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 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
<PAGE>
Item 5. Other Events.
On October 19, 1994 Advanta Corp. announced record quarterly
earnings for the third quarter 1994 with net income of $26.8 million
and earnings per share of $.65, increases of 32% and 30%, respectively,
over the $20.3 million and $.50 per share results reported for the third
quarter 1993. Earnings for the second quarter 1994 totalled $25.8 million
or $.63 per share. From September 1993, the Company's portfolio
of managed receivables increased by $2 billion or 44% to $6.6
billion at September 30, 1994.
Highlights for the third quarter include the following items:
Managed credit card receivables at September 30 of $5.1 billion
posted a 52% increase over the $3.3 billion level of last
September.
The managed credit card 30+ day delinquency rate fell to 2.1%,
from 2.8% in the third quarter last year.
The charge-off rate on managed credit cards dropped to 2.4%,
compared to 3.2% a year ago.
The Company added 192,000 new credit card accounts during the
quarter compared to 166,000 in the third quarter of 1993.
The managed net interest margin for the quarter fell to 6.79%
from 6.95% in the second quarter, and 8.05% in the comparable period
of 1993 primarily due to introductory pricing on credit card
receivables acquired during the quarter.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
The following exhibits are filed as part of this Report on Form
8-K:
27 Financial Data Schedules.
99 Selected summary financial data.
-2-
<PAGE>
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: October 19, 1994 By: /s/ Gene S. Schneyer
Gene S. Schneyer, Vice
President and Secretary
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
27 Financial Data Schedules.
99 Selected summary
financial data.
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in millions except per share data)
Three Months Ended % Change
September 30, 1994 versus
1994 1993 1993
OPERATING RESULTS
Net Revenues $101.2 $ 86.4 17%
Provision for Losses $ 5.8 $ 8.0 (28%)
Operating Expenses $ 53.3 $ 44.7 19%
Net Income $ 26.8 $ 20.3 32%
Earnings Per Common Share $ .65 $ .50 30%
Average Shares 41.2 40.7 1%
Return on Equity 26.47% 26.20% 1%
Managed Net Interest Margin 6.79% 8.05% (16%)
Nine Months Ended % Change
September 30, 1994 versus
1994 1993 1993
OPERATING RESULTS
Net Revenues(1) $293.2 $236.3 24%
Provision for Losses $ 28.0 $ 21.6 30%
Operating Expenses $161.7 $126.4 28%
Net Income
Before Extraordinary Item $ 77.4 $ 54.9 41%
After Extraordinary Item $ 77.4 $ 53.6 44%
Earnings Per Common Share
Before Extraordinary Item $ 1.88 $ 1.40 34%
After Extraordinary Item $ 1.88 $ 1.37 37%
Average Shares 41.1 39.0 5%
Return on Equity 27.13% 27.47% (1%)
Managed Net Interest Margin 7.02% 7.83% (10%)
(1) September 1994 year-to-date figure excludes $18.4 million gain
on sale of credit card relationships.
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<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in millions except per share data)
% Change
Sept. 1994
Sept 30, June 30, Sept 30, versus
1994 1994 1993 Sept. 1993
FINANCIAL CONDITION
Gross Receivables
- Owned $1,363 $1,330 $1,158 18%
- Managed $6,642 $5,933 $4,622 44%
Total Assets
- Owned $2,349 $2,192 $1,935 21%
- Managed $7,628 $6,795 $5,399 41%
Deposits $1,016 $1,041 $1,177 (14%)
Stockholders' Equity $ 416 $ 389 $ 318 31%
Book Value Per
Common Share $10.51 $ 9.88 $ 8.21 28%
Equity/Owned Assets 17.70% 17.76% 16.43% 8%
CREDIT QUALITY
Reserves as a % of
Impaired Assets
Owned Credit Cards 185.7% 186.0% 188.5% (2%)
Owned Mortgages 25.9% 31.1% 38.4% (33%)
Owned Receivables 100.0% 103.1% 147.3% (32%)
Net Charge-off Rate
Managed Credit Cards 2.4% 2.7% 3.2% (25%)
Managed Mortgages 1.6% 1.8% 1.1% 46%
Managed Receivables 2.2% 2.5% 2.7% (19%)
30+ Day Delinquency Rate
Managed Credit Cards 2.1% 2.0% 2.8% (25%)
Managed Mortgages 5.3% 5.6% 6.7% (21%)
Managed Receivables 2.9% 2.9% 3.9% (26%)
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