MBNA (KRB) 8-K MBNA Reports Second Quarter 2005 Earnings Per Common Share of $.50

Exhibit 99

MBNA Reports Second Quarter 2005 Earnings Per Common Share of $.50

Wilmington, Delaware (7/18/05) -- MBNA Corporation today announced that net income for the second quarter of 2005 was $632.1 million or $.50 per common share compared with $660.3 million or $.51 per common share for the second quarter of 2004. Net income for the second quarter of 2005 includes a pre-tax charge of $14.4 million in connection with the Corporation’s previously announced restructuring plan. Without the restructuring charge, net income in the second quarter of 2005 was $646.8 million or $.51 per common share.

For the first six months of this year, net income was $663.9 million or $.51 per common share, compared to $1.18 billion or $.90 per common share for the first six months of 2004. Net income for the first six months of this year includes a restructuring charge of $782.0 million pre-tax. Without the restructuring charge, net income for the first six months of this year was $1.16 billion or $.90 per common share.

Loan receivables at June 30, 2005 were $32.3 billion, an increase of $479.6 million over the first quarter of 2005. Total managed loans at June 30, 2005 were $117.4 billion, an increase of $797.8 million compared to total managed loans at the end of the first quarter of 2005. This includes the impact caused by the strengthening of the U.S. dollar against foreign currencies, which negatively impacted loan receivables by approximately $550 million and managed loans by approximately $1.1 billion during the second quarter of 2005.

Total volume in the quarter rose to $57.0 billion, an increase of 9.6% over the second quarter of 2004. Total volume includes sales volume of $36.8 billion, which increased by 9.8% over the second quarter of 2004, and cash advance volume of $20.1 billion, which increased by 9.2% from the second quarter of 2004. The Corporation increased the use of low, introductory rates in its U.S. Card marketing efforts, which has led to an increase in cash volume. This is likely to reduce net interest margin in the second half of 2005.

Losses on loan receivables and managed loans for the second quarter of 2005 were 3.52% and 4.60%, respectively. Delinquency on loan receivables and managed loans was 2.71% and 3.98%, respectively, at June 30, 2005.

During the second quarter the Corporation repurchased approximately $250 million of common stock pursuant to its $2 billion share repurchase program announced in January 2005.

This earnings release includes managed data. Please refer to MBNA Corporation and Subsidiaries Financial Highlights - Exhibit A for a quantitative reconciliation of reported and managed data. This earnings release includes certain financial measures excluding the restructuring charge recorded in the first six months of 2005. Please refer to MBNA Corporation and Subsidiaries Financial Highlights - Exhibit A for a quantitative reconciliation of the reported financial measures and the financial measures excluding the charge. A business presentation that provides supplemental information regarding the second quarter of 2005 is available in the Investor Relations section of MBNA’s Web site atwww.mbna.com.

About MBNA Corporation

MBNA (NYSE:KRB), the largest independent credit card lender in the world and a recognized leader in affinity marketing, is an international financial services company providing lending, deposit, and credit insurance products and services. MBNA credit cards and related products and services are endorsed by more than 5,000 organizations worldwide. For more information, visit the company’s web site atwww.mbna.com.

Cautionary Language

This report includes forward-looking statements concerning the Corporation’s future performance. Such statements are subject to risks and uncertainties that may cause the Corporation’s actual performance to differ materially from that set forth in such forward-looking statements. Risks and uncertainties that may affect the Corporation’s future performance are detailed in the Corporation’s Quarterly Report on Form 10-Q for the period ended March 31, 2005 (the “Form 10-Q”) filed with the Securities and Exchange Commission and examples of such risks and uncertainties are set forth below. The forward-looking statements contained in this report speak only as of the date on which they are made and the Corporation undertakes no obligation to update publicly or revise any forward-looking statements contained in this report.

Net Interest Margin

Certain risks and uncertainties that may materially affect net interest margin are discussed below.

