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) | August 31, 2005 |
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MBNA Corporation |
| (Exact name of registrant as specified in its charter) |
Maryland | 1-10683 | 52-1713008 |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Wilmington, Delaware | | 19884-0131 |
| (Address of principal executive offices) | | (Zip Code) |
| Registrant's telephone number, including area code | (800) 362-6255 |
(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: |
| | |
| [ ] | 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 8.01 Other Events
The net credit loss and loan delinquency ratios for MBNA Corporation (“the Corporation”), for its loan receivables and its managed loans for the month ended August 31, 2005, are presented in the table below.
| | | Net Credit Loss (a) | | Delinquency (b) | |
| | | | | | |
| Loan receivables | | | 3.40 | % | | 2.73 | % |
| Credit card loan receivables | | | 3.28 | | | 3.02 | |
| Other consumer loan receivables | | | 4.27 | | | 2.63 | |
Commercial loan receivables | | | 1.85 | | | 1.51 | |
| | | | | | | | |
| Managed loans (c) | | | 4.39 | % | | 3.91 | % |
| Managed credit card loans | | | 4.34 | | | 4.08 | |
| Managed other consumer loans | | | 5.36 | | | 3.59 | |
| Managed commercial loans | | | 2.33 | | | 1.73 | |
The following tables reconcile loan receivables data to managed loans data presented above (dollars in thousands):
| | | For the Month Ended August 31, 2005 | | At August 31, 2005 | |
| | | Net Credit Losses (a) | | Average Loans Outstanding | | Net Credit Loss Ratio (a) | | Delinquent Balances (b) | | Ending Loans Outstanding | | Delinquency Ratio (b) | |
| | | | | | | | | | |
| Loan receivables: | | | | | | | | | | | | | | | | | | | |
| Credit card | | $ | 55,810 | | $ | 20,397,467 | | | 3.28 | % | $ | 644,138 | | $ | 21,337,256 | | | 3.02 | % |
| Other consumer | | | 37,834 | | | 10,638,805 | | | 4.27 | | | 282,948 | | | 10,738,213 | | | 2.63 | |
| Commercial | | | 6,650 | | | 4,318,228 | | | 1.85 | | | 65,809 | | | 4,346,469 | | | 1.51 | |
| Total loanreceivables | | $ | 100,294 | | $ | 35,354,500 | | | 3.40 | | $ | 992,895 | | $ | 36,421,938 | | | 2.73 | |
| | | | | | | | | | | | | | | | | | | | |
| Securitized loans: | | | | | | | | | | | | | | | | | | | |
| Credit card | | $ | 300,274 | | $ | 78,097,452 | | | 4.61 | | $ | 3,420,378 | | $ | 78,313,723 | | | 4.37 | |
| Other consumer | | | 35,037 | | | 5,668,327 | | | 7.42 | | | 306,608 | | | 5,664,051 | | | 5.41 | |
| Commercial | | | 3,860 | | | 1,095,372 | | | 4.23 | | | 28,121 | | | 1,093,884 | | | 2.57 | |
| Total securitizedloans | | $ | 339,171 | | $ | 84,861,151 | | | 4.80 | | $ | 3,755,107 | | $ | 85,071,658 | | | 4.41 | |
| | | | | | | | | | | | | | | | | | | | |
| Managed loans: | | | | | | | | | | | | | | | | | | | |
| Credit card | | $ | 356,084 | | $ | 98,494,919 | | | 4.34 | | $ | 4,064,516 | | $ | 99,650,979 | | | 4.08 | |
| Other consumer | | | 72,871 | | | 16,307,132 | | | 5.36 | | | 589,556 | | | 16,402,264 | | | 3.59 | |
| Commercial | | | 10,510 | | | 5,413,600 | | | 2.33 | | | 93,930 | | | 5,440,353 | | | 1.73 | |
| Total managedloans (c) | | $ | 439,465 | | $ | 120,215,651 | | | 4.39 | | $ | 4,748,002 | | $ | 121,493,596 | | | 3.91 | |
| (a) | The 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. |
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| (b) | Delinquency represents accruing loans that are 30 days or more past due. |
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| (c) | Managed loans include loan receivables and securitized loans. The Corporation allocates resources on a managed basis, and financial data provided to management reflects the Corporation's results on a managed basis. Managed data assumes the Corporation's securitized loan principal receivables have not been sold and presents the net credit losses and delinquent balances on the securitized loan principal receivables in the same fashion as the Corporation's owned loans. |
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| | Management, equity and debt analysts, rating agencies and others evaluate the Corporation's operations on a managed basis because the loans that are securitized are subject to underwriting standards comparable to the Corporation's owned loans, and the 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. The 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 securitization transactions. |
SIGNATURE
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.
| | | MBNA Corporation |
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| Date: September 15, 2005 | /s/ | Kenneth A. Vecchione |
| | | Kenneth A. Vecchione |
| | | Chief Financial Officer |
