-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A6BqlwZIm3nIviH1kevrv0WRDyPasHOmW7snuZvb2O9V2GD5D6aMtpJ0p6c3Ga2L 4opQYf2HyuU1BdQFMC2v9w== 0000354964-01-000006.txt : 20010420 0000354964-01-000006.hdr.sgml : 20010420 ACCESSION NUMBER: 0000354964-01-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010331 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOUSEHOLD INTERNATIONAL INC CENTRAL INDEX KEY: 0000354964 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 363121988 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08198 FILM NUMBER: 1605134 BUSINESS ADDRESS: STREET 1: 2700 SANDERS RD CITY: PROSPECT HEIGHTS STATE: IL ZIP: 60070 BUSINESS PHONE: 8475645000 MAIL ADDRESS: STREET 1: 2700 SANDERS ROAD CITY: PROSPECT HEIGHTS STATE: IL ZIP: 60070 8-K 1 0001.txt COVER FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report: April 18, 2001 HOUSEHOLD INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware 1-8198 36-3121988 (State or other (Commission File (IRS Employer jurisdiction of Number) Identification incorporation) Number) 2700 Sanders Road, Prospect Heights, Illinois 60070 (Address of principal executive offices) (Zip Code) (847) 564-5000 Registrant's telephone number, including area code Item 5. Other Events Press release pertaining to the financial results of Household International, Inc., for the first quarter ended March 31, 2001. Said release is filed as an exhibit hereto. In connection with the release by Household International of this information, Household will broadcast its first quarter earnings teleconference call live over the Internet on its website at www.household.com. The call will begin at 9:00 am Central Daylight Time on April 18, 2001. A replay will also be available shortly after the end of the call. Item 7. Financial Statements and Exhibits (a) Financial statements of businesses acquired. Not applicable. (b) Pro forma financial information. Not applicable. (c) Exhibits. No. Exhibit 99 Press release titled "Household Reports Record First Quarter Results; 11th Consecutive Record Quarter" dated April 18, 2001. SIGNATURE Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HOUSEHOLD INTERNATIONAL, INC. (Registrant) By: /s/ John W. Blenke John W. Blenke Assistant Secretary Dated: April 18, 2001 EX-99 2 0002.txt PRESS RELEASE Household Reports Record First Quarter Results; 11th Consecutive Record Quarter o Earnings Per Share Increase 17%, to $.91 o Net Income Rises 16%, to $432 Million o Receivables Up 17% Over First Quarter of '00 to $88 Billion Prospect Heights, IL, April 18, 2001 -- Household International (NYSE: HI) today reported that earnings per share rose 17 percent to a first quarter record of $.91, from $.78 a year ago. Net income increased to $431.8 million, up 16 percent from $372.9 million in the first quarter of 2000. This quarter marked the 11th consecutive quarter of record results. William F. Aldinger, Household's chairman and chief executive officer, said, "Our outstanding results reflect the sustainability and earnings power of our franchise. Receivables and revenues grew nicely in the quarter. At the same time, credit quality remained stable and we strengthened our balance sheet. We also repurchased 8.8 million shares in the quarter. "All of our businesses are performing well and have great momentum," Aldinger added. "Our tax refund lending business enjoyed a very successful tax season and exceeded our expectations. This business contributed $.15 to our first quarter earnings per share, an increase of 25 percent over the $.12 contribution in the year-ago quarter. "We are very comfortable with our ability to achieve our receivable and earnings per share growth targets for 2001." Aldinger concluded, " I look forward to another record year." Receivable Growth The company's managed portfolio totaled $88.4 billion, or 17 percent above the prior-year level, with all consumer products contributing to the year-over-year increase. Growth was strongest in the real estate secured portfolio, which was up 23 percent over the year-ago period. On a sequential basis, managed receivables grew $765 million, or an annualized 3.5 percent, as robust growth in the real estate secured portfolio offset the seasonal runoff in the company's credit card portfolios. Excluding the effect of foreign exchange translation, growth in the quarter was $1.2 billion, or an annualized 5.4 percent. Revenues Revenues increased over $316 million, or 15 percent, from a year ago led by higher receivable volume, higher fee income and increased tax refund anticipation loan revenues. Revenues, excluding securitization