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) October 30, 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 (the “Form 8-K”) is to be considered “filed” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  

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

On October 30, 2008 at 9:00 a.m. Eastern time, Company management also will hold a conference call (the “Conference Call”), publicly announced in its press release dated October 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 12 months 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.  The most significant of these risks and uncertainties are: (1) the impact of litigation, including judgments, settlements and actual or anticipated insurance recoveries for costs or judgments, as well as the impact of indemnification or other obligations for losses associated with litigation due to the Company’s status as a member of Visa USA; (2) the impact of the Emergency Economic Stabilization Act or other related legislative and regulatory developments, including heightened regulatory scrutiny, practices, requirements or expectations; (3) difficulties achieving expected operating cost reductions due to, among other things, operational delays associated with new systems and processes, changes in personnel, changes in timing for our plans for implementation of our outsourcing initiatives and changes in the estimated timing for completion of a reduction in workforce; and (4) the effect of legal and regulatory developments relating to the legality of certain business methods, practices and policies of credit card issuers, including restrictions and limitations imposed by banking laws, regulators and examinations.  Additional 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 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 October 30, 2008 regarding financial results for the quarter ended September 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:	October 30, 2008	By:	/s/ Jay A. 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 October 30, 2008	Filed herewith
	regarding financial results for
	the quarter ended September 30, 2008

EX-99.1

Exhibit 99.1

Advanta Reports Third Quarter 2008 Results

SPRING HOUSE, Pa.--(BUSINESS WIRE)--October 30, 2008--Advanta Corp. (NASDAQ:ADVNB; ADVNA) today reported a third quarter 2008 net loss of $17.6 million dollars or $0.43 per diluted share for Class A and Class B shares combined. The loss per share includes $0.33 per share of balance sheet charges and reserve build related to recent credit trends and wider market credit spreads. The Company also had a non-recurring $0.18 per share rewards charge, and extra costs during the ramp-up period of its offshoring initiative which is expected to reap substantial on-going cost benefits in the future. Partially offsetting these items was a $0.07 per share gain related to the sale of the remaining portion of the Company’s MasterCard shares.

Other noteworthy items for the quarter include:

• Cash and liquid investments totaling $1.8 billion at quarter end or 32% of aggregate owned and securitized receivables.
• Advanta Bank Corp. total risk-based and Tier 1 capital ratios of 24.5% and 22.3%, respectively.
• Advanta Corp. equity together with subordinated debt for trust preferred securities to managed receivables of 12.0% and to owned receivables of 92.3%.
• Business Cards ending managed receivables of $5.6 billion and owned receivables of $0.7 billion.
• Business Cards managed net interest yield of 11.46% and owned net interest yield of 8.24%.
• Customer transaction volume of $3.3 billion, 89% of which was merchandise sales volume.
• Business Cards managed net credit loss rate of 10.0% and owned net credit loss rate of 10.6%.
• The reported results do not include an estimated $1.6 million pretax charge for its portion of the recent settlement between Visa and Discover.

“This economy has dealt small business owners a tough hand,” said Dennis Alter, Chairman and CEO. “Not only are consumers spending less money with them, but their options for funding business inventories and obligations have shrunk. Although this has flowed through to us in the form of rising credit losses, our balance sheet is strong and we continue to manage through this uncertain economy.”

Conference Call Details

Advanta management will hold a conference call with analysts and institutional investors today, October 30, at 9:00 a.m. Eastern Time, to review the third quarter results for 2008. The call can be accessed by dialing 877-718-5095 and referring to confirmation code 2541931. At the same time, the call will be webcast via a Vcall link on Advanta’s website or at www.investorcalendar.com. Those interested in listening to the webcast should go to the website at least ten minutes before the call to register and download any necessary software. Beginning at about 11:00 this morning, a replay of the call will be available on the Internet at the same sites as the original webcast. 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 also available on the Company’s website.

