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 10, 2001
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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 19884-0141
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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 fourth quarter of 2000 on
January 10, 2001, as filed in exhibit 99 under Item 7.
Item 7. Financial Statements and Exhibits
Exhibits
Exhibit 99: Additional Exhibits
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,
2000 1999 2000 1999
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(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income....... $ 257,534 $ 230,902 $ 1,083,952 $ 933,765
Provision for possible
credit losses............ 106,587 89,674 409,017 408,914
Other operating income.... 1,462,617 1,157,252 5,093,174 4,207,821
Other operating expense... 928,870 781,899 3,647,702 3,077,708
Net income.............. 423,826 319,764 1,312,532 1,024,423
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PER COMMON SHARE DATA FOR THE PERIOD:
Earnings(a)............... $ .49 $ .39 $ 1.58 $ 1.26
Earnings-assuming
dilution(a).............. .48 .38 1.53 1.21
Dividends................. .08 .07 .32 .28
Book value................ 7.53 4.97
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RATIOS:
Return on average total
assets................... 4.57% 4.26% 3.94% 3.62%
Return on average
stockholders' equity..... 26.10 31.20 25.79 27.18
Average receivables to
average deposits......... 81.53 81.05 85.79 85.33
Stockholders' equity to
total assets............. 17.13 13.61
Loan Portfolio:
Delinquency before the
implementation of the
revised FFIEC
policy(b).............. 4.19 3.82
One-time adjustment
from the
implementation of
the revised FFIEC
policy(c).............. (.30) -
Delinquency(b).......... 3.89 3.82
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,
2000 1999 2000 1999
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(unaudited)
Net credit losses
before the
implementation of the
revised FFIEC policy... 2.01 2.36 2.14 2.63
One-time adjustment
from the
implementation of the
revised FFIEC
policy(c).............. 1.36 - .35 -
Net credit losses....... 3.37 2.36 2.49 2.63
Managed Loans(d):
Delinquency before the
implementation of the
revised FFIEC policy... 4.94 4.45
One-time adjustment
from the
implementation of
the revised FFIEC
policy(c).............. (.45) -
Delinquency............. 4.49 4.45
Net credit losses
before the
implementation of the
revised FFIEC policy... 3.87 4.21 3.94 4.33
One-time adjustment
from the
implementation of
the revised FFIEC
policy(c).............. 1.64 - .45 -
Net credit losses....... 5.51 4.21 4.39 4.33
Net interest margin
before the
implementation of the
revised FFIEC
policy(e).............. 7.22 7.10 7.14 7.42
One-time adjustment
from the
implementation of
the revised FFIEC
policy(c).............. (.22) - (.06) -
Net interest margin(e).. 7.00 7.10 7.08 7.42
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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,
2000 1999 2000 1999
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(unaudited)
MANAGED LOAN DATA(d):
At Period End:
Loans held for
securitization......... $ 8,271,933 $ 9,692,616
Loan portfolio.......... 11,682,904 7,971,093
Securitized loans....... 68,835,884 54,591,804
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Total managed loans... $88,790,721 $72,255,513
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Average for the Period:
Loans held for
securitization......... $ 7,518,783 $ 4,528,953 $ 8,129,333 $ 4,071,394
Loan portfolio.......... 11,029,257 10,195,061 9,588,815 10,351,101
Securitized loans....... 67,281,639 53,933,842 59,726,838 49,706,760
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Total managed loans... $85,829,679 $68,657,856 $ 77,444,986 $ 64,129,255
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For the Period:
Sales and cash advance
volume................. $34,874,588 $30,500,937 $125,683,731 $105,806,935
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BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments. $ 5,255,615 $ 4,572,052
Loans held for
securitization........... 8,271,933 9,692,616
Credit card loans......... 7,798,772 6,060,564
Other consumer loans...... 3,884,132 1,910,529
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Total loans............. 11,682,904 7,971,093
Reserve for possible
credit losses............ (386,568) (355,959)
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Net loans............... 11,296,336 7,615,134
Total assets.............. 38,678,096 30,859,132
Total deposits............ 24,343,595 18,714,753
Stockholders' equity...... 6,627,278 4,199,443
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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,
2000 1999 2000 1999
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(unaudited)
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments. $ 5,398,921 $ 6,326,968 $ 5,082,598 $ 5,797,141
Loans held for
securitization........... 7,518,783 4,528,953 8,129,333 4,071,394
Credit card loans......... 7,519,626 7,799,115 6,784,742 8,184,713
Other consumer loans...... 3,509,631 2,395,946 2,804,073 2,166,388
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Total loans............. 11,029,257 10,195,061 9,588,815 10,351,101
Reserve for possible
credit losses............ (428,340) (328,501) (382,443) (299,754)
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Net loans............... 10,600,917 9,866,560 9,206,372 10,051,347
Total assets.............. 36,867,592 29,790,025 33,299,176 28,310,222
Total deposits............ 22,749,785 18,167,389 20,654,087 16,901,334
Stockholders' equity...... 6,460,047 4,066,011 5,088,882 3,769,539
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Weighted average common
shares outstanding
(000).................... 851,819 801,804 820,551 801,020
Weighted average common
shares outstanding and
common stock equivalents
(000).................... 880,256 836,038 846,535 837,083
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NOTES:
(a) 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. 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) In February 1999, the Federal Financial Institutions Examination Council
("FFIEC") revised its policy on the classification of consumer loans. The
revised policy establishes uniform guidelines for the charge-off of loans
to delinquent, bankrupt, and deceased borrowers, for charge-off of
fraudulent accounts, and for re-aging delinquent accounts. The
Corporation implemented the guidelines in December 2000 by accelerating
the charge-off of some delinquent loans. The one-time FFIEC adjustment
did not have a material impact on the Corporation's consolidated income
statement for the year ended December 31, 2000.
(d) Managed loans include the Corporation's loans held for securitization,
loan portfolio, and securitized loans.
(e) Managed net interest margin is presented on a fully taxable equivalent
basis.
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 10, 2001 By: /s/ M. Scot Kaufman
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M. Scot Kaufman
Senior Executive Vice President
and Chief Financial Officer
