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): July 18, 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.)
Five Horsham Business Center, 300 Welsh Road, Horsham, PA
(Address of principal executive offices)
19044
(Zip Code)
Registrant's telephone number, including area code: (215) 657-4000
<PAGE>
5. Other Events.
On July 18, 1996 Advanta Corporation announced earnings for the
second quarter of 1996 with net income of $45 million and
earnings per share of $1.00, increases of 35% and 25%,
respectively, over the $33 million and $.80 per share registered
in the second quarter of 1995. Earnings for the first quarter of
this year totalled $41 million or $.91 per share. From June
1995, the Company's portfolio of managed receivables increased
by $6.0 billion, or 64%, to $15.4 billion at June 30, 1996.
Highlights for the second quarter include the following items:
Advanta took advantage of the market's demand for quality
credit card receivables and sold a small portion, less than 2%,
of its credit card portfolio. The $34 million gain from the
transaction strengthened the Company's balance sheet and is being
used to support investments for future growth.
Managed credit card receivables at June 30 of $12.7 billion
posted a 69% increase over the $7.5 billion level last June.
The consolidated managed 30+ day delinquency rate at June 30
was 3.4%, as compared to the 3.2% reported at March 31 and above
the 2.7% reported a year ago. The consolidated managed charge-
off rate for the quarter was 2.9%, as compared to the 2.8%
registered for the quarter ended March 31 and above the 2.1%
recorded in the comparable quarter of 1995.
The managed credit card 30+ day delinquency rate was 2.9%,
above the 2.7% registered at March 31, and above the 2.0% of the
year ago period. The charge-off rate on managed credit cards was
3.3% for the quarter, compared to 3.2% in the prior quarter and
above the 2.5% of a year ago.
The Company originated approximately 505,000 new credit card
accounts during the quarter compared to approximately 455,000
opened in the second quarter of 1995.
Managed net interest margin came in at 5.84%, below the
6.24% recorded in the first quarter, and the 5.96% posted in the
comparable period of 1995. Rapid growth in new credit card
business at introductory rates compressed the portfolio's yield.
The operating expense ratio declined to 2.75% from 2.80%
recorded in the prior quarter, and was below the year ago measure
of 3.04%. Included in the operating expense ratio is spending on
new technology, research and talent to support future growth and
opportunities.
Return on equity surpassed the 25% goal for the twenty-
second consecutive quarter, attaining 27.2%. This compared to
the previous quarter's 25.8% and 26.9% registered in the
comparable quarter of a year ago.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
The following exhibit is 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: July 18, 1996 By: /s/ Gene S. Schneyer
Gene S. Schneyer, Vice
President and Secretary
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
Three Months Ended %Change
June 30, 1996 versus
1996 1995 1995
OPERATING RESULTS
Net Revenues (A) $189.6 $143.8 32%
Provision for Losses $ 27.7 $ 8.6 222%
Operating Expenses $127.4 $ 83.9 52%
Net Income $ 45.1 $ 33.4 35%
Earnings Per Common Share $ 1.00 $ .80 25%
Average Shares 45.2 41.8 8%
Return on Common Equity 27.2% 26.9% 1%
Managed Net Interest Margin 5.84% 5.96% (2%)
Six Months Ended %Change
June 30, 1996 versus
1996 1995 1995
OPERATING RESULTS
Net Revenues (A) $377.4 $279.4 35%
Provision for Losses $ 42.7 $ 17.5 144%
Operating Expenses $237.9 $162.0 47%
Net Income $ 86.2 $ 64.2 34%
Earnings Per Common Share $ 1.91 $ 1.54 24%
Average Shares 45.1 41.6 8%
Return on Common Equity 26.5% 26.8% (1%)
Managed Net Interest Margin 6.03% 5.95% 1%
(A) Excludes $33.8 million gain on sale of credit card receivables in
the second quarter of 1996.
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
% Change
June 1996
June 30, March 31, June 30, versus
1996 1996 1995 June 1995
FINANCIAL CONDITION
Managed Receivables*
Credit Cards $12,679 $11,670 $ 7,501 69%
Mortgage Loans $ 2,092 $ 1,927 $ 1,547 35%
Business Loans(A) $ 610 $ 485 $ 318 92%
Other Loans $ 12 $ 9 $ 5 130%
Total Managed Receivables $15,393 $14,091 $ 9,371 64%
Total Managed Assets $18,184 $16,064 $ 10,561 72%
Stockholders' Equity $ 755 $ 710 $ 511 48%
Book Value Per
Common Share $ 16.13 $ 15.17 $ 12.69 27%
Equity/Managed Assets 4.15% 4.42% 4.84% (14%)
Reserves for Credit Losses 70,929 56,675 39,775 78%
Customer Accounts 5,829,247 5,698,463 4,357,517 34%
CREDIT QUALITY
Managed Net Charge-off Rate
Credit Cards 3.3% 3.2% 2.5%
Mortgages 0.7% 0.7% 0.7%
Business Loans(A) 2.1% 2.3% 1.8%
Total Receivables 2.9% 2.8% 2.1%
Managed 30+ Day Delinquency Rate
Credit Cards 2.9% 2.7% 2.0%
Mortgages 5.3% 5.5% 4.8%
Business Loans(A) 6.8% 8.1% 6.8%
Total Receivables 3.4% 3.2% 2.7%
(A) Includes Leases and Business Cards beginning in 1996.
* Managed figures combine both owned and securitized receivables.
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