·   Competition

The Corporation’s business is highly competitive. Competition from other lenders could affect the rates and fees charged on the Corporation’s loans, including the ability of the Corporation to reprice existing accounts.

·   Interest Rate Increases

An increase in interest rates could increase the Corporation’s cost of funds and reduce its net interest margin. The Corporation’s ability to manage the risk of interest rate increases in the U.S. and other markets is dependent on its overall product and funding mix and its ability to successfully reprice outstanding loans. See "Liquidity and Rate Sensitivity-Interest Rate Sensitivity" of the Form 10-Q for a discussion of the Corporation’s efforts to manage interest rate risk.

·   Availability of Funding and Securitization

Changes in the amount, type, and cost of funding available to the Corporation could affect the Corporation’s performance. A major funding alternative for the Corporation is the securitization of credit card and other consumer loans. Difficulties or delays in securitizing loans or changes in the current legal, regulatory, accounting, and tax environments governing securitizations could adversely affect the Corporation. See "Liquidity and Rate Sensitivity-Liquidity Management" of the Form 10-Q for a discussion of the Corporation’s liquidity.

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2005			2004			2005			2004
INCOME STATEMENT DATA FOR THE PERIOD:
Net interest income	$	653,913		$	594,245		$	1,320,027		$	1,262,050
Provision for possible credit losses		172,741			251,557			459,969			616,718
Other operating income		1,931,393			1,999,620			3,713,728			3,942,152
Other operating expense (a)		1,413,010			1,371,866			3,539,712			2,813,784
Net income		632,146			660,335			663,876			1,180,043
PER COMMON SHARE DATA FOR THE PERIOD:
Earnings (a)	$	.50		$	.51		$	.52		$	.92
Earnings-assuming dilution (a)		.50			.51			.51			.90
Dividends		.14			.12			.28			.24
Book value		10.03			9.12
RATIOS:
Net interest margin (b)		5.48	%		5.09	%		5.55	%		5.40	%
Return on average total assets (a)		4.14			4.40			2.18			3.93
Return on average stockholders' equity (a)		19.65			22.56			10.12			19.95
Stockholders' equity to total assets		20.35			19.50
Loan Receivables:
Delinquency (c)		2.71			3.48
Net credit loss (d)		3.52			4.60			3.76			4.52
VOLUME:
Sales volume:
Credit card	$	34,290,230		$	31,433,103		$	65,315,608		$	59,777,899
Other consumer		17,908			86,582			36,167			191,274
Commercial		2,536,402			2,021,126			4,806,845			3,910,909
Total sales volume		36,844,540			33,540,811			70,158,620			63,880,082
Cash advance volume:
Credit card		14,671,318			14,057,884			26,816,528			28,622,716
Other consumer		4,085,036			3,197,359			6,858,815			5,058,504
Commercial		1,355,192			1,167,117			2,466,173			1,587,342
Total cash advance volume		20,111,546			18,422,360			36,141,516			35,268,562
Total volume	$	56,956,086		$	51,963,171		$	106,300,136		$	99,148,644

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2005			2004			2005			2004
MANAGED DATA (e):
At Period End:
Loan receivables	$	32,326,796		$	30,496,970
Securitized loans		85,088,774			87,712,921
Total managed loans	$	117,415,570		$	118,209,891
Average for the Period:
Loan receivables	$	31,073,912		$	29,550,080		$	31,404,797		$	30,935,054
Securitized loans		85,577,403			87,552,295			85,939,227			86,513,919
Total managed loans	$	116,651,315		$	117,102,375		$	117,344,024		$	117,448,973
For the Period:
Delinquency (c)		3.98	%		4.08	%
Net credit loss (d)		4.60			4.95			4.54	%		4.97	%
Net interest margin (b)		7.74			7.92			7.77			8.08
Net interest income	$	2,501,804		$	2,568,541		$	5,011,326		$	5,204,370
Provision for possible credit losses		1,241,493			1,360,326			2,534,237			2,836,508
Other operating income		1,152,254			1,134,093			2,096,697			2,219,622

