Household Reports Record First Quarter Results; 11th Consecutive Record Quarter

- Earnings Per Share Increase 17%, to $.91

- Net Income Rises 16%, to $432 Million

- Receivables Up 17% Over First Quarter of '00 to $88 Billion



Apr 18, 2001, 01:00 ET from Household International

    PROSPECT HEIGHTS, Ill., April 18 /PRNewswire/ -- Household International
 (NYSE:   HI) today reported that earnings per share rose 17 percent to a first
 quarter record of $.91, from $.78 a year ago.  Net income increased to
 $431.8 million, up 16 percent from $372.9 million in the first quarter of
 2000.  This quarter marked the 11th consecutive quarter of record results.
     William F. Aldinger, Household's chairman and chief executive officer,
 said, "Our outstanding results reflect the sustainability and earnings power
 of our franchise.  Receivables and revenues grew nicely in the quarter.  At
 the same time, credit quality remained stable and we strengthened our balance
 sheet. We also repurchased 8.8 million shares in the quarter.
     "All of our businesses are performing well and have great momentum,"
 Aldinger added.  "Our tax refund lending business enjoyed a very successful
 tax season and exceeded our expectations. This business contributed $.15 to
 our first quarter earnings per share, an increase of 25 percent over the
 $.12 contribution in the year-ago quarter.
     "We are very comfortable with our ability to achieve our receivable and
 earnings per share growth targets for 2001."  Aldinger concluded, "I look
 forward to another record year."
 
     Receivable Growth
     The company's managed portfolio totaled $88.4 billion, or 17 percent above
 the prior-year level, with all consumer products contributing to the
 year-over-year increase.  Growth was strongest in the real estate secured
 portfolio, which was up 23 percent over the year-ago period.
     On a sequential basis, managed receivables grew $765 million, or an
 annualized 3.5 percent, as robust growth in the real estate secured portfolio
 offset the seasonal runoff in the company's credit card portfolios.  Excluding
 the effect of foreign exchange translation, growth in the quarter was
 $1.2 billion, or an annualized 5.4 percent.
 
     Revenues
     Revenues increased over $316 million, or 15 percent, from a year ago led
 by higher receivable volume, higher fee income and increased tax refund
 anticipation loan revenues.  Revenues, excluding securitization related
 revenues, rose 19.4 percent.
     Managed net interest margin of $1.8 billion increased 20 percent from the
 prior year due to strong receivable volume.  Household's managed net interest
 margin percent equaled 8.22 percent compared to 8.31 percent a year ago and up
 from 8.01 percent in the fourth quarter of 2000.  The company's first quarter
 net interest margin benefited from lower funding costs resulting from recent
 easing in monetary policy.
 
     Total other managed revenues, excluding securitization related revenues,
 rose 17.7 percent over the year-ago level.  Insurance revenues increased 17.5
 percent, primarily reflecting increased sales on a larger loan portfolio.
 Managed fee income increased $60 million, or 18 percent, compared to the first
 quarter of 2000, principally reflecting higher levels of credit card fees.
 Higher revenues from the company's tax refund lending business drove the 21
 percent increase in other income.
     The company's risk adjusted revenue (managed net revenues less
 securitization revenues and chargeoffs) expanded to 8.11 percent from 7.82
 percent a year ago.
 
     Operating Expenses
     Operating expenses increased 13 percent from a year ago, as the company
 invested in sales and collection personnel to support its growing portfolio.
 Household's efficiency ratio was 35.6 percent in the first quarter compared to
 36.2 percent a year ago.
     Compared to the fourth quarter of 2000, operating expenses increased 18
 percent, also reflecting the increased investment in sales and collection
 personnel, and sharply higher marketing expenses.  This quarter's expense
 level also includes higher seasonal expenses related to the tax refund
 anticipation loan business.
 
     Credit Quality and Loss Reserves
     At March 31, the managed delinquency ratio (60+days) was 4.25 percent,
 compared to 4.43 percent a year ago and 4.20 percent at December 31, 2000.
 The annualized managed net chargeoff ratio for the first quarter was 3.56
 percent, a 44 basis points improvement from the year-ago quarter and up
 modestly from 3.41 percent in the prior quarter.
     The company's credit loss reserves increased $146 million during the
 quarter.  Managed credit loss reserves totaled over $3.3 billion at March 31,
 up $479 million from a year ago.  The ratio of reserves-to-managed receivables
 was 3.78 percent at March 31, compared to 3.65 percent at the end of 2000 and
 3.79 percent a year ago.  Reserves-to-nonperforming loans were 107.6 percent
 at March 31 compared to 107.0 percent at December 31, 2000 and 105.9 percent a
 year ago.
 
