MBNA Third Quarter Earnings Slip

MBNA Corporation today announced that net income for the third quarter of 2005 was $717.9 million or $.56 per common share compared with $728.3 million or $.56 per common share for the third quarter of 2004. For the first nine months of this year, net income was $1.38 billion or $1.07 per common share, compared to $1.91 billion or $1.46 per common share for the first nine months of 2004. Net income for the first nine months of this year includes a restructuring charge of $764.1 million pre-tax. Without the restructuring charge, net income for the first nine months of this year was $1.87 billion or $1.46 per common share.

“We are pleased with our third quarter results,” said Bruce L. Hammonds, CEO of MBNA Corporation. “With over $60 billion in total volume – the highest quarterly volume in MBNA’s history – and an increase of more than $5 billion in managed loans, our business development efforts and valuable affinity franchise produced strong organic growth.”

Loan receivables at September 30, 2005 were $35.5 billion, an increase of $3.2 billion over the second quarter of 2005. Total managed loans at September 30, 2005 were $122.5 billion, an increase of $5.1 billion compared to total managed loans at the end of the second quarter of 2005.

Total volume in the quarter rose to $61.3 billion, an increase of 15.6% over the third quarter of 2004. Total volume includes sales volume of $38.1 billion, which increased by 7.9% over the third quarter of 2004, and cash advance volume of $23.2 billion, which increased by 31.0% from the third quarter of 2004.

Losses on loan receivables and managed loans for the third quarter of 2005 were 3.30% and 4.29%, respectively. Delinquency on loan receivables and managed loans was 2.78% and 3.99%, respectively, at September 30, 2005.