SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 22, 1998
________________________ADVANTA Corp.____________________________
(Exact name of registrant as specified in its charter)
_______Delaware__________ _____0-14120________ ______23-1462070
(State or other jurisdic- (Commission File (IRS Employer
tion of incorporation or Number) Identification No.)
Organization)
Welsh and McKean Roads, P.O. Box 844, Spring House, PA
(Address of principal executive offices)
19477
(Zip Code)
Registrant's telephone number, including area code: (215) 657-4000
<PAGE>
Item 5. Other Events
On January 22, 1998 Advanta Corporation announced earnings for
both the fourth quarter and full year 1997. For the fourth
quarter of 1997, Advanta reported net income of $43.6 million or
diluted earnings per share of $.95. For the full year, net
income totaled $71.6 million and earnings per share on a diluted
basis were $1.50. For the fourth quarter and full year 1996, the
Company reported net income of $45.2 million and $175.7 million,
or $1.00 and $3.89 per share, respectively. All "earnings per
share" amounts are presented assuming dilution in accordance with
the Statement of Financial Accounting Standards No. 128, Earnings
per share.
Advanta's net revenues for the fourth quarter 1997 were $285.3
million versus $240.9 for the same period one year ago and $254.3
for the third quarter 1997. For full year 1997, net revenues
totaled $938.2 million compared to net revenues of $851.0 million
in 1996.
<PAGE>
Highlights included the following items:
Advanta Personal Finance Services originated a record $1.1
billion in new mortgage business during the fourth quarter,
nearly double the year-ago level. For the full-year 1997,
originations totaled $3.7 billion compared to $1.5 billion
originated in 1996. The Personal Finance business' managed
receivables expanded by $2.5 billion during 1997 to end the year
at $5.3 billion. Also, as of December 31, 1997 this business
unit services an additional $9.2 billion of mortgages for third
parties on a fee basis.
Advanta Business Services' managed business loan and lease
receivables grew by $441 million or 54% to $1.3 billion, led by
the rapid expansion of the business card product.
The managed net interest margin for the fourth quarter 1997
expanded to 8.54%, from the 6.89% in the previous year's fourth
quarter and the 8.01% reported for the third quarter 1997.
The absolute level of net managed credit card charge-offs in
the fourth quarter, $180.8 million, posted its second consecutive
quarterly decline, decreasing from the $201.5 million charged-off
during third quarter 1997. In the fourth quarter 1996, $145.4
million was charged-off. The charge-off rate on managed credit
cards of 6.81% for the fourth quarter 1997 declined from 7.39%
recorded in the third quarter and increased from 4.56% in the
comparable 1996 quarter.
The absolute level of managed credit card 30+ delinquencies
in the fourth quarter, $594.4 million, declined from the $632.1
million at December 1996 and rose from the $548.9 million at the
end of September 1997. The managed credit card 30+ day
delinquency rate was 5.29%, compared to the 5.20% reported in the
third quarter and was above the 4.98% of the year-ago period.
The consolidated managed charge-off rate was 4.84% in fourth
quarter 1997, down from the 5.39% posted in the third quarter and
up from 3.86% for same quarter 1996. The consolidated 30+ day
delinquency rate was 5.98% at December 31, compared to 5.75%
reported for the third quarter and the 5.44% reported for the
prior year's end.
Total managed receivables of $17.9 billion as of December
31, 1997 rose 10% over the $16.3 billion at the end of December
1996. Total managed credit card receivables ended 1997 at $11.2
billion compared to $12.7 billion at the end of December 1996.
This Report on Form 8-K contains forward-looking statements
that are subject to certain risks and uncertainties that could
cause actual results to differ materially from those projected.
The most significant among these risks and uncertainties are: (1)
factors that affect consumer debt; (2) competitive pressures; (3)
<PAGE>
the level of delinquencies and charge-offs; (4) the rate of
prepayments; (5) the level of expenses; (6) the timing of the
securitizations of the Company's receivables; (7) the ratings on
the debt of the Company and its subsidiaries; (8) the closing and
timing of the previously disclosed transaction with Fleet Financial
Group; and (9) the timing and completion of the previously
disclosed tender offer. Additional risks that may affect the
Company's future performance are detailed in the Company's filings
with the Securities and Exchange Commission, including its most
recent Annual Report on Form 10-K and its Quarterly Reports on
Form 10-Q.
