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) October 14, 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 third quarter of 1997 on
October 14, 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: October 14, 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 Nine Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income....... $ 173,449 $ 160,905 $ 538,972 $ 462,230
Provision for possible
credit losses............ 60,403 35,273 206,171 133,873
Other operating income.... 692,039 472,348 2,029,493 1,313,957
Other operating expense... 523,542 383,538 1,648,721 1,104,090
Net income(a)........... 171,826 129,523 434,201 325,065
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PER COMMON SHARE DATA FOR THE PERIOD(b):
Earnings(c)............... $ .32 $ .24 $ .80 $ .61
Dividends................. .08 .07 .24 .21
Book value................ 3.30 2.60
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RATIOS:
Return on average total
assets................... 3.48% 3.44% 3.12% 3.10%
Return on average
stockholders' equity..... 38.27 37.26 33.84 33.24
Average receivables to
average deposits......... 86.39 95.67 92.53 92.18
Stockholders' equity to
total assets............. 9.21 10.31
Loan Portfolio:
Delinquency(d).......... 3.40 3.16
Net credit losses....... 2.02 1.55 2.16 2.03
Managed Loans(e):
Delinquency............. 4.44 4.00
Net credit losses....... 4.07 3.38 3.93 3.37
Net interest margin(f).. 7.47 7.50 7.47 7.61
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MBNA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
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(unaudited)
MANAGED LOAN DATA(e):
At Period End:
Loans held for
securitization......... $ 2,168,388 $ 2,822,022
Loan portfolio.......... 7,817,353 6,303,027
Securitized loans....... 36,230,744 25,614,114
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Total managed loans... $46,216,485 $34,739,163
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Average:
Loans held for
securitization......... $ 3,074,863 $ 2,398,970 $ 3,262,886 $ 2,558,674
Loan portfolio.......... 7,491,180 6,668,646 7,283,236 5,870,899
Securitized loans....... 33,910,575 23,392,536 31,276,734 21,099,223
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Total managed loans... $44,476,618 $32,460,152 $41,822,856 $29,528,796
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For the Period:
Sales and cash advance
volume................. $17,319,150 $13,267,372 $47,423,098 $34,080,227
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BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments. $ 4,010,747 $ 2,966,752
Loans held for
securitization........... 2,168,388 2,822,022
Credit card loans......... 5,656,280 4,896,703
Other consumer loans...... 2,161,073 1,406,324
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Total loans............. 7,817,353 6,303,027
Reserve for possible
credit losses............ (160,898) (117,788)
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Net loans............... 7,656,455 6,185,239
Total assets.............. 20,261,409 15,562,235
Total deposits............ 12,487,397 9,649,548
Stockholders' equity...... 1,866,508 1,605,063
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MBNA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments. $ 3,872,874 $ 2,841,424 $ 3,663,565 $ 2,807,700
Loans held for
securitization........... 3,074,863 2,398,970 3,262,886 2,558,674
Credit card loans......... 5,226,340 5,144,692 5,215,837 4,730,964
Other consumer loans...... 2,264,840 1,523,954 2,067,399 1,139,935
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Total loans............. 7,491,180 6,668,646 7,283,236 5,870,899
Reserve for possible
credit losses........... (157,762) (112,553) (136,628) (108,577)
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Net loans............... 7,333,418 6,556,093 7,146,608 5,762,322
Total assets.............. 19,606,532 14,980,002 18,631,468 14,005,528
Total deposits............ 12,231,227 9,478,376 11,397,561 9,144,479
Stockholders' equity...... 1,781,365 1,382,791 1,715,312 1,306,435
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Weighted average common
shares outstanding and
common stock equivalents
(000)(b)................. 528,310 518,234 526,183 517,698
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NOTES:
(a) Net income for the nine months ended September 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 been restated to reflect the three-for-two
split of the Corporation's Common Stock, effected in the form of a
dividend, issued October 1, 1997, to stockholders of record as of
September 15, 1997.
(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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