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2005			2004			2005			2004
BALANCE SHEET DATA AT PERIOD END:
Investment securities and money market instruments	$	12,431,922		$	12,825,425
Credit card loans		17,823,533			18,402,813
Other consumer loans		10,236,203			8,523,621
Commercial loans		4,267,060			3,570,536
Total loan receivables		32,326,796			30,496,970
Reserve for possible credit losses		(998,362	)		(1,196,304	)
Net loans		31,328,434			29,300,666
Total assets		63,035,492			60,856,258
Total deposits		30,910,435			31,951,525
Long-term debt and bank notes		12,739,904			11,643,489
Stockholders’ equity		12,829,151			11,869,214
AVERAGE BALANCE SHEET DATA:
Investment securities and money market instruments	$	12,961,605		$	13,322,686		$	12,631,774		$	12,001,558
Credit card loans		16,812,536			17,635,248			17,607,999			19,707,431
Other consumer loans		10,066,017			8,491,117			9,730,149			8,447,381
Commercial loans		4,195,359			3,423,715			4,066,649			2,780,242
Total loan receivables		31,073,912			29,550,080			31,404,797			30,935,054
Reserve for possible credit losses		(1,115,896	)		(1,257,911	)		(1,103,429	)		(1,241,960	)
Net loans		29,958,016			28,292,169			30,301,368			29,693,094
Total assets		61,296,671			60,395,432			61,376,125			60,418,403
Total deposits		31,028,011			31,881,799			31,081,456			31,765,573
Long-term debt and bank notes		12,037,611			11,845,407			11,823,699			11,843,236
Stockholders’ equity		12,905,151			11,773,265			13,227,083			11,895,642
Weighted average common shares outstanding (000)		1,260,485			1,277,726			1,268,420			1,277,840
Weighted average common shares outstanding and common stock   equivalents (000)		1,268,034			1,297,054			1,280,022			1,299,062

NOTES:

(a) During the three and six months ended June 30, 2005, MBNA Corporation recorded a restructuring charge in other operating expense of $14.4 million and $782.0 million pre-tax, respectively, ($14.7 million and $497.0 million, net of tax) in connection with its restructuring plan. This charge has resulted in significantly higher other operating expense and significantly lower earnings per common share, return on average total assets, and return on average stockholders' equity ratios for the six months ended June 30, 2005. See Exhibit A for a reconciliation of the as reported data to data excluding the restructuring charge.

(b)  Net interest margin ratios are presented on a fully taxable equivalent basis.

(c)   Delinquency represents accruing loans that are 30 days or more past due.

(d) MBNA Corporation's net credit loss ratio is calculated by dividing annualized net credit losses, which exclude uncollectible accrued interest and fees and fraud losses, for the period by average loans, which include the estimated collectible billed interest and fees for the corresponding period.

(e)   MBNA Corporation allocates resources on a managed basis, and financial data provided to management reflects MBNA Corporation's results on a managed basis. Managed data assumes MBNA Corporation’s securitized loan principal receivables have not been sold and presents the earnings on securitized loan principal receivables in the same fashion as MBNA Corporation’s owned loans. Management, equity and debt analysts, rating agencies and others evaluate MBNA Corporation's operations on a managed basis because the loans that are securitized are subject to underwriting standards comparable to MBNA Corporation's owned loans, and MBNA Corporation services the securitized and owned loans, and the related accounts, together and in the same manner without regard to ownership of the loans. In a securitization, the account relationships are not sold to the trust. MBNA Corporation continues to own and service the accounts that generate the securitized loan principal receivables. The credit performance of the entire managed loan portfolio is important to understand the quality of loan originations and the related credit risks inherent in the owned portfolio and retained interests in its securitization transactions.