<PAGE>
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
The following exhibit is filed as part of this Report on
Form 8-K.
27 Financial Data Schedules.
99 Selected summary financial data.
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
Three Months Ended % Change
December 31, 1997 versus
1997 1996 1996
OPERATING RESULTS
Net Revenues $285.3 $240.9 18%
Provision for Losses $ 51.9 $ 29.9 74%
Operating Expenses $174.6 $143.9 21%
Net Income $ 43.6 $ 45.2 (3%)
Per Common Share:
Basic Earnings(1) $ .98 $ 1.06 (8%)
Diluted Earnings(1) $ .95 $ 1.00 (5%)
Basic Average Shares (Millions) 43.0 41.2 5%
Diluted Average Shares (Millions) 46.0 45.2 2%
Return on Common Equity 20.5% 23.7% (14%)
Managed Net Interest Margin 8.54% 6.89% 24%
Year Ended % Change
December 31, 1997 versus
1997 1996 1996
OPERATING RESULTS
Net Revenues(2) $938.2 $851.0 10%
Provision for Losses $210.8 $ 96.9 118%
Operating Expenses $630.8 $523.2 21%
Net Income $ 71.6 $175.7 (59%)
Per Common Share:
Basic Earnings (1) $ 1.52 $ 4.15 (63%)
Diluted Earnings(1) $ 1.50 $ 3.89 (61%)
Basic Average Shares (Millions) 42.8 40.8 5%
Diluted Average Shares (Millions) 43.5 45.1 (4%)
Return on Common Equity 8.5% 25.3% (67%)
Managed Net Interest Margin 7.79% 6.32% 23%
(1) All periods reflect adoption of FAS 128; diluted EPS includes
common stock equivalents.
(2) Full year 1996 amount excludes a $33.8 million gain on the
sale of credit card relationships.
<PAGE>
ADVANTA AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
($ in millions, except per share data)
% Change
Dec.1997
Dec. 31, Sept. 30, Dec. 31, versus
1997 1997 1996 Dec.1996
FINANCIAL CONDITION
Managed Receivables*
Credit Cards(A) $11,244 $10,548 $12,691 (11%)
Personal Finance Loans(B) $ 5,309 $ 4,582 $ 2,754 93%
Business Loans(C) $ 1,264 $ 1,201 $ 823 54%
Other Loans $ 41 $ 37 $ 21 97%
Total Managed
Receivables $17,858 $16,368 $16,289 10%
Total Managed Assets $21,146 $20,796 $19,217 10%
Stockholders' Equity $ 927 $ 880 $ 852 9%
Book Value Per
Common Share $ 19.01 $ 18.04 $ 18.06 5%
Equity/Managed Assets(D) 4.86% 4.71% 4.95% (2%)
Reserve for Credit Losses $ 137.8 $ 126.6 $ 89.2 55%
Customer Accounts 6,472,075 6,389,897 6,044,169 7%
CREDIT QUALITY
Managed Net Charge-off Rate
For the Quarter ended
Credit Cards(A) 6.81% 7.39% 4.56%
Personal Finance Loans(B) 0.91% 0.85% 0.68%
Business Loans(C) 3.68% 3.22% 2.56%
Total Receivables 4.84% 5.39% 3.86%
Managed 30+ Day Delinquency Rate
Credit Cards(A) 5.29% 5.20% 4.98%
Personal Finance Loans(B) 7.38% 7.05% 7.06%
Business Loans(C) 6.46% 5.70% 7.27%
Total Receivables 5.98% 5.75% 5.44%
(A) Figures do not include Advanta's portion of joint venture
receivables which at December 31, 1997 approximated $460
million.
(B) Includes Mortgages and Auto Loans. Excludes mortgages
serviced on a third party basis which at December 31, 1997
approximated $9.2 billion.
(C) Includes Leases and Business Cards.
(D) Equity includes capital securities and stockholders' equity.
* Managed figures combine both owned and securitized receivables.
<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 22, 1998 By:
Elizabeth H. Mai, Senior
Vice President, Secretary
and General Counsel
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