MBNA 2Q Profit Higher on Improved Credit

Forbes.com
07.22.2004

MBNA Corp., one of the largest U.S. credit card companies, on Thursday posted higher second-quarter earnings as the company saw fee income grow during a period of improved credit quality.

The company posted earnings of $660.3 million, or 51 cents per share, which was higher than the year-ago's $543.3 million, or 42 cents per share. The results came in higher than analyst expectations of 48 cents per share, according to Thomson First Call.

"We are pleased with our results so far this year, particularly in the areas of credit quality, fee income growth, and our continued investment in additional business development opportunities," said chief executive Bruce L. Hammonds in a statement.

The company said its provision for possible credit losses dropped some 27 percent to $251.6 million in the second quarter from the year-ago period - a move that demonstrates credit quality has improve this year. Further, the company added 2.5 million new card holder accounts in the second quarter.

MBNA shares were recently down 56 cents at $23.92 on the New York Stock Exchange.

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