8-K

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) July 29, 2008

Advanta Corp.

(Exact name of registrant as specified in its charter)

Delaware	0-14120	23-1462070
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Welsh & McKean Roads, P.O. Box 844, Spring House, Pennsylvania	19477
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (215) 657-4000

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

The information in this Current Report on Form 8-K is to be considered “filed” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  

On July 29, 2008, Advanta Corp. (the “Company”) issued a press release describing its results for the quarter ended June 30, 2008.  A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

On July 29, 2008 at 9:00 a.m. Eastern time, Company management also will hold a conference call, publicly announced in its press release dated July 2, 2008.  The call will be broadcast for the public simultaneously over the Internet through www.advanta.com or www.investorcalendar.com. Replays of the call are available on both sites for 90 days from the date of the call.

This Current Report on Form 8-K contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ from those projected.  Risks that may affect the Company’s future performance are detailed in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.

Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits.

(c)	Exhibits.
The following exhibit relating to Item 2.02 shall be deemed “filed” under the Exchange Act:
99.1	Press Release issued July 29, 2008 regarding financial results for the quarter ended June 30, 2008.

SIGNATURES

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 hereunto duly authorized.

		Advanta Corp.
		(Registrant)
Date:	July 29, 2008	By:	/s/ Jay Dubow
			Jay A. Dubow, Chief Administrative
			Officer, Senior Vice President, Secretary
			and General Counsel

EXHIBIT INDEX

Exhibit	Description	Method of Filing
99.1	Press release issued July 29, 2008 regarding financial results for the quarter ended June 30, 2008	Filed herewith

EX-99.1

Exhibit 99.1

Advanta Reports Second Quarter 2008 Earnings

SPRING HOUSE, Pa.--(BUSINESS WIRE)--Advanta Corp. (NASDAQ:ADVNB; ADVNA) today reported second quarter 2008 net income of $4.0 million or $0.10 per diluted share for Class A and Class B shares combined. These results include an $0.18 per share after-tax gain associated with the sale of a portion of the Company’s MasterCard shares and a $0.06 per share after-tax charge to increase credit reserves for owned receivables.

At the end of the quarter, managed and owned receivables totaled $6.1 billion and $851 million, respectively. Consistent with the Company’s prior comments about new customer expectations, the Company added about 26,000 new customers in the quarter. Customer transaction volume totaled $3.5 billion of which almost 90% related to merchandise sales activity.

Managed and owned net credit loss rates for the quarter were 8.38% and 8.87%, respectively.

“The quarter’s results are obviously not what we would like to see. All of us at the company are focused on returning to robust earnings and returns for our shareholders,” said Dennis Alter, Chairman and CEO.

Conference Call Details

Advanta management will hold a conference call with analysts and institutional investors today, July 29, at 9:00 a.m. Eastern Time, to review the second quarter results for 2008. The call can be accessed by dialing 877-874-1570 and referring to confirmation code 8417100. The call will also be webcast simultaneously via a Vcall link on the Company’s website, www.advanta.com, or at www.investorcalendar.com. Those interested in listening to the webcast should go to the website at least 10 minutes before the call to register and download any necessary software. Replays of the call will be available beginning at noon today on the Internet at www.advanta.com or www.investorcalendar.com or by dialing 888-203-1112 and referring to pass code 8417100. The conference call may include a discussion of non-GAAP financial measures, which are reconciled to the most directly comparable GAAP financial measures in the Company’s press releases or the statistical supplements available at www.advanta.com in the “Corporate Info” section.

About Advanta

Advanta is one of the nation’s largest credit card issuers (through Advanta Bank Corp.) in the small business market today. Advanta’s exclusive focus on this market as well as its size, experience, and commitment to developing meaningful product offerings and a high level of service tailored to the needs of small businesses differentiates the company from other issuers. Founded in 1951, Advanta has long been an innovator in developing and introducing many of the marketing techniques that are common in the financial services industry today. Learn more about Advanta at www.advanta.com.

This Press Release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ from those projected. Risks that may affect the Company’s future performance are detailed in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.

In addition to the GAAP results provided throughout this document, the Company has provided managed receivable data and other non−GAAP financial measurements. Management believes that the non-GAAP financial measures used to manage the business may provide users additional useful information. The tables attached to this press release include a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and a description of why the non-GAAP financial measures are useful to investors.

