Heller Financial Reports Operating Earnings in Line with Expectations

Apr 19, 2001, 01:00 ET from Heller Financial, Inc.

    CHICAGO, April 19 /PRNewswire/ -- Heller Financial, Inc. (NYSE:   HF) today
 reported operating net income of $76 million and diluted operating earnings
 per share of $0.70, up from $0.66 per share in the fourth quarter of 2000,
 meeting consensus estimates.  Operating earnings exclude the Company's one-
 time charge of $8 million, net of tax, related to the previously announced
 discontinuation of the origination of Small Business Administration loans and
 a one-time charge of $4 million, net of tax, related to the adoption of the
 new accounting standard for derivatives.  Operating earnings per share for the
 first quarter of 2001 were equal to the first quarter of the prior year, which
 was a very strong quarter for the Company.
     "In the difficult environment we now face, we are pleased to deliver
 earnings in line with our plan.  Our focus remains on doing quality business
 that is appropriately priced," said Chairman and Chief Executive Officer
 Richard J. Almeida.  "Moreover, we remain well positioned with strong backlogs
 and a solid portfolio as we enter the second quarter of 2001."
 
     Highlights included:
     Operating revenues for the quarter were $253 million.  Heller's operating
 margin was 5.9% for the quarter, up from 5.7% in the fourth quarter of 2000
 but down from 6.6% in the first quarter of 2000 which included higher net
 investment gains.  Net interest income totaled $154 million.  Net interest
 margin was 3.6% for the quarter, down from 3.7% for the first and fourth
 quarters of 2000 due to continued growth in operating leases and increased
 funding credit spreads.
     Fees and other income, which includes net investment gains and recurring
 fee income, totaled $71 million and was up 18% over the fourth quarter of
 2000, but lower than the first quarter of the prior year.
     New business volume, which totaled $1.1 billion for the quarter, was
 strongest in health care, real estate and asset based finance.  Consistent
 with the fourth quarter, the Company again sold assets of $300 million in to
 an asset-backed commercial paper financing vehicle as a more cost-effective
 funding source.  As a result of asset sales and seasonal activity in the
 Company's European factoring portfolio, managed assets were $18.6 billion,
 down modestly compared to year-end.  In comparison to the first quarter of
 2000, managed assets grew 11%.
     Credit quality in Heller's portfolio remained in line with targets.  Net
 writedowns totaled $31 million during the quarter, 0.8% of average lending
 assets.  Heller's nonearning assets increased slightly to 2.1% of total
 lending assets, at the bottom end of Heller's target range of 2% to 4%.  The
 Company's loan loss reserve totals 2.2% of receivables.
     Operating expenses totaled $111 million for the first quarter, and were
 essentially flat compared to the fourth quarter of 2000 and down $6 million
 from the first quarter of 2000.  Heller's efficiency ratio was 44% for the
 first quarter of 2001, equal to the fourth quarter of 2000, and lower than the
 45% level of the first quarter of 2000.
     "The continued performance of our portfolio confirms the credit strategies
 and disciplines that we have put in place over the last decade," said Almeida.
 "Our business fundamentals are strong, our pipelines are solid.  While we are
 cautious about the current economic environment, we still feel confident that
 we can continue to deliver on our commitments to our shareholders."
 
     Heller Financial, Inc., is a worldwide commercial finance company
 providing a broad range of sophisticated, collateralized financing solutions.
 With $20 billion in total assets, Heller offers equipment financing and
 leasing, sales finance programs, collateral and cash flow-based financing,
 financing for healthcare companies and financing for commercial real estate.
 The company also offers trade finance, factoring, asset-based lending, leasing
 and vendor finance products and programs to clients in Europe, Asia and Latin
 America.  Heller's common stock is listed as "HF" on the New York and Chicago
 Stock Exchanges.  Heller can be found on the World Wide Web at
 http://www.hellerfinancial.com .
 
     The statements made by the Company in this news release may include
 certain forward-looking statements that reflect the Company's current
 expectations regarding its future growth, results and performance.  These
 forward-looking statements are subject to a variety of risks and
 uncertainties, which could cause the Company's future growth, results and
 performance to differ materially from those expressed in, or implied by, these
 statements.  Information concerning these risks and uncertainties is contained
 in the quarterly and annual reports that the Company files with the Securities
 and Exchange Commission.
 
