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To: TRIIBoy who wrote (4092)	10/13/1998 5:24:00 PM
From: TradeOfTheDay	Read Replies (2) \| Respond to of 18998

Ahhhh... I knew I'd be glad I picked up those puts to go along wih my short position they are going down - if not tomorrow - within the next week and a half

To: TRIIBoy who wrote (4092)	10/13/1998 5:25:00 PM
From: Peter V	Respond to of 18998

Providian provides a positive spin: Tuesday October 13, 4:07 pm Eastern Time Company Press Release SOURCE: Providian Financial Corporation Providian Financial Corporation Announces a Record 70% Increase in Earnings Per Share in the Third Quarter SAN FRANCISCO, Oct. 13 /PRNewswire/ -- Providian Financial Corporation (NYSE: PVN - news) today announced third quarter 1998 net income of $82.6 million, a 70% increase over net income of $48.6 million for the third quarter of 1997. Diluted earnings per share increased by 70% to $0.85 for the quarter, compared to $0.50 for the third quarter of 1997. ''Providian's ability to deliver record earnings demonstrates the success of our business strategy, which has not changed since the Company was founded in 1981. With this time-tested strategy and our commitment to operational excellence, we have produced over twelve years of consistent and unwavering earnings growth, in a variety of external environments,'' said Shailesh Mehta, Chairman and Chief Executive Officer. ''I am optimistic about our ability to achieve 50% earnings per share growth in 1998 and 1999 for the following reasons: customers and revenue continue to grow steadily, credit trends in our core portfolio are stable and we are continuing to invest in future growth. I also feel confident in reaffirming our long-term earnings per share growth goal of 22-25%,'' Mr. Mehta stated. Total managed revenue, comprised of both fee- and spread-based revenue, grew by nearly 60% over third quarter 1997, to $625.0 million. Fee-based revenue increased by a substantial 120% over third quarter 1997 to $267.1 million, and represented 43% of total revenue. Rapid growth in Unbanked customers combined with an increasing penetration rate of proprietary fee-based product sales company-wide fueled this growth in revenue. Providian's net interest margin increased by 55 basis points over the second quarter of 1998, to 12.01%. That improvement, combined with a 24% increase in managed loans, resulted in a 32% increase in spread-based revenue over the third quarter of 1997, to $357.9 million. Providian Financial acquired over 1.1 million new account relationships in the quarter. This brings the total number of managed accounts to over 6.4 million, representing a 45% increase over the same period in 1997. The Company ranks among the country's ten largest bankcard issuers, with $11.8 billion in managed loans as of September 30, 1998, a 24% increase over the third quarter of 1997. The managed net credit loss rate, excluding the acquired portfolios, improved from the second quarter of 1998, reflecting continuing stable credit trends. For the third quarter of 1998, the managed net credit loss rate and managed 31+ day delinquency rate, including the acquired portfolios, were 7.8% and 5.3%, respectively. The Company increased loan loss reserves during the quarter by $53 million to $409 million as of September 30, 1998, or 8.2% of on-balance sheet loans. Capital and reserves totaled 21% of on-balance sheet assets and 10% of managed assets, both increases over the prior quarter, reflecting the strength of Providian's balance sheet.