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 14, 1998
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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 1998 on
July 14, 1998, 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 14, 1998 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 Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income....... $ 166,883 $ 184,744 $ 342,456 $ 365,523
Provision for possible
credit losses............ 78,542 87,363 167,140 145,768
Other operating income.... 765,196 694,834 1,464,706 1,337,454
Other operating expense... 575,688 565,388 1,120,823 1,125,179
Net income.............. 171,988 138,433 321,384 262,375
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PER COMMON SHARE DATA FOR THE PERIOD(a):
Earnings.................. $ .34 $ .26 $ .63 $ .50
Earnings-assuming
dilution................. .32 .25 .60 .48
Dividends................. .09 .08 .18 .16
Book value................ 3.78 3.08
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RATIOS:
Return on average total
assets................... 3.16% 2.96% 2.99% 2.92%
Return on average
stockholders' equity..... 34.25 33.02 32.76 31.46
Average receivables to
average deposits......... 83.90 95.00 85.56 96.01
Stockholders' equity to
total assets............. 9.20 9.02
Loan Portfolio:
Delinquency(b).......... 3.36 3.15
Net credit losses....... 2.61 2.46 2.59 2.23
Managed Loans(c):
Delinquency............. 4.60 4.21
Net credit losses....... 4.42 3.96 4.30 3.86
Net interest margin(d).. 7.45 7.40 7.41 7.47
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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,
1998 1997 1998 1997
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(unaudited)
MANAGED LOAN DATA(c):
At Period End:
Loans held for
securitization......... $ 3,392,797 $ 3,761,615
Loan portfolio.......... 9,322,087 6,664,699
Securitized loans....... 40,032,895 32,756,985
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Total managed loans... $52,747,779 $43,183,299
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Average:
Loans held for
securitization......... $ 2,597,279 $ 3,868,738 $ 2,832,301 $ 3,358,456
Loan portfolio.......... 8,402,221 6,969,480 8,416,175 7,177,540
Securitized loans....... 39,415,940 30,916,249 38,807,228 29,937,986
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Total managed loans... $50,415,440 $41,754,467 $50,055,704 $40,473,982
=========== =========== =========== ===========
For the Period:
Sales and cash advance
volume................. $19,764,469 $16,006,521 $37,737,700 $30,103,948
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BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments. $ 4,218,656 $ 4,361,153
Loans held for
securitization........... 3,392,797 3,761,615
Credit card loans......... 6,530,081 4,668,376
Other consumer loans...... 2,792,006 1,996,323
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Total loans............. 9,322,087 6,664,699
Reserve for possible
credit losses............ (194,685) (151,719)
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Net loans............... 9,127,402 6,512,980
Total assets.............. 22,902,130 19,471,017
Total deposits............ 13,322,061 11,916,978
Stockholders' equity...... 2,107,629 1,755,775
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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,
1998 1997 1998 1997
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments. $ 4,979,915 $ 3,728,361 $ 4,696,850 $ 3,557,176
Loans held for
securitization........... 2,597,279 3,868,738 2,832,301 3,358,456
Credit card loans......... 6,168,473 5,168,044 6,110,117 5,210,498
Other consumer loans...... 2,233,748 1,801,436 2,306,058 1,967,042
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Total loans............. 8,402,221 6,969,480 8,416,175 7,177,540
Reserve for possible
credit losses........... (185,275) (132,484) (177,007) (125,886)
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Net loans............... 8,216,946 6,836,996 8,239,168 7,051,654
Total assets.............. 21,796,141 18,782,559 21,694,259 18,135,856
Total deposits............ 13,109,669 11,408,943 13,146,917 10,973,819
Stockholders' equity...... 2,013,931 1,681,792 1,978,496 1,681,739
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Weighted average common
shares outstanding
(000)(a)................. 501,205 501,219 501,226 501,224
Weighted average common
shares outstanding and
common stock equivalents
(000)(a)................. 526,945 524,925 527,551 525,102
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NOTES:
(a) 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, 1998, to
stockholders of record as of September 15, 1998. For comparative purposes,
per common share data and weighted average common shares outstanding and
common stock equivalents have been restated to reflect the adoption of
Statement of Financial Accounting Standards No. 128, "Earnings per Share"
(Statement No. 128), and 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. The Corporation
adopted Statement No. 128, effective for financial statements issued for
periods ending after December 15, 1997. In accordance with Statement
No. 128, earnings per common share is computed using net income applicable
to common stock and weighted average common shares outstanding, whereas,
earnings per common share-assuming dilution includes the potential dilutive
effect of common stock equivalents which are solely related to employee
stock options. The Corporation has no other common stock equivalents.
(b) Loan portfolio delinquency does not include loans held for securitization
or securitized loans.
(c) Managed loans include the Corporation's loans held for securitization,
loan portfolio, and securitized loans.
(d) Managed net interest margin is presented on a fully taxable equivalent
basis.