related revenues, rose 19.4 percent. Managed net interest margin of $1.8 billion increased 20 percent from the prior year due to strong receivable volume. Household's managed net interest margin percent equaled 8.22 percent compared to 8.31 percent a year ago and up from 8.01 percent in the fourth quarter of 2000. The company's first quarter net interest margin benefited from lower funding costs resulting from recent easing in monetary policy. Total other managed revenues, excluding securitization related revenues, rose 17.7 percent over the year-ago level. Insurance revenues increased 17.5 percent, primarily reflecting increased sales on a larger loan portfolio. Managed fee income increased $60 million, or 18 percent, compared to the first quarter of 2000, principally reflecting higher levels of credit card fees. Higher revenues from the company's tax refund lending business drove the 21 percent increase in other income. The company's risk adjusted revenue (managed net revenues less securitization revenues and chargeoffs) expanded to 8.11 percent from 7.82 percent a year ago. Operating Expenses Operating expenses increased 13 percent from a year ago, as the company invested in sales and collection personnel to support its growing portfolio. Household's efficiency ratio was 35.6 percent in the first quarter compared to 36.2 percent a year ago. Compared to the fourth quarter of 2000, operating expenses increased 18 percent, also reflecting the increased investment in sales and collection personnel, and sharply higher marketing expenses. This quarter's expense level also includes higher seasonal expenses related to the tax refund anticipation loan business. Credit Quality and Loss Reserves At March 31, the managed delinquency ratio (60+days) was 4.25 percent, compared to 4.43 percent a year ago and 4.20 percent at December 31, 2000. The annualized managed net chargeoff ratio for the first quarter was 3.56 percent, a 44 basis points improvement from the year-ago quarter and up modestly from 3.41 percent in the prior quarter. The company's credit loss reserves increased $146 million during the quarter. Managed credit loss reserves totaled over $3.3 billion at March 31, up $479 million from a year ago. The ratio of reserves-to-managed receivables was 3.78 percent at March 31, compared to 3.65 percent at the end of 2000 and 3.79 percent a year ago. Reserves-to-nonperforming loans were 107.6 percent at March 31 compared to 107.0 percent at December 31, 2000 and 105.9 percent a year ago. Capital The ratio of tangible equity to tangible managed assets improved to 7.54 percent at March 31, compared to 7.41 percent at December 31, 2000 and 6.94 percent a year earlier. In connection with its $2 billion share repurchase program, announced on March 9, 1999, Household bought back 8.8 million shares in the first quarter, totaling $398.3 million. During the first quarter the company entered into agreements with third parties to purchase, on a forward basis, approximately 780 thousand shares of common stock at a weighted average price of $55 per share. Notice of Live Webcast Household will broadcast its first quarter earnings teleconference call over the Internet on its website at www.household.com. The call will begin at 9:00 am Central Daylight Time on April 18, 2001. A replay will also be available shortly after the end of the call. Household's businesses are leading providers of consumer loans, credit cards, auto finance and credit insurance products in the United States, United Kingdom and Canada. In the United States, Household's largest business, founded in 1878, operates under the two oldest and most recognized names in consumer finance - HFC and Beneficial. Household is also one of the nation's largest issuers of private label and general purpose credit cards, including the GM Card and the AFL-CIO's Union Privilege card. For more information, visit the company's web site at www.household.com. This press release contains certain estimates and projections that may be forward-looking in nature, as defined by the Private Securities Litigation Reform Act of 1995. A variety of factors may cause actual results to differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference are discussed in Household International's Annual Report on Form 10-K, filed with the SEC. March 31, 2001 - Quarterly Highlights - ----------------------------------------------------------------------------- Summary Managed Income Statement Three Months Ended % Change from Prior --------------------------------------------- ($ millions) 3/31/01 12/31/00 3/31/00 Qtr. Year - ----------------------------------------------------------------------------- Managed-basis net interest margin and other revenues (1) $2,481.5 $2,434.7 $2,165.2 1.9% 14.6% Managed-basis provision for credit losses (1) 932.8 917.0 816.2 1.7 14.3 Operating expenses 883.1 748.9 783.5 17.9 12.7 - ----------------------------------------------------------------------------- Income before income taxes 665.6 768.8 565.5 (13.4) 17.7 Income taxes 233.8 276.1 192.6 (15.3) 21.4 - ----------------------------------------------------------------------------- Net income $ 431.8 $ 492.7 $ 372.9 (12.4)% 15.8% - ----------------------------------------------------------------------------- Common Stock Data - ------------------------------------------------------------------------------ Basic earnings per common share $ .92 $ 1.05 $ .79 (12.4)% 16.5% Diluted earnings per common share .91 1.03 .78 (11.7) 16.7 - ------------------------------------------------------------------------------- Average common shares (millions) 466.0 471.1 470.5 (1.1) (1.0) Average common and equivalent shares (millions) 472.0 476.1 474.0 (0.9) (0.4) - ------------------------------------------------------------------------------- Common stock price: High $ 62.00 $ 56.94 $ 39.19 8.9% 58.2% Low 52.00 43.88 29.50 18.5 76.3 Period end 59.24 55.00 37.31 7.7 58.8 - ------------------------------------------------------------------------------- Dividends declared per common share $ .19 $ .19 $ .17 -% 11.8% Book value per common share 17.23 16.88 14.78 2.1 16.6 - ------------------------------------------------------------------------------ Key Ratios - ------------------------------------------------------------------------------- Return on average common shareholders' equity 21.6% 25.4% 22.0% (15.0)% (1.8)% Return on average owned assets 2.21 2.61 2.37 (15.3) (6.8) Return on average managed assets 1.77 2.09 1.82 (15.3) (2.7) Managed efficiency ratio 35.6 30.8 36.2 15.6 (1.7) Managed net interest margin 8.22 8.01 8.31 2.6 (1.1) Total shareholders' equity as a percent of managed assets 9.24 9.07 8.94 1.9 3.4 Tangible equity to tangible managed assets 7.54 7.41 6.94 1.8 8.6 - ------------------------------------------------------------------------------- (1) To aid analysis, net interest margin, other revenues, and provision for credit losses are presented on a pro forma managed basis as if receivables securitized and sold with limited recourse were held in the portfolio. Policyholders' benefits have been netted against other revenues. Consolidated Statements of Income - Owned Basis
Three Months ----------------------------------------------------------------- Three Months Ended % Change from Prior ----------------------------------------------------------------- ($ millions) 3/31/01 12/31/00 3/31/00 Qtr. Year - --------------------------------------------------------------------------------------------------------------- Finance income and other interest income $ 2,430.3 $ 2,415.6 $ 1,924.9 0.6% 26.3% Interest expense 1,106.8 1,117.0 821.7 (0.9) 34.7 - --------------------------------------------------------------------------------------------------------------- Net interest margin 1,323.5 1,298.6 1,103.2 1.9 20.0 Provision for credit losses on owned receivables 703.6 574.8 522.1 22.4 34.8 - --------------------------------------------------------------------------------------------------------------- Net interest margin after provision for credit losses 619.9 723.8 581.1 (14.4) 6.7 - --------------------------------------------------------------------------------------------------------------- Securitization revenue 406.3 394.7 346.4 2.9 17.3 Insurance revenue 158.6 147.7 135.0 7.4 17.5 Investment income 41.8 47.0 40.8 (11.1) 2.5 Fee income 237.9 234.4 179.3 1.5 32.7 Other income 161.7 33.5 133.3 100+ 21.3 - --------------------------------------------------------------------------------------------------------------- Total other revenues 1,006.3 857.3 834.8 17.4 20.5 - --------------------------------------------------------------------------------------------------------------- Salaries and fringe benefits 377.6 355.5 302.1 6.2 25.0 Sales incentives 54.5 50.3 42.8 8.3 27.3 Occupancy and equipment expense 83.5 77.1 75.5 8.3 10.6 Other marketing expenses 135.2 104.3 133.1 29.6 1.6 Other servicing and administrative expenses 193.4 122.8 186.8 57.5 3.5 Amortization of acquired intangibles and goodwill 38.9 38.9 43.2 - (10.0) Policyholders' benefits 77.5 63.4 66.9 22.2 15.8 - --------------------------------------------------------------------------------------------------------------- Total