 
                    HELLER FINANCIAL, INC. AND SUBSIDIARIES
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                 (in millions)
 
 
                                     ASSETS
                                                      March 31,   December 31,
                                                        2001            2000
                                                    (unaudited)      (audited)
     Cash and cash equivalents                         $1,260           $732
 
     Receivables                                       15,195         15,966
       Less: Allowance for losses of receivables          339            342
 
         Net receivables                               14,856         15,624
 
     Investments                                        1,637          1,550
     Operating leases                                     655            695
     Investments in international joint ventures          211            216
     Lending and real estate partnerships                 328            267
     Goodwill                                             448            458
     Other assets                                         606            519
 
     Total assets                                     $20,001        $20,061
 
                LIABILITIES AND STOCKHOLDERS' EQUITY
     Senior debt
       Commercial paper and short-term borrowings      $4,138         $5,127
       Notes and debentures                            11,595         10,525
 
         Total senior debt                             15,733         15,652
 
     Credit balances of factoring clients                 827            982
     Other payables and accruals                          846            840
 
         Total liabilities                             17,406         17,474
 
     Minority interest                                     13             12
 
     Stockholders' equity
       Preferred stock                                    400            400
 
       Common stockholders' equity                      2,182          2,175
 
         Total stockholders' equity                     2,582          2,575
 
         Total liabilities and stockholders' equity   $20,001        $20,061
 
 
                    HELLER FINANCIAL, INC. AND SUBSIDIARIES
                  CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                  (in millions, except per share information)
                                  (unaudited)
 
                                               Three Months Ended
                                   March 31,    December 31,     March 31,
                                        2001            2000          2000
 
     Interest Income                    $403            $434          $361
 
     Interest Expense                    249             272           215
 
     Net interest income                 154             162           146
 
     Fees and other income                71              60            88
 
     Factoring commissions                16              20            17
 
     Income of international
      joint ventures                      12              10            10
 
     Operating revenues                  253             252           261
 
     Operating expenses                  111             110           117
 
     Small Business Finance charge        12              --            --
 
     Provision for losses                 31              40            30
 
     Income before income taxes
      and minority interest               99             102           114
 
     Income tax provision                 31              31            38
 
     Minority interest                    --              --             1
 
     Net income before cumulative
      effect of a change
      in accounting principle            $68             $71           $75
 
     Cumulative effect of a change
      in accounting principle             $4             $--           $--
 
     Dividends on preferred stock         $7              $7            $7
 
     Net income applicable to
      common stock                       $57             $64           $68
 
     Basic net income applicable to
      common stock per share (A)      $ 0.59          $ 0.66        $ 0.70
 
     Diluted net income applicable
      to common stock per share (A)   $ 0.58          $ 0.66        $ 0.70
 
 
 
     Diluted net income applicable
      to common stock per share,
      adjusted for Small Business
      Finance charge and cumulative
      effect of a change in accounting
      principle (A) (B)               $ 0.70          $ 0.66        $ 0.70
 
 
 
                    HELLER FINANCIAL, INC. AND SUBSIDIARIES
                            SELECTED FINANCIAL DATA
                                  (unaudited)
 
     SELECTED DATA AND RATIOS                   Three Months Ended
     (dollars in millions)         March 31,      December 31,    March 31,
                                      2001            2000           2000
 
     Profitability:
 
     Net income applicable to common
      stock per share, adjusted for
      Small Business Finance charge
      and cumulative effect of a
      change in accounting
      principle (A) (B):
        Basic                          $0.71           $0.66         $0.70
        Diluted                         0.70            0.66          0.70
 
     Net income applicable to
      common stock per share (A):
        Basic                          $0.59           $0.66         $0.70
        Diluted                         0.58            0.66          0.70
 
 
     Return on average common
      stockholders' equity (C)         10.6%           11.8%         13.9%
 
 
     Return on average common
      stockholders' equity, adjusted
      for Small Business Finance
      charge and cumulative effect of
      change in accounting
      principle (B) (C)                 12.8            11.8          13.9
 
 
     Return on AFE (D)                   1.5             1.6           1.9
 
 
     Return on AFE, adjusted for
      Small Business Finance charge
      and cumulative effect of change
      in accounting principle (B)(D)     1.8             1.6           1.9
 
 
     Net interest income as a
      percentage of AFE (D)              3.6             3.7           3.7
 
     Non-interest operating revenues
      as a percentage of AFE (D)         2.3             2.0           2.9
 
     Total operating revenues as
      a percentage of AFE (D)            5.9             5.7           6.6
 