Exhibit A reconciles as reported data to data excluding the restructuring charge, income statement data for the period to managed net interest income, managed provision for possible credit losses, and managed other operating income, the loan receivables net credit loss ratio to the managed net credit loss ratio, the loan receivables delinquency ratio to the managed delinquency ratio, and the net interest margin ratio to the managed net interest margin ratio. Managed other operating income includes the impact of the gain recognized on securitized loan principal receivables in accordance with Statement of Financial Accounting Standards No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities - a replacement of FASB Statement No. 125" ("Statement No. 140").

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

EXHIBIT A

RECONCILIATION OF OTHER OPERATING EXPENSE TO OTHER OPERATING

  EXPENSE EXCLUDING THE RESTRUCTURING CHARGE (a)

	For The Three Months		For The Six Months
	Ended June 30, 2005		Ended June 30, 2005
Other operating expense	$	1,413,010	$	3,539,712
Impact of the restructuring charge		14,377		781,998
Other operating expense excluding the restructuring charge	$	1,398,633	$	2,757,714

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

RECONCILIATION OF EARNINGS PER COMMON SHARE TO EARNINGS 

 PER COMMON SHARE EXCLUDING THE RESTRUCTURING CHARGE (a)

	For the Three Months			For the Six Months
	Ended June 30, 2005			Ended June 30, 2005
Earnings per common share:
Income before income taxes	$	999,555		$	1,034,074
Applicable income taxes		367,409			370,198
Net income		632,146			663,876
Less: preferred stock dividend requirements		3,516			7,032
Net income applicable to common stock	$	628,630		$	656,844
Weighted average common shares outstanding (000)		1,260,485			1,268,420
Earnings per common share	$	.50		$	.52
Earnings per common share—assuming dilution:
Income before income taxes	$	999,555		$	1,034,074
Applicable income taxes		367,409			370,198
Net income		632,146			663,876
Less: preferred stock dividend requirements		3,516			7,032
Net income applicable to common stock	$	628,630		$	656,844
Weighted average common shares outstanding and common stock equivalents (000)		1,268,034			1,280,022
Earnings per common share—assuming dilution	$	.50		$	.51
Restructuring charge impact:
Pre-tax restructuring charge	$	14,377		$	781,998
Applicable income taxes		(310	)		284,983
Restructuring charge, net of tax	$	14,687		$	497,015
Earnings per common share excluding the restructuring charge
Earnings per common share:
Income before income taxes	$	1,013,932		$	1,816,072
Applicable income taxes		367,099			655,181
Net income		646,833			1,160,891
Less: preferred stock dividend requirements		3,516			7,032
Net income applicable to common stock	$	643,317		$	1,153,859
Weighted average common shares outstanding (000)		1,260,485			1,268,420
Earnings per common share	$	.51		$	.91
Earnings per common share—assuming dilution:
Income before income taxes	$	1,013,932		$	1,816,072
Applicable income taxes		367,099			655,181
Net income		646,833			1,160,891
Less: preferred stock dividend requirements		3,516			7,032
Net income applicable to common stock	$	643,317		$	1,153,859
Weighted average common shares outstanding and common stock equivalents (000)		1,268,034			1,280,022
Earnings per common share—assuming dilution	$	.51		$	.90

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

RECONCILIATION OF THE RETURN ON AVERAGE TOTAL ASSETS

AND AVERAGE STOCKHOLDERS’ EQUITY TO THE RETURN ON AVERAGE TOTAL ASSETS AND

AVERAGE STOCKHOLDERS’ EQUITY EXCLUDING THE RESTRUCTURING CHARGE (a)

