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 13, 1999
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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 1999 on
July 13, 1999, 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 13, 1999 By: /s/ Vernon H. Wright
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Vernon H. Wright
Executive Vice President
and Chief Corporate Finance 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,
1999 1998 1999 1998
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income....... $ 267,061 $ 166,883 $ 493,842 $ 342,456
Provision for possible
credit losses............ 129,756 78,542 214,220 167,140
Other operating income.... 1,028,532 765,196 1,932,262 1,464,706
Other operating expense... 798,823 575,688 1,544,396 1,120,823
Net income.............. 227,182 171,988 413,175 321,384
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PER COMMON SHARE DATA FOR THE PERIOD(a):
Earnings.................. $ .28 $ .22 $ .51 $ .42
Earnings-assuming
dilution................. .27 .21 .49 .40
Dividends................. .07 .06 .14 .12
Book value................ 4.44 2.52
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RATIOS:
Return on average total
assets................... 3.28% 3.16% 3.05% 2.99%
Return on average
stockholders' equity..... 24.68 34.25 23.24 32.76
Average receivables to
average deposits......... 93.86 83.90 89.06 85.56
Stockholders' equity to
total assets............. 13.48 9.20
Loan Portfolio:
Delinquency(b).......... 4.17 3.36
Net credit losses....... 2.75 2.61 2.60 2.59
Managed Loans(c):
Delinquency............. 4.64 4.60
Net credit losses....... 4.41 4.42 4.39 4.30
Net interest margin(d).. 7.70 7.45 7.65 7.41
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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,
1999 1998 1999 1998
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(unaudited)
MANAGED LOAN DATA(c):
At Period End:
Loans held for
securitization......... $ 5,410,118 $ 3,392,797
Loan portfolio.......... 9,931,874 9,322,087
Securitized loans....... 49,182,696 40,032,895
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Total managed loans... $64,524,688 $52,747,779
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Average:
Loans held for
securitization......... $ 5,276,424 $ 2,597,279 $ 3,711,138 $ 2,832,301
Loan portfolio.......... 10,284,580 8,402,221 10,725,229 8,416,175
Securitized loans....... 47,493,415 39,415,940 46,640,292 38,807,228
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Total managed loans... $63,054,419 $50,415,440 $61,076,659 $50,055,704
=========== =========== =========== ===========
For the Period:
Sales and cash advance
volume................. $25,929,706 $19,764,469 $47,560,332 $37,737,700
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BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments. $ 4,996,397 $ 4,218,656
Loans held for
securitization........... 5,410,118 3,392,797
Credit card loans......... 7,879,505 6,530,081
Other consumer loans...... 2,052,369 2,792,006
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Total loans............. 9,931,874 9,322,087
Reserve for possible
credit losses............ (326,897) (194,685)
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Net loans............... 9,604,977 9,127,402
Total assets.............. 27,995,770 22,902,130
Total deposits............ 16,377,482 13,322,061
Stockholders' equity...... 3,773,430 2,107,629
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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,
1999 1998 1999 1998
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments. $ 4,739,828 $ 4,979,915 $ 5,700,510 $ 4,696,850
Loans held for
securitization........... 5,276,424 2,597,279 3,711,138 2,832,301
Credit card loans......... 8,269,829 6,168,473 8,447,420 6,110,117
Other consumer loans...... 2,014,751 2,233,748 2,277,809 2,306,058
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Total loans............. 10,284,580 8,402,221 10,725,229 8,416,175
Reserve for possible
credit losses........... (314,618) (185,275) (270,848) (177,007)
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Net loans............... 9,969,962 8,216,946 10,454,381 8,239,168
Total assets.............. 27,814,846 21,796,141 27,319,764 21,694,259
Total deposits............ 16,579,726 13,109,669 16,209,034 13,146,917
Stockholders' equity...... 3,692,566 2,013,931 3,585,400 1,978,496
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Weighted average common
shares outstanding
(000)(a)................. 801,803 751,808 800,180 751,839
Weighted average common
shares outstanding and
common stock equivalents
(000)(a)................. 838,771 790,417 836,840 791,327
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NOTES:
(a) 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
October 1, 1998, to stockholders of record as of September 15, 1998.
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 in accordance with Statement of
Financial Accounting Standards No. 128, "Earnings per Share". The
Corporation's common stock equivalents 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.
