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 7, 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.)
Item 5. Other Events
MBNA Corporation released earnings for the third quarter of 1998 on
October 7, 1998, as filed in exhibit 99 under Item 7.
Item 7. Financial Statements and Exhibits
Exhibits
Exhibit 99: Additional Exhibits
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 7, 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 Nine Months
Ended September 30, Ended September 30,
1998 1997 1998 1997
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income....... $ 198,429 $ 173,449 $ 540,885 $ 538,972
Provision for possible
credit losses............ 78,569 60,403 245,709 206,171
Other operating income.... 831,211 692,039 2,295,917 2,029,493
Other operating expense... 601,163 523,542 1,721,986 1,648,721
Net income.............. 216,593 171,826 537,977 434,201
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PER COMMON SHARE DATA FOR THE PERIOD(a):
Earnings.................. $ .28 $ .22 $ .70 $ .56
Earnings-assuming
dilution................. .27 .21 .67 .53
Dividends................. .06 .05 .18 .16
Book value................ 2.70 2.20
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RATIOS:
Return on average total
assets................... 3.66% 3.48% 3.23% 3.12%
Return on average
stockholders' equity..... 39.77 38.27 35.26 33.84
Average receivables to
average deposits......... 90.69 86.39 87.36 92.53
Stockholders' equity to
total assets............. 9.42 9.21
Loan Portfolio:
Net credit losses....... 2.42 2.02 2.53 2.16
Managed Loans(b):
Delinquency............. 4.69 4.44
Net credit losses....... 4.42 4.07 4.34 3.93
Net interest margin(c).. 7.55 7.47 7.46 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 Nine Months
Ended September 30, Ended September 30,
1998 1997 1998 1997
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(unaudited)
MANAGED LOAN DATA(b):
At Period End:
Loans held for
securitization......... $ 2,571,323 $ 2,168,388
Loan portfolio.......... 10,012,324 7,817,353
Securitized loans....... 43,703,887 36,230,744
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Total managed loans... $56,287,534 $46,216,485
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Average:
Loans held for
securitization......... $ 2,768,037 $ 3,074,863 $ 2,810,644 $ 3,262,886
Loan portfolio.......... 9,921,478 7,491,180 8,923,457 7,283,236
Securitized loans....... 41,375,203 33,910,575 39,672,626 31,276,734
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Total managed loans... $54,064,718 $44,476,618 $51,406,727 $41,822,856
=========== =========== =========== ===========
For the Period:
Sales and cash advance
volume................. $21,953,559 $17,319,150 $59,691,259 $47,423,098
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BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments. $ 4,565,455 $ 4,010,747
Loans held for
securitization........... 2,571,323 2,168,388
Credit card loans......... 7,413,371 5,656,280
Other consumer loans...... 2,598,953 2,161,073
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Total loans............. 10,012,324 7,817,353
Reserve for possible
credit losses............ (206,202) (160,898)
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Net loans............... 9,806,122 7,656,455
Total assets.............. 23,815,025 20,261,409
Total deposits............ 14,125,314 12,487,397
Stockholders' equity...... 2,242,502 1,866,508
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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,
1998 1997 1998 1997
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments. $ 4,535,542 $ 3,872,874 $ 4,642,489 $ 3,663,565
Loans held for
securitization........... 2,768,037 3,074,863 2,810,644 3,262,886
Credit card loans......... 7,096,284 5,226,340 6,442,452 5,215,837
Other consumer loans...... 2,825,194 2,264,840 2,481,005 2,067,399
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Total loans............. 9,921,478 7,491,180 8,923,457 7,283,236
Reserve for possible
credit losses........... (197,943) (157,762) (184,063) (136,628)
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Net loans............... 9,723,535 7,333,418 8,739,394 7,146,608
Total assets.............. 23,475,319 19,606,532 22,294,470 18,631,468
Total deposits............ 13,992,638 12,231,227 13,431,922 11,397,561
Stockholders' equity...... 2,160,643 1,781,365 2,039,879 1,715,312
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Weighted average common
shares outstanding
(000)(a)................. 751,806 751,813 751,828 751,828
Weighted average common
shares outstanding and
common stock equivalents
(000)(a)................. 787,685 792,465 790,100 789,274
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NOTES:
(a) 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, 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 reflect the adoption of Statement of Financial Accounting
Standards No. 128, "Earnings per Share" (Statement No. 128). 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) Managed loans include the Corporation's loans held for securitization,
loan portfolio, and securitized loans.
(c) Managed net interest margin is presented on a fully taxable equivalent
basis.