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. The most significant of these risks and uncertainties are: (1) the impact of litigation, including judgments, settlements and actual or anticipated insurance recoveries for costs or judgments, as well as the impact of indemnification or other obligations for losses associated with litigation due to the Company’s status as a member of Visa USA; (2) the impact of the Emergency Economic Stabilization Act or other related legislative and regulatory developments, including heightened regulatory scrutiny, practices, requirements or expectations; (3) difficulties achieving expected operating cost reductions due to, among other things, operational delays associated with new systems and processes, changes in personnel, changes in timing for our plans for implementation of our outsourcing initiatives and changes in the estimated timing for completion of a reduction in workforce; and (4) the effect of legal and regulatory developments relating to the legality of certain business methods, practices and policies of credit card issuers, including restrictions and limitations imposed by banking laws, regulators and examinations. Additional 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
September 30, 2008
		Advanta
		Business
		Cards			Other (A)			Total
Interest income	$	40,362		$	10,647		$	51,009
Interest expense		18,301			10,440			28,741
Net interest income		22,061			207			22,268
Provision for credit losses		29,001			(7	)		28,994
Net interest income (loss) after provision for credit losses		(6,940	)		214			(6,726	)
Noninterest revenues:
Interchange income		67,822			0			67,822
Securitization income (loss)		(8,673	)		0			(8,673	)
Servicing revenues		24,483			0			24,483
Business credit card rewards		(38,297	)		0			(38,297	)
Other revenues, net		7,737			(36	)		7,701
Total noninterest revenues		53,072			(36	)		53,036
Operating expenses		80,160			140			80,300
Income (loss) before income taxes		(34,028	)		38			(33,990	)
Income tax benefit		(7,983	)		(8,386	)		(16,369	)
Net income (loss)	$	(26,045	)	$	8,424		$	(17,621	)
Three Months Ended
September 30, 2007
		Advanta
		Business
		Cards			Other (A)			Total
Interest income	$	39,106		$	10,854		$	49,960
Interest expense		13,484			12,122			25,606
Net interest income		25,622			(1,268	)		24,354
Provision for credit losses		14,724			0			14,724
Net interest income (loss) after provision for credit losses		10,898			(1,268	)		9,630
Noninterest revenues:
Interchange income		62,771			0			62,771
Securitization income		22,388			0			22,388
Servicing revenues		24,218			0			24,218
Business credit card rewards		(23,525	)		0			(23,525	)
Other revenues, net		7,243			1,330			8,573
Total noninterest revenues		93,095			1,330			94,425
Operating expenses		68,011			4,314			72,325
Income (loss) before income taxes		35,982			(4,252	)		31,730
Income tax expense (benefit)		13,889			(1,641	)		12,248
Net income (loss)	$	22,093		$	(2,611	)	$	19,482

(A) Other includes investment and other activities not attributable to the Advanta Business Cards segment. In addition, operating expenses in the three months ended September 30, 2007 include $4.2 million of expense related to a litigation settlement between Visa Inc. and American Express.

ADVANTA
EARNINGS AND COMMON STOCK DATA
(in thousands, except per share data)
	Three Months Ended										Percent Change From
	Sept. 30,				June 30,			Sept. 30,			Prior			Prior
	2008				2008			2007			Quarter			Year
Basic net income (loss) per common share:
Class A	$	(0.47	)		$	0.06		$	0.44		N/M			N/M
Class B		(0.41	)			0.12			0.49		N/M			N/M
Combined (A)		(0.43	)			0.10			0.47		N/M			N/M
Diluted net income (loss) per common share:
Class A	$	(0.47	)		$	0.06		$	0.43		N/M			N/M
Class B		(0.41	)			0.11			0.45		N/M			N/M
Combined (A)		(0.43	)			0.10			0.44		N/M			N/M
Return on average common equity (annualized)		(12.03	)	%		2.68	%		13.09	%	N/M			N/M
Weighted average common shares used to compute:
Basic earnings (loss) per common share
Class A		13,393				13,380			13,343		0.1		%	0.4		%
Class B		27,217				27,142			27,800		0.3			(2.1	)
Total		40,610				40,522			41,143		0.2			(1.3	)
Diluted earnings (loss) per common share
Class A		13,393				13,380			13,343		0.1		%	0.4		%
Class B		27,217				28,629			30,762		(4.9	)		(11.5	)
Total		40,610				42,009			44,105		(3.3	)		(7.9	)
Ending shares outstanding:
Class A		14,410				14,410			14,410		0.0		%	0.0		%
Class B		31,144				31,236			28,296		(0.3	)		10.1
Total		45,554				45,646			42,706		(0.2	)		6.7
Stock price:
Class A
High	$	7.80			$	9.36		$	30.65		(16.7	)	%	(74.6	)	%
Low		4.00				5.43			20.46		(26.3	)		(80.4	)
Closing		4.93				5.49			24.31		(10.2	)		(79.7	)
Class B
High	$	10.24			$	10.63		$	33.74		(3.7	)	%	(69.7	)	%
Low		6.01				6.25			23.32		(3.8	)		(74.2	)
Closing		8.23				6.29			27.42		30.8			(70.0	)
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	$	13.79			$	14.48		$	14.37		(4.8	)	%	(4.0	)	%

(A)	Combined represents income (loss) allocable to common stockholders divided by the combined total of Class A and Class B weighted average common shares outstanding.
N/M - Not Meaningful

