IBM Credit Announces Financial Results For 2002

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ARMONK, N.Y. - 16 Jan 2003: IBM Credit LLC* today reported 2002 net earnings of $312.1 million, a decrease compared with $445.3 million in 2001.

New customer financing originations** for acquisition of information technology products and services decreased 12 percent to $5.9 billion in 2002, compared with $6.7 billion in 2001. New commercial financing originations -- providing working capital financing -- decreased 10 percent to $10.3 billion in 2002, compared with $11.5 billion for the same 2001 period.

At December 31, 2002, total assets were $13.4 billion, compared with $15.3 billion at December 31, 2001, a decrease of 12 percent. Retained earnings at December 31, 2002, were $0.9 billion, compared with $1.1 billion at December 31, 2001, a decrease of 18 percent. The return on average equity was 21.0 percent in 2002, compared with 25.0 percent in 2001.

In the fourth quarter of 2002, net earnings were $82.7 million, a decrease of 34 percent from $125.1 million in 2001. Customer financing originations in the fourth quarter of 2002 were $1.8 billion, a decrease of 14 percent compared with the same 2001 period. For the fourth quarter of 2002, commercial financing originations were $2.8 billion, a 10 percent decrease compared with the same 2001 period.

Forward-Looking and Cautionary Statements
Except for 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.

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* On January 1, 2003, IBM Credit Corporation converted to IBM Credit LLC, a limited liability company. There is no change to its obligations to its customers. IBM Credit LLC remains wholly owned by IBM, operates in the United States and is part of the worldwide IBM Global Financing organization. For more information on financing, visit the IBM Global Financing home page at

** New customer financing originations reflect assets either owned or managed by IBM Credit LLC.

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