8-K 1 pr32002.txt 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) April 11, 2002 ------------------------- 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 three months ended March 31, 2002 on April 11, 2002, 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 Ended March 31, 2002 2001 ------------------------------------------------------------------------------ (unaudited) INCOME STATEMENT DATA FOR THE PERIOD(a): Net interest income................................ $ 513,276 $ 355,134 Provision for possible credit losses............... 359,393 218,840 Other operating income............................. 1,596,266 1,453,343 Other operating expense............................ 1,166,695 1,091,151 Net income....................................... 369,910 311,055 ------------------------------------------------------------------------------ PER COMMON SHARE DATA FOR THE PERIOD: Earnings(b)........................................ $ .43 $ .36 Earnings-assuming dilution(b)...................... .42 .35 Dividends.......................................... .10 .09 Book value......................................... 8.89 7.69 ------------------------------------------------------------------------------ RATIOS: Return on average total assets..................... 3.30% 3.26% Return on average stockholders' equity............. 19.42 19.12 Average receivables to average deposits............ 87.87 76.93 Stockholders' equity to total assets............... 16.74 17.22 Loan Receivables: Delinquency(c)(d)................................ 4.48 3.58 Net credit losses(a)(d).......................... 4.76 4.06 Managed Loans: Delinquency(d)................................... 4.97 4.60 Net credit losses(d)............................. 5.00 4.35 Net interest margin(e)........................... 8.84 7.71 ------------------------------------------------------------------------------ MBNA CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (dollars in thousands, except per share amounts) For the Three Months Ended March 31, 2002 2001 ------------------------------------------------------------------------------ (unaudited) MANAGED LOAN DATA: At Period End: Loans held for securitization.................... $ 8,202,513 $ 6,666,017 Loan portfolio................................... 14,591,952 12,404,928 Securitized loans................................ 72,566,991 68,844,064 ------------ ------------ Total managed loans............................ $ 95,361,456 $ 87,915,009 ============ ============ Average for the Period: Loans held for securitization.................... $ 9,160,373 $ 6,837,225 Loan portfolio................................... 14,773,432 11,911,022 Securitized loans................................ 72,361,802 69,237,079 ------------ ------------ Total managed loans............................ $ 96,295,607 $ 87,985,326 ============ ============ For the Period: Sales and cash advance volume.................... $ 35,165,606 $ 31,798,235 ------------------------------------------------------------------------------ MANAGED INCOME STATEMENT DATA FOR THE PERIOD(a): Net interest income................................ $ 2,275,073 $ 1,787,777 Provision for possible credit losses............... 1,278,908 986,563 Other operating income............................. 753,984 788,423 Other operating expense............................ 1,166,695 1,091,151 Net income....................................... 369,910 311,055 ------------------------------------------------------------------------------ MBNA CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (dollars in thousands, except per share amounts) For the Three Months Ended March 31, 2002 2001 ------------------------------------------------------------------------------ (unaudited) BALANCE SHEET DATA AT PERIOD END(a): Investment securities and money market instruments....................................... $ 9,246,868 $ 5,668,487 Loans held for securitization...................... 8,202,513 6,666,017 Credit card loans.................................. 8,008,537 8,063,346 Other consumer loans............................... 6,583,415 4,341,582 ------------ ------------ Total loans...................................... 14,591,952 12,404,928 Reserve for possible credit losses................. (908,186) (565,700) ------------ ------------ Net loans........................................ 13,683,766 11,839,228 Total assets....................................... 46,510,495 39,263,281 Total deposits..................................... 27,207,875 24,185,871 Stockholders' equity............................... 7,786,211 6,760,981 ------------------------------------------------------------------------------ AVERAGE BALANCE SHEET DATA(a): Investment securities and money market instruments....................................... $ 8,081,258 $ 6,120,959 Loans held for securitization...................... 9,160,373 6,837,225 Credit card loans.................................. 8,157,111 7,744,128 Other consumer loans............................... 6,616,321 4,166,894 ------------ ------------ Total loans...................................... 14,773,432 11,911,022 Reserve for possible credit losses................. (878,806) (530,798) ------------ ------------ Net loans........................................ 13,894,626 11,380,224 Total assets....................................... 45,397,932 38,647,395 Total deposits..................................... 27,238,338 24,369,752 Stockholders' equity............................... 7,723,375 6,597,332 ------------------------------------------------------------------------------ MBNA CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (dollars in thousands, except per share amounts) For the Three Months Ended March 31, 2002 2001 ------------------------------------------------------------------------------ (unaudited) Weighted average common shares outstanding (000)... 851,996 851,840 Weighted average common shares outstanding and common stock equivalents (000).................... 874,049 878,402 ------------------------------------------------------------------------------ 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 and director stock options. MBNA Corporation has no other common stock equivalents. (c) Loan delinquency does not include loans held for securitization or securitized loans. (d) As reported in September 2001, MBNA Corporation initiated measures to assist its Customers who were affected by the tragic events of September 11, 2001. These measures provided assistance for Customers who were not delinquent and may not have received their statement in a timely manner or may have had delivery of their payment delayed. These measures did not affect accounts already reported as delinquent. MBNA Corporation's charge-off policy was unaffected. MBNA Corporation's actions postponed some Customers' accounts from becoming delinquent for 30 days and, subsequently, without these measures some accounts that would have charged off in February 2002 charged off in March 2002. The delinquency ratios at March 31, 2002 and the net credit loss ratios for the three months ended March 31, 2002 were unaffected by these measures. The effect of these measures concluded in March 2002 and will not impact the net credit loss and delinquency ratios thereafter. (e) Managed net interest margin is presented on a fully taxable equivalent basis. 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: April 11, 2002 By: /s/ M. Scot Kaufman ------------------------------- M. Scot Kaufman Senior Executive Vice President and Chief Financial Officer