For the Three Months Ended June 30, 2005	Average Balance		Ratio			Net Income
Return on average total assets:
Return on average total assets	$	61,296,671		4.14	%	$	632,146
Impact of the restructuring charge		187,629					14,687
Return on average total assets excluding the restructuring charge	$	61,484,300		4.22		$	646,833
Return on average stockholders’ equity:
Return on average stockholders’ equity	$	12,905,151		19.65		$	632,146
Impact of the restructuring charge		474,761					14,687
Return on average stockholders’ equity excluding the restructuring charge	$	13,379,912		19.39		$	646,833
For the Six Months Ended June 30, 2005		Average Balance		Ratio			Net Income
Return on average total assets:
Return on average total assets	$	61,376,125		2.18	%	$	663,876
Impact of the restructuring charge		94,765					497,015
Return on average total assets excluding the restructuring charge	$	61,470,890		3.81		$	1,160,891
Return on average stockholders’ equity:
Return on average stockholders’ equity	$	13,227,083		10.12		$	663,876
Impact of the restructuring charge		272,669					497,015
Return on average stockholders’ equity excluding the restructuring charge	$	13,499,752		17.34		$	1,160,891

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

RECONCILIATION OF INCOME STATEMENT DATA FOR THE PERIOD TO MANAGED NET

  INTEREST INCOME, MANAGED PROVISION FOR POSSIBLE CREDIT LOSSES,

  AND MANAGED OTHER OPERATING INCOME

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2005			2004			2005			2004
Net interest income:
Net interest income	$	653,913		$	594,245		$	1,320,027		$	1,262,050
Securitization adjustments		1,847,891			1,974,296			3,691,299			3,942,320
Managed net interest income	$	2,501,804		$	2,568,541		$	5,011,326		$	5,204,370
Provision for possible credit losses:
Provision for possible credit losses	$	172,741		$	251,557		$	459,969		$	616,718
Securitization adjustments		1,068,752			1,108,769			2,074,268			2,219,790
Managed provision for possible credit losses	$	1,241,493		$	1,360,326		$	2,534,237		$	2,836,508
Other operating income:
Other operating income	$	1,931,393		$	1,999,620		$	3,713,728		$	3,942,152
Securitization adjustments		(779,139	)		(865,527	)		(1,617,031	)		(1,722,530	)
Managed other operating income	$	1,152,254		$	1,134,093		$	2,096,697		$	2,219,622

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

RECONCILIATION OF THE LOAN RECEIVABLES NET CREDIT LOSS RATIO TO THE MANAGED

  NET CREDIT LOSS RATIO

	For the Three Months							For the Three Months
	Ended June 30, 2005							Ended June 30, 2004
	Net Credit Losses (b)		Average Loans Outstanding		Net Credit LossRatio (b)			Net Credit Losses (b)		Average Loans Outstanding		Net Credit LossRatio (b)
Loan receivables	$	273,760	$	31,073,912		3.52	%	$	339,508	$	29,550,080		4.60	%
Securitized loans		1,068,752		85,577,403		5.00			1,108,769		87,552,295		5.07
Managed loans	$	1,342,512	$	116,651,315		4.60		$	1,448,277	$	117,102,375		4.95
	For the Six Months							For the Six Months
	Ended June 30, 2005							Ended June 30, 2004
		Net Credit Losses (b)		Average Loans Outstanding		Net Credit LossRatio (b)			Net Credit Losses (b)		Average Loans Outstanding		Net Credit LossRatio (b)
Loan receivables	$	589,821	$	31,404,797		3.76	%	$	699,041	$	30,935,054		4.52	%
Securitized loans		2,074,268		85,939,227		4.83			2,219,790		86,513,919		5.13
Managed loans	$	2,664,089	$	117,344,024		4.54		$	2,918,831	$	117,448,973		4.97

RECONCILIATION OF THE LOAN RECEIVABLES DELINQUENCY RATIO TO THE MANAGED

  DELINQUENCY RATIO

	June 30, 2005							June 30, 2004
	Delinquent Balances (c)		Ending Loans Outstanding		Delinquency Ratio (c)			Delinquent Balances (c)		Ending Loans Outstanding		Delinquency Ratio (c)
Loan receivables	$	877,326	$	32,326,796		2.71	%	$	1,062,049	$	30,496,970		3.48	%
Securitized loans		3,791,413		85,088,774		4.46			3,760,461		87,712,921		4.29
Managed loans	$	4,668,739	$	117,415,570		3.98		$	4,822,510	$	118,209,891		4.08

