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 26, 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 January 26, 1994 ADVANTA Corp. announced record earnings
for both the fourth quarter and full year 1993. For the quarter,
ADVANTA reported earnings per share of $.56 and net income of
$23.0 million, increases of 30% and 55%, respectively, over
fourth quarter 1992. For the full year, earnings per share
totalled $1.95 before extraordinary item and net income
before extraordinary item was $77.9 million, increasing 41%
and 62%, respectively, over 1992. At December 31, 1993, the
Company's portfolio of managed receivables increased by $1.5
billion or 42% compared to December 31, 1992. Total managed
credit card receivables expanded by $575 million in the fourth
quarter, bringing the outstandings to $3.9 billion at year-end
1993, up 47% for the year. Fourth quarter earnings per share
incorporate an 18% increase in the number of common shares outstanding
versus the fourth quarter last year. Earnings per share for all
periods reflect the October 15, 1993 three-for-two stock split.
Highlights for the fourth quarter include the following items:
Continued strong receivable growth with each business
segment growing its average total managed receivables in
excess of 30% year-over-year. Average managed credit
card receivables for the quarter were up 47% from the
comparable year-ago period and 16% from the September
quarter;
The managed credit card charge-off rate fell to 2.9%
in the quarter from 4.2% in the year-earlier period
and 3.2 % in the September quarter. The consolidated
managed charge-off rate declined from 3.2% in the
year-earlier period to 2.7% in the quarter, the same
as the September quarter;
The 30 plus day delinquency rate on managed credit cards
declined to 2.4% at December 31, down from 3.7% in the
year-ago quarter and 2.8% in the September quarter;
The managed net interest margin rose to 7.64% from
7.32% in the year-earlier period and compares to 8.05%
in the September quarter;
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Off-balance sheet reserves for mortgage servicing were
increased to reflect recent loan loss and prepayment
experience;
Disciplined cost management resulted in an operating expense
ratio of 3.94% in the fourth quarter, compared to 4.68% in
the comparable year-ago period and 4.11% in the third quarter;
Return on equity of 27.6% for the quarter and 27.5% for the
full year.
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: January 26, 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
(In millions except per share data)
Three Months Ended Percent Change
December 1993 versus
1993 1992 1992
OPERATING RESULTS
Net Revenues $ 91.3 $ 72.2 27%
Provision for Losses $ 8.2 $ 8.3 (1%)
Operating Expenses $ 48.2 $ 40.3 20%
Net Income $ 23.0 $ 14.9 55%
Earnings Per Common Share(1) $ .56 $ .43 30%
Average Shares 41.2 34.9 18%
Return on Equity 27.58% 35.84% (23%)
Year Ended Percent Change
December 31, 1993 versus
1993 1992 1992
OPERATING RESULTS
Net Revenues $327.7 $261.8 25%
Provision for Losses $ 29.8 $ 47.1 (37%)
Operating Expenses $174.6 $137.6 27%
Net Income
Before extraordinary item $ 77.9 $ 48.0 62%
After extraordinary item $ 76.6 $ 48.0 60%
Earnings Per Common Share(1)
Before extraordinary item $ 1.95 $ 1.38 41%
After extraordinary item $ 1.92 $ 1.38 39%
Average Shares 39.8 34.6 15%
Return on Equity 27.50 % 33.32% (17%)
(1) Share and per share amounts reflect the three-for-two
stock split effective October 15, 1993.
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ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(In millions except per share data)
Percent Change
December 31, December 31, 1993 versus
1993 1992 1992
FINANCIAL CONDITION
Gross Receivables
Owned $1,277 $ 998 28%
Managed $5,264 $3,720 42%
Total Assets
Owned $2,141 $1,775 21%
Managed $6,128 $4,497 36%
Deposits $1,255 $1,204 4%
Stockholders' Equity $ 343 $ 175 96%
Book Value Per
Common Share(1) $ 8.82 $ 5.22 69%
Equity/Owned Assets 16.01% 9.85% 63%
CREDIT QUALITY
Reserves as a percentage
of Impaired Assets
Owned Receivables 138.6% 127.4% 9%
Owned Credit Cards 183.7% 187.6% (2%)
Net Charge-off Rate
for the Year
Managed Receivables 2.9% 3.4% (15%)
Managed Credit Cards 3.5% 4.5% (22%)
30 plus Day Delinquency
Rate
Managed Receivables 3.5% 5.0% (30%)
Managed Credit Cards 2.4% 3.7% (35%)
(1) Per share amounts reflect the three-for-two stock split
effective October 15, 1993
--Statistical Supplement Available Upon Request--
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