ADVANTA
SEGMENT INCOME STATEMENT - QUARTER
(in thousands)
Three Months Ended
June 30, 2008
		Advanta
		Business
		Cards			Other (A)			Total
Interest income	$	47,227		$	8,042		$	55,269
Interest expense		21,828			8,209			30,037
Net interest income		25,399			(167	)		25,232
Provision for credit losses		30,295			32			30,327
Net interest income after provision for credit losses		(4,896	)		(199	)		(5,095	)
Noninterest revenues:
Interchange income		70,627			0			70,627
Securitization income		4,608			0			4,608
Servicing revenues		24,365			0			24,365
Business credit card rewards		(23,026	)		0			(23,026	)
Other revenues, net		17,409			340			17,749
Total noninterest revenues		93,983			340			94,323
Operating expenses		81,613			139			81,752
Income before income taxes		7,474			2			7,476
Income tax expense		3,151			310			3,461
Net income (loss)	$	4,323		$	(308	)	$	4,015
Three Months Ended
June 30, 2007
		Advanta
		Business
		Cards			Other (A)			Total
Interest income	$	38,655		$	8,903		$	47,558
Interest expense		13,149			10,484			23,633
Net interest income		25,506			(1,581	)		23,925
Provision for credit losses		11,806			0			11,806
Net interest income after provision for credit losses		13,700			(1,581	)		12,119
Noninterest revenues:
Interchange income		62,130			0			62,130
Securitization income		22,766			0			22,766
Servicing revenues		22,541			0			22,541
Business credit card rewards		(21,353	)		0			(21,353	)
Other revenues, net		4,653			2,566			7,219
Total noninterest revenues		90,737			2,566			93,303
Operating expenses		68,613			164			68,777
Income before income taxes		35,824			821			36,645
Income tax expense		13,619			314			13,933
Income from continuing operations		22,205			507			22,712
Gain on discontinuance of mortgage and leasing businesses, net of tax		0			1,022			1,022
Net income	$	22,205		$	1,529		$	23,734

____________________

(A) Other includes investment and other activities not attributable to the Advanta Business Cards segment.

ADVANTA
EARNINGS AND COMMON STOCK DATA
(in thousands, except per share data)
		Three Months Ended								Percent Change From
		June 30,			Mar. 31,			June 30,		Prior			Prior
		2008			2008			2007		Quarter			Year
Basic income from continuing operations per common share:
Class A	$	0.06		$	0.42		$	0.52		(85.7	)	%	(88.5	)	%
Class B		0.12			0.47			0.56		(74.5	)		(78.6	)
Combined (A)		0.10			0.45			0.55		(77.8	)		(81.8	)
Diluted income from continuing operations per common share:
Class A	$	0.06		$	0.41		$	0.50		(85.4	)	%	(88.0	)	%
Class B		0.11			0.45			0.51		(75.6	)		(78.4	)
Combined (A)		0.10			0.44			0.51		(77.3	)		(80.4	)
Basic net income per common share:
Class A	$	0.06		$	0.42		$	0.55		(85.7	)	%	(89.1	)	%
Class B		0.12			0.47			0.59		(74.5	)		(79.7	)
Combined (A)		0.10			0.45			0.57		(77.8	)		(82.5	)
Diluted net income per common share:
Class A	$	0.06		$	0.41		$	0.52		(85.4	)	%	(88.5	)	%
Class B		0.11			0.45			0.54		(75.6	)		(79.6	)
Combined (A)		0.10			0.44			0.53		(77.3	)		(81.1	)
Return on average common equity (annualized)		2.68	%		12.34	%		16.01	%	(78.3	)	%	(83.3	)	%
Weighted average common shares used to compute:
Basic earnings per common share
Class A		13,380			13,368			13,331		0.1		%	0.4		%
Class B		27,142			27,022			28,039		0.4			(3.2	)
Total		40,522			40,390			41,370		0.3			(2.0	)
Diluted earnings per common share
Class A		13,380			13,368			13,331		0.1		%	0.4		%
Class B		28,629			28,243			31,343		1.4			(8.7	)
Total		42,009			41,611			44,674		1.0			(6.0	)
Ending shares outstanding:
Class A		14,410			14,410			14,410		0.0		%	0.0		%
Class B		31,236			28,748			29,014		8.7			7.7
Total		45,646			43,158			43,424		5.8			5.1
Stock price:
Class A
High	$	9.36		$	9.22		$	31.47		1.5		%	(70.3	)	%
Low		5.43			5.31			26.09		2.3			(79.2	)
Closing		5.49			5.98			28.40		(8.2	)		(80.7	)
Class B
High	$	10.63		$	10.52		$	34.51		1.0		%	(69.2	)	%
Low		6.25			6.10			28.57		2.5			(78.1	)
Closing		6.29			7.03			31.14		(10.5	)		(79.8	)
Cash dividends declared:
Class A	$	0.1771		$	0.1771		$	0.1771		0.0		%	0.0		%
Class B		0.2125			0.2125			0.2125		0.0			0.0
Book value per common share	$	14.48		$	14.66		$	14.30		(1.2	)	%	1.3		%

____________________

(A) Combined represents income available to common stockholders divided by the combined total of Class A and Class B weighted average common shares outstanding.