     Capital
     The ratio of tangible equity to tangible managed assets improved to 7.54
 percent at March 31, compared to 7.41 percent at December 31, 2000 and 6.94
 percent a year earlier.
     In connection with its $2 billion share repurchase program, announced on
 March 9, 1999, Household bought back 8.8 million shares in the first quarter,
 totaling $398.3 million. During the first quarter the company entered into
 agreements with third parties to purchase, on a forward basis, approximately
 780 thousand shares of common stock at a weighted average price of $55 per
 share.
 
     Notice of Live Webcast
     Household will broadcast its first quarter earnings teleconference call
 over the Internet on its website at http://www.household.com .  The call will
 begin at 9:00 am Central Daylight Time on April 18, 2001.  A replay will also
 be available shortly after the end of the call.
     Household's businesses are leading providers of consumer loans, credit
 cards, auto finance and credit insurance products in the United States, United
 Kingdom and Canada.  In the United States, Household's largest business,
 founded in 1878, operates under the two oldest and most recognized names in
 consumer finance -- HFC and Beneficial.  Household is also one of the nation's
 largest issuers of private label and general purpose credit cards, including
 the GM Card(R) and the AFL-CIO's Union Privilege card.  For more information,
 visit the company's web site at www.household.com.
 
     This press release contains certain estimates and projections that may be
 forward-looking in nature, as defined by the Private Securities Litigation
 Reform Act of 1995.  A variety of factors may cause actual results to differ
 materially from the results discussed in these forward-looking statements.
 Factors that might cause such a difference are discussed in Household
 International's Annual Report on Form 10-K, filed with the SEC.
 
 
                         Household International, Inc.
                         Quarterly Financial Supplement
 
     March 31, 2001 - Quarterly Highlights
     Summary Managed Income Statement
     ($ millions)
                                                   Three Months Ended
                                            03/31/01    12/31/00    03/31/00
     Managed-basis net interest margin and
      other revenues (A)                    $2,481.5    $2,434.7    $2,165.2
     Managed-basis provision for credit
      losses (A)                               932.8       917.0       816.2
     Operating expenses                        883.1       748.9       783.5
     Income before income taxes                665.6       768.8       565.5
     Income taxes                              233.8       276.1       192.6
     Net income                               $431.8      $492.7      $372.9
 
     Common Stock Data
     Basic earnings per common share            $.92       $1.05        $.79
     Diluted earnings per common share           .91        1.03         .78
     Average common shares (millions)          466.0       471.1       470.5
     Average common and equivalent shares
      (millions)                               472.0       476.1       474.0
     Common stock price:
          High                                $62.00      $56.94      $39.19
          Low                                  52.00       43.88       29.50
          Period end                           59.24       55.00       37.31
     Dividends declared per common share        $.19        $.19        $.17
     Book value per common share               17.23       16.88       14.78
 
     Key Ratios
     Return on average common shareholders'
      equity                                    21.6 %      25.4 %      22.0%
     Return on average owned assets             2.21        2.61        2.37
     Return on average managed assets           1.77        2.09        1.82
     Managed efficiency ratio                   35.6        30.8        36.2
     Managed net interest margin                8.22        8.01        8.31
     Total shareholders' equity as a
      percent of managed assets                 9.24        9.07        8.94
     Tangible equity to tangible managed
      assets                                    7.54        7.41        6.94
 
 
     Summary Managed Income
     Statement                                          % Change from Prior
     ($ millions)                                      Qtr.              Year
     Managed-basis net interest margin and
      other revenues (A)                               1.9 %             14.6%
     Managed-basis provision for credit
      losses (A)                                       1.7               14.3
     Operating expenses                               17.9               12.7
     Income before income taxes                      (13.4)              17.7
     Income taxes                                    (15.3)              21.4
     Net income                                      (12.4)%             15.8%
 
     Common Stock Data
     Basic earnings per common share                 (12.4)%             16.5%
     Diluted earnings per common share               (11.7)              16.7
     Average common shares (millions)                 (1.1)              (1.0)
     Average common and equivalent shares
      (millions)                                      (0.9)              (0.4)
     Common stock price:
          High                                         8.9 %             58.2%
          Low                                         18.5               76.3
          Period end                                   7.7               58.8
     Dividends declared per common share                -  %             11.8%
     Book value per common share                       2.1               16.6
 
     Key Ratios
     Return on average common
      shareholders' equity                           (15.0)%             (1.8)%
     Return on average owned assets                  (15.3)              (6.8)
     Return on average managed assets                (15.3)              (2.7)
     Managed efficiency ratio                         15.6               (1.7)
     Managed net interest margin                       2.6               (1.1)
     Total shareholders' equity as a
      percent of managed assets                        1.9                3.4
     Tangible equity to tangible managed
      assets                                           1.8                8.6
 
     (A) To aid analysis, net interest margin, other revenues, and provision
         for credit losses are presented on a pro forma managed basis as if
         receivables securitized and sold with limited recourse were held in
         the portfolio.  Policyholders' benefits have been netted against
         other revenues.
 