     Operating expenses as a percentage
      of AFE (D)                         2.6             2.5           3.0
 
     Operating expenses to operating
      revenues                          43.9            43.7          44.8
 
     Operating expenses to AMA (E)       2.4             2.4           2.9
 
     Gross writedowns                    $44             $40           $26
 
     Gross recoveries                    $13              $3            $3
 
 
 
                                               Three Months Ended
                                     March 31,      December 31,     March 31,
                                       2001            2000           2000
     Credit Quality:
     Ratio of earning loans delinquent
      60 days or more to receivables    1.7%            1.7%          1.6%
 
     Ratio of total nonearning
      assets to total lending assets    2.1%            1.9%          1.6%
 
     Ratio of net writedowns to
      average lending assets
      (annualized)                     0.81%           0.93%         0.62%
 
     Ratio of allowance for losses
      of receivables to receivables     2.2%            2.1%          2.1%
 
     Ratio of allowance for losses
      of receivables to nonearning
      receivables                       115%            120%          151%
 
 
 
                                                 Three Months Ended
                                      March 31,    December 31,     March 31,
                                        2001            2000         2000
 
     Leverage:
     Ratio of debt (net of short-term
      investments) to total
      stockholders' equity              5.7x            5.9x          5.9x
 
     Ratio of commercial paper and
      short-term borrowings to
      total debt                         26%             33%           34%
 
     Other: (dollars in millions)
 
     Total lending assets and
      investments                    $18,047         $18,716       $17,397
 
     Total lending assets             15,216          15,988        15,036
 
     Average lending assets           15,602          15,785        14,928
 
     Total common stockholders'
      equity                           2,182           2,175         1,988
 
     Average common stockholders'
      equity                           2,179           2,150         1,968
 
     Funds employed (D)               17,220          17,734        16,522
 
     Average funds employed (D)       17,333          17,577        15,862
 
     Managed assets (E)               18,633          18,877        16,772
 
     Average managed assets (E)       18,755          18,493        16,435
 
 
     (A) Based on 96,999,195 basic and 97,972,427 diluted weighted average
 shares of common stock outstanding for the quarter ended March 31, 2001.  The
 diluted weighted average shares as of March 31, 2001, include the effect of
 5.2 million stock options issued to management of the Company.
     (B) In February 2001, we ceased originations of Small Business
 Administration loans through Small Business Finance.  In conjunction with this
 decision, we have incurred a one-time charge of $8 million, net of tax,
 primarily for severance and facility related costs.
     (C) Return on average common stockholders' equity is computed as net
 income less preferred stock dividends paid, divided by average total common
 stockholders' equity.
     (D) Funds employed include lending assets and investments, less credit
 balances of factoring clients.
     (E) Managed assets include funds employed plus receivables previously
 securitized or sold, for which we hold securities giving us an economic
 interest in the performance of these assets.  This amount excludes assets for
 which we merely retain servicing responsibilities and for which we are paid a
 fee at a market rate for providing such servicing.
 
 
     LENDING ASSETS AND INVESTMENTS
 
                                     March 31,    December 31,    March 31,
     BY BUSINESS SEGMENT               2001            2000          2000
     (dollars in millions)
 
     Domestic Commercial Finance Segment
       Corporate Finance              $4,952          $5,225        $5,361
       Leasing Services                4,344           4,434         3,827
       Real Estate Finance             2,867           2,766         2,461
       Healthcare Finance              1,625           1,563         1,107
       Small Business Finance*         1,333           1,440         1,392
       Other                             401             387           492
     Total Domestic Commercial
      Finance Segment                $15,522         $15,815       $14,640
     International Factoring and
      Asset Based Finance Segment      2,525           2,901         2,757
     Total lending assets and
      investments                    $18,047         $18,716       $17,397
 
     *  In February 2001, we ceased originations of Small Business
 Administration loans through Small Business Finance.
 
 
     FEES AND OTHER INCOME
     (dollars in millions)                        Three Months Ended
                                     March 31,     December 31,     March 31,
                                        2001            2000          2000
 
     Factoring commissions               $16             $20           $17
     Income of international joint
      ventures                            12              10            10
     Fees and other income:
       Investment and asset sale
      income**                            48              37            64
     Fee income and other                 23              23            24
       Total fees and other income       $71             $60           $88
       Total non-interest income         $99             $90          $115
 
     ** Includes gains on securitizations and loans sales, net investment
 income and gains, equipment residual gains and participation income.
 
