
Credit Card 8,224.7 14.9 8,235.5 14.5
Equipment 4,972.2 9.0 5,129.7 9.0
Manufactured Housing 3,158.7 5.7 3,347.8 5.9
Recreational Vehicles 1,615.4 2.9 1,585.1 2.8
Auto Fleet Leasing 1,165.4 2.1 1,264.6 2.2
Warehouse and Other 533.3 1.0 726.5 1.3
----------- ----- ----------- -----
TOTAL $ 55,128.9 100.0% $ 56,927.7 100.0%
=========== ===== =========== =====
</TABLE>
Note: % Growth represents the annualized percentage change on a sequential
quarter basis.
<PAGE> 41
38
<TABLE>
<CAPTION>
1998
- -----------------------------------------------------------------------------------------------------------------------------------
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER
- ------------------------------ ------------------------------- ------------------------------- ------------------------------
AMOUNT %TOTAL %GROWTH AMOUNT %TOTAL %GROWTH AMOUNT %TOTAL %GROWTH AMOUNT %TOTAL %GROWTH
------ ------ ------- ------ ------ ------- ------ ------ ------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 19,976.3 32.7% 25.1% $ 21,050.8 32.7% 21.5% $ 21,924.5 33.2% 16.6% $ 22,622.3 31.7% 12.7%
9,224.5 15.1 22.6 10,365.2 16.1 49.5 10,499.4 15.9 5.2 11,459.2 16.1 36.6
10,043.5 16.5 14.6 10,312.3 16.0 10.7 10,470.5 15.8 6.1 10,783.6 15.1 12.0
7,890.3 12.9 (20.8) 7,887.8 12.3 (0.1) 7,969.7 12.0 4.2 10,296.8 14.4 116.8
5,632.7 9.2 25.1 5,790.9 9.0 11.2 5,813.8 8.8 1.6 6,114.0 8.6 20.7
3,972.4 6.5 50.5 4,423.9 6.9 45.5 4,822.0 7.3 36.0 5,193.5 7.3 30.8
1,790.0 2.9 29.9 1,881.8 2.9 20.5 1,988.6 3.0 22.7 2,036.9 2.8 9.7
1,577.0 2.6 6.7 1,602.8 2.5 6.5 1,584.0 2.4 (4.7) 1,589.7 2.2 1.4
942.1 1.6 58.2 996.3 1.6 23.0 1,080.9 1.6 34.0 1,268.3 1.8 69.3
- ----------- ----- ----------- ----- ----------- ----- ----------- -----
$ 61,048.8 100.0% 18.1% $ 64,311.8 100.0% 21.4% $ 66,153.4 100.0% 11.5% $ 71,364.3 100.0% 31.5%
=========== ===== =========== ===== =========== ===== =========== =====
$ 1,527.7 57.8% 10.5% $ 1,652.5 50.6% 10.8% $ 1,788.2 97.1% 11.1% $ 2,861.3 54.9% 17.3%
1,114.6 42.2 7.6 1,610.5 49.4 10.6 53.4 2.9 0.4 2,349.6 45.1 14.2
- ----------- ----- ---- ----------- ----- ---- ----------- ----- ---- ----------- ----- ----
$ 2,642.3 100.0% 18.1% $ 3,263.0 100.0% 21.4% $ 1,841.6 100.0% 11.5% $ 5,210.9 100.0% 31.5%
=========== ===== ==== =========== ===== ==== =========== ===== ==== =========== ===== ====
$ 19,412.3 32.6% $ 20,480.9 32.6% $ 21,442.0 32.9% $ 22,397.3 32.1%
8,883.9 14.9 10,067.5 16.0 10,373.3 15.9 11,172.0 16.0
9,843.2 16.5 10,160.3 16.2 10,386.1 15.9 10,617.8 15.2
8,083.4 13.6 7,882.9 12.5 7,931.2 12.2 9,832.7 14.1
5,504.9 9.2 5,701.8 9.1 5,787.9 8.9 5,895.8 8.5
3,736.2 6.3 4,197.9 6.7 4,632.2 7.1 5,016.4 7.2
1,729.7 2.9 1,841.7 2.9 1,933.5 3.0 2,020.5 2.9
1,560.6 2.6 1,593.4 2.5 1,597.0 2.5 1,588.8 2.3
859.8 1.4 963.6 1.5 1,025.7 1.6 1,146.3 1.7
- ----------- ----- ----------- ----- ----------- ----- ----------- -----
$ 59,614.0 100.0% $ 62,890.0 100.0% $ 65,108.9 100.0% $ 69,687.6 100.0%
=========== ===== =========== ===== =========== ===== =========== =====
</TABLE>
<PAGE> 42
39
EIGHT QUARTER FINANCIAL TRENDS
CREDIT QUALITY - MANAGED BASIS
(Dollar Amounts in Millions)
<TABLE>
<CAPTION>
1997
-----------------------------------------------------------------------------------
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER
-------------------- -------------------- -------------------- --------------------
AMOUNT % AMOUNT % AMOUNT % AMOUNT %
------ ---- ------ ---- ------ ---- ------ ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables) (1)
Home Equity $ 380.5 2.15% $ 388.2 2.12% $ 434.8 2.28% $ 434.7 2.22%
Personal Loans/Retail Sales Finance 294.2 3.32 320.4 3.34 333.4 3.40 342.6 3.44
Truck and Truck Trailer 152.8 1.58 152.6 1.53 153.6 1.50 131.9 1.22
Credit Card 255.7 3.83 311.5 3.81 321.0 3.99 324.2 3.92
Equipment 48.7 0.92 52.2 0.94 74.1 1.30 54.7 0.91
Manufactured Housing 33.5 0.94 37.9 1.01 47.4 1.21 54.5 1.29
Recreational Vehicles 1.2 0.08 1.1 0.07 1.0 0.06 1.3 0.08
Auto Fleet Leasing 6.1 0.50 8.1 0.64 8.9 0.70 10.2 0.61
TOTAL $ 1,173.3 2.14% $ 1,272.9 2.17% $ 1,377.3 2.28% $ 1,355.1 2.15%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $ 45.4 1.08% $ 45.2 1.05% $ 45.6 1.02% $ 46.5 1.00%
Personal Loans/Retail Sales Finance 86.8 4.60 105.1 5.29 115.5 5.47 120.7 5.57
Truck and Truck Trailer 6.8 0.31 6.6 0.30 7.5 0.33 7.6 0.32
Credit Card 131.7 7.13 152.4 7.27 144.8 7.04 143.2 6.96
Equipment 2.6 0.23 4.3 0.36 4.5 0.36 2.8 0.22
Manufactured Housing 4.4 0.65 5.0 0.71 7.9 1.00 9.0 1.07
Recreational Vehicles 0.7 0.19 0.8 0.22 1.4 0.34 1.7 0.43
Auto Fleet Leasing 0.2 0.07 0.5 0.18 0.6 0.22 0.6 0.18
TOTAL $ 278.1 2.20% $ 313.4 2.37% $ 327.0 2.37% $ 331.5 2.33%
</TABLE>
(1) Includes unearned finance income.