 

SOURCE Household International
    PROSPECT HEIGHTS, Ill., April 18 /PRNewswire/ -- Household International
 (NYSE:   HI) today reported that earnings per share rose 17 percent to a first
 quarter record of $.91, from $.78 a year ago.  Net income increased to
 $431.8 million, up 16 percent from $372.9 million in the first quarter of
 2000.  This quarter marked the 11th consecutive quarter of record results.
     William F. Aldinger, Household's chairman and chief executive officer,
 said, "Our outstanding results reflect the sustainability and earnings power
 of our franchise.  Receivables and revenues grew nicely in the quarter.  At
 the same time, credit quality remained stable and we strengthened our balance
 sheet. We also repurchased 8.8 million shares in the quarter.
     "All of our businesses are performing well and have great momentum,"
 Aldinger added.  "Our tax refund lending business enjoyed a very successful
 tax season and exceeded our expectations. This business contributed $.15 to
 our first quarter earnings per share, an increase of 25 percent over the
 $.12 contribution in the year-ago quarter.
     "We are very comfortable with our ability to achieve our receivable and
 earnings per share growth targets for 2001."  Aldinger concluded, "I look
 forward to another record year."
 
     Receivable Growth
     The company's managed portfolio totaled $88.4 billion, or 17 percent above
 the prior-year level, with all consumer products contributing to the
 year-over-year increase.  Growth was strongest in the real estate secured
 portfolio, which was up 23 percent over the year-ago period.
     On a sequential basis, managed receivables grew $765 million, or an
 annualized 3.5 percent, as robust growth in the real estate secured portfolio
 offset the seasonal runoff in the company's credit card portfolios.  Excluding
 the effect of foreign exchange translation, growth in the quarter was
 $1.2 billion, or an annualized 5.4 percent.
 
     Revenues
     Revenues increased over $316 million, or 15 percent, from a year ago led
 by higher receivable volume, higher fee income and increased tax refund
 anticipation loan revenues.  Revenues, excluding securitization related
 revenues, rose 19.4 percent.
     Managed net interest margin of $1.8 billion increased 20 percent from the
 prior year due to strong receivable volume.  Household's managed net interest
 margin percent equaled 8.22 percent compared to 8.31 percent a year ago and up
 from 8.01 percent in the fourth quarter of 2000.  The company's first quarter
 net interest margin benefited from lower funding costs resulting from recent
 easing in monetary policy.
 
     Total other managed revenues, excluding securitization related revenues,
 rose 17.7 percent over the year-ago level.  Insurance revenues increased 17.5
 percent, primarily reflecting increased sales on a larger loan portfolio.
 Managed fee income increased $60 million, or 18 percent, compared to the first
 quarter of 2000, principally reflecting higher levels of credit card fees.
 Higher revenues from the company's tax refund lending business drove the 21
 percent increase in other income.
     The company's risk adjusted revenue (managed net revenues less
 securitization revenues and chargeoffs) expanded to 8.11 percent from 7.82
 percent a year ago.
 
     Operating Expenses
     Operating expenses increased 13 percent from a year ago, as the company
 invested in sales and collection personnel to support its growing portfolio.
 Household's efficiency ratio was 35.6 percent in the first quarter compared to
 36.2 percent a year ago.
     Compared to the fourth quarter of 2000, operating expenses increased 18
 percent, also reflecting the increased investment in sales and collection
 personnel, and sharply higher marketing expenses.  This quarter's expense
 level also includes higher seasonal expenses related to the tax refund
 anticipation loan business.
 
     Credit Quality and Loss Reserves
     At March 31, the managed delinquency ratio (60+days) was 4.25 percent,
 compared to 4.43 percent a year ago and 4.20 percent at December 31, 2000.
 The annualized managed net chargeoff ratio for the first quarter was 3.56
 percent, a 44 basis points improvement from the year-ago quarter and up
 modestly from 3.41 percent in the prior quarter.
     The company's credit loss reserves increased $146 million during the
 quarter.  Managed credit loss reserves totaled over $3.3 billion at March 31,
 up $479 million from a year ago.  The ratio of reserves-to-managed receivables
 was 3.78 percent at March 31, compared to 3.65 percent at the end of 2000 and
 3.79 percent a year ago.  Reserves-to-nonperforming loans were 107.6 percent
 at March 31 compared to 107.0 percent at December 31, 2000 and 105.9 percent a
 year ago.
 
     Capital
     The ratio of tangible equity to tangible managed assets improved to 7.54
 percent at March 31, compared to 7.41 percent at December 31, 2000 and 6.94
 percent a year earlier.
     In connection with its $2 billion share repurchase program, announced on
 March 9, 1999, Household bought back 8.8 million shares in the first quarter,
 totaling $398.3 million. During the first quarter the company entered into
 agreements with third parties to purchase, on a forward basis, approximately
 780 thousand shares of common stock at a weighted average price of $55 per
 share.
 
