What’s $202,000,000 between friends?

Fifth Third Bank loses $202 million during second quarter

GRAND RAPIDS — Fifth Third Bank Corp. lost $202 million during the second quarter as the region’s largest bank continues to grapple with problematic loans and a one-time accounting charge.

The results, reported this morning, amount to a loss of 37 cents per share. The bank reported a profit of $376 million, or 69 cents per share, during the second quarter of last year.

Without the one-time charges amounting to 42 cents per share, Fifth Third would have earned about 5 cents per share.

“While we were disappointed in our overall results for the second quarter, which included a charge related to leveraged leases, they were largely in line with our expectations last month,” Fifth Third Chairman and Chief Executive Kevin Kabat said in a press release. “Absent unexpected events, we anticipate returning to profitability in the third quarter.”

The bank is one of several that has been forced to raise additional capital to cope with the declining value of its asset portfolio. In June the company also slashed its dividend to maintain enough cash to remain in compliance with federal regulations.


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