In the face of this wonderful news that MNBA loans are at an all time high, I decided to buy some leap puts, strike 30's
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MBNA Corporation Completes Best Year Ever; Net Income Exceeds $1.3 Billion; Earnings Per Common Share Increase 26.4%; Quarterly Common Stock Dividend Increases 12.5%; Managed Loans Grow Record $16.5 Billion to $88.8 Billion
WILMINGTON, Del., Jan. 10 /PRNewswire/ -- MBNA Corporation (NYSE: KRB - news) announced today that net income for the fourth quarter of 2000 rose to $423.8 million or $.48 per common share, an increase of 26.3%, compared with $319.8 million or $.38 per common share for the fourth quarter of 1999. For the full year, net income rose to $1.3 billion or $1.53 per common share, compared with $1.0 billion or $1.21 per common share for 1999.
Commenting on the company's performance, Charlie Cawley, president of MBNA Corporation said, ``We have completed the best quarter in our history. MBNA has produced earnings increases, averaging 25%, in each of the 40 quarters since we became a public company. We are very proud of all the people of MBNA, who have made this record of consistency possible.''
In addition, MBNA's Board of Directors has approved an increase of 12.5% in the quarterly dividend rate to $.09 per common share, which will increase the annual rate to $.36. MBNA has increased the dividend every year since it became a public company. The cash dividend is payable April 1, 2001 to stockholders of record as of March 15, 2001.
Total managed loans at December 31, 2000 were $88.8 billion, a $16.5 billion increase over year-end 1999. Loans increased $4.1 billion during the fourth quarter. For the year, the Corporation acquired 459 new endorsements from organizations including the United States Tennis Association (USTA), National Audubon Society, Thurgood Marshall Scholarship Fund, Atlanta Braves, Fraternal Order of Police, Rotary International, Ameritrade, United Parcel Service, barnesandnoble.com, First Union Corporation, Ontario Trial Lawyers Association (Canada), America Online (U.K.) and Royal Corps of Engineers (U.K.).
MBNA.com, introduced in the first quarter of 2000, now serves more than 3.0 million Customers. Through December 31, 2000, more than 1.3 million MBNA Customers have enrolled to use NetAccess, MBNA's online service, including 300,000 in the fourth quarter. For the full year, MBNA added 1 million new Customers via the Internet.
Managed loan losses for the full year were 3.94%, before the impact of the one-time adjustment for the Federal Financial Institutions Examination Council's newly revised charge-off policy. After the adjustment, which had no material impact on earnings, managed loan losses for the year were 4.39%. Loan losses continue to be significantly lower than published industry levels.
MBNA Corporation, a bank holding company and parent of MBNA America Bank, N.A., a national bank, has $88.8 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 |