MBNA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share amounts) (unaudited)

RECONCILIATION OF THE NET INTEREST MARGIN RATIO TO THE MANAGED NET INTEREST   MARGIN RATIO
	For the Three Months								For the Three Months
	Ended June 30, 2005								Ended June 30, 2004
	Average Earning Assets			Net Interest Income		Net Interest Margin Ratio			Average Earning Assets			Net Interest Income		Net Interest Margin Ratio
Net interest margin (d):
Investment securities and money market instruments	$	12,961,605							$	13,322,686
Other interest-earning assets		3,821,739								4,124,561
Loan receivables		31,073,912								29,550,080
Total	$	47,857,256		$	654,351		5.48	%	$	46,997,327		$	594,470		5.09	%
Securitization adjustments:
Investment securities and money market instruments	$	-							$	-
Other interest-earning assets		(3,746,916	)							(4,053,833	)
Securitized loans		85,577,403								87,552,295
Total	$	81,830,487			1,847,891		9.06		$	83,498,462			1,974,296		9.51
Managed net interestmargin (d):
Investment securities and money market instruments	$	12,961,605							$	13,322,686
Other interest-earning assets		74,823								70,728
Managed loans		116,651,315								117,102,375
Total	$	129,687,743			2,502,242		7.74		$	130,495,789			2,568,766		7.92
	For the Six Months								For the Six Months
	Ended June 30, 2005								Ended June 30, 2004
		Average Earning Assets			Net Interest Income		Net Interest Margin Ratio			Average Earning Assets			Net Interest Income		Net Interest Margin Ratio
Net interest margin (d):
Investment securities and money market instruments	$	12,631,774							$	12,001,558
Other interest-earning assets		3,949,193								4,097,670
Loan receivables	��	31,404,797								30,935,054
Total	$	47,985,764		$	1,320,794		5.55	%	$	47,034,282		$	1,262,484		5.40	%
Securitization adjustments:
Investment securities and money market instruments	$	-							$	-
Other interest-earning assets		(3,875,900	)							(4,027,156	)
Securitized loans		85,939,227								86,513,919
Total	$	82,063,327			3,691,299		9.07		$	82,486,763			3,942,320		9.61
Managed net interestmargin (d):
Investment securities and money market instruments	$	12,631,774							$	12,001,558
Other interest-earning assets		73,293								70,514
Managed loans		117,344,024								117,448,973
Total	$	130,049,091			5,012,093		7.77		$	129,521,045			5,204,804		8.08

NOTES TO EXHIBIT A:

(a) During the three and six months ended June 30, 2005, MBNA Corporation recorded a restructuring charge in other operating expense of $14.4 million and $782.0 million pre-tax, respectively, ($14.7 million and $497.0 million, net of tax) in connection with its restructuring plan. This charge has resulted in significantly higher other operating expense and significantly lower earnings per common share, return on average total assets, and return on average stockholders' equity ratios for the six months ended June 30, 2005. In this exhibit, various items are presented excluding the restructuring charge. Management believes this presentation is useful to investors because the restructuring charge had a material impact on the results of operations for the six months ended June 30, 2005, but not for the six months ended June 30, 2004. As a result, the business factors and trends affecting the Corporation’s results for these periods in certain cases are better analyzed without the impact of the restructuring charge.

(b) MBNA Corporation's net credit loss ratio is calculated by dividing annualized net credit losses, which exclude uncollectible accrued interest and fees and fraud losses, for the period by average loans, which include the estimated collectible billed interest and fees for the corresponding period.

(c) Delinquency represents accruing loans that are 30 days or more past due.

(d)   Net interest margin ratios are presented on a fully taxable equivalent basis. The fully taxable equivalent adjustment for the three and six months ended June 30, 2005 was $438 and $767, respectively. The fully taxable equivalent adjustment for the three and six months ended June 30, 2004 was $225 and $434, respectively.