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 7, 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.)
Item 5. Other Events
MBNA Corporation issued the financial highlights for the fourth quarter of 1998
on January 7, 1999, 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: January 7, 1999 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,
1998 1997 1998 1997
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income....... $ 201,454 $ 153,418 $ 742,339 $ 692,390
Provision for possible
credit losses............ 64,330 53,869 310,039 260,040
Other operating income.... 933,052 783,386 3,228,969 2,812,879
Other operating expense... 685,218 574,400 2,407,204 2,223,121
Net income.............. 238,289 188,299 776,266 622,500
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PER COMMON SHARE DATA FOR THE PERIOD(a):
Earnings.................. $ .31 $ .25 $ 1.01 $ .80
Earnings-assuming
dilution................. .30 .23 .97 .76
Dividends................. .06 .05 .24 .21
Book value................ 2.90 2.34
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RATIOS:
Return on average total
assets................... 3.78% 3.63% 3.38% 3.25%
Return on average
stockholders' equity..... 41.27 40.28 36.91 35.56
Average receivables to
average deposits......... 82.55 79.01 86.04 88.82
Stockholders' equity to
total assets............. 9.27 9.25
Loan Portfolio:
Delinquency(b).......... 3.86 3.93
Net credit losses....... 2.02 2.10 2.39 2.14
Managed Loans(c):
Delinquency............. 4.62 4.59
Net credit losses....... 4.21 4.07 4.31 3.97
Net interest margin(d).. 7.48 7.57 7.47 7.50
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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,
1998 1997 1998 1997
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(unaudited)
MANAGED LOAN DATA(c):
At Period End:
Loans held for
securitization......... $ 1,692,268 $ 2,900,198
Loan portfolio.......... 11,776,099 8,261,876
Securitized loans....... 46,172,739 38,217,786
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Total managed loans... $59,641,106 $49,379,860
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Average:
Loans held for
securitization......... $ 1,885,598 $ 1,724,831 $ 2,577,482 $ 2,875,212
Loan portfolio.......... 10,626,859 8,394,363 9,352,807 7,563,301
Securitized loans....... 44,823,529 37,109,708 40,970,936 32,746,963
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Total managed loans... $57,335,986 $47,228,902 $52,901,225 $43,185,476
=========== =========== =========== ===========
For the Period:
Sales and cash advance
volume................. $23,277,615 $18,976,327 $82,968,874 $66,399,425
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BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments. $ 5,440,939 $ 4,594,709
Loans held for
securitization........... 1,692,268 2,900,198
Credit card loans......... 8,975,051 5,830,221
Other consumer loans...... 2,801,048 2,431,655
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Total loans............. 11,776,099 8,261,876
Reserve for possible
credit losses............ (216,911) (162,476)
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Net loans............... 11,559,188 8,099,400
Total assets.............. 25,806,260 21,305,513
Total deposits............ 15,407,040 12,913,213
Stockholders' equity...... 2,391,035 1,970,050
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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,
1998 1997 1998 1997
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments. $ 5,687,714 $ 4,410,633 $ 4,905,943 $ 3,851,867
Loans held for
securitization........... 1,885,598 1,724,831 2,577,482 2,875,212
Credit card loans......... 7,942,468 6,170,042 6,820,538 5,456,349
Other consumer loans...... 2,684,391 2,224,321 2,532,269 2,106,952
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Total loans............. 10,626,859 8,394,363 9,352,807 7,563,301
Reserve for possible
credit losses........... (215,651) (163,006) (192,024) (143,277)
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Net loans............... 10,411,208 8,231,357 9,160,783 7,420,024
Total assets.............. 25,023,557 20,590,620 22,982,349 19,125,282
Total deposits............ 15,156,638 12,807,280 13,866,645 11,752,887
Stockholders' equity...... 2,290,476 1,854,753 2,103,043 1,750,459
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Weighted average common
shares outstanding
(000)(a)................. 751,937 751,864 751,856 751,837
Weighted average common
shares outstanding and
common stock equivalents
(000)(a)................. 787,406 791,363 789,421 789,801
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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. 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.
