MBNA Corporation Reports 25.0% Increase in Earnings Per Common Share; Managed Loans Grow $15 Billion to $88 Billion; 3 Million New Customers Added

Apr 11, 2001, 01:00 ET from MBNA Corporation

    WILMINGTON, Del., April 11 /PRNewswire/ -- MBNA Corporation (NYSE:   KRB)
 announced today that net income for the first quarter of 2001 rose to
 $311.1 million or $.35 per common share, an increase of 25.0%, compared with
 $234.6 million or $.28 per common share for the first quarter of 2000.  MBNA
 has produced consistent earnings increases, averaging 25%, in each of the
 41 quarters since it became a public company.
     Total managed loans at March 31, 2001 were $88 billion, a $15 billion or
 20% increase over first quarter 2000. For the quarter, the Corporation
 acquired 121 new endorsements from a variety of organizations in the United
 States, United Kingdom, and Canada.  Endorsements acquired in the first
 quarter include, for example, Northeastern University, NAACP, Amtrak,
 Childhood Leukemia Foundation, University of Calgary (Canada), London School
 of Economics, Congress of Neurological Surgeons, Veterans of Foreign Wars of
 the U.S., Saint Andrews Golf Association (U.K.), and Harrah's.  The company
 also renewed 208 group contracts during the quarter.
     The Corporation added 3.0 million new Customers (2.5 million new
 accounts).  The characteristics of new cardholders are consistent with the
 superior quality of the Corporation's existing cardholders. The typical new
 Customer has a $70,000 annual household income, has been employed for
 11 years, owns a home, and has a 17-year history of paying bills promptly.
     Delinquency on total managed loans was 4.60% at March 31, 2001.  Managed
 loan losses for the first quarter of 2001 were 4.35%.  Loan losses continue to
 be significantly lower than published industry levels.
     MBNA.com, introduced in the first quarter of 2000, now serves more than
 3.5 million Customers.  Through March 31, 2001, nearly 1.8 million MBNA
 Customers have enrolled to use NetAccess, MBNA's online service, including
 376,000 in the first quarter.  For the first quarter of this year, MBNA added
 210,000 new Customers via the Internet.
     MBNA Corporation, a bank holding company and parent of MBNA America Bank,
 N.A., a national bank, has $88 billion in managed loans. MBNA, the largest
 independent credit card lender in the world, also provides retail deposit,
 consumer loan, and insurance products.  MBNA.com (www.MBNA.com) provides
 credit card, consumer loan, retail deposit, travel, and shopping services.
 
 
                       MBNA CORPORATION AND SUBSIDIARIES
 
                              FINANCIAL HIGHLIGHTS
                (dollars in thousands, except per share amounts)
 
                                                     For the Three Months
                                                        Ended March 31,
                                                    2001              2000
                                                          (unaudited)
     INCOME STATEMENT DATA FOR THE PERIOD:
 
     Net interest income                          $265,217          $283,071
     Provision for possible credit losses          151,993            99,846
     Other operating income                      1,476,413         1,111,036
     Other operating expense                     1,091,151           915,310
         Net income                                311,055           234,571
 
 
     PER COMMON SHARE DATA FOR THE PERIOD:
 
     Earnings (a)                                     $.36              $.29
     Earnings-assuming dilution (a)                    .35               .28
     Dividends                                         .09               .08
     Book value                                       7.69              5.08
 
 
     RATIOS:
 
     Return on average total assets                   3.26%             3.02%
     Return on average stockholders'
      equity                                         19.12             22.46
     Average receivables to average
      deposits                                       76.93             90.62
     Stockholders' equity to total assets            17.22             13.66
 
     Loan Receivables:
         Delinquency (b)                              3.58              3.35
         Net credit losses                            2.85              2.29
 
     Managed Loans:
         Delinquency                                  4.60              4.35
         Net credit losses                            4.35              4.06
         Net interest margin (c)                      7.71              7.10
 
 
     MANAGED LOAN DATA:
 
     At Period End:
         Loans held for securitization          $6,666,017        $8,172,508
         Loan portfolio                         12,404,928         9,339,039
         Securitized loans                      68,844,064        55,488,220
              Total managed loans              $87,915,009       $72,999,767
 
     Average for the Period:
         Loans held for securitization          $6,837,225        $9,475,492
         Loan portfolio                         11,911,022         7,943,671
         Securitized loans                      69,237,079        54,584,913
              Total managed loans              $87,985,326       $72,004,076
 
     For the Period:
         Sales and cash advance volume         $31,798,235       $28,260,846
 
 
     MANAGED INCOME STATEMENT DATA FOR THE
      PERIOD (d):
 
     Net interest income                        $1,787,777        $1,356,335
     Provision for possible credit losses          976,144           731,803
     Other operating income                        778,004           669,729
     Other operating expense                     1,091,151           915,310
         Net income                                311,055           234,571
 