ADVANTA
ADVANTA BUSINESS CARDS STATISTICS
($ in thousands)
	Three Months Ended											Percent Change From
		June 30,				Mar. 31,				June 30,		Prior			Prior
		2008				2008				2007		Quarter			Year
New account originations		26,269				67,094				102,937		(60.8	)	%	(74.5	)	%
Average number of active accounts (A)		939,700				956,100				894,610		(1.7	)		5.0
Ending number of accounts		1,305,288				1,331,496				1,255,557		(2.0	)		4.0
Customer transaction volume:
Merchandise sales	$	3,055,484			$	2,839,494			$	2,862,965		7.6			6.7
Balance transfers		121,752				238,337				495,108		(48.9	)		(75.4	)
Cash usage		294,475				360,282				334,707		(18.3	)		(12.0	)
Total customer transaction volume		3,471,711				3,438,113				3,692,780		1.0			(6.0	)
Securitization volume increase (decrease) excluding replenishment sales	$	(83,687	)		$	(13,787	)		$	405,000		507.0			N/M
Average receivables:
Owned	$	1,164,748			$	999,130			$	1,248,235		16.6			(6.7	)
Securitized		5,063,349				5,350,034				4,581,666		(5.4	)		10.5
Managed (B)		6,228,097				6,349,164				5,829,901		(1.9	)		6.8
Ending receivables:
Owned	$	850,925			$	966,145			$	1,133,198		(11.9	)		(24.9	)
Securitized		5,225,773				5,303,936				4,856,001		(1.5	)		7.6
Managed (B)		6,076,698				6,270,081				5,989,199		(3.1	)		1.5
Operating expense ratio (C)		5.24		%		4.72		%		4.71	%	11.0			11.3
CREDIT QUALITY - OWNED
Receivables 30 days or more delinquent	$	49,894			$	51,900			$	27,115
Receivables 90 days or more delinquent		25,001				24,028				13,466
As a percentage of receivables:
Receivables 30 days or more delinquent		5.86		%		5.37		%		2.39	%	9.1		%	145.2		%
Receivables 90 days or more delinquent		2.94				2.49				1.19		18.1			147.1
Net principal charge-offs:
Amount	$	25,819			$	16,306			$	9,556
As a percentage of average receivables (annualized)		8.87		%		6.53		%		3.06	%	35.8			189.9
CREDIT QUALITY - SECURITIZED
Receivables 30 days or more delinquent	$	294,432			$	280,208			$	136,468
Receivables 90 days or more delinquent		145,715				130,436				68,424
As a percentage of receivables:
Receivables 30 days or more delinquent		5.63		%		5.28		%		2.81	%	6.6		%	100.4		%
Receivables 90 days or more delinquent		2.79				2.46				1.41		13.4			97.9
Net principal charge-offs:
Amount	$	104,638			$	85,753			$	41,115
As a percentage of average receivables (annualized)		8.27		%		6.41		%		3.59	%	29.0			130.4
CREDIT QUALITY - MANAGED (B)
Receivables 30 days or more delinquent	$	344,326			$	332,108			$	163,583
Receivables 90 days or more delinquent		170,716				154,464				81,890
As a percentage of receivables:
Receivables 30 days or more delinquent		5.67		%		5.30		%		2.73	%	7.0		%	107.7		%
Receivables 90 days or more delinquent		2.81				2.46				1.37		14.2			105.1
Net principal charge-offs:
Amount	$	130,457			$	102,059			$	50,671
As a percentage of average receivables (annualized)		8.38		%		6.43		%		3.48	%	30.3			140.8

____________________

(A) Active accounts are defined as accounts with a balance at month-end. Active account statistics do not include charged-off accounts. The statistics reported above are the average number of active accounts for the periods presented.

(B) Managed statistics are non-GAAP financial measures and represent the sum of owned (GAAP) business credit card statistics and securitized business credit card statistics. We believe that performance on a managed basis provides useful supplemental information to investors because we retain interests in the securitized receivables and, therefore, we have a financial interest in and exposure to the performance of the securitized receivables.

(C) Operating expense ratio is annualized and calculated as a percentage of average owned and securitized receivables.

N/M - Not Meaningful

CONTACT:
Advanta Corp.
Amy B. Holderer
Vice President, Investor Relations
215-444-5335
aholderer@advanta.com
or
David M. Goodman
Vice President, Communications
215-444-5073
dgoodman@advanta.com