Shares of regional banks were mixed amid modest gains in the broader market Wednesday, as a sharp drop in oil prices partially offset a lackluster earnings report from Washington Mutual Inc.
Washington Mutual fell $1.17, or 20.1 percent, to $4.65 after the nation's largest thrift said it lost $3 billion during the quarter due to increases in its loss reserves to cover bad loans in its mortgage portfolio.
PNC Financial Services Group Inc. slipped 53 cents to $69.65, while Fifth Third Bancorp lost 30 cents, or 2 percent, to $14.65. On Tuesday, the Cincinnati-based bank reported a loss of $202 million, or 37 cents per share, for the second quarter.
But others in the sector rose, as Wall Street regained some confidence in the economy on falling oil prices. Investors also sifted through a number of earnings reports from financial institutions.
Nearly all banks are facing mounting losses from rising defaults on loans, especially those tied to residential real estate. As a result, banks have been forced to set aside more cash to cover current and expected loan losses.
But some in the sector, such as SunTrust Banks Inc., are reporting results better than analysts had expected. SunTrust shares jumped $3.55, or 9 percent, to $43.21.
KeyCorp and Regions Financial Corp. on Tuesday reported earnings below analyst estimates, but shares rose anyway in Wednesday's trading. KeyCorp gained 12 cents to $12.11, while Regions advanced 40 cents, or 3.5 percent, to $11.80.
National City Corp., which reports results Thursday, rose 34 cents, or 7.8 percent, to $4.71.
Terms & Conditions
RSS Headlines
Fool UK