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 13, 1998
-------------------------
MBNA Corporation
--------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 1-10683 52-1713008
--------------------------------------------------------------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
Wilmington, Delaware 19884
--------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (800) 362-6255
-----------------------
--------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
<PAGE>
Item 5. Other Events
MBNA Corporation released earnings for the fourth quarter of 1997 on
January 13, 1998, as filed in exhibit 99 under Item 7.
Item 7. Financial Statements and Exhibits
Exhibits
Exhibit 99: Additional Exhibits
<PAGE>
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 13, 1998 By: /s/ M. Scot Kaufman
---------------------------
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,
1997 1996 1997 1996
- ------------------------------------------------------------------------------
(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income....... $ 153,418 $ 178,247 $ 692,390 $ 640,477
Provision for possible
credit losses............ 53,869 44,351 260,040 178,224
Other operating income.... 783,386 581,966 2,812,879 1,895,923
Other operating expense... 574,400 468,461 2,223,121 1,572,551
Net income(a)........... 188,299 149,430 622,500 474,495
- ------------------------------------------------------------------------------
PER COMMON SHARE DATA FOR THE PERIOD(b):
Earnings(c)............... $ .37 $ .29 $ 1.20 $ .92
Earnings - assuming
dilution(c).............. .35 .28 1.15 .89
Dividends................. .08 .07 .32 .28
Book value................ 3.50 2.80
- ------------------------------------------------------------------------------
RATIOS:
Return on average total
assets................... 3.63% 3.66% 3.25% 3.26%
Return on average
stockholders' equity..... 40.28 37.45 35.56 34.46
Average receivables to
average deposits......... 79.01 93.36 88.82 92.50
Stockholders' equity to
total assets............. 9.25 10.00
Loan Portfolio:
Delinquency(d).......... 3.93 3.59
Net credit losses....... 2.10 1.86 2.14 1.98
Managed Loans(e):
Delinquency............. 4.59 4.28
Net credit losses....... 4.07 3.30 3.97 3.35
Net interest margin(f).. 7.57 7.63 7.50 7.62
- ------------------------------------------------------------------------------
<PAGE>
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,
1997 1996 1997 1996
- ------------------------------------------------------------------------------
(unaudited)
MANAGED LOAN DATA(e):
At Period End:
Loans held for
securitization......... $ 2,900,198 $ 2,469,974
Loan portfolio.......... 8,261,876 7,659,078
Securitized loans....... 38,217,786 28,494,481
----------- -----------
Total managed loans... $49,379,860 $38,623,533
=========== ===========
Average:
Loans held for
securitization......... $ 1,724,831 $ 2,442,547 $ 2,875,212 $ 2,529,484
Loan portfolio.......... 8,394,363 7,077,092 7,563,301 6,174,095
Securitized loans....... 37,109,708 26,727,630 32,746,963 22,514,014
----------- ----------- ----------- -----------
Total managed loans... $47,228,902 $36,247,269 $43,185,476 $31,217,593
=========== =========== =========== ===========
For the Period:
Sales and cash advance
volume................. $18,976,327 $14,585,902 $66,399,425 $48,666,129
- ------------------------------------------------------------------------------
BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments. $ 4,594,709 $ 3,194,664
Loans held for
securitization........... 2,900,198 2,469,974
Credit card loans......... 5,830,221 5,722,299
Other consumer loans...... 2,431,655 1,936,779
----------- -----------
Total loans............. 8,261,876 7,659,078
Reserve for possible
credit losses............ (162,476) (118,427)
----------- -----------
Net loans............... 8,099,400 7,540,651
Total assets.............. 21,305,513 17,035,342
Total deposits............ 12,913,213 10,151,686
Stockholders' equity...... 1,970,050 1,704,308
- ------------------------------------------------------------------------------
<PAGE>
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,
1997 1996 1997 1996
- ------------------------------------------------------------------------------
(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments. $ 4,410,633 $ 3,283,703 $ 3,851,867 $ 2,927,351
Loans held for
securitization........... 1,724,831 2,442,547 2,875,212 2,529,484
Credit card loans......... 6,170,042 5,434,521 5,456,349 4,907,814
Other consumer loans...... 2,224,321 1,642,571 2,106,952 1,266,281
----------- ----------- ----------- -----------
Total loans............. 8,394,363 7,077,092 7,563,301 6,174,095
Reserve for possible
credit losses........... (163,006) (118,378) (143,277) (111,041)
----------- ----------- ----------- -----------
Net loans............... 8,231,357 6,958,714 7,420,024 6,063,054
Total assets.............. 20,590,620 16,256,268 19,125,282 14,571,288
Total deposits............ 12,807,280 10,196,185 11,752,887 9,408,843
Stockholders' equity...... 1,854,753 1,587,449 1,750,459 1,377,072
- ------------------------------------------------------------------------------
Weighted average common
shares outstanding(b).... 501,243 501,215 501,225 501,208
Weighted average common
shares outstanding and
common stock
equivalents(b)........... 527,576 522,806 526,534 518,982
- ------------------------------------------------------------------------------
<PAGE>
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 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 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) The Corporation adopted Statement of Financial Accounting Standards
No. 128, "Earnings per Share" (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.
(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.
