The large Midwest regional bank posted a net loss of $26 million, or 4 cents a share, compared with a profit of $286 million, or 54 cents a share, a year earlier.
Excluding one-time items, including a reduction in income tax expense after settling a dispute with the U.S. Internal Revenue Service over leveraged leases, the bank lost 22 cents a share. On that basis, analysts on average expected a loss of 28 cents a share.
'Given the current economic environment, we continue to feel good about the core operations and earnings power of the bank,' said Chief Executive Kevin Kabat.
Like Wells Fargo & Co and U.S. Bancorp, which also reported quarterly results this week, Fifth Third said it saw high mortgage origination volumes in the first quarter. Its mortgage banking revenue climbed to $134 million from $97 million a year earlier.
Fifth Third issued $3.45 billion in preferred stock under the U.S. Treasury's Troubled Asset Relief Program last year. It said it paid $76 million in preferred dividends in the first quarter.
The bank slashed its dividend last year after losses rose from its exposure in the Midwest, hard hit by the auto industry's troubles, and Florida, a center of the real estate downturn. These areas continue to account for most of its commercial and residential real estate losses, the bank said on Thursday.
The bank's shares climbed 11 percent to $4.10 in premarket trade. Through Wednesday, the shares had fallen 55 percent this year.
(Reporting by Elinor Comlay; editing by John Wallace and Derek Caney)
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