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 24, 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 January 24, 1995 Advanta Corp. announced record earnings
for both the fourth quarter and full year 1994. For the quarter,
Advanta reported earnings per share of $.70 and net income of
$28.6 million, increases of 25% and 24%, respectively, over
fourth quarter 1993. For the full year, earnings per share rose
to $2.58 and total net income was $106.1 million, increasing 32%
and 36%, respectively, over 1993 results before extraordinary
item. At December 31, 1994, the Company's portfolio of managed
receivables increased by $2.9 billion to $8.2 billion, or 56%
over December 31, 1993. Total managed credit card receivables
expanded by $2.6 billion during the year, bringing total credit
card outstandings to $6.5 billion at year-end 1994, a 67%
increase.
Highlights for the fourth quarter include the following items:
Continued strong receivable growth demonstrated by the 49%
year-over-year increase in total average managed receivables
to $7.3 billion for the fourth quarter. From the third
quarter, average managed receivables grew 17%;
Improved loss rates as the managed credit card charge-off
rate fell to 2.1% in the fourth quarter from 2.9% in the
year-earlier period and 2.4% in the third quarter. The
consolidated managed charge-off rate declined to 2.0% in the
fourth quarter, down from 2.7% in the year-earlier period
and 2.2% in the third quarter;
The 30+ day delinquency rate on managed credit cards
declined to 2.0% at December 31, down from 2.4% in the year-
ago quarter and 2.1% in the September quarter; the
consolidated 30+ day delinquency rate also fell, totaling
2.7% in the fourth quarter, down from 3.6% in the previous
fourth quarter, and 2.9% in the third quarter;
The fourth quarter managed net interest margin fell to 6.06%
from 7.64% in the year-earlier quarter and 6.79% in the
third quarter primarily due to introductory pricing on new
credit card receivables and a lag in the repricing
associated with the increase in rates during the quarter;
The Company added nearly 700,000 new credit card accounts
during the fourth quarter versus 310,000 in the previous
year's fourth quarter and 190,000 in the third quarter; new
credit card accounts generated in 1994 totaled 1.5 million
versus 853,000 in 1993;
Disciplined cost management resulted in an operating expense
ratio of 3.60% in the fourth quarter, compared to 3.95% in
the comparable year-ago period and 3.40% in the third
quarter;
Return on equity of 26.6% for the quarter and 27.0% for the
full year.
<PAGE>
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: January 24, 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
(Dollars in millions except per share data)
Three Months Ended % Change
December 31, 1994 versus
1994 1993 1993
OPERATING RESULTS
Net Revenues $127.3 $ 94.8 34.3%
Provision for Losses $ 6.2 $ 8.2 (24.8%)
Operating Expenses(1) $ 77.7 $ 51.7 50.4%
Net Income $ 28.6 $ 23.0 24.3%
Earnings Per Common Share $ .70 $ .56 25.0%
Average Shares 40.8 41.2 (1.1%)
Return on Equity 26.56% 27.58% (3.7%)
Managed Net Interest Margin 6.06 7.64 (20.7%)
Year Ended % Change
December 31, 1994 versus
1994 1993 1993
OPERATING RESULTS
Net Revenues(2) $447.8 $334.2 34.0%
Provision for Losses $ 34.2 $ 29.8 14.8%
Operating Expenses(1) $266.8 $181.2 47.3%
Net Income
Before extraordinary item $106.1 $ 77.9 36.1%
After extraordinary item $106.1 $ 76.6 38.4%
Earnings Per Common Share
Before extraordinary item $ 2.58 $ 1.95 32.3%
After extraordinary item $ 2.58 $ 1.92 34.4%
Average Shares 41.0 39.8 3.2%
Return on Equity 26.97% 27.50% (1.9%)
Managed Net Interest Margin 6.72 7.77 (13.5%)
(1) Operating expenses have been restated for all periods
presented to include the amortization of credit card deferred
acquisition expenses which previously had been netted against net
interest income.
(2) Full year 1994 figure excludes $18.4 million gain on sale of
credit card relationships.
-more-
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in millions except per share data)
% Change
December 31, December 31, 1994 versus
1994 1993 1993
FINANCIAL CONDITION
Gross Receivables
Owned $1,964 $1,277 53.8%
Managed $8,155 $5,246 55.5%
Total Assets
Owned $3,094 $2,140 44.6%
Managed $9,285 $6,109 52.0%
Deposits $1,159 $1,255 (7.6%)
Stockholders' Equity $ 442 $ 343 28.9%
Book Value Per Common Share $11.12 $ 8.82 26.1%
Equity/Owned Assets 14.27% 16.01% (10.9%)
CREDIT QUALITY
Reserves as a % of
Impaired Assets
Owned Credit Cards 186.5% 183.7% 1.5%
Owned Mortgages 18.9% 38.2% (50.5%)
Total Owned Receivables 96.1% 138.6% (30.7%)
Net Charge-off Rate for the Year
Managed Credit Cards 2.5% 3.5% (28.6%)
Managed Mortgages 1.7% 1.3% 30.8%
Total Managed Receivables 2.3% 2.9% (20.7%)
30+ Day Delinquency Rate
Managed Credit Cards 2.0% 2.4% (16.7%)
Managed Mortgages 4.9% 6.6% (25.8%)
Total Managed Receivables 2.7% 3.6% (25.0%)
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