MBNA Corporation announced that net income for the first quarter of 2004 rose to $519.7 million or $.40 per common share, an increase of 21%, compared with $432.5 million or $.33 per common share for the first quarter of 2003.
Loan receivables at March 31, 2004 were $30.1 billion, an increase of $2.7 billion over the first quarter of 2003. Total managed loans at March 31, 2004 were $117.6 billion, an increase of $11.5 billion or 11% over the first quarter of 2003. Retail sales and cash advance volume increased 15% over the first quarter of 2003.
The Corporation added 2.5 million new accounts during the first quarter of 2004. The characteristics of new cardholders are consistent with the quality of the Corporation’s existing cardholders. New endorsements acquired in the first quarter of 2004 include A.G. Edwards & Sons, The Timberland Company, National Fish and Wildlife Foundation, Reserve Officers Association of the U.S., American Nurses Association of California, Scarborough Building Society (U.K.), Rotary International (Spain), Viajes Marsans (Spain), Canadian Parks and Wilderness Society (CPAWS), and Universite de Laval (Canada). The Corporation also renewed a number of group contracts during the first quarter of 2004, including American College of Physicians, Golf Digest, American Society of Civil Engineers, St. Louis Cardinals, National Lawyers Association, Pennsylvania State Nurses Association, and Johns Hopkins Alumni Association. Losses on loan receivables and managed loans for the first quarter of 2004 were 4.45% and 4.99%, respectively. Loan losses continue to be lower than published industry levels. Delinquency on the loan receivables and managed loans was 3.39% and 4.27%, respectively, at March 31, 2004.
MBNA made several significant announcements during the first quarter of 2004. The Corporation announced that it entered into a partnership with American Express to issue American Express branded credit cards that will be accepted on American Express’ global merchant network. Also in the first quarter, MBNA announced the acquisitions of Premium Credit Limited, an insurance premium financing company in the U.K., and Sky Financial Solutions, a medical practice financing company in the U.S.
About MBNA Corporation
MBNA (NYSE: KRB), the largest independent credit card lender in the world and the recognized leader in affinity marketing, is an international financial services company providing lending, deposit, and credit insurance products and services to more than 50 million Customers. MBNA credit cards and related products and services are endorsed by more than 5,000 organizations worldwide. MBNA employs more than 29,000 people, each of whom is committed to satisfying the Customer.
For more details on MBNA’s first quarter results visit CardData ([www.carddata.com]).