costs and expenses 960.6 812.3 850.4 18.3 13.0 - --------------------------------------------------------------------------------------------------------------- Income before income taxes 665.6 768.8 565.5 (13.4) 17.7 Income taxes 233.8 276.1 192.6 (15.3) 21.4 - --------------------------------------------------------------------------------------------------------------- Net income 431.8 492.7 372.9 (12.4) 15.8 Preferred dividends (2.3) (2.3) (2.3) - - - --------------------------------------------------------------------------------------------------------------- Earnings available to common shareholders $ 429.5 $ 490.4 $ 370.6 (12.4)% 15.9% - --------------------------------------------------------------------------------------------------------------- Effective tax rate 35.1% 35.9% 34.1% (2.2)% 2.9%
Balance Sheet Data ($ millions) 3/31/01 12/31/00 3/31/00 - ------------------------------------------------------------------------------- Owned assets $78,253.3 $76,706.3 $64,991.4 Managed assets 97,820.3 96,955.8 84,248.7 Managed receivables 88,372.6 87,607.4 75,447.3 Debt 65,164.0 64,517.8 54,040.5 Trust originated preferred securities 875.0 675.0 375.0 Preferred stock 164.4 164.4 164.4 Common shareholders' equity 7,616.7 7,951.2 6,989.3 Total shareholders' equity as a percent of managed assets 9.24% 9.07% 8.94% Tangible equity to tangible managed assets 7.54 7.41 6.94 - -------------------------------------------------------------------------------
Consolidated Statements of Income - Managed Basis Securitizations and sales of consumer receivables are a source of liquidity for us. We continue to service the securitized receivables after such receivables are sold and we retain a limited recourse obligation. Securitizations impact the classification of revenues and expenses in the statement of operations. When reporting on a managed basis, net interest margin, provision for credit losses, fee income, and securitization related revenue related to receivables sold are reclassified from securitization revenue into the appropriate caption. Three Months -------------------------------------------------------------------------------- Three Months Ended % Change from Prior -------------------------------------------------------------------------------- ($ millions) 3/31/01 (1) 12/31/00 (1) 3/31/00 (1) Qtr. Year - -------------------------------------------------- ------------------------------------------------------------------- Finance and other interest income $3,246.8 14.58 % $ 3,183.5 14.78% $2,645.7 14.41% 2.0% 22.7% Interest expense 1,417.0 6.36 1,457.1 6.77 1,120.2 6.10 (2.8) 26.5 - ---------------------------------------------------------------------------------------------------------------------- Net interest margin 1,829.8 8.22 % 1,726.4 8.01% 1,525.5 8.31% 6.0 19.9 Provision for credit losses 932.8 917.0 816.2 1.7 14.3 - ---------------------------------------------------------------------------------------------------------------------- Net interest margin after provision for credit losses 897.0 809.4 709.3 10.8 26.5 - ---------------------------------------------------------------------------------------------------------------------- Insurance revenue 158.6 147.7 135.0 7.4 17.5 Investment income 41.8 47.0 40.8 (11.1) 2.5 Fee income 393.2 404.0 332.8 (2.7) 18.1 Securitization related revenue/(expense) (26.1) 139.5 64.7 (100)+ (100)+ Other income 161.7 33.5 133.3 100+ 21.3 - ---------------------------------------------------------------------------------------------------------------------- Total other revenues 729.2 771.7 706.6 (5.5) 3.2 Operating expenses and policyholders' benefits 960.6 812.3 850.4 18.3 13.0 - ---------------------------------------------------------------------------------------------------------------------- Income before income taxes 665.6 768.8 565.5 (13.4) 17.7 Income taxes 233.8 276.1 192.6 (15.3) 21.4 - ----------------------------------------------------------------------------- ---------------------------------------- Net income $ 431.8 $ 492.7 $ 372.9 (12.4)% 15.8% - ---------------------------------------------------------------------------------------------------------------------- Average managed receivables: Real estate secured $37,338.5 $ 35,934.4 $ 27,657.1 3.9% 35.0% Auto finance 4,682.9 4,455.4 3,194.4 5.1 46.6 MasterCard/Visa (2) 17,119.7 16,833.7 15,669.8 1.7 9.3 Private label 12,013.2 11,552.4 11,171.5 4.0 7.5 Other unsecured 16,366.9 15,880.1 13,885.0 3.1 17.9 Commercial and other 581.5 620.0 770.0 (6.2) (24.5) - ---------------------------------------------------------------------------------------------------------------------- Total 88,102.7 85,276.0 72,347.8 3.3 21.8 Average noninsurance investments 525.0 464.9 657.9 12.9 (20.2) Other interest-earning assets 448.5 442.5 426.0 1.4 5.3 - ---------------------------------------------------------------------------------------------------------------------- Average managed interest-earning assets $89,076.2 $ 86,183.4 $ 73,431.7 3.4% 21.3% - ----------------------------------------------------------------------------------------------------------------------
