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 23, 1996
__________________________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 23, 1996 Advanta Corporation announced record earnings
for both the fourth quarter and full year 1995. For the fourth
quarter of 1995, Advanta reported earnings per share of $.85 and
net income of $37.6 million, increases of 21% and 31%, respectively,
over fourth quarter 1994. For the full year, earnings per share rose
to $3.20 and net income was $136.7 million, up 24% and 29%,
respectively, over 1994 results. At December 31, 1995, the Company's
portfolio of managed receivables increased by $4.0 billion to $12.2
billion, up 50% over the $8.2 billion recorded at year-end 1994.
Total managed credit card receivables grew by $3.5 billion during the
year, with total credit card outstandings surpassing the $10 billion
mark at year-end 1995. This represented growth of 53% over the
previous year.
Highlights included the following items:
A substantial 50% year-over-year increase in receivable growth
underscored the ongoing strength of the Company's credit card and
other lending businesses. Total managed receivables reached $12.2
billion at the close of 1995.
The Company added 635,000 new credit card accounts during the fourth
quarter, raising the total to 4.8 million. This represented a 26%
advance over the number of accounts reported at year-end 1994.
Focus on cost management resulted in an operating expense ratio of
2.93% in the fourth quarter that compared favorably to 3.60% reported
for the same period of 1994. The latest quarter's ratio rose slightly
from the third quarter's rate of 2.72%.
Return on common equity for the fourth quarter was 25.5%, versus 26.6%
for the comparable quarter of the prior year and 26.2% for the full
year 1995.
The fourth quarter 1995 provision for losses of $25.2 million was
boosted considerably over the prior quarter due to the significant
growth in receivables. This provision also added $3.2 million to the
general reserve.
The consolidated managed charge-off rate for the fourth quarter of
2.3% was up from 2.0% in the comparable quarter of 1994 and remained
level with the third quarter of 1995. The managed credit card charge-
off rate increased to 2.6% in the fourth quarter from 2.1% in the
year-earlier period and was slightly below 2.7% reported for the third
quarter.
The consolidated managed 30+ day delinquency rate increased to 3.3%
in the fourth quarter, up from 2.7% for the fourth quarter of 1994
and 3.0% at September 30. The 30+ day delinquency rate on managed
credit cards rose to 2.6% at December 31, above the 2.0% reported
for the prior year's comparable quarter and 2.3% at September 30.
The managed net interest margin for the fourth quarter 1995 was 5.88%,
down from 6.06% in the previous year's quarter, and was up from the
5.64% reported at September 30.
Item 7. Financial Statements and exhibits.
(c) Exhibits
The following exhibits are filed as part of this Report on Form 8-K:
27 Financial Data Schedules.
99 Selected summary financial data.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of l934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
Advanta Corp.
January 23, 1996 By: /s/ Gene S. Schneyer
Gene S. Schneyer, Vice
President and Secretary
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
27 Financial Data Schedules.
99 Selected summary financial data.
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
Three Months Ended % Change
December 31, 1995 versus
1995 1994 1994
OPERATING RESULTS
Net Revenues $185.4 $127.3 46%
Provision for Losses $ 25.2 $ 6.2 308%
Operating Expenses $102.4 $ 77.7 32%
Net Income $ 37.6 $ 28.6 31%
Earnings per Common Share $ .85 $ .70 21%
Average Shares 44.3 40.8 9%
Return on Common Equity 25.5% 26.6% (4%)
Managed Net Interest Margin 5.88 6.06 (3%)
Year Ended % Change
December 31, 1995 versus
1995 1994 1994
OPERATING RESULTS
Net Revenues(1) $615.9 $447.8 38%
Provision for Losses $ 53.3 $ 34.2 56%
Operating Expenses $350.7 $266.8 31%
Net Income $136.7 $106.1 29%
Earnings per Common Share $ 3.20 $ 2.58 24%
Average Shares 42.7 41.0 4%
Return on Common Equity 26.2% 27.0% (3%)
Managed Net Interest Margin 5.87 6.72 (13%)
(1) Full year 1994 amount excludes an $18.4 million gain on the
sale of credit card relationships.
-more-
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
% Change
December 31, December 31, 1995 versus
1995 1994 1994
FINANCIAL CONDITION
Gross Receivables
Owned $ 2,763 $ 1,964 41%
Managed $12,215 $ 8,155 50%
Total Assets
Owned $ 4,524 $ 3,113 45%
Managed $13,977 $ 9,304 50%
Stockholders' Equity $ 673 $ 442 52%
Book Value per
Common Share $ 14.35 $ 11.12 29%
Equity/Owned Assets 14.9% 14.2% 5%
Equity/Managed Assets 4.8% 4.7% 2%
CREDIT QUALITY
Reserves as a % of
Impaired Assets
Owned Credit Cards 185.8% 186.5% 0%
Owned Mortgages 18.0% 18.9% (5%)
Total Owned Receivables 136.3% 96.1% 42%
Net Charge-off Rate for the Year
Managed Credit Cards 2.5% 2.5% 0%
Managed Mortgages 0.9% 1.7% (47%)
Total Managed Receivables 2.2% 2.3% (4%)
30+ Day Delinquency Rate
Managed Credit Cards 2.6% 2.0% 30%
Managed Mortgages 5.9% 4.9% 20%
Total Managed Receivables 3.3% 2.7% 22%
# # # #
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