0000870517-01-500044.txt : 20011019 0000870517-01-500044.hdr.sgml : 20011019 ACCESSION NUMBER: 0000870517-01-500044 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011011 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20011011 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MBNA CORP CENTRAL INDEX KEY: 0000870517 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 521713008 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10683 FILM NUMBER: 1757223 BUSINESS ADDRESS: STREET 1: 1100 N KING ST STREET 2: C/O MBNA AMERICA BANK NA CITY: WILMINGTON STATE: DE ZIP: 19884 BUSINESS PHONE: 8003626255 MAIL ADDRESS: STREET 1: 1100 NORTH KING STREET CITY: WILMINGTON STATE: DE ZIP: 19884 8-K 1 sep01press.txt 3RD QUARTER 2001 EARNINGS RELEASE UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 11, 2001 ------------------------- MBNA Corporation -------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Maryland 1-10683 52-1713008 -------------------------------------------------------------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) Wilmington, Delaware 19884-0141 -------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (800) 362-6255 ----------------------- -------------------------------------------------------------------------- (Former name or former address, if changed since last report.) Item 5. Other Events MBNA Corporation released earnings for the third quarter of 2001 on October 11, 2001, as filed in exhibit 99 under Item 7. Item 7. Financial Statements and Exhibits Exhibits Exhibit 99: Additional Exhibits Exhibit 99 MBNA CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (dollars in thousands, except per share amounts) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2001 2000 2001 2000 ------------------------------------------------------------------------------ (unaudited) INCOME STATEMENT DATA FOR THE PERIOD(a): Net interest income........ $ 343,229 $ 294,086 $ 964,886 $ 880,344 Provision for possible credit losses............. 242,222 113,283 654,372 302,430 Other operating income..... 1,805,988 1,307,098 4,843,740 3,576,631 Other operating expense.... 1,140,421 892,183 3,280,015 2,718,832 Net income............... 478,342 368,749 1,169,525 888,706 ------------------------------------------------------------------------------ PER COMMON SHARE DATA FOR THE PERIOD: Earnings(b)................ $ .56 $ .44 $ 1.36 $ 1.08 Earnings-assuming dilution(b)............... .54 .43 1.32 1.05 Dividends.................. .09 .08 .27 .24 Book value................. 8.44 7.13 ------------------------------------------------------------------------------ RATIOS: Return on average total assets.................... 4.58% 4.38% 3.93% 3.70% Return on average stockholders' equity...... 26.49 27.56 22.77 25.65 Average receivables to average deposits.......... 80.60 84.61 79.66 87.41 Stockholders' equity to total assets.............. 17.19 17.30 Loan Receivables: Delinquency(c)(d)........ 3.61 3.94 Net credit losses........ 3.00 2.19 2.94 2.19 Managed Loans: Delinquency(d)........... 4.23 4.65 Net credit losses........ 4.90 3.88 4.69 3.96 Net interest margin(e)... 8.57 7.10 8.21 7.10 ------------------------------------------------------------------------------ MBNA CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (dollars in thousands, except per share amounts) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2001 2000 2001 2000 ------------------------------------------------------------------------------ (unaudited) MANAGED LOAN DATA: At Period End: Loans held for securitization.......... $ 5,742,127 $ 6,991,585 Loan portfolio........... 13,308,652 11,053,165 Securitized loans........ 73,534,371 66,626,693 ----------- ----------- Total managed loans.... $92,585,150 $84,671,443 =========== =========== Average for the Period: Loans held for securitization.......... $ 6,841,400 $ 7,900,917 $ 6,681,262 $ 8,334,336 Loan portfolio........... 13,615,360 9,767,282 13,058,225 9,105,162 Securitized loans........ 71,395,990 60,120,484 69,976,101 57,190,189 ----------- ----------- ------------ ----------- Total managed loans.... $91,852,750 $77,788,683 $ 89,715,588 $74,629,687 =========== =========== ============ =========== For the Period: Sales and cash advance volume.................. $35,935,826 $31,449,996 $103,060,154 $90,809,143 ------------------------------------------------------------------------------- MANAGED INCOME STATEMENT DATA FOR THE PERIOD(f): Net interest income........ $ 2,120,066 $ 1,484,732 $ 5,889,477 $ 4,231,575 Provision for possible credit losses............. 1,213,529 770,936 3,377,370 2,234,247 Other operating income..... 1,000,458 774,105 2,642,147 2,157,217 Other operating expense.... 1,140,421 892,183 3,280,015 2,718,832 Net income............... 478,342 368,749 1,169,525 888,706 ------------------------------------------------------------------------------- MBNA CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (dollars in thousands, except per share amounts) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2001 2000 2001 2000 ------------------------------------------------------------------------------ (unaudited) BALANCE SHEET DATA AT PERIOD END: Investment securities and money market instruments.. $ 7,544,665 $ 5,599,474 Loans held for securitization............ 5,742,127 6,991,585 Credit card loans.......... 7,567,748 7,994,814 Other consumer loans....... 5,740,904 3,058,351 ----------- ----------- Total loans.............. 13,308,652 11,053,165 Reserve for possible credit losses............. (623,425) (428,925) ----------- ----------- Net loans................ 12,685,227 10,624,240 Total assets............... 43,089,574 36,344,519 Total deposits............. 25,634,526 21,594,846 Stockholders' equity....... 7,405,991 6,289,240 ------------------------------------------------------------------------------ AVERAGE BALANCE SHEET DATA: Investment securities and money market instruments.. $ 6,301,080 $ 5,484,148 $ 6,199,410 $ 4,976,387 Loans held for securitization............ 6,841,400 7,900,917 6,681,262 8,334,336 Credit card loans.......... 7,155,281 7,051,176 7,705,799 6,537,992 Other consumer loans....... 6,460,079 2,716,106 5,352,426 2,567,170 ----------- ----------- ----------- ----------- Total loans.............. 13,615,360 9,767,282 13,058,225 9,105,162 Reserve for possible credit losses............. (543,751) (375,600) (462,867) (367,033) ----------- ----------- ----------- ----------- Net loans................ 13,071,609 9,391,682 12,595,358 8,738,129 Total assets............... 41,412,393 33,457,198 39,778,936 32,101,022 Total deposits............. 25,381,715 20,880,994 24,779,702 19,950,421 Stockholders' equity....... 7,165,278 5,322,244 6,865,971 4,628,491 ------------------------------------------------------------------------------ MBNA CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (dollars in thousands, except per share amounts) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2001 2000 2001 2000 ------------------------------------------------------------------------------- (unaudited) Weighted average common shares outstanding (000)..................... 851,812 826,310 851,835 810,053 Weighted average common shares outstanding and common stock equivalents (000)..................... 875,139 854,672 877,084 835,213 ------------------------------------------------------------------------------- NOTES: (a) For purposes of comparability, certain prior period amounts have been reclassified. (b) 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. (c) Loan delinquency does not include loans held for securitization or securitized loans. (d) During September 2001, MBNA Corporation initiated measures to assist its Customers who were affected by the tragic events of September 11, 2001. This included assistance for Customers who may not have received their statement in a timely manner or may have had delivery of their payment delayed. The Corporation's actions postponed some Customer's accounts from becoming delinquent. As a result, the Corporation's managed and reported delinquency ratios were lower than their anticipated levels. Without these measures, the Corporation estimates that managed delinquency ratios would have been between 4.85% and 4.95% at September 30, 2001. Charged-off accounts were unaffected. (e) Managed net interest margin is presented on a fully taxable equivalent basis. (f) 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. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MBNA CORPORATION Date: October 11, 2001 By: /s/ M. Scot Kaufman ------------------------------- M. Scot Kaufman Senior Executive Vice President and Chief Financial Officer