ADVANTA
BALANCE SHEET
(in thousands)
		As of
		Sept. 30,			Dec. 31,
		2008			2007
ASSETS
Cash	$	216,115		$	90,228
Federal funds sold		945,178			872,587
Interest-bearing deposits		74,551			0
Investments available for sale		595,209			223,500
Receivables, net		650,628			990,668
Accounts receivable from securitizations		417,112			349,581
Premises and equipment, net		18,018			16,893
Other assets		257,928			220,915
Total assets	$	3,174,739		$	2,764,372
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	1,992,900		$	1,651,737
Debt		221,742			220,848
Other borrowings		25,000			25,000
Subordinated debt payable to preferred securities trust		103,093			103,093
Other liabilities		264,780			177,913
Total liabilities		2,607,515			2,178,591
Stockholders' equity		567,224			585,781
Total liabilities and stockholders' equity	$	3,174,739		$	2,764,372
Ratio of equity to owned assets		17.87	%		21.19	%
Ratio of equity and subordinated debt payable to preferred securities trust to owned assets		21.11	%		24.92	%
Ratio of equity to managed assets (A)		7.39	%		7.38	%
Ratio of equity and subordinated debt payable to preferred securities trust to managed assets (A)		8.74	%		8.68	%
Ratio of equity to owned business credit card receivables		78.06	%		56.78	%
Ratio of equity and subordinated debt payable to preferred securities trust to owned business credit card receivables		92.25	%		66.78	%
Ratio of equity to managed business credit card receivables (A)		10.15	%		9.23	%
Ratio of equity and subordinated debt payable to preferred securities trust to managed business credit card receivables (A)		11.99	%		10.85	%
MANAGED ASSETS (A)
Total on-balance sheet assets (GAAP)	$	3,174,739		$	2,764,372
Off-balance sheet securitized receivables (B)		4,496,146			5,173,404
Managed assets	$	7,670,885		$	7,937,776

(A)	Managed asset and managed receivable statistics are non-GAAP financial measures. Management believes that managed assets and managed receivables and the related ratios provide useful supplemental information because our on-balance sheet assets include retained interests in securitizations that serve as credit enhancement to the noteholders' interests in the securitized receivables.
(B)	Includes off-balance sheet business credit card receivables. Excludes our ownership interest in the noteholder principal balance of securitizations that are held on-balance sheet.

ADVANTA
ADVANTA BUSINESS CARDS STATISTICS
($ in thousands)
	Three Months Ended									Percent Change From
	Sept. 30,			June 30,			Sept. 30,			Prior		Prior
	2008			2008			2007			Quarter		Year
New account originations		18,581			26,269			74,195		(29.3	)%	(75.0	)%
Average number of active accounts (A)		897,138			939,700			930,102		(4.5	)	(3.5	)
Ending number of accounts		1,206,580			1,305,288			1,294,273		(7.6	)	(6.8	)
Customer transaction volume:
Merchandise sales	$	2,940,685		$	3,055,484		$	2,896,421		(3.8	)	1.5
Balance transfers		97,304			121,752			387,455		(20.1	)	(74.9	)
Cash usage		249,489			294,475			323,031		(15.3	)	(22.8	)
Total customer transaction volume		3,287,478			3,471,711			3,606,907		(5.3	)	(8.9	)
Securitization volume increase (decrease) excluding replenishment sales	$	(369,902	)	$	(83,687	)	$	115,000		342.0		N/M
Average receivables:
Owned	$	858,331		$	1,164,748		$	1,215,485		(26.3	)	(29.4	)
Securitized		5,030,299			5,063,349			4,889,381		(0.7	)	2.9
Managed (B)		5,888,630			6,228,097			6,104,866		(5.5	)	(3.5	)
Ending receivables:
Owned	$	726,652		$	850,925		$	1,233,233		(14.6	)	(41.1	)
Securitized		4,863,634			5,225,773			4,980,737		(6.9	)	(2.4	)
Managed (B)		5,590,286			6,076,698			6,213,970		(8.0	)	(10.0	)
Operating expense ratio (C)		5.45	%		5.24	%		4.46	%	4.0		22.2
CREDIT QUALITY - OWNED
Receivables 30 days or more delinquent	$	51,661		$	49,894		$	35,276
Receivables 90 days or more delinquent		24,531			25,001			15,693
As a percentage of receivables:
Receivables 30 days or more delinquent		7.11	%		5.86	%		2.86	%	21.3	%	148.6	%
Receivables 90 days or more delinquent		3.38			2.94			1.27		15.0		166.1
Net principal charge-offs:
Amount	$	22,839		$	25,819		$	10,708
As a percentage of average receivables (annualized)		10.64	%		8.87	%		3.52	%	20.0		202.3
CREDIT QUALITY - SECURITIZED
Receivables 30 days or more delinquent	$	314,740		$	294,432		$	160,375
Receivables 90 days or more delinquent		148,182			145,715			71,951
As a percentage of receivables:
Receivables 30 days or more delinquent		6.47	%		5.63	%		3.22	%	14.9	%	100.9	%
Receivables 90 days or more delinquent		3.05			2.79			1.44		9.3		111.8
Net principal charge-offs:
Amount	$	124,303		$	104,638		$	48,404
As a percentage of average receivables (annualized)		9.88	%		8.27	%		3.96	%	19.5		149.5
CREDIT QUALITY - MANAGED (B)
Receivables 30 days or more delinquent	$	366,401		$	344,326		$	195,651
Receivables 90 days or more delinquent		172,713			170,716			87,644
As a percentage of receivables:
Receivables 30 days or more delinquent		6.55	%		5.67	%		3.15	%	15.5	%	107.9	%
Receivables 90 days or more delinquent		3.09			2.81			1.41		10.0		119.1
Net principal charge-offs:
Amount	$	147,142		$	130,457		$	59,112
As a percentage of average receivables (annualized)		10.00	%		8.38	%		3.87	%	19.3		158.4

