MBNA Reports Decline InEarnings

WILMINGTON, Del. - (07/19/05) -- Credit card bank MBNA Corp., whichhas agreed to be acquired by Bank of America in a $32 billion deal,said net income for its second quarter dipped by 4% to $632.1million, or 50 cents a share, partly due to a $14.4 billion chargefor the company's ongoing restructuring. For the first six monthsof the year, earnings plunged by 44%, due to a $782 million chargefor the restructuring. Without the restructuring, earnings wouldhave been $1.16 billion, down from $1.18 billion for the first halflast year. For the second quarter MBNA said its delinquency ratiofell to 3.98%, compared to 4.08% for the same period last year; andits net credit loss declined to 4.60%, from 4.95%. Net interestmargin continued to fall to 7.74% for the second quarter, from7.92% for the second quarter last year. The company's total loanportfolio rose to $117.4 billion at the end of the secondquarter.