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) January 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 fourth quarter of 1996 on
January 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: January 14, 1997 By: /s/ M. Scot Kaufman
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M. Scot Kaufman
Executive Vice President
and Chief Financial Officer
Exhibit 99
MBNA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
1996 1995 1996 1995
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income............. $ 178,247 $ 148,261 $ 640,477 $ 544,226
Provision for possible credit
losses......................... 44,351 38,714 178,224 138,176
Other operating income.......... 581,966 405,768 1,895,923 1,424,618
Other operating expense......... 468,461 332,844 1,572,551 1,246,067
Net income(a)................. 149,430 110,212 474,495 353,099
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PER COMMON SHARE DATA FOR THE PERIOD(b):
Earnings(c)..................... $ .41 $ .32 $ 1.33 $ 1.03
Dividends....................... .11 .09 .43 .37
Book value...................... 4.20 3.34
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RATIOS:
Return on average total assets.. 3.66% 3.54% 3.26% 3.09%
Return on average stockholders'
equity......................... 37.45 39.37 34.46 35.51
Average receivables to average
deposits....................... 93.36 88.81 92.50 91.60
Stockholders' equity to total
assets......................... 10.00 9.56
Loan Portfolio:
Delinquency(d)................ 3.59 3.11
Net credit losses............. 1.86 2.11 1.98 1.91
Managed Loans(e):
Delinquency................... 4.28 3.70
Net credit losses............. 3.30 2.94 3.35 2.74
Net interest margin(f)........ 7.63 7.49 7.62 7.42
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MBNA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
1996 1995 1996 1995
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(unaudited)
MANAGED LOAN DATA(e):
At Period End:
Loans held for
securitization....... $ 2,469,974 $ 3,168,427
Loan portfolio........ 7,659,078 4,967,491
Securitized loans..... 28,494,481 18,575,786
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Total managed loans. $ 38,623,533 $ 26,711,704
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Average:
Loans held for
securitization....... $ 2,442,547 $ 1,643,138 $ 2,529,484 $ 2,269,362
Loan portfolio........ 7,077,092 5,685,837 6,174,095 4,792,536
Securitized loans..... 26,727,630 18,171,357 22,514,014 15,440,499
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Total managed loans. $ 36,247,269 $ 25,500,332 $ 31,217,593 $ 22,502,397
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For the Period:
Sales and cash
advance volume....... $ 14,585,902 $ 9,522,753 $ 48,666,129 $ 34,272,909
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BALANCE SHEET DATA AT PERIOD END:
Investment securities
and money market
instruments............ $ 3,194,664 $ 2,669,402
Loans held for
securitization......... 2,469,974 3,168,427
Credit card loans....... 5,722,299 4,090,553
Other consumer loans.... 1,936,779 876,938
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Total loans........... 7,659,078 4,967,491
Reserve for possible
credit losses.......... (118,427) (104,886)
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Net loans............. 7,540,651 4,862,605
Total assets............ 17,035,342 13,228,889
Total deposits.......... 10,151,686 8,608,914
Stockholders' equity.... 1,704,308 1,265,058
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MBNA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
1996 1995 1996 1995
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments.... $ 3,283,703 $ 2,834,759 $ 2,927,351 $ 2,451,783
Loans held for
securitization.............. 2,442,547 1,643,138 2,529,484 2,269,362
Credit card loans............ 5,434,521 4,931,648 4,907,814 4,160,230
Other consumer loans......... 1,642,571 754,189 1,266,281 632,306
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Total loans................ 7,077,092 5,685,837 6,174,095 4,792,536
Reserve for possible credit
losses...................... (118,378) (104,939) (111,041) (103,568)
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Net loans.................. 6,958,714 5,580,898 6,063,054 4,688,968
Total assets................. 16,256,268 12,363,579 14,571,288 11,425,721
Total deposits............... 10,196,185 8,252,454 9,408,843 7,709,840
Stockholders' equity......... 1,587,449 1,110,606 1,377,072 994,287
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Weighted average common
shares outstanding and
common stock equivalents
(000)(b).................... 348,537 344,160 345,988 342,429
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NOTES:
(a) Net income for the twelve months ended December 31, 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 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 the close of business on
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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The Corporation is required to adopt Statement of Financial Accounting
Standards No. 125, "Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities" effective for all transactions occurring
after December 31, 1996. Statement No. 125 requires recognition of a gain at
the time of the initial sale and each subsequent sale of loan receivables in a
securitization. Previously, the Corporation recognized this income over the
life of the securitization. These gains, which are expected to be material in
1997, will be invested in additional business development efforts and, as a
result, will have no impact on the Corporation's 1997 net income.