 
                       MBNA CORPORATION AND SUBSIDIARIES
 
                              FINANCIAL HIGHLIGHTS
                (dollars in thousands, except per share amounts)
 
                                                    For the Three Months
                                                      Ended March 31,
                                                   2001              2000
                                                         (unaudited)
     BALANCE SHEET DATA AT PERIOD END:
 
     Investment securities and money
      market instruments                         $5,668,487        $4,905,722
     Loans held for securitization                6,666,017         8,172,508
 
     Credit card loans                            8,063,346         6,579,232
     Other consumer loans                         4,341,582         2,759,807
         Total loans                             12,404,928         9,339,039
     Reserve for possible credit losses            (414,276)         (368,108)
         Net loans                               11,990,652         8,970,931
 
     Total assets                                39,263,281        31,419,464
     Total deposits                              24,185,871        19,246,790
     Stockholders' equity                         6,760,981         4,291,166
 
 
     AVERAGE BALANCE SHEET DATA:
 
     Investment securities and money
      market instruments                         $6,120,959        $4,874,972
     Loans held for securitization                6,837,225         9,475,492
 
     Credit card loans                            7,744,128         5,707,560
     Other consumer loans                         4,166,894         2,236,111
         Total loans                             11,911,022         7,943,671
     Reserve for possible credit losses            (389,823)         (356,000)
         Net loans                               11,521,199         7,587,671
 
     Total assets                                38,647,395        31,196,236
     Total deposits                              24,369,752        19,223,202
     Stockholders' equity                         6,597,332         4,201,148
 
 
     Weighted average common shares
      outstanding (000)                             851,840           801,849
     Weighted average common shares
      outstanding and
      common stock equivalents (000)                878,402           824,445
 
 
     NOTES:
     (a)  Earnings per common share is computed using net income applicable to
          common stock and weighted average common shares outstanding, whereas
          earnings per common share -- assuming dilution includes the potential
          dilutive effect of common stock equivalents.  MBNA Corporation's
          common stock equivalents are solely related to employee stock
          options.  MBNA Corporation has no other common stock equivalents.
     (b)  Loan delinquency does not include loans held for securitization or
          securitized loans.
     (c)  Managed net interest margin is presented on a fully taxable
          equivalent basis.
     (d)  MBNA Corporation's managed income statement data reflects the
          Corporation's results on a managed basis.  The managed income
          statement data reclassifies securitization income into interest
          income, interchange income, credit card and other fees, insurance
          income, interest paid to investors, credit losses, and other trust
          expenses.
 
 

SOURCE MBNA Corporation
    WILMINGTON, Del., April 11 /PRNewswire/ -- MBNA Corporation (NYSE:   KRB)
 announced today that net income for the first quarter of 2001 rose to
 $311.1 million or $.35 per common share, an increase of 25.0%, compared with
 $234.6 million or $.28 per common share for the first quarter of 2000.  MBNA
 has produced consistent earnings increases, averaging 25%, in each of the
 41 quarters since it became a public company.
     Total managed loans at March 31, 2001 were $88 billion, a $15 billion or
 20% increase over first quarter 2000. For the quarter, the Corporation
 acquired 121 new endorsements from a variety of organizations in the United
 States, United Kingdom, and Canada.  Endorsements acquired in the first
 quarter include, for example, Northeastern University, NAACP, Amtrak,
 Childhood Leukemia Foundation, University of Calgary (Canada), London School
 of Economics, Congress of Neurological Surgeons, Veterans of Foreign Wars of
 the U.S., Saint Andrews Golf Association (U.K.), and Harrah's.  The company
 also renewed 208 group contracts during the quarter.
     The Corporation added 3.0 million new Customers (2.5 million new
 accounts).  The characteristics of new cardholders are consistent with the
 superior quality of the Corporation's existing cardholders. The typical new
 Customer has a $70,000 annual household income, has been employed for
 11 years, owns a home, and has a 17-year history of paying bills promptly.
     Delinquency on total managed loans was 4.60% at March 31, 2001.  Managed
 loan losses for the first quarter of 2001 were 4.35%.  Loan losses continue to
 be significantly lower than published industry levels.
     MBNA.com, introduced in the first quarter of 2000, now serves more than
 3.5 million Customers.  Through March 31, 2001, nearly 1.8 million MBNA
 Customers have enrolled to use NetAccess, MBNA's online service, including
 376,000 in the first quarter.  For the first quarter of this year, MBNA added
 210,000 new Customers via the Internet.
     MBNA Corporation, a bank holding company and parent of MBNA America Bank,
 N.A., a national bank, has $88 billion in managed loans. MBNA, the largest
 independent credit card lender in the world, also provides retail deposit,
 consumer loan, and insurance products.  MBNA.com (www.MBNA.com) provides
 credit card, consumer loan, retail deposit, travel, and shopping services.
 
