EXHIBIT 99
Philip M. Hanley
Chief Financial Officer
American General Finance, Inc.
812-468-5420
AMERICAN GENERAL FINANCE CORPORATION
MAINTAINS MOMENTUM IN EARNINGS
AND ASSET GROWTH
HIGHLIGHTS
- Earnings growth of 25% to quarterly record $63 million
- Net finance receivables up $452 million over year-end
- Return on assets of 2.9%; return on equity of 18.7%
EVANSVILLE, IN, OCTOBER 25, 1994.--American General Finance Corporation earned
a record $63 million during the third quarter of 1994, a 25% increase over
1993 third quarter net income of $50 million. Through the first nine months
of 1994, net income was a record $173 million, a 14% improvement over the $151
million earned during the first nine months of 1993, before one-time
accounting changes of $12.6 million. The annualized year-to-date return on
assets increased to 2.9% and return on equity was 18.7%, up from 2.8% and
17.4%, respectively, for the first nine months of 1993 prior to the one-time
accounting changes.
Solid growth in all lending areas during the quarter contributed to a $184
million increase in net finance receivables, which are up $452 million for the
first nine months. The relatively higher levels of retail-based and
traditional consumer loan receivables continued to impact performance. Higher
yields and continued favorable borrowing costs resulted in an increase in the
year-to-date net lending spread, which was 10.8% through September 30, 1994,
versus 10.1% for the first nine months of 1993. Delinquent receivables were
2.8% at September 30, 1994, compared to 2.5% at December 31, 1993. Net charge
offs were 2.1% for the first nine months of 1994, compared to 1.8% for the
nine months ended September 30, 1993.
"We are very pleased by the strong growth achieved in every receivables
category", remarked Daniel Leitch III, President and Chief Executive Officer.
"This growth and asset mix have contributed greatly in the ability to achieve
our record setting operating earnings performance, in terms of both absolute
earnings and profitability."
FINANCIAL HIGHLIGHTS:
(Dollars in Millions, Annualized Percents)
For the Quarter Ended September 30, 1994 1993
Total Revenues $357 $309
Net Income $62.7 $50.1
Finance Charge Yield 17.6% 16.9%
Net Charge Offs 2.25% 2.02%
For the Nine Months Ended September 30, 1994 1993
Total Revenues $1,006 $906
Income Before Accounting Changes $172.6 $151.5
Net Income $172.6 $138.9
Finance Charge Yield 17.4% 16.9%
Net Charge Offs 2.10% 1.83%
Return on Assets* 2.9% 2.8%*
Return on Equity* 18.7% 17.4%*
* 1993 is before one-time accounting changes of $12.6 million.
At: 9/30/94 12/31/93
Total Assets $8,367 $7,505
Net Receivables $6,323 $5,872
Delinquency 2.79% 2.54%
American General Finance Corporation and its subsidiaries are engaged in the
consumer finance and related credit insurance business. The company,
headquartered in Evansville, Indiana, has assets of $8.4 billion and operates
nearly 1,250 offices in 39 states, Puerto Rico, and the U.S. Virgin Islands.
Products and services are provided to approximately 2.5 million low-to-middle
income American families. The company offers direct consumer and home equity
loans; indirect retail sales financing; and credit and non-credit related
insurance.