MBNA'S Annual Report

MBNA Corp. had another good year in 1999. It continued to rely heavily on serving and developing affinity groups for its credit card. More than 4,500 organizations in the U.S., Canada and United Kingdom endorsed MBNA products to their members. Professional societies, such as dental associations, bar and medical associations account for about $16 billion in outstandings. Recently, MBNA has had a growing success in marketing its credit card over web sites of some of its affinity groups.

Net income for 1999 reached $1.024 billion, up 13.3 percent from the previous year. Return on average total assets was 3.62 percent, up from 3.38 percent in 1998. A lower yield of 55 basis points on loan receivables was offset by a $2.5 billion increase in loan receivables. The net interest margin on managed receivables remained remarkably stable over the past three years, ranging from 4.50 percent to 4.74 percent. MBNA gained more rapidly in foreign markets than in the U.S. Credit card receivables in the U.S. rose 42 percent to almost $13 billion during the year, whereas foreign receivables increased 64.7 percent to $2.4 billion.

The accompanying table shows that 30 to 89 day delinquencies declined from 1998 through 1999, although it should be noted that rising outstandings tend to moderate delinquency percentages.