EXHIBIT 99
Philip M. Hanley
Chief Financial Officer
American General Finance, Inc.
812-468-5420
AMERICAN GENERAL FINANCE CORPORATION
ACHIEVES RECORD PERFORMANCE IN 1993
HIGHLIGHTS
- Annual earnings before accounting changes of $202.2
million; up 26% over 1992
- Return on assets 2.8%
- Return on equity 17.5%
EVANSVILLE, IN, FEBRUARY 1, 1994.--American General Finance Corporation today
announced another record setting year. Before one-time accounting changes of
$12.6 million, 1993 earnings reached $202.2 million, a 26% increase over
1992's $160.2 million. Net income reached an all-time high of $189.6 million
during 1993, an 18% improvement over 1992. Before the one-time accounting
changes, 1993 return on assets was 2.8% and return on equity was 17.5%,
compared with 2.4% and 14.5%, respectively, in 1992. Record fourth quarter net
income totaled $50.7 million, a 18% increase over fourth quarter 1992 net
income of $42.8 million. Net finance receivables increased to $5.9 billion, up
from $5.6 billion at the end of 1992. As expected, credit quality was off
slightly due to a shift in receivables mix-- delinquent accounts were 2.5% of
receivables compared to 2.2% at December 31, 1992, while charge offs were 2.0%
compared to 1.9% for 1992.
"Top line results have benefited from our emphasis on higher yielding consumer
loans and a corresponding increase in related insurance revenues.
Delinquencies have increased somewhat as the receivables mix has shifted to a
greater concentration of higher yielding non-real estate loans. However, the
positive top line performance, coupled with favorable funding costs and firm
controls over operating expenses have enabled us to reach new heights in terms
of net income and net receivables," said Daniel Leitch III, President and
Chief Executive Officer. He added, "American General Finance Corporation will
continue to focus on the consumer market, through traditional consumer loans,
real estate secured lending, and retail sales financing of consumers'
purchases."
FINANCIAL HIGHLIGHTS:
(Dollars in Millions)
For the Year Ended December 31, 1993 1992
Total Revenues $1,212.9 $1,092.9
Income Before Accounting Change 202.2 160.2
Accounting Changes, Net (12.6) ---
Net Income $ 189.6 $ 160.2
Return on Assets 2.8%* 2.4%
Return on Equity 17.5%* 14.5%
*Before one-time accounting changes of $12.6 million
For the Quarter Ended December 31, 1993 1992
Total Revenues $307.4 $284.6
Net Income $ 50.7 $ 42.8
As of: 12/31/93 12/31/92
Total Assets $7,505 $7,000
Net Finance Receivables $5,872 $5,607
Ratios for Year Ended or as of: 12/31/93 12/31/92
Net Charge Offs 2.0% 1.9%
Delinquency 2.5% 2.2%
American General Finance Corporation is a financial services holding company
specializing in the extension of credit to individual consumers. Products and
services are marketed to approximately 2.3 million low-to-middle income
American families. The company, headquartered in Evansville, IN, has assets of
$7.5 billion and operates more than 1,200 branch offices in 39 states, Puerto
Rico, and the Virgin Islands. Services offered include consumer and home
equity loans; retail sales financing; and credit and non-credit related
insurance.