(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

ADVANTA
RECONCILIATION OF MANAGED FINANCIAL MEASURES AND RATIOS
(in thousands)
In addition to evaluating the financial performance of the Advanta Business Cards segment under U.S. generally accepted accounting principles (GAAP), we evaluate Advanta Business Cards' performance on a managed basis. Our managed business credit card receivable portfolio is comprised of both owned and securitized business credit card receivables. 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. Revenue and credit data on the managed portfolio provides additional information useful in understanding the performance of the retained interests in securitizations. Risk-adjusted revenues represent net interest income and noninterest revenues, less provision for credit losses. Management uses risk-adjusted revenues as a basis for monitoring the risk-based return on the portfolio and components of our portfolio. Generally, based on risk-based pricing strategies, customers with higher credit losses should have higher revenues. We believe the measure is useful to investors as a measure of our ability to appropriately price for the risk of the portfolio by demonstrating the relationship between revenues and credit losses in one concise measure.
		Three Months Ended
		September 30, 2008
		Advanta								Advanta
		Business Cards				Securitization				Business Cards
		GAAP				Adjustments				Managed
Net interest income	$	22,061			$	146,720			$	168,781
Average business credit card interest-earning assets		1,070,570				4,818,060				5,888,630
Ratio (annualized)		8.24		%						11.46		%
Provision for credit losses	$	29,001			$	143,856		(A)	$	172,857
Average business credit card interest-earning assets		1,070,570				4,818,060				5,888,630
Ratio (annualized)		10.84		%						11.74		%
Noninterest revenues	$	53,072			$	(2,864	)		$	50,208
Average business credit card interest-earning assets		1,070,570				4,818,060				5,888,630
Ratio (annualized)		19.83		%						3.41		%
Risk-adjusted revenues (B)	$	46,132			$	0			$	46,132
Average business credit card interest-earning assets		1,070,570				4,818,060				5,888,630
Ratio (annualized)		17.24		%						3.13		%
Net loss	$	(26,045	)		$	0			$	(26,045	)
Average business credit card interest-earning assets		1,070,570				4,818,060				5,888,630
Ratio (annualized)		(9.73	)	%						(1.77	)	%
		Three Months Ended
		September 30, 2007
		Advanta								Advanta
		Business Cards				Securitization				Business Cards
		GAAP				Adjustments				Managed
Net interest income	$	25,622			$	82,362			$	107,984
Average business credit card interest-earning assets		1,441,890				4,662,976				6,104,866
Ratio (annualized)		7.11		%						7.08		%
Provision for credit losses	$	14,724			$	48,404		(A)	$	63,128
Average business credit card interest-earning assets		1,441,890				4,662,976				6,104,866
Ratio (annualized)		4.08		%						4.14		%
Noninterest revenues	$	93,095			$	(33,958	)		$	59,137
Average business credit card interest-earning assets		1,441,890				4,662,976				6,104,866
Ratio (annualized)		25.83		%						3.87		%
Risk-adjusted revenues (B)	$	103,993			$	0			$	103,993
Average business credit card interest-earning assets		1,441,890				4,662,976				6,104,866
Ratio (annualized)		28.85		%						6.81		%
Net income	$	22,093			$	0			$	22,093
Average business credit card interest-earning assets		1,441,890				4,662,976				6,104,866
Ratio (annualized)		6.13		%						1.45		%

(A)

Includes the amount by which credit losses would have been higher had the securitized receivables remained as owned and the provision for credit losses on securitized receivables been equal to actual reported charge-offs. In addition, provision for credit losses includes an unfavorable valuation adjustment to retained interests in securitizations of $19.6 million for the three months ended September 30, 2008.

(B)

Risk-adjusted revenues represent net interest income and noninterest revenues, less provision for credit losses.

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