Summary Box: Fifth Third swings to 3Q profit

AP News
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Posted: Oct 21, 2010 11:51 AM
Summary Box: Fifth Third swings to 3Q profit

STILL PROFITABLE: Regional bank Fifth Third said it turned a profit for the second quarter in a row, helped by the settlement of litigation related to a bank-owned life insurance policy.

STILL DEFENSIVE: The Cincinnati-based company said its third-quarter results were weighed down as it took further steps to reduce risk. Those included the sale of about half its nonperforming residential mortgage loans and the transfer to held-for-sale status of about a third of its nonperforming commercial loans, also largely tied to real estate. The company expects a slow recovery in the real estate market.

NEW LOANS: Fifth Third said it enjoyed broad-based loan growth during the quarter and is hopeful that trend will be sustained. Recoveries in the health care and manufacturing sectors have helped.