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IBM Credit Corporation Reports 1998 Third-Quarter Results


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North Castle, NY - 20 Oct 1998: . . . IBM Credit Corporation today reported third-quarter 1998 net earnings of $79.9 million, an increase of 28 percent, compared with $62.4 million for the same 1997 period.

New financing originations for commercial and government customers acquiring computer hardware and other information technology products and services in the third quarter of 1998 decreased 8 percent to $1.60 billion, compared with $1.74 billion in the third quarter of 1997. New financing originations providing distribution channel partners with working capital for inventory and accounts receivable in the third quarter of 1998 decreased by 4 percent to $3.72 billion, compared with $3.87 billion for the same 1997 period. The return on average equity was 17.2 percent, compared with 18.7 percent in the third quarter of 1997.

At September 30, 1998, total assets were $15.6 billion, compared with $16.6 billion at December 31, 1997, a decrease of 6 percent. Retained earnings at September 30, 1998, were $1.41 billion, compared with $1.21 billion at December 31, 1997, an increase of 17 percent.

For the first nine months of 1998, net earnings were $227.2 million, an increase of 8 percent, compared with $210.2 million for the same period in 1997. For the first nine months of 1998, financing originated for commercial and government customers decreased by 3 percent to $4.48 billion, compared with $4.64 billion for the first nine months of 1997. For the first nine months of 1998, working capital financing originated for distribution channel partners decreased by 6 percent to $9.99 billion, compared with $10.66 billion for the same 1997 period.

Forward-Looking and Cautionary Statements

Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission.

IBM Credit Corporation in the United States, and the IBM Global Financing organizations worldwide, offer businesses of all sizes leasing and financing for technology acquired from IBM or remarketers. IBM Credit and the IBM Global Financing organizations also offer customers in more than 40 countries a broad array of asset management services and provide remarketers with inventory and accounts receivable financing. Visit the IBM Global Financing home page at http://www.financing.ibm.com.

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