MINNEAPOLIS, Oct. 22 /PRNewswire/ -- Olympic Financial Ltd. (NYSE: OLM)
("Olympic") today announced 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 the trailing 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.

    Olympic Financial Ltd. is a Minneapolis-based consumer finance company
which purchases, sells and services prime retail installment contracts for new
and used automobiles originated by more than 7,000 dealers nationwide.
Olympic is the largest independent provider of automobile financing.  The
Company, which was founded in 1990, has Regional Buying Centers in Arizona,
Northern and Southern California, Colorado, Florida, Georgia, Massachusetts,
Minnesota, Missouri, New York, North Carolina, Ohio, Tennessee, North, South
and West Texas and Washington.  The Company acquires loans through 17 Regional
Buying Centers and has expanded its dealer network to include dealers in 38
states.

                            Olympic Financial Ltd.
                 Selected Financial and Other Operating Data
                              September 30, 1996

                                   Three months ended        Nine months ended
                                  Sept. 30,   Sept. 30,   Sept. 30,   Sept. 30
    Dollars in thousands, except per share data
                                   1996         1995       1996         1995
    REVENUES:
     Net interest margin       $ 18,079      $ 9,601     $ 45,464    $ 21,769
     Gain on sale of loans       30,113       17,587       80,794      40,947
     Servicing fee income         7,474        3,872       19,774       9,175
     Other non-interest income    1,406          405        4,579         802
     Total revenues              57,072       31,465      150,611      72,693
    EXPENSES:
     Operating expenses          23,393       11,243       63,346      29,283
     Long term debt and other
      interest expense            6,660        5,205       18,609      11,624
      Total expenses             30,053       16,448       81,955      40,907
     Operating income before income
      taxes and extraordinary
      items                      27,019       15,017       68,656      31,786
     Provision for income taxes   9,862        6,007       25,706      12,698
     Net income before
      extraordinary items        17,157        9,010       42,950      19,088
     Extraordinary items             --           --           --      (3,856)
     Net income                $ 17,157        9,010     $ 42,950    $ 15,232

    Primary Earnings Per Share:
     Income per common share before
      extraordinary items        $ 0.47       $ 0.34       $ 1.32      $ 0.89
    Extraordinary items per
     common share                    --           --           --       (0.19)
    Net income per common share  $ 0.47       $ 0.34       $ 1.32      $ 0.70
    Fully Diluted Earnings Per Share:
     Income per share before
      extraordinary items        $ 0.44       $ 0.30       $ 1.20      $ 0.74
     Extraordinary items per share   --           --           --       (0.15)
     Net Income per share        $ 0.44       $ 0.30       $ 1.20      $ 0.59

    Weighted average common and common equivalent
     shares outstanding
      Primary                 35,896,149  24,528,119    31,564,219 19,481,661
      Fully diluted           39,423,446  30,406,065    35,851,933 25,888,975

    Number of automobile dealers                             7,090      4,494
    Number of buying centers                                    17         14
    Servicing portfolio (in millions)                    $ 3,394.6  $ 1,893.6
    Automobile loan
     purchases (in millions)    $ 718.2      $ 553.5     $ 2,009.6  $ 1,463.7

    Dollars in thousands              September 30,               December 31,
    ASSETS                               1996                          1995
    Cash and cash equivalents      $      3,593                 $      1,340
    Due from securitization trust       188,373                           --
    Auto loans held for sale             18,925                      118,556
    Finance income receivable           430,024                      249,581
    Other assets                         42,910                       28,317
                                   $    683,825                 $    397,794

    LIABILITIES AND SHAREHOLDERS' EQUITY
     Amounts due under warehouse
      facilities                   $     38,486                 $     26,530
     Senior term notes                  145,000                      145,000
     Subordinated notes                  53,563                       13,005
     Capital lease obligations            8,049                        3,924
     Deferred income taxes               44,405                       18,700
     Accounts payable and
      accrued liabilities                20,059                        9,822
    Shareholders' equity                374,263                      180,813
                                   $    683,825                 $    397,794

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