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): April 19, 1994
________________________ADVANTA Corp.____________________________
(Exact name of registrant as specified in its charter)
_______Delaware__________ _____0-14120________ ______23-1462070__
(State or other jurisdic- (Commission File (IRS Employer Identi-
tion of incorporation) Number) fication No.)
Brandywine Corporate Center, 650 Naamans Road, Claymont, Delaware
(Address of principal executive offices)
19703
(Zip Code)
Registrant's telephone number, including area code: (302) 791-4400
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Item 5. Other Events.
On April 19, 1994 Advanta Corp. announced record
quarterly earnings for the first quarter 1994 with net income
of $24.9 million and earnings per share of $.61, increases of
54% and 36%, respectively, over the $16.1 million and $.45
per share results for the first quarter 1993. Earnings for
the fourth quarter 1993 totalled $23.0 million or $.56 per
share. From March 1993, the Company's portfolio of managed
receivables increased by $1.6 billion or 44% to $5.4 billion
at March 31, 1994. First quarter 1994 earnings per share
incorporate a 14% increase in the average number of common
shares outstanding versus the first quarter 1993. Earnings
per share for all periods reflect the October 15, 1993 three-
for-two stock split.
Highlights for the first quarter include the following items:
Average managed credit card receivables posted a 51%
increase compared to a year ago.
The managed credit card 30+ day delinquency rate fell to
2.3%, from 2.4% in the fourth quarter 1993 and 3.5% in
the first quarter last year. This rate is the Company's
lowest level in over 4 years.
The charge-off rate on managed credit cards declined to
2.7%, compared to 2.9% for the fourth quarter of 1993
and 4.1% a year ago.
The Company added over 225,000 new credit card accounts
during the quarter compared to 125,000 in the first
quarter of 1993.
Return on equity remained healthy at 27.8% for the
quarter.
The managed net interest margin for the quarter fell to
7.38% from 7.64% in the fourth quarter, and 7.74% in the
comparable period of 1993 due to introductory pricing on
credit cards.
The operating expense ratio for the quarter fell 27
basis points from the fourth quarter to 3.68%, and was
down from 4.33% the same quarter last year.
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Item 7. Financial Statements and Exhibits.
(c) Exhibits.
The following exhibit is filed as part of this Report on
Form 8-K:
99 Selected summary financial data.
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SIGNATURES
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.
ADVANTA Corp.
Date: April 19, 1994 By: /s/ Gene S. Schneyer
Gene S. Schneyer, Vice
President and Secretary
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EXHIBIT INDEX
Exhibit No. Description
99 Selected summary
financial data.
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ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in millions except per share data)
Three Months Ended % Change
March 31, 1994 versus
1994 1993 1993
.
OPERATING RESULTS
Net Revenues $94.3 $72.8 30%
Provision for Losses $ 6.8 $ 7.2 (5%)
Operating Expenses $48.4 $40.0 21%
Net Income $24.9 $16.1 54%
Earnings Per Common Share(1) $ .61 $ .45 36%
Average Shares 40.9 35.8 14%
Return on Equity 27.77% 34.85% (20%)
Managed Net Interest Margin 7.38% 7.74% (5%)
(1) Per share amounts have been adjusted to reflect the three-
for-two stock split effective October 15, 1993.
-more-
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ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in millions except per share data)
% Change
March,1994
March 31, December 31, March 31, versus
1994 1993 1993 March 1993
FINANCIAL CONDITION
Gross Receivables
- Owned $1,405 $1,277 $ 966 45%
- Managed $5,411 $5,246 $3,764 44%
Total Assets
- Owned $2,325 $2,140 $1,837 27%
- Managed $6,331 $6,109 $4,635 37%
Deposits $1,144 $1,255 $1,149 --%
Stockholders' Equity $ 364 $ 343 $ 268 36%
Book Value Per
Common Share(1) $ 9.32 $ 8.82 $ 7.15 30%
Equity/Owned Assets 15.67% 16.01% 14.60% 7%
CREDIT QUALITY
Reserves as a % of
Impaired Assets
Owned Credit Cards 185.9% 183.7% 190.8% (3%)
Owned Mortgages 30.9% 38.2% 31.2% (1%)
Owned Receivables 119.7% 138.6% 148.5% (19%)
Net Charge-off Rate
Managed Credit Cards 2.7% 2.9% 4.1% (34%)
Managed Mortgages 1.7% 2.2% 0.9% 89%
Managed Receivables 2.5% 2.7% 3.2% (22%)
30+ Day Delinquency Rate
Managed Credit Cards 2.3% 2.4% 3.5% (34%)
Managed Mortgages 5.9% 6.6% 7.2% (18%)
Managed Receivables 3.3% 3.6% 4.7% (30%)
(1) Per share amounts reflect the three-for-two stock split
effective October 15, 1993
