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): April 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.)
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 April 18, 1996 Advanta Corporation announced record quarterly
earnings for the first quarter 1996 with net income of $41.0 million
and earnings per share of $.91, increases of 33% and 23%,
respectively, over the $30.8 million and $.74 per share registered
for the first quarter 1995. Earnings for the fourth quarter 1995
totalled $37.6 million or $.85 per share. From March 1995, the
Company's portfolio of managed receivables increased by $5.5
billion, or 64%, to $14 billion versus the comparable period of a
year ago, and grew $1.9 billion, or 15%, since the year-end 1995.
Highlights for the first quarter include the following items:
Average managed credit card receivables posted a 57.6%
increase compared to the comparable quarter of a year ago. At the
close of March, ending managed credit card receivables were up 69%
versus the prior year's quarter.
The consolidated managed charge-off and delinquency rates were
2.8% and 3.2%, respectively. Charge-offs increased over the 2.3%
reported in the previous quarter and the delinquency rate was
slightly below the 3.3% reported for the prior period.
The first quarter charge-off and delinquency rates for managed
credit cards were 3.2% and 2.7%, respectively, as compared to 2.6%
posted for both measures in the prior quarter.
The Company added over 675,000 new credit card accounts during
the quarter compared to approximately 380,000 added in the first
quarter of 1995. The addition of these new accounts brings the
total credit card accounts to nearly 5.5 million.
Return on common equity remained strong at 25.8% for the
quarter.
Managed net interest margin for the quarter rose to 6.24% from
5.88% in the fourth quarter, and 5.94% in the comparable period of
1995 primarily due to the repricing of introductory rate credit
cards.
The operating expense ratio improved 13 basis points coming in
at 2.80% in the first quarter, below the 2.93% and 3.01% registered
in the fourth and first quarters of 1995.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
The following exhibit is filed as part of this Report on Form
8-K:
27 Financial Data Schedules.
99 Selected summary financial data.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
ADVANTA Corp.
Date: April 18, 1996 By: /s/ Gene S. Schneyer
Gene S. Schneyer, Vice
President and Secretary
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
Three Months Ended % Change
March 31, 1996 versus
1996 1995 1995
OPERATING RESULTS
Net Revenues $187.7 $135.5 39%
Provision for Losses $ 15.1 $ 8.9 69%
Operating Expenses $110.5 $ 78.1 41%
Net Income $ 41.0 $ 30.8 33%
Earnings Per Common Share $ .91 $ .74 23%
Average Shares 44.9 41.4 8%
Return on Common Equity 25.8% 26.6% (3%)
Managed Net Interest Margin 6.24% 5.94% 5%
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
% Change
March 1996
March 31, December 31, March 31, versus
1996 1995 1995 March 1995
FINANCIAL CONDITION
Gross Receivables
- Owned $ 3,012 $ 2,763 $1,622 86%
- Managed $14,091 $12,215 $8,610 64%
Total Assets
- Owned $ 4,985 $ 4,524 $2,846 75%
- Managed $16,064 $13,976 $9,834 63%
Stockholders' Equity $ 710 $ 673 $ 475 49%
Book Value Per
Common Share $ 15.17 $ 14.35 $11.87 28%
Equity/Owned Assets 14.3% 14.9% 16.7% (14%)
Equity/Managed Assets 4.4% 4.8% 4.8% (9%)
CREDIT QUALITY
Reserves as a % of
Impaired Assets
Owned Credit Cards 188.4% 185.8% 185.4% 2%
Owned Mortgages 17.9% 18.0% 13.5% 33%
Total Owned Receivables 153.9% 136.3% 106.0% 45%
Net Charge-off Rate
Managed Credit Cards 3.2% 2.6% 2.2% 46%
Managed Mortgages .7% .8% 1.2% (42%)
Total Managed Receivables 2.8% 2.3% 2.1% 33%
30+ Day Delinquency Rate
Managed Credit Cards 2.7% 2.6% 2.1% 29%
Managed Mortgages 5.5% 5.9% 4.7% 17%
Total Managed Receivables 3.2% 3.3% 2.8% 14%
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