Advanta Ups Loss Provision 60% as Net Rises

Advanta Corp. (NASDAQ: ADVNB), a credit card issuer targeting small businesses, reported today third quarter net income of $22.1 million, up 4 percent from $21.1 million in the third quarter a year ago.

It increased its provision for loan losses 60 percent to $14.7 million from $9.2 million a year ago.

“Over the past years, we’ve been planning for a potentially more difficult environment by focusing on high credit quality customers,” said Dennis Alter, Chairman and CEO, said in a statement. “This strategy continues to look good to us now.”

Managed receivables totaled $6.2 billion at the end of the quarter, up nearly 34 percent from $4.6 billion. Advanta had an average of 930,000 active accounts, up 28 percent from a year ago.

Managed receivables 30 days or more delinquent were 3.15 percent, up nearly 17 percent, while the 90-day delinquency rate was 1.41 percent, up nearly 15 percent from a year ago. 

Spring House Pa.-based Advanta charged off $59.1 million during the quarter, up from $38.4 million. The charge off rate was 3.87 percent compared with 3.41 percent a year ago.