 

SOURCE Heller Financial, Inc.
    CHICAGO, April 19 /PRNewswire/ -- Heller Financial, Inc. (NYSE:   HF) today
 reported operating net income of $76 million and diluted operating earnings
 per share of $0.70, up from $0.66 per share in the fourth quarter of 2000,
 meeting consensus estimates.  Operating earnings exclude the Company's one-
 time charge of $8 million, net of tax, related to the previously announced
 discontinuation of the origination of Small Business Administration loans and
 a one-time charge of $4 million, net of tax, related to the adoption of the
 new accounting standard for derivatives.  Operating earnings per share for the
 first quarter of 2001 were equal to the first quarter of the prior year, which
 was a very strong quarter for the Company.
     "In the difficult environment we now face, we are pleased to deliver
 earnings in line with our plan.  Our focus remains on doing quality business
 that is appropriately priced," said Chairman and Chief Executive Officer
 Richard J. Almeida.  "Moreover, we remain well positioned with strong backlogs
 and a solid portfolio as we enter the second quarter of 2001."
 
     Highlights included:
     Operating revenues for the quarter were $253 million.  Heller's operating
 margin was 5.9% for the quarter, up from 5.7% in the fourth quarter of 2000
 but down from 6.6% in the first quarter of 2000 which included higher net
 investment gains.  Net interest income totaled $154 million.  Net interest
 margin was 3.6% for the quarter, down from 3.7% for the first and fourth
 quarters of 2000 due to continued growth in operating leases and increased
 funding credit spreads.
     Fees and other income, which includes net investment gains and recurring
 fee income, totaled $71 million and was up 18% over the fourth quarter of
 2000, but lower than the first quarter of the prior year.
     New business volume, which totaled $1.1 billion for the quarter, was
 strongest in health care, real estate and asset based finance.  Consistent
 with the fourth quarter, the Company again sold assets of $300 million in to
 an asset-backed commercial paper financing vehicle as a more cost-effective
 funding source.  As a result of asset sales and seasonal activity in the
 Company's European factoring portfolio, managed assets were $18.6 billion,
 down modestly compared to year-end.  In comparison to the first quarter of
 2000, managed assets grew 11%.
     Credit quality in Heller's portfolio remained in line with targets.  Net
 writedowns totaled $31 million during the quarter, 0.8% of average lending
 assets.  Heller's nonearning assets increased slightly to 2.1% of total
 lending assets, at the bottom end of Heller's target range of 2% to 4%.  The
 Company's loan loss reserve totals 2.2% of receivables.
     Operating expenses totaled $111 million for the first quarter, and were
 essentially flat compared to the fourth quarter of 2000 and down $6 million
 from the first quarter of 2000.  Heller's efficiency ratio was 44% for the
 first quarter of 2001, equal to the fourth quarter of 2000, and lower than the
 45% level of the first quarter of 2000.
     "The continued performance of our portfolio confirms the credit strategies
 and disciplines that we have put in place over the last decade," said Almeida.
 "Our business fundamentals are strong, our pipelines are solid.  While we are
 cautious about the current economic environment, we still feel confident that
 we can continue to deliver on our commitments to our shareholders."
 
     Heller Financial, Inc., is a worldwide commercial finance company
 providing a broad range of sophisticated, collateralized financing solutions.
 With $20 billion in total assets, Heller offers equipment financing and
 leasing, sales finance programs, collateral and cash flow-based financing,
 financing for healthcare companies and financing for commercial real estate.
 The company also offers trade finance, factoring, asset-based lending, leasing
 and vendor finance products and programs to clients in Europe, Asia and Latin
 America.  Heller's common stock is listed as "HF" on the New York and Chicago
 Stock Exchanges.  Heller can be found on the World Wide Web at
 http://www.hellerfinancial.com .
 
     The statements made by the Company in this news release may include
 certain forward-looking statements that reflect the Company's current
 expectations regarding its future growth, results and performance.  These
 forward-looking statements are subject to a variety of risks and
 uncertainties, which could cause the Company's future growth, results and
 performance to differ materially from those expressed in, or implied by, these
 statements.  Information concerning these risks and uncertainties is contained
 in the quarterly and annual reports that the Company files with the Securities
 and Exchange Commission.
 
