LONDON (ShareCast) - (Sharecast News) - US regional bank Fifth Third Bancorp reported a sharp increase in third-quarter earnings on Friday but also revealed it had lost $178m related to bankrupt auto dealer Tricolour.
The bank gave a $200m asset-backed finance loan Tricolor, which filed for bankruptcy last month. Regional banks came into focus on Thursday when two US institutions said they had been exposed to millions of dollars of bad loans and alleged fraud.

Bank shares globally were hit hard on equity markets after Zions Bancorp announced it had a $50m charge-off over two bad loans from its subsidiary, California Bank & Trust in San Diego while Western Alliance also said it was dealing with a fraudulent borrower.

Non-interest income rose 10% $781m in the quarter. Impairments - debts that unlikely to be recovered - came in at $339m including Tricolor charge.

Net interest income, the money made on the difference loan and savings rates - rose 7% to $1.53bn in the three months to September 30.

Profit surged 14% to $608m, or 91 cents a share compared with $532m, or 78 cents, a year earlier.

Reporting by Frank Prenesti for Sharecast.com

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