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 18, 1995
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 18, 1995 Advanta Corporation announced record quarterly
earnings for the third quarter 1995 with net income of $34.9
million and earnings per share of $.81, increases of 30% and
25%, respectively, over the $26.8 million and $.65 per share
results reported for the third quarter 1994. The third
quarter 1995 earnings per share figure reflects a 5%
increase in shares primarily due to the August issuance of
mandatorily convertible preferred shares. Earnings for the
second quarter 1995 totalled $33.4 million or $.80 per
share. From September 30, 1994, the Company's portfolio of
managed receivables increased by $3.7 billion or 55% to
$10.3 billion at September 30, 1995.
Highlights for the third quarter include the following
items:
Managed credit card receivables at September 30 of $8.3 billion
reflected a 62% increase over the $5.1 billion level of last
September.
Approximately 263,000 new credit card accounts were added,
raising the total number of managed credit card accounts
outstanding to 4,357,000. For the comparable quarter in 1994,
192,000 new accounts were added.
Addition of approximately $90 million in equity from an
offering of mandatorily convertible preferred stock.
The operating expense ratio as a percent of average managed
receivables dropped to 2.72% versus 3.40% from the year ago
period.
The consolidated 30+ day delinquency rate increased to 3.0%,
from 2.9% in the third quarter last year.
The consolidated managed charge-off rate increased to 2.3%,
compared to 2.2% a year ago.
Managed net interest margin for the quarter was 5.64%, lower
than the 5.96% reported for the previous quarter and 6.79%
reported in the third quarter of 1994. The third quarter margin
reflects the impact of introductory pricing on a large volume of
new credit card receivables.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
The following exhibits are filed as part of this Report on Form
8-K:
27 Financial Data Schedules.
99 Selected summary financial data.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
ADVANTA Corp.
Date: October 18, 1995 By: /s/ Gene S. Schneyer
Gene S. Schneyer, Vice
President and Secretary
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
27 Financial Data Schedules.
99 Selected summary financial data.
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions except per share data)
Three Months Ended % Change
September 30, 1995 versus
1995 1994 1994
OPERATING RESULTS
Net Revenues $ 151.2 $113.9 33%
Provision for Losses $ 10.6 $ 5.8 84%
Operating Expenses $ 86.3 $ 66.0 31%
Net Income $ 34.9 $ 26.8 30%
Earnings Per Common Share $ .81 $ .65 25%
Average Shares (A) 43.1 41.2 5%
Return on Equity 24.88% 26.47% (6%)
Managed Net Interest Margin 5.64% 6.79% (17%)
Nine Months Ended % Change
September 30, 1995 versus
1995 1994 1994
OPERATING RESULTS
Net Revenues (B) $430.5 $320.6 34%
Provision for Losses $ 28.1 $ 28.0 0%
Operating Expenses $248.3 $189.1 31%
Net Income $ 99.1 $ 77.4 28%
Earnings Per Common Share $ 2.35 $ 1.88 25%
Average Shares (A) 42.1 41.1 3%
Return on Equity 26.08% 27.13% (4%)
Managed Net Interest Margin 5.85% 7.02% (17%)
(A) Includes shares associated with convertible preferred shares
issued in the third quarter of 1995.
(B) Excludes $18.4 million gain on sale of credit card relationships
in 1994.
-more-
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions except per share data)
% Change
Sept. 1995
Sept. 30, June 30, Sept.30 versus
1995 1995 1994 Sept. 1994
FINANCIAL CONDITION
Gross Receivables
- Owned $ 1,723 $ 1,868 $1,363 26%
- Managed $10,311 $ 9,371 $6,642 55%
Total Assets
- Owned $ 3,350 $ 3,058 $2,349 43%
- Managed $11,938 $10,561 $7,628 57%
Deposits $ 1,461 $ 1,098 $1,016 44%
Stockholders' Equity $ 635 $ 511 $ 416 53%
Book Value Per
Common Share $ 13.49 $ 12.69 $10.51 28%
Equity/Owned Assets 18.96% 16.70% 17.70% 7%
CREDIT QUALITY
Reserves as a % of
Impaired Assets
Owned Credit Cards 187.8% 187.4% 185.7% 1%
Owned Mortgages 11.2% 10.4% 25.9% (57%)
Owned Receivables 110.1% 110.2% 100.0% 10%
Net Charge-off Rate
Managed Credit Cards 2.7% 2.5% 2.4% 13%
Managed Mortgages 0.9% 0.7% 1.6% (44%)
Managed Receivables 2.3% 2.1% 2.2% 5%
30+ Day Delinquency Rate
Managed Credit Cards 2.3% 2.0% 2.1% 10%
Managed Mortgages 4.9% 4.8% 5.3% (8%)
Managed Receivables 3.0% 2.7% 2.9% 3%
# # # #
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