(1) % Columns: comparison to average managed interest-earning assets, annualized. (2) MasterCard and Visa are registered trademarks of MasterCard International, Incorporated and VISA USA Inc., respectively. Summary of Securitization Related Revenue/(Expense) Three Months Ended -------------------------------------- ($ millions) 3/31/01 12/31/00 3/31/00 - ----------------------------------------------------------------------------- Gross gains $ 105.9 $ 279.4 $ 164.4 Amortization (132.0) (139.9) (99.7) - ----------------------------------------------------------------------------- Securitization related revenue/(expense) (26.1) 139.5 64.7 Over-the-life provision on new transactions 79.7 217.3 122.0 - ----------------------------------------------------------------------------- Net effect of securitization activity $ (105.8) $ (77.8) $ (57.3) - ----------------------------------------------------------------------------- Receivables securitized $ 902.0 $2,793.4 $1,472.0 - ----------------------------------------------------------------------------- Household International, Inc. - ---------------------------------------------------------------------------- Receivables Analysis End of Period Managed Receivables - ------------------------------------------------------------------------------ % Change from Prior -------------------- ($ millions) 3/31/01 12/31/00 3/31/00 Qtr. Year - ------------------------------------------------------------------------------ Real estate secured $ 38,004.8 $ 36,637.5 $ 30,844.5 3.7% 23.2% Auto finance 4,800.8 4,563.3 3,403.2 5.2 41.1 MasterCard/Visa 16,570.2 17,583.4 15,512.3 (5.8) 6.8 Private label 11,875.4 11,997.3 11,007.6 (1.0) 7.9 Other unsecured 16,548.7 16,227.3 13,934.1 2.0 18.8 Commercial and other 572.7 598.6 745.6 (4.3) (23.2) - ------------------------------------------------------------------------------ Managed portfolio $ 88,372.6 $ 87,607.4 $ 75,447.3 0.9% 17.1% - ------------------------------------------------------------------------------ Receivables (% of Managed Portfolio) - --------------------------------------------------------------- Real estate secured 43.0% 41.8% 40.9% Auto finance 5.4 5.2 4.5 MasterCard/Visa 18.8 20.1 20.5 Private label 13.4 13.7 14.6 Other unsecured (1) 18.7 18.5 18.5 Commercial and other 0.7 .7 1.0 - --------------------------------------------------------------- Total 100.0% 100.0% 100.0% - ------------------------------------------------------------ End of Period Receivables ($ millions) - ------------------------------------------------------------------------------- Owned receivables: Real estate secured $ 36,686.8 $35,179.7 $ 28,816.0 4.3% 27.3% Auto finance 1,988.0 1,850.6 1,439.7 7.4 38.1 MasterCard/Visa 7,448.5 8,053.6 6,505.4 (7.5) 14.5 Private label 10,225.4 10,347.3 9,857.6 (1.2) 3.7 Other unsecured 11,884.2 11,328.1 8,825.7 4.9 34.7 Commercial and other 572.7 598.6 745.6 (4.3)(23.2) - ------------------------------------------------------------------------------ Total owned receivables 68,805.6 67,357.9 56,190.0 2.1 22.5 - ------------------------------------------------------------------------------ Accrued finance charges 1,322.5 1,302.6 957.5 1.5 38.1 Credit loss reserve for owned receivables (2,282.4) (2,111.9) (1,909.7) 8.1 19.5 Unearned credit insurance premiums and claims reserves (767.8) (725.2) (558.1) 5.9 37.6 Amounts due and deferred from receivables sales 2,342.5 2,420.6 2,367.7 (3.2) (1.1) Reserve for receivables serviced with limited recourse (1,057.8) (1,082.3) (951.4) (2.3) 11.2 - ------------------------------------------------------------------------------- Total owned receivables, net 68,362.6 67,161.7 56,096.0 1.8 21.9 - ------------------------------------------------------------------------------- Receivables serviced with limited recourse: Real estate secured 1,318.0 1,457.8 2,028.5 (9.6)(35.0) Auto finance 2,812.8 2,712.7 1,963.5 3.7 43.3 MasterCard/Visa 9,121.7 9,529.8 9,006.9 (4.3) 1.3 Private label 1,650.0 1,650.0 1,150.0 - 43.5 Other unsecured 4,664.5 4,899.2 5,108.4 (4.8) (8.7) - ------------------------------------------------------------------------------ Total receivables serviced with limited recourse 19,567.0 20,249.5 19,257.3 (3.4) 1.6 - -------------------------------------------------------------------------------- Total managed receivables, net $ 87,929.6 $ 87,411.2 $ 75,353.3 0.6% 16.7% - -------------------------------------------------------------------------------- (1) Personal homeowner loans are real estate secured loans that have been underwritten and priced as unsecured loans. Personal homeowner loans are included in the other unsecured line, and comprise 4.7% of Household's total managed portfolio at 3/31/01, 4.4% at 12/31/00, and 3.6% at 3/31/00. Credit Quality/Credit Loss Reserves Two-Months-and-Over Contractual Delinquency - ------------------------------------------------------------------------- As a percent of managed consumer receivables, excludes commercial. 3/31/01 12/31/00 3/31/00 - ------------------------------------------------------------------------- Real estate secured 2.61% 2.63% 2.99% Auto finance 1.79 2.55 1.52 MasterCard/Visa 3.68 3.49 3.06 Private label 5.50 5.48 5.94 Other unsecured 8.37 7.97 8.56 - ------------------------------------------------------------------------- Total 4.25% 4.20% 4.43% - ------------------------------------------------------------------------- Quarter-to-Date Chargeoffs, Net of Recoveries - ------------------------------------------------------------------------- As a percent of average managed consumer receivables, annualized, excludes commercial. - ------------------------------------------------------------------------- Real estate secured .44% .41% .52% Auto finance 5.15 5.22 5.25 MasterCard/Visa 6.27 5.83 5.69 Private label 5.08 5.06 5.65 Other unsecured 6.27 5.92 7.41 - ------------------------------------------------------------------------- Total 3.56% 3.41% 4.00% - ------------------------------------------------------------------------- Nonperforming Assets ($ millions) - ------------------------------------------------------------------------- Nonaccrual managed receivables $2,200.6 $2,112.3 $1,934.2 - ------------------------------------------------------------------------- Accruing managed receivables 90 or more days delinquent 891.5 859.8 755.0 - ------------------------------------------------------------------------- Renegotiated commercial loans 12.3 12.3 12.3 - ------------------------------------------------------------------------- Total nonperforming managed receivables 3,104.4 2,984.4 2,701.5 Real estate owned 350.2 337.1 301.0 - ------------------------------------------------------------------------- Total nonperforming assets $ 3,454.6 $3,321.5 $3,002.5 - ------------------------------------------------------------------------- Managed credit loss reserves as a percent of nonperforming managed receivables 107.6% 107.0% 105.9% - -------------------------------------------------------------------------
Credit Loss Reserves - ------------------------------------------------------------------------------------------------ ($ millions) 3/31/01 12/31/00 3/31/00 - ------------------------------------------------------------------------------------------------ Reserves for owned receivables at beginning of quarter $ 2,111.9 $ 2,009.2 $ 1,757.0 Provision for credit losses 703.6 574.8 522.1 Chargeoffs, net of recoveries (531.5) (490.3) (482.2) Other, net (1.6) 18.2 112.8 - ------------------------------------------------------------------------------------------------ Reserves for owned receivables at end of quarter 2,282.4 3.32%(1) 2,111.9 3.14%(1) 1,909.7 3.40%(1) - ------------------------------------------------------------------------------------------------ Credit loss reserves for receivables serviced with limited recourse at beginning of quarter 1,082.3 976.8 909.6 Provision for credit losses 229.2 342.2 294.1 Chargeoffs, net of recoveries (248.1) (231.6) (249.8) Other, net (5.6) (5.1) (2.5) - ------------------------------------------------------------------------------------------------ Credit loss reserves for receivables serviced with limited recourse at end of quarter 1,057.8 5.41%(1) 1,082.3 5.34%(1) 951.4 4.94%(1) - ------------------------------------------------------------------------------------------------ Total managed credit loss reserves at end of quarter $ 3,340.2 3.78%(1) $3,194.2 3.65%(1)$2,861.1 3.79%(1) - ------------------------------------------------------------------------------------------------ (1) % Columns: comparisons to appropriate receivables.
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