 
                    HELLER FINANCIAL, INC. AND SUBSIDIARIES
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                 (in millions)
 
 
                                     ASSETS
                                                      March 31,   December 31,
                                                        2001            2000
                                                    (unaudited)      (audited)
     Cash and cash equivalents                         $1,260           $732
 
     Receivables                                       15,195         15,966
       Less: Allowance for losses of receivables          339            342
 
         Net receivables                               14,856         15,624
 
     Investments                                        1,637          1,550
     Operating leases                                     655            695
     Investments in international joint ventures          211            216
     Lending and real estate partnerships                 328            267
     Goodwill                                             448            458
     Other assets                                         606            519
 
     Total assets                                     $20,001        $20,061
 
                LIABILITIES AND STOCKHOLDERS' EQUITY
     Senior debt
       Commercial paper and short-term borrowings      $4,138         $5,127
       Notes and debentures                            11,595         10,525
 
         Total senior debt                             15,733         15,652
 
     Credit balances of factoring clients                 827            982
     Other payables and accruals                          846            840
 
         Total liabilities                             17,406         17,474
 
     Minority interest                                     13             12
 
     Stockholders' equity
       Preferred stock                                    400            400
 
       Common stockholders' equity                      2,182          2,175
 
         Total stockholders' equity                     2,582          2,575
 
         Total liabilities and stockholders' equity   $20,001        $20,061
 
 
                    HELLER FINANCIAL, INC. AND SUBSIDIARIES
                  CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                  (in millions, except per share information)
                                  (unaudited)
 
                                               Three Months Ended
                                   March 31,    December 31,     March 31,
                                        2001            2000          2000
 
     Interest Income                    $403            $434          $361
 
     Interest Expense                    249             272           215
 
     Net interest income                 154             162           146
 
     Fees and other income                71              60            88
 
     Factoring commissions                16              20            17
 
     Income of international
      joint ventures                      12              10            10
 
     Operating revenues                  253             252           261
 
     Operating expenses                  111             110           117
 
     Small Business Finance charge        12              --            --
 
     Provision for losses                 31              40            30
 
     Income before income taxes
      and minority interest               99             102           114
 
     Income tax provision                 31              31            38
 
     Minority interest                    --              --             1
 
     Net income before cumulative
      effect of a change
      in accounting principle            $68             $71           $75
 
     Cumulative effect of a change
      in accounting principle             $4             $--           $--
 
     Dividends on preferred stock         $7              $7            $7
 
     Net income applicable to
      common stock                       $57             $64           $68
 
     Basic net income applicable to
      common stock per share (A)      $ 0.59          $ 0.66        $ 0.70
 
     Diluted net income applicable
      to common stock per share (A)   $ 0.58          $ 0.66        $ 0.70
 
 
 
     Diluted net income applicable
      to common stock per share,
      adjusted for Small Business
      Finance charge and cumulative
      effect of a change in accounting
      principle (A) (B)               $ 0.70          $ 0.66        $ 0.70
 
 
 
                    HELLER FINANCIAL, INC. AND SUBSIDIARIES
                            SELECTED FINANCIAL DATA
                                  (unaudited)
 
     SELECTED DATA AND RATIOS                   Three Months Ended
     (dollars in millions)         March 31,      December 31,    March 31,
                                      2001            2000           2000
 
     Profitability:
 
     Net income applicable to common
      stock per share, adjusted for
      Small Business Finance charge
      and cumulative effect of a
      change in accounting
      principle (A) (B):
        Basic                          $0.71           $0.66         $0.70
        Diluted                         0.70            0.66          0.70
 
     Net income applicable to
      common stock per share (A):
        Basic                          $0.59           $0.66         $0.70
        Diluted                         0.58            0.66          0.70
 
 
     Return on average common
      stockholders' equity (C)         10.6%           11.8%         13.9%
 
 
     Return on average common
      stockholders' equity, adjusted
      for Small Business Finance
      charge and cumulative effect of
      change in accounting
      principle (B) (C)                 12.8            11.8          13.9
 
 
     Return on AFE (D)                   1.5             1.6           1.9
 
 
     Return on AFE, adjusted for
      Small Business Finance charge
      and cumulative effect of change
      in accounting principle (B)(D)     1.8             1.6           1.9
 
 
     Net interest income as a
      percentage of AFE (D)              3.6             3.7           3.7
 
     Non-interest operating revenues
      as a percentage of AFE (D)         2.3             2.0           2.9
 
     Total operating revenues as
      a percentage of AFE (D)            5.9             5.7           6.6
 
     Operating expenses as a percentage
      of AFE (D)                         2.6             2.5           3.0
 
