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Contact: Bryan A. Binyon,
Vice President and Treasurer
(812) 468-5195
AMERICAN GENERAL FINANCE CORPORATION
REPORTS FIRST QUARTER GROWTH IN EARNINGS
Highlights for the quarter:
- - Receivables grow
- - Charge-offs improve
- - Earnings increase 14%
EVANSVILLE, IN, APRIL 28, 1999 - American General Finance
Corporation reports first quarter 1999 earnings of
$53 million, representing a 14% increase over the first
quarter of 1998. Quality growth, with continued
improvement in charge-offs, and controlled expenses were
the drivers of the strong results.
Finance receivables grew $151 million in the first quarter
to total $9.6 billion at period end. The emphasis continues
to be on the higher quality, real estate portfolio. At
March 31, 1999, the real estate portfolio represented 62% of
total receivables compared to 53% at March 31, 1998 and 60%
at December 31, 1998.
As anticipated, the higher proportion of real estate secured
receivables reduced total portfolio yield, but that
reduction was largely offset by improved charge-off and
expense ratios. Charge-offs for the quarter were 2.14%
compared to 2.71% and 2.64% for the first and fourth
quarters of 1998, respectively. The 60-day+ delinquency
ratio was 3.68% at period end, a 10 basis point improvement
from year-end 1998. The allowance for losses at March 31,
1999 remained strong at 3.89% of finance receivables.
Management is pleased with the first quarter achievements
and expects similarly favorable results throughout 1999.
With one of the nation's largest branch networks supported
by experienced personnel and a sophisticated credit risk
management system, American General Finance Corporation
is prepared for continued growth and solid financial
performance.
_________________________________________________________
American General Finance Corporation and its subsidiaries
are engaged in the consumer finance and credit insurance
business. The company, headquartered in Evansville,
Indiana, has assets of $11 billion and operates 1,303
offices in 40 states, Puerto Rico, and the U.S. Virgin
Islands. Products and services are provided to more
than 2 million American families. The company offers
direct consumer and home equity loans, retail sales
financing, and other credit-related products.
All statements, trend analyses, and other information
contained in this report and elsewhere (such as other filings
by the company with the Securities and Exchange Commission,
press releases, presentations by management of the company,
or oral statements) relative to trends in the company's
operations or financial results, as well as other statements
including words such as "anticipate," "believe," "plan,"
"estimate," "expect," "intend," and other similar
expressions, constitute forward-looking statements under
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are made based upon management's
current expectations and beliefs concerning future
developments and their potential effects upon the company.
There can be no assurance that future developments affecting
the company will be those anticipated by management.
Actual results may differ materially from those included
in the forward-looking statements.
These forward-looking statements involve risks and
uncertainties including, but not limited to, the following:
(1) changes in general economic conditions, including the
performance of financial markets, interest rates, and the
level of personal bankruptcies; (2) competitive,
regulatory, or tax changes that affect the cost of or
demand for the company's products; (3) the company's
ability to achieve Year 2000 readiness for significant
systems and operations on a timely basis; and (4) adverse
litigation results or resolution of litigation. Readers
are also directed to other risks and uncertainties
discussed in other documents filed by the company with the
Securities and Exchange Commission. The company
undertakes no obligation to update or revise any forward-
looking information, whether as a result of new
information, future developments, or otherwise.
American General Finance Corporation
FINANCIAL HIGHLIGHTS:
(Dollars in Millions, Annualized Percentages)
Unaudited
For the Three Months
Ended March 31,
1999 1998
________ ________
Total Revenues $419 $386
Interest Expense 135 119
Operating Expenses 130 123
Provision for Finance Receivable
Losses 51 48
Insurance Losses and Loss
Adjustments 20 22
________ ________
Total Expenses 336 312
Income Before Provision for
Income Tax 83 74
Provision for Income Tax 30 28
_______ ________
Net Income $ 53 $ 46
_______ ________
Finance Charge Yield 14.81% 16.47%
Charge-off Ratio 2.14% 2.71%
________ ________
Risk Adjusted Yield 12.67% 13.76%
Operating Expenses as a % of
Average Net Receivables 5.46% 6.27%
Return on Assets 1.89% 1.98%
Return on Equity 12.86% 13.20%
AT: 3/31/99 3/31/98
_______ _______
Total Assets $11,195 $ 9,377
Net Finance Receivables
Real Estate Loans 5,970 4,210
Non-Real Estate Loans 2,429 2,425
Retail Sales Finance 1,224 1,244
_______ ______
Total Net Finance Receivables $ 9,623 $7,879
Allowance for Finance Receivable Losses
Balance at End of Period $375 $358
As a Percentage of Net Finance
Receivables 3.89% 4.55%
60-Day+ Delinquency Ratios
Real Estate Loans 3.37% 2.77%
Non-Real Estate Loans 5.22% 5.28%
Retail Sales Finance 1.96% 2.41%
_______ _______
Total Net Finance Receivables 3.68% 3.52%