(2) Previously reported as 7.07% in the 1998 first quarter and year-end
earnings releases.
<PAGE> 43
40
<TABLE>
<CAPTION>
1998
-------------------------------------------------------------------------------------------
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER
------------------- -------------------- --------------------- --------------------
AMOUNT % AMOUNT % AMOUNT % AMOUNT %
------ ----- ------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
60+DAYS CONTRACTUAL DELINQUENCY
(% of Managed Gross Receivables) (1)
Home Equity $ 463.4 2.23% $ 523.9 2.40% $ 595.3 2.63% $ 639.3 2.74%
Personal Loans/Retail Sales Finance 368.1 3.53 417.1 3.62 453.1 3.90 469.3 3.74
Truck and Truck Trailer 149.7 1.34 165.5 1.44 156.7 1.34 146.3 1.22
Credit Card 309.8 3.96 321.3 4.09 341.0 4.29 485.1 4.73
Equipment 71.0 1.12 63.4 0.97 59.7 0.91 57.7 0.84
Manufactured Housing 57.9 1.26 68.0 1.36 71.8 1.34 131.3 2.31
Recreational Vehicles 0.8 0.05 1.1 0.07 1.2 0.06 1.3 0.07
Auto Fleet Leasing 7.4 0.43 13.3 0.74 9.5 0.53 19.6 1.09
TOTAL $ 1,428.4 2.18% $ 1,574.2 2.29% $ 1,689.6 2.39% $ 1,951.9 2.57%
NET LOSSES
(% of Average Managed Receivables)
Home Equity $ 49.8 1.03% $ 54.9 1.07% $ 59.7 1.11% $ 66.4 1.19%
Personal Loans/Retail Sales Finance 126.9 5.71 142.3 5.65 140.9 5.43 169.1 6.05
Truck and Truck Trailer 12.8 0.52 11.5 0.45 9.6 0.37 15.8 0.59
Credit Card 144.6 7.15(2) 150.3 7.63 151.1 7.62 184.8 7.52
Equipment 1.5 0.11 3.5 0.25 4.8 0.33 1.7 0.12
Manufactured Housing 8.7 0.94 8.9 0.84 16.1 1.39 19.6 1.56
Recreational Vehicles 1.2 0.27 1.3 0.28 0.9 0.19 1.0 0.21
Auto Fleet Leasing 0.3 0.08 0.3 0.08 0.2 0.05 0.2 0.05
TOTAL $ 343.6 2.31% $ 373.1 2.37% $ 387.8 2.38% $ 461.5 2.65%
</TABLE>
(1) Includes unearned finance income.
(2) Previously reported as 7.07% in the 1998 first quarter and year-end
earnings releases.
<PAGE> 44
41
SUMMARY OF INFORMATION BY COUNTRY
(Dollar Amounts in Millions)
<TABLE>
<CAPTION>
AT DECEMBER 31 1998
-----------------------------------
AMOUNT/NO. % TOTAL GROWTH
----------- ------- --------
<S> <C> <C> <C>
MANAGED RECEIVABLES
United States $ 61,977.0 87% 16%
Japan 5,594.2 8 109
Canada 2,081.9 3 70
United Kingdom 1,294.5 2 40
Puerto Rico 317.7 29
Mexico 89.3 47
Costa Rica 2.7 N/M
Taiwan 7.0 N/M
---------- -----
Total $ 71,364.3 100% 22%
========== =====
BRANCHES
United States 1,478 58% (90)
Japan 673 27 244
Canada 203 8 84
United Kingdom 66 3 3
Puerto Rico 43 2 3
Mexico 54 2 13
Costa Rica 4
Taiwan 1
---------- ----- -----
Total 2,522 100% 257
========== ===== =====
EMPLOYEES
United States 22,530 79% 3,460
Japan 3,615 13 1,647
Canada 1,117 4 632
United Kingdom 622 2 216
Puerto Rico 344 1 7
Mexico 386 1 107
Costa Rica 28 5
Taiwan 20 6
---------- ----- -----
Total 28,662 100% 6,080
========== ===== =====
</TABLE>
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