Shares of Fifth Third Bancorp (NASDAQ:FITB) fell 2.7% in after-hours trading on Tuesday after the Cincinnati-based bank revealed it may face losses of up to $200 million due to alleged fraud involving a commercial borrower.
The lender reported it identified “alleged external fraudulent activity” linked to an asset-backed finance loan with an outstanding balance near $200 million. Fifth Third expects to record a non-cash impairment charge between $170 million and $200 million in the third quarter of 2025.
The bank said it concluded on September 5, 2025, that the incident would require a material impairment charge. It is collaborating with law enforcement and has hired third-party advisors to assess the total potential losses from the alleged fraud.
Findings from these advisors will guide the bank in determining the precise impairment amount to be reported in its upcoming quarterly results. The company did not disclose specifics about the alleged fraud or identify the commercial borrower.
This unexpected development poses a significant challenge for the regional bank, which must absorb the potential financial hit in its next quarterly earnings.
Fifth Third Bancorp stock price
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