FOOL CONFERENCE CALL SYNOPSIS*
By Dale Wettlaufer (MF Raleigh)

OLYMPIC FINANCIAL LTD. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: OLM)") else Response.Write("(NYSE: OLM)") end if %>
7825 Washington Ave. South
Minneapolis, MN 55439-2435
612-942-9880

ALEXANDRIA, Va., October 22, 1996 /FOOLWIRE/ -- Olympic Financial Ltd. announced on October 22 earnings for the third quarter ended September 30, 1996. Net income for the quarter reached $17.2 million resulting in earnings per share of $0.44 on a fully diluted basis. This compares with net income of $9.0 million and per share earnings of $0.30 in the third quarter of 1995, increases of 90% and 47%, respectively. Revenues for the quarter totaled $57.1 million, up 81% from $31.5 million one year ago. Loans purchased during the quarter increased 30% to $718.2 million compared with $553.5 million in the same quarter of 1995.

For the first nine months of 1996, net income was $43.0 million, or $1.20 per share, compared with net income of $19.1 million, or $0.74 per share, before extraordinary items, for the first nine months of 1995. During the first nine months of 1996, revenues totaled $150.6 million compared with $72.7 million during the same period last year, an increase of 107%.

Warren Kantor, Olympic's Chairman of the Executive Committee, attributed the strong third quarter results to the record interest rate spreads achieved from the continued growth of Olympic's Classic loan program. Kantor commented, "Olympic is very pleased to report a solid performance during the third quarter. As the higher yielding Classic program has evolved, the Company achieved record interest rate spreads that more than compensated for any incremental risk incurred with the growth of Classic. The Company's current growth strategy of increasing Classic loans to 50% of total loan purchases by year-end continues to produce increasingly profitable results for the Company."

Kantor further commented, "The Company's portfolio of loans continues to perform well within the expected ranges we have provided for loan losses. We are pleased to report that the Company's reserves for loan losses increased $13.9 million during the quarter, which brings total loan loss reserves for the Company to $81.3 million." Cumulative reserves now comprise 2.40% of the total servicing portfolio, compared to 2.25% in last quarter and 1.30% at September 30, 1995.

The Company reported total loans delinquent greater than 30 days at 2.19%, an expected increase from 1.95% in the second quarter of 1996. Annualized net loan losses were 0.95%, up from 0.87% in the second quarter of 1996.

1996 THIRD QUARTER HIGHLIGHTS

-- Revenues increased 81% to $57.1 million from $31.5 million in the 1995 third quarter.

-- Net income increased 90% to $17.2 million, up from $9.0 million in the 1995 third quarter.

-- Loan purchases increased 30% to $718.2 million, up from $553.5 million in the 1995 third quarter. Automobile receivables purchased since inception now exceed $5.2 billion.

-- Loans securitized during the quarter increased 48% to $737.0 million, up from $496.9 million in the 1995 third quarter.

-- Olympic's loan servicing portfolio increased 79% to $3.4 billion from 1.9 billion at September 30, 1995.

-- Loan loss reserves increased by $13.9 million and totaled $81.3 million at September 30, 1996, representing 2.40% of the Company's servicing portfolio.

-- Automobile dealerships under contract increased to 7,090 at September 30, 1996, up from 4,494 a year ago.

-- Classic loans accounted for 39% of third quarter loan purchases, up from 35% in the second quarter of this year and 16% in the third quarter a year ago.

COMMENTS ON FINANCIALS, ADDITIONAL COMMENTS ON OPERATIONS

A note on Olympic's lending: Classic loans are made to prime-quality borrowers with a modestly higher risk profile, which allows these loans to be priced at a significant premium to Premier loans. Premiere loans accounted for 61% of Olympic's purchases while Classic made up 39%. Classic loans made just under 35% of purchases in Q2 and 16% one year ago. The company has set a goal of increasing Classic loans to 50% of purchases. Despite pressures on quality and lending volume, the company is maintaining its lending standards. Delinquencies in the Premiere program are running at 1.84% and for Classic, 3.35%. Though annualized losses have increased, the company's loss figures are below industry average and reflect a higher-quality pool of borrowers.

The company is nearing completion of a program to open four new regional collection centers. The four centers will allow the company to double its servicing capacity over the next two quarters. The new centers will generate more frequent delinquency calls and higher-quality calling efforts.

Operating margins were strong, at just over 48%. Net income benefited from gross spread of over 800 basis points on the $737 million in loans securitized during the quarter.

The company's gain on sale for the quarter was $30.1 million, or 4.09% of loans securitized.

Loan loss reserves amounted to over 300 basis points over the life of loans taken on during the quarter.

Operating expenses rose to $22.7 million from $11.2 million last year and at 3.0% of the average servicing portfolio, increased slightly from last year.

Loan purchase volume increased $60.3 million over Q2 1996. Loans this quarter contained an average spread, net of dealer participation, of 6.86 percent.

The company's spread account balance in the securitization trust exceeded $127 million, or 30% of FIR, the finance income receivable balance. As the trust continues to meet its established threshholds, excess funds will come back to the company.

The company has $172 million in available cash, counting loans held-for-sales (net of warehousing). The company's financial position has never been stronger with an equity position of approximately $400 million. Balance sheet leverage is less than 1-1 on debt-to-equity.

Given the company's financial ratings, the company feels comfortable about going out into the market for additional capital if needed.

As the company deals on a consignment basis with a growing number of retailers, rather than wholesaling its loans, its servicing needs have grown.

Financed repossessions represent 2.4% of the portfolio. 13% of these loans were delinquent and 13% were in default. The company is seeing these results improve as the result of better controls and underwriting and by spreading dealer reps throughout 44 dealerships. The company has improved its infrastructure with more auditors for inventory control and credit quality as well as on-site re-marketing managers. Inventory grew from $31 million to $46 million during the quarter. This increase is expected to slow in the coming quarter as retail network growth is digested.

The company is still looking at strategic alternatives but says it's doing very well as an independent entity.

* A Fool conference call synopsis represents an effort to highlight the salient points of a conference call and should not be taken as an authoritative accounting or transcription of the entire event. Note: Statements made by a company other than historical information may constitute forward-looking statements for which the company can claim protection under the Safe Harbor Act. Please consult the company's filings with the SEC for information on risk factors which might cause actual results to differ materially from the information contained in these forward-looking statements.