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 15, 1997
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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 1997 on
July 15, 1997, 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 15, 1997 By: /s/ M. Scot Kaufman
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M. Scot Kaufman
Executive Vice President
and Chief Financial Officer
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Exhibit 99
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,
1997 1996 1997 1996
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income....... $ 184,744 $ 150,130 $ 365,523 $ 301,325
Provision for possible
credit losses............ 87,363 49,112 145,768 98,600
Other operating income.... 694,834 444,061 1,337,454 841,609
Other operating expense... 565,388 374,020 1,125,179 720,552
Net income(a)........... 138,433 103,320 262,375 195,542
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PER COMMON SHARE DATA FOR THE PERIOD(b):
Earnings(c)............... $ .38 $ .29 $ .72 $ .55
Dividends................. .12 .11 .24 .21
Book value................ 4.61 3.65
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RATIOS:
Return on average total
assets................... 2.96% 3.03% 2.92% 2.91%
Return on average
stockholders' equity..... 33.02 32.13 31.46 31.02
Average receivables to
average deposits......... 95.00 88.05 96.01 90.32
Stockholders' equity to
total assets............. 9.02 9.81
Loan Portfolio:
Delinquency(d).......... 3.15 3.31
Net credit losses....... 2.46 2.27 2.23 2.30
Managed Loans(e):
Delinquency............. 4.21 3.87
Net credit losses....... 3.96 3.46 3.86 3.37
Net interest margin(f).. 7.40 7.66 7.47 7.67
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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,
1997 1996 1997 1996
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(unaudited)
MANAGED LOAN DATA(e):
At Period End:
Loans held for
securitization......... $ 3,761,615 $ 2,811,305
Loan portfolio.......... 6,664,699 5,357,127
Securitized loans....... 32,756,985 22,396,267
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Total managed loans... $43,183,299 $30,564,699
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Average:
Loans held for
securitization......... $ 3,868,738 $ 2,264,506 $ 3,358,456 $ 2,639,403
Loan portfolio.......... 6,969,480 5,788,902 7,177,540 5,467,643
Securitized loans....... 30,916,249 21,029,887 29,937,986 19,939,966
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Total managed loans... $41,754,467 $29,083,295 $40,473,982 $28,047,012
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For the Period:
Sales and cash advance
volume................. $16,006,521 $11,357,035 $30,103,948 $20,812,855
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BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments. $ 4,361,153 $ 2,797,561
Loans held for
securitization........... 3,761,615 2,811,305
Credit card loans......... 4,668,376 4,298,466
Other consumer loans...... 1,996,323 1,058,661
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Total loans............. 6,664,699 5,357,127
Reserve for possible
credit losses............ (151,719) (110,406)
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Net loans............... 6,512,980 5,246,721
Total assets.............. 19,471,017 13,954,375
Total deposits............ 11,916,978 9,207,263
Stockholders' equity...... 1,755,775 1,369,331
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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,
1997 1996 1997 1996
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments. $ 3,728,361 $ 2,918,939 $ 3,557,176 $ 2,790,652
Loans held for
securitization........... 3,868,738 2,264,506 3,358,456 2,639,403
Credit card loans......... 5,168,044 4,809,870 5,210,498 4,521,827
Other consumer loans...... 1,801,436 979,032 1,967,042 945,816
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Total loans............. 6,969,480 5,788,902 7,177,540 5,467,643
Reserve for possible
credit losses........... (132,484) (106,892) (125,886) (106,568)
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Net loans............... 6,836,996 5,682,010 7,051,654 5,361,075
Total assets.............. 18,782,559 13,707,724 18,135,856 13,512,937
Total deposits............ 11,408,943 9,146,243 10,973,819 8,975,696
Stockholders' equity...... 1,681,792 1,293,143 1,681,739 1,267,838
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Weighted average common
shares outstanding and
common stock equivalents
(000)(b)................. 349,950 345,058 350,068 344,951
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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 pretax) related to the launch of the MBNA
Platinum Plus MasterCard and Visa 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 not been restated to reflect the
three-for-two split of the Corporation's Common Stock, which will be
effected in the form of a dividend, to be issued October 1, 1997, to
stockholders of record as of September 15, 1997. 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 January 1, 1997,
to stockholders of record as of December 16, 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.
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