hi Scotty,
MBNA was downgraded from a strong buy by Morgan Stanly and
upgraded to neutral by Paine Webber last week.
if this stock is going up maybe someone wants to buy then out.
take them over.
how do you know somebody is not just selling the calls to make some
extra cash.?
MBNA Corp (NYSE:KRB - news) 1999 call LEAPS traded a whopping 25,418 contracts in the 20 strike on the American Stock Exchange. The near-month January calls also had turnover of 6,326 and 3,360 lots respectively in the 13-3/8 and 16-6/8 strikes.
Tuesday January 13, 1:15 pm Eastern Time
Company Press Release
SOURCE: MBNA Corporation
MBNA Corporation Reports 31.2% Increase in Net Income; Managed Loans Grow $10.8 Billion to $49.4 Billion; A Record 11.4 Million New Customers Added
WILMINGTON, Del., Jan. 13 /PRNewswire/ -- MBNA Corporation (NYSE: KRB - news) announced today that net income for the fourth quarter of 1997 was $188.3 million or $.35 per common share, compared with $149.4 million or $.28 per common share for the fourth quarter of 1996. For the full year, net income rose 31.2% to $622.5 million or $1.15 per common share, compared with $474.5 million or $.89 per common share for 1996. Earnings per common share amounts are presented assuming dilution in accordance with Statement of Financial Accounting Standards No. 128 ''Earnings per Share.''
Total managed loans at December 31, 1997 were $49.4 billion, a $3.2 billion increase over third quarter 1997 and a $10.8 billion increase over year-end 1996. For the year, the Corporation acquired 563 new endorsements from organizations and added 11.4 million new Customers (9.4 million new accounts). The characteristics of new cardholders are consistent with the superior quality of the Corporation's existing cardholders.
Delinquency on total managed loans was 4.59% at December 31, 1997. Managed loan losses for 1997 were 3.97%. 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 $49.4 billion in managed loans. MBNA, the largest independent credit card lender in the world and one of the two largest overall, also provides retail deposit, consumer loan, insurance, and card acceptance services.
MBNA 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,
1997 1996 1997 1996
(unaudited)
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income $153,418 $178,247 $692,390 $640,477
Provision for
possible credit losses 53,869 44,351 260,040 178,224
Other operating income 783,386 581,966 2,812,879 1,895,923
Other operating expense 574,400 468,461 2,223,121 1,572,551
Net income (a) 188,299 149,430 622,500 474,495
PER COMMON SHARE DATA FOR THE PERIOD (b):
Earnings (c) $0.37 $0.29 $1.20 $0.92
Earnings - assuming dilution (c) 0.35 0.28 1.15 0.89
Dividends 0.08 0.07 0.32 0.28
Book value 3.50 2.80 --- ---
RATIOS:
Return on average
total assets 3.63% 3.66% 3.25% 3.26%
Return on average
stockholders' equity 40.28 37.45 35.56 34.46
Average receivables
to average deposits 79.01 93.36 88.82 92.50
Stockholders' equity
to total assets 9.25 10.00 --- ---
Loan Portfolio:
Delinquency (d) 3.93 3.59 --- ---
Net credit losses 2.10 1.86 2.14 1.98
Managed Loans (e):
Delinquency 4.59 4.28 --- ---
Net credit losses 4.07 3.30 3.97 3.35
Net interest margin (f) 7.57 7.63 7.50 7.62
MANAGED LOAN DATA (e):
At Period End:
Loans held
for securitization $2,900,198 $2,469,974 --- ---
Loan portfolio 8,261,876 7,659,078 --- ---
Securitized loans 38,217,786 28,494,481 --- ---
Total managed loans $49,379,860$38,623,533 --- ---
Average:
Loans held
for securitization $1,724,831 $2,442,547 $2,875,212 $2,529,484
Loan portfolio 8,394,363 7,077,092 7,563,301 6,174,095
Securitized loans 37,109,708 26,727,630 32,746,963 22,514,014
Total managed loans $47,228,902$36,247,269 $43,185,476 $31,217,593
For the Period:
Sales and cash
advance volume $18,976,327$14,585,902 $66,399,425 $48,666,129
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
1997 1996 1997 1996
(unaudited)
BALANCE SHEET DATA AT PERIOD END:
Investment securities and
money market instruments $4,594,709 $3,194,664 --- ---
Loans held for securitization 2,900,198 2,469,974 --- ---
Credit card loans 5,830,221 5,722,299 --- ---
Other consumer loans 2,431,655 1,936,779 --- ---
Total loans 8,261,876 7,659,078 --- ---
Reserve for possible
credit losses (162,476) (118,427) --- ---
Net loans 8,099,400 7,540,651 --- ---
Total assets 21,305,513 17,035,342 --- ---
Total deposits 12,913,213 10,151,686 --- ---
Stockholders' equity 1,970,050 1,704,308 --- ---
AVERAGE BALANCE SHEET DATA:
Investment securities and
money market instruments $4,410,633 $3,283,703 $3,851,867$2,927,351
Loans held for securitization 1,724,831 2,442,547 2,875,212 2,529,484
Credit card loans 6,170,042 5,434,521 5,456,349 4,907,814
Other consumer loans 2,224,321 1,642,571 2,106,952 1,266,281
Total loans 8,394,363 7,077,092 7,563,301 6,174,095
Reserve for possible
credit losses (163,006) (118,378) (143,277) (111,041)
Net loans 8,231,357 6,958,714 7,420,024 6,063,054
Total assets 20,590,620 16,256,268 19,125,28214,571,288
Total deposits 12,807,280 10,196,185 11,752,887 9,408,843
Stockholders' equity 1,854,753 1,587,449 1,750,459 1,377,072
Weighted average common
shares outstanding (b) 501,243 501,215 501,225 501,208
Weighted average common shares
outstanding and common
stock equivalents (h) 527,576 522,806 526,534 518,982
NOTES:
(a) Net income for the twelve months ended December 31, 1996, includes a $32.8 million tax benefit related to deductions for the amortization of Customer-based intangible assets acquired in connection with the 1991 initial public offering of the Corporation's Common Stock, and a charge of $32.8 million net of tax ($54.3 million pretax) related to the launch of the MBNA Platinum Plus Mastercard and Visa program. These items were recognized by the Corporation during the three months ended March 31, 1996.
(b) Per common share data reflect the three-for-two split of the Corporation's Common Stock, effected in the form of a dividend, issued October 1, 1997, to stockholders of record as of September 15, 1997.
(c) The Corporation adopted Statement of Financial Accounting Standards No. 128, ''Earnings per Share'' (Statement No. 128), effective for financial statements issued for periods ending after December 15, 1997. In accordance with Statement No. 128, 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 which are solely related to employee stock options. The Corporation has no other common stock equivalents.
(d) Loan portfolio delinquency does not include loans held for securitization or securitized loans.
(e) Managed loans include the Corporation's loans held for securitization, loan portfolio, and securitized loans.
(f) Managed net interest margin is presented on a fully taxable equivalent basis.
SOURCE: MBNA Corporation
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