UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 11, 1996
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MBNA Corporation
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(Exact name of registrant as specified in its charter)
Maryland 1-10683 52-1713008
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
Wilmington, Delaware 19884
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (800) 362-6255
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(Former name or former address, if changed since last report.)
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Item 5. Other Events
MBNA Corporation released earnings for the second quarter of 1996 on
July 11, 1996, as filed in exhibit 99 under Item 7.
Item 7. Financial Statements and Exhibits
Exhibits
Exhibit 99: Additional Exhibits
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MBNA CORPORATION
Date: July 11, 1996 By: /s/ M. Scot Kaufman
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M. Scot Kaufman
Executive Vice President
and Chief Financial Officer
MBNA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income............... $ 150,130 $ 137,857 $ 301,325 $ 257,546
Provision for possible
credit losses.................... 49,112 36,516 98,600 62,101
Other operating income............ 444,061 332,602 841,609 629,833
Other operating expense........... 374,020 306,112 720,552 584,260
Net income(a)................... 103,320 76,835 195,542 145,560
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PER COMMON SHARE DATA FOR THE PERIOD(b):
Earnings(c)....................... $ .44 $ .34 $ .83 $ .64
Dividends......................... .16 .14 .32 .28
Book value........................ 5.47 4.47
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RATIOS:
Return on average total assets.... 3.03% 2.69% 2.91% 2.76%
Return on average stockholders'
equity........................... 32.13 32.37 31.02 31.41
Average receivables to average
deposits......................... 88.05 96.10 90.32 92.43
Stockholders' equity to total
assets........................... 9.81 8.25
Loan Portfolio:
Delinquency(d).................. 3.31 2.55
Net credit losses............... 2.27 1.88 2.30 1.78
Managed Loans(e):
Delinquency..................... 3.87 3.23
Net credit losses............... 3.46 2.64 3.37 2.64
Net interest margin(f).......... 7.66 7.37 7.67 7.36
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MBNA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
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(unaudited)
MANAGED LOAN DATA(e):
At Period End:
Loans held for
securitization....... $ 2,811,305 $ 2,643,419
Loan portfolio........ 5,357,127 4,544,053
Securitized loans..... 22,396,267 15,529,654
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Total managed loans. $ 30,564,699 $ 22,717,126
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Average:
Loans held for
securitization....... $ 2,264,506 $ 2,867,121 $ 2,639,403 $ 2,539,100
Loan portfolio........ 5,788,902 4,562,513 5,467,643 4,167,378
Securitized loans..... 21,029,887 14,078,956 19,939,966 13,688,700
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Total managed loans. $ 29,083,295 $ 21,508,590 $ 28,047,012 $ 20,395,178
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For the Period:
Sales and cash
advance ............. $ 11,357,035 $ 8,479,998 $ 20,812,855 $ 15,732,486
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BALANCE SHEET DATA AT PERIOD END:
Investment securities
and money market
instruments............ $ 2,797,561 $ 2,904,895
Loans held for
securitization......... 2,811,305 2,643,419
Credit card loans....... 4,298,466 3,913,823
Other consumer loans.... 1,058,661 630,230
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Total loans........... 5,357,127 4,544,053
Reserve for possible
credit losses.......... (110,406) (104,101)
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Net loans............. 5,246,721 4,439,952
Total assets............ 13,954,375 12,080,216
Total deposits.......... 9,207,263 8,055,523
Stockholders' equity.... 1,369,331 996,089
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MBNA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments.... $ 2,918,939 $ 2,252,747 $ 2,790,652 $ 2,203,524
Loans held for
securitization.............. 2,264,506 2,867,121 2,639,403 2,539,100
Credit card loans............ 4,809,870 3,975,904 4,521,827 3,607,808
Other consumer loans......... 979,032 586,609 945,816 559,570
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Total loans................ 5,788,902 4,562,513 5,467,643 4,167,378
Reserve for possible credit
losses...................... (106,892) (102,953) (106,568) (102,365)
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Net loans.................. 5,682,010 4,459,560 5,361,075 4,065,013
Total assets................. 13,707,724 11,462,376 13,512,937 10,626,885
Total deposits............... 9,146,243 7,730,936 8,975,696 7,256,008
Stockholders' equity......... 1,293,143 952,079 1,267,838 934,445
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Weighted average common
shares outstanding and
common stock equivalents
(000)(b).................... 230,039 228,111 229,968 227,257
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NOTES:
(a) Net income for the six months ended June 30, 1996, includes a $32.8 million
tax benefit related to deductions for the amortization of Customer-based
intangible assets acquired in connection with the 1991 initial public
offering of the Corporation's Common Stock, and a charge of $32.8 million
net of tax ($54.3 million pre-tax) related to the launch of the MBNA
Platinum Plus Visa and Mastercard program. These items were recognized by
the Corporation during the three months ended March 31, 1996.
(b) Per common share data and weighted average common shares outstanding and
common stock equivalents have been restated to reflect the three-for-two
split of the Corporation's Common Stock, effected in the form of a
dividend, issued February 16, 1996, to stockholders of record as of
February 2, 1996.
(c) Earnings per common share is computed using net income applicable to
common stock and weighted average common shares outstanding (including
common stock equivalents).
(d) Loan portfolio delinquency does not include loans held for securitization
or securitized loans.
(e) Managed loans include the Corporation's loans held for securitization,
loan portfolio, and securitized loans.
(f) Managed net interest margin is presented on a fully taxable equivalent
basis.
