Fifth Third Bancorp Plans $200M Impairment Charge Over Alleged Fraud

Fifth Third Bancorp has uncovered alleged external fraudulent activity linked to a commercial borrower involved in an asset-backed finance loan with an outstanding balance of about $200 million. As a result, the bank expects to record a non-cash material impairment charge ranging from $170 million to $200 million, which will be recognized in the third quarter of 2025. The company is collaborating with law enforcement and has engaged third-party advisors to assess the full extent of the potential fraud-related losses and to determine the precise impairment charge. This development was disclosed through multiple filings and company statements, highlighting the significant financial impact on the bank's loan portfolio. Fifth Third Bancorp is also scheduled to present at the 2025 Barclays Global Financial Services Conference, where it may provide further insights into its financial outlook. These events underscore the bank's proactive approach to managing the aftermath of the alleged fraud.