Fifth Third Discovers Fraud at Borrower, to Recognize Charge (1)

(Updates with 3Q provisions forecast.)

Fifth Third discovered alleged external fraudulent activity at a commercial borrower and expects to recognize an impairment charge in the third quarter.

• Activity at a commercial borrower of Fifth Third Bank, National Association associated with asset-backed finance loan
  • The outstanding balance on loan is about $200 million
• Expects charge will be in the range of $170 million to $200 million
• Bank engaged third party advisers to validate the extent of its potential fraud related losses
• In a slide presentation, Fifth Third said it expects provision for credit losses in the third quarter of $220 million ...