Philip M. Hanley
Chief Financial Officer
American General Finance, Inc.
812-468-5420
AMERICAN GENERAL FINANCE CORPORATION
CONTINUES STRONG EARNINGS
AND ASSET GROWTH
HIGHLIGHTS
- - First quarter net income of $61 million; up 18% over 1994 first quarter
- - Net finance receivables up more than $250 million from year-end
- - Growth in all categories of finance receivables
- - Earned insurance premiums up 38% from the prior year
EVANSVILLE, IN, APRIL 25, 1995.--American General Finance Corporation
continued its trend of strong earnings and asset growth during the first
quarter of 1995. Net income for the first quarter was $61 million, compared
to 1994 first quarter net income of $52 million, an 18% improvement. First
quarter return on equity was 18.07% compared to 17.07% for the first quarter
of 1994.
Net finance receivables grew over $250 million during the first three months
of 1995. All categories of finance receivables grew during the first quarter
with especially strong growth in retail sales finance receivables and real
estate secured loans. The yield on finance receivables increased to 17.94%
for the first quarter of 1995 compared with 17.09% for the comparable 1994
period, reflective of the higher proportion of higher yielding non-real estate
loans in the loan portfolio and improved yield on retail sales finance
receivables. The portfolio yield also benefited from the December 31, 1994
transfer of $1.3 billion in revolving retail and credit card receivables from
the direct parent, American General Finance, Inc. This change in portfolio
mix also influenced credit quality, as delinquent receivables were 2.92% at
March 31, compared to 2.89% at year-end, while net charge offs were 2.82% for
the first quarter compared to 2.05% for the first quarter of 1994. The higher
average portfolio yield more than offset the increase in net charge offs.
Daniel Leitch III, Chairman and Chief Executive Officer, said in commenting on
the results, "Improvements in portfolio yield and increased insurance revenue
generation resulting from the greater level of traditional consumer loans and
retail-based receivables have outweighed the increase in charge offs. We are
pleased with the continued growth in earnings, as well as with the balanced
portfolio growth and improved insurance performance we achieved during the
first quarter."
FINANCIAL HIGHLIGHTS:
(Dollars in Millions, Annualized Percents)
For the Quarter Ended March 31, 1995 1994
- ------------------------------- ---- ----
Revenues:
Finance Charges $358 $250
Insurance $54 $39
Other $18 $25
---- ----
Total Revenues $430 $314
==== ====
Net Income $61 $52
Yield 17.94% 17.09%
Charge Off Ratio 2.82% 2.05%
Return on Assets 2.70% 2.75%
Return on Equity 18.07% 17.07%
At: 3/31/95 12/31/94
- --- ------- --------
Total Assets $9,255 $8,919
Net Finance Receivables $8,158 $7,907
Delinquency Ratio 2.92% 2.89%
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 $9.3 billion and operates
over 1,300 offices in 40 states, Puerto Rico, and the U.S. Virgin Islands.
Products and services are provided to over 3 million low-to-middle income
American families. The company offers consumer and home equity loans; retail
sales financing; credit cards; and credit and non-credit related insurance.