As usual, their disclosure blows chunks...their delinquencies did rise (however, notice
how they love to report only the % and not the actual number, so as to make it look
better due to their always expanding loan portfolio):
biz.yahoo.com CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
2001 2000 2001 2000
(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD (a):
Net interest income $412,747 $282,969 $1,391,037 $1,178,632
Provision for possible
credit losses 285,237 132,294 1,140,615 547,309
Other operating
income 1,908,277 1,462,889 6,939,619 5,136,786
Other operating
expense 1,194,816 928,870 4,474,831 3,647,702
Net income 524,766 423,826 1,694,291 1,312,532
PER COMMON SHARE DATA FOR THE PERIOD:
Earnings (b) $.61 $.49 $1.97 $1.58
Earnings - assuming
dilution (b) .60 .48 1.92 1.53
Dividends .09 .08 .36 .32
Book value 8.90 7.53
RATIOS:
Return on average
total assets 4.77% 4.57% 4.16% 3.94%
Return on average
stockholders' equity 27.55 26.10 24.07 25.79
Average receivables
to average deposits 84.30 81.53 80.88 85.79
Stockholders' equity
to total assets 17.16 17.13
Loan Receivables:
Delinquency (c) 4.64 3.89
Net credit losses (a) 4.39 4.14 4.20 3.38
The ongoing divergence between reduction in C&I lending, but rapidly expanding consumer
lending continues to underscore the major weakness in the U.S. financial system.
Contrast the expanding MBNA loan portfolio with the trend in C&I lending:
stls.frb.org
Here is a pyramid of debt issued and securitized that is a ticking time bomb. If lending
risks were so great, why isn't anyone (ie, most commercial banks) willing to keep the loans
on their own books? It's a Ponzi scheme, it's enormous, and it WILL end badly.
Disclosure: No position at the moment on KRB, but short COF.
|