 
                       MBNA CORPORATION AND SUBSIDIARIES
 
                              FINANCIAL HIGHLIGHTS
                (dollars in thousands, except per share amounts)
 
                                                     For the Three Months
                                                        Ended March 31,
                                                    2001              2000
                                                          (unaudited)
     INCOME STATEMENT DATA FOR THE PERIOD:
 
     Net interest income                          $265,217          $283,071
     Provision for possible credit losses          151,993            99,846
     Other operating income                      1,476,413         1,111,036
     Other operating expense                     1,091,151           915,310
         Net income                                311,055           234,571
 
 
     PER COMMON SHARE DATA FOR THE PERIOD:
 
     Earnings (a)                                     $.36              $.29
     Earnings-assuming dilution (a)                    .35               .28
     Dividends                                         .09               .08
     Book value                                       7.69              5.08
 
 
     RATIOS:
 
     Return on average total assets                   3.26%             3.02%
     Return on average stockholders'
      equity                                         19.12             22.46
     Average receivables to average
      deposits                                       76.93             90.62
     Stockholders' equity to total assets            17.22             13.66
 
     Loan Receivables:
         Delinquency (b)                              3.58              3.35
         Net credit losses                            2.85              2.29
 
     Managed Loans:
         Delinquency                                  4.60              4.35
         Net credit losses                            4.35              4.06
         Net interest margin (c)                      7.71              7.10
 
 
     MANAGED LOAN DATA:
 
     At Period End:
         Loans held for securitization          $6,666,017        $8,172,508
         Loan portfolio                         12,404,928         9,339,039
         Securitized loans                      68,844,064        55,488,220
              Total managed loans              $87,915,009       $72,999,767
 
     Average for the Period:
         Loans held for securitization          $6,837,225        $9,475,492
         Loan portfolio                         11,911,022         7,943,671
         Securitized loans                      69,237,079        54,584,913
              Total managed loans              $87,985,326       $72,004,076
 
     For the Period:
         Sales and cash advance volume         $31,798,235       $28,260,846
 
 
     MANAGED INCOME STATEMENT DATA FOR THE
      PERIOD (d):
 
     Net interest income                        $1,787,777        $1,356,335
     Provision for possible credit losses          976,144           731,803
     Other operating income                        778,004           669,729
     Other operating expense                     1,091,151           915,310
         Net income                                311,055           234,571
 
 
                       MBNA CORPORATION AND SUBSIDIARIES
 
                              FINANCIAL HIGHLIGHTS
                (dollars in thousands, except per share amounts)
 
                                                    For the Three Months
                                                      Ended March 31,
                                                   2001              2000
                                                         (unaudited)
     BALANCE SHEET DATA AT PERIOD END:
 
     Investment securities and money
      market instruments                         $5,668,487        $4,905,722
     Loans held for securitization                6,666,017         8,172,508
 
     Credit card loans                            8,063,346         6,579,232
     Other consumer loans                         4,341,582         2,759,807
         Total loans                             12,404,928         9,339,039
     Reserve for possible credit losses            (414,276)         (368,108)
         Net loans                               11,990,652         8,970,931
 
     Total assets                                39,263,281        31,419,464
     Total deposits                              24,185,871        19,246,790
     Stockholders' equity                         6,760,981         4,291,166
 
 
     AVERAGE BALANCE SHEET DATA:
 
     Investment securities and money
      market instruments                         $6,120,959        $4,874,972
     Loans held for securitization                6,837,225         9,475,492
 
     Credit card loans                            7,744,128         5,707,560
     Other consumer loans                         4,166,894         2,236,111
         Total loans                             11,911,022         7,943,671
     Reserve for possible credit losses            (389,823)         (356,000)
         Net loans                               11,521,199         7,587,671
 
     Total assets                                38,647,395        31,196,236
     Total deposits                              24,369,752        19,223,202
     Stockholders' equity                         6,597,332         4,201,148
 
 
     Weighted average common shares
      outstanding (000)                             851,840           801,849
     Weighted average common shares
      outstanding and
      common stock equivalents (000)                878,402           824,445
 
 
     NOTES:
     (a)  Earnings per common share is computed using net income applicable to
          common stock and weighted average common shares outstanding, whereas
          earnings per common share -- assuming dilution includes the potential
          dilutive effect of common stock equivalents.  MBNA Corporation's
          common stock equivalents are solely related to employee stock
          options.  MBNA Corporation has no other common stock equivalents.
     (b)  Loan delinquency does not include loans held for securitization or
          securitized loans.
     (c)  Managed net interest margin is presented on a fully taxable
          equivalent basis.
     (d)  MBNA Corporation's managed income statement data reflects the
          Corporation's results on a managed basis.  The managed income
          statement data reclassifies securitization income into interest
          income, interchange income, credit card and other fees, insurance
          income, interest paid to investors, credit losses, and other trust
          expenses.
 
 SOURCE  MBNA Corporation

RELATED LINKS

http://www.mbnainternational.com