     Operating expenses to operating
      revenues                          43.9            43.7          44.8
 
     Operating expenses to AMA (E)       2.4             2.4           2.9
 
     Gross writedowns                    $44             $40           $26
 
     Gross recoveries                    $13              $3            $3
 
 
 
                                               Three Months Ended
                                     March 31,      December 31,     March 31,
                                       2001            2000           2000
     Credit Quality:
     Ratio of earning loans delinquent
      60 days or more to receivables    1.7%            1.7%          1.6%
 
     Ratio of total nonearning
      assets to total lending assets    2.1%            1.9%          1.6%
 
     Ratio of net writedowns to
      average lending assets
      (annualized)                     0.81%           0.93%         0.62%
 
     Ratio of allowance for losses
      of receivables to receivables     2.2%            2.1%          2.1%
 
     Ratio of allowance for losses
      of receivables to nonearning
      receivables                       115%            120%          151%
 
 
 
                                                 Three Months Ended
                                      March 31,    December 31,     March 31,
                                        2001            2000         2000
 
     Leverage:
     Ratio of debt (net of short-term
      investments) to total
      stockholders' equity              5.7x            5.9x          5.9x
 
     Ratio of commercial paper and
      short-term borrowings to
      total debt                         26%             33%           34%
 
     Other: (dollars in millions)
 
     Total lending assets and
      investments                    $18,047         $18,716       $17,397
 
     Total lending assets             15,216          15,988        15,036
 
     Average lending assets           15,602          15,785        14,928
 
     Total common stockholders'
      equity                           2,182           2,175         1,988
 
     Average common stockholders'
      equity                           2,179           2,150         1,968
 
     Funds employed (D)               17,220          17,734        16,522
 
     Average funds employed (D)       17,333          17,577        15,862
 
     Managed assets (E)               18,633          18,877        16,772
 
     Average managed assets (E)       18,755          18,493        16,435
 
 
     (A) Based on 96,999,195 basic and 97,972,427 diluted weighted average
 shares of common stock outstanding for the quarter ended March 31, 2001.  The
 diluted weighted average shares as of March 31, 2001, include the effect of
 5.2 million stock options issued to management of the Company.
     (B) In February 2001, we ceased originations of Small Business
 Administration loans through Small Business Finance.  In conjunction with this
 decision, we have incurred a one-time charge of $8 million, net of tax,
 primarily for severance and facility related costs.
     (C) Return on average common stockholders' equity is computed as net
 income less preferred stock dividends paid, divided by average total common
 stockholders' equity.
     (D) Funds employed include lending assets and investments, less credit
 balances of factoring clients.
     (E) Managed assets include funds employed plus receivables previously
 securitized or sold, for which we hold securities giving us an economic
 interest in the performance of these assets.  This amount excludes assets for
 which we merely retain servicing responsibilities and for which we are paid a
 fee at a market rate for providing such servicing.
 
 
     LENDING ASSETS AND INVESTMENTS
 
                                     March 31,    December 31,    March 31,
     BY BUSINESS SEGMENT               2001            2000          2000
     (dollars in millions)
 
     Domestic Commercial Finance Segment
       Corporate Finance              $4,952          $5,225        $5,361
       Leasing Services                4,344           4,434         3,827
       Real Estate Finance             2,867           2,766         2,461
       Healthcare Finance              1,625           1,563         1,107
       Small Business Finance*         1,333           1,440         1,392
       Other                             401             387           492
     Total Domestic Commercial
      Finance Segment                $15,522         $15,815       $14,640
     International Factoring and
      Asset Based Finance Segment      2,525           2,901         2,757
     Total lending assets and
      investments                    $18,047         $18,716       $17,397
 
     *  In February 2001, we ceased originations of Small Business
 Administration loans through Small Business Finance.
 
 
     FEES AND OTHER INCOME
     (dollars in millions)                        Three Months Ended
                                     March 31,     December 31,     March 31,
                                        2001            2000          2000
 
     Factoring commissions               $16             $20           $17
     Income of international joint
      ventures                            12              10            10
     Fees and other income:
       Investment and asset sale
      income**                            48              37            64
     Fee income and other                 23              23            24
       Total fees and other income       $71             $60           $88
       Total non-interest income         $99             $90          $115
 
     ** Includes gains on securitizations and loans sales, net investment
 income and gains, equipment residual gains and participation income.
 
 SOURCE  Heller Financial, Inc.