     Notice of Live Webcast
     Household will broadcast its first quarter earnings teleconference call
 over the Internet on its website at http://www.household.com .  The call will
 begin at 9:00 am Central Daylight Time on April 18, 2001.  A replay will also
 be available shortly after the end of the call.
     Household's businesses are leading providers of consumer loans, credit
 cards, auto finance and credit insurance products in the United States, United
 Kingdom and Canada.  In the United States, Household's largest business,
 founded in 1878, operates under the two oldest and most recognized names in
 consumer finance -- HFC and Beneficial.  Household is also one of the nation's
 largest issuers of private label and general purpose credit cards, including
 the GM Card(R) and the AFL-CIO's Union Privilege card.  For more information,
 visit the company's web site at www.household.com.
 
     This press release contains certain estimates and projections that may be
 forward-looking in nature, as defined by the Private Securities Litigation
 Reform Act of 1995.  A variety of factors may cause actual results to differ
 materially from the results discussed in these forward-looking statements.
 Factors that might cause such a difference are discussed in Household
 International's Annual Report on Form 10-K, filed with the SEC.
 
 
                         Household International, Inc.
                         Quarterly Financial Supplement
 
     March 31, 2001 - Quarterly Highlights
     Summary Managed Income Statement
     ($ millions)
                                                   Three Months Ended
                                            03/31/01    12/31/00    03/31/00
     Managed-basis net interest margin and
      other revenues (A)                    $2,481.5    $2,434.7    $2,165.2
     Managed-basis provision for credit
      losses (A)                               932.8       917.0       816.2
     Operating expenses                        883.1       748.9       783.5
     Income before income taxes                665.6       768.8       565.5
     Income taxes                              233.8       276.1       192.6
     Net income                               $431.8      $492.7      $372.9
 
     Common Stock Data
     Basic earnings per common share            $.92       $1.05        $.79
     Diluted earnings per common share           .91        1.03         .78
     Average common shares (millions)          466.0       471.1       470.5
     Average common and equivalent shares
      (millions)                               472.0       476.1       474.0
     Common stock price:
          High                                $62.00      $56.94      $39.19
          Low                                  52.00       43.88       29.50
          Period end                           59.24       55.00       37.31
     Dividends declared per common share        $.19        $.19        $.17
     Book value per common share               17.23       16.88       14.78
 
     Key Ratios
     Return on average common shareholders'
      equity                                    21.6 %      25.4 %      22.0%
     Return on average owned assets             2.21        2.61        2.37
     Return on average managed assets           1.77        2.09        1.82
     Managed efficiency ratio                   35.6        30.8        36.2
     Managed net interest margin                8.22        8.01        8.31
     Total shareholders' equity as a
      percent of managed assets                 9.24        9.07        8.94
     Tangible equity to tangible managed
      assets                                    7.54        7.41        6.94
 
 
     Summary Managed Income
     Statement                                          % Change from Prior
     ($ millions)                                      Qtr.              Year
     Managed-basis net interest margin and
      other revenues (A)                               1.9 %             14.6%
     Managed-basis provision for credit
      losses (A)                                       1.7               14.3
     Operating expenses                               17.9               12.7
     Income before income taxes                      (13.4)              17.7
     Income taxes                                    (15.3)              21.4
     Net income                                      (12.4)%             15.8%
 
     Common Stock Data
     Basic earnings per common share                 (12.4)%             16.5%
     Diluted earnings per common share               (11.7)              16.7
     Average common shares (millions)                 (1.1)              (1.0)
     Average common and equivalent shares
      (millions)                                      (0.9)              (0.4)
     Common stock price:
          High                                         8.9 %             58.2%
          Low                                         18.5               76.3
          Period end                                   7.7               58.8
     Dividends declared per common share                -  %             11.8%
     Book value per common share                       2.1               16.6
 
     Key Ratios
     Return on average common
      shareholders' equity                           (15.0)%             (1.8)%
     Return on average owned assets                  (15.3)              (6.8)
     Return on average managed assets                (15.3)              (2.7)
     Managed efficiency ratio                         15.6               (1.7)
     Managed net interest margin                       2.6               (1.1)
     Total shareholders' equity as a
      percent of managed assets                        1.9                3.4
     Tangible equity to tangible managed
      assets                                           1.8                8.6
 
     (A) To aid analysis, net interest margin, other revenues, and provision
         for credit losses are presented on a pro forma managed basis as if
         receivables securitized and sold with limited recourse were held in
         the portfolio.  Policyholders' benefits have been netted against
         other revenues.
 
 SOURCE  Household International