Article published October 22, 2008
4,000 jobs to be cut in 3 years by National City
National City reports $729M quarterly loss
FROM THE BLADE'S NEWS SERVICES
National City Corp. said yesterday it plans to cut 4,000 jobs as the Cleveland-based bank, Cincinnati's Fifth Third Bancorp, and Cleveland's KeyCorp reported a total of $833 million in third-quarter losses.
National City said the cuts, equal to 14 percent of its work force, will occur over three years across nine states, including Ohio and Michigan, where the bank has offices.
It has a local headquarters building in Toledo, 18 branches in the metro area, and a mortgage lending office.
Spokesman Kelly Wagner Amen said the bank has begun a review to see where it can cut jobs but will not know for several months where and when the cuts will occur.
National City's third-quarter loss was $729 million, or 85 cents a share. It lost $19 million, or 3 cents a share, a year earlier and has posted losses for five consecutive quarters.
The bank boosted its provisions for loan losses to $1.2 billion; the amount was $1.6 billion in the second quarter and $368 million a year earlier.Most of the increase was tied to a $21 billion in home equity, subprime residential construction, auto, boat, and recreational vehicle loans the bank is trying to work down. It said these are in businesses it has quit or products it no longer sells.
Net interest income dipped slightly to $1 billion in the third quarter from $1.1 billion during the year-ago period.
Fifth Third said it lost $56 million, or 14 cents a share, in the third quarter, compared with a profit of $325 million, or 61 cents a share, in the year-earlier period. It set aside $941 million during the third quarter to cover loan and lease losses. The figure from the year-ago quarter was $139 million.
Net interest income jumped 41 percent to $1.1 billion from $760 million during the year-ago period.
KeyCorp reported a loss of $48 million, or 10 cents a share, compared with earnings of $210 million, or 54 cents a share, during the same quarter a year ago. It set aside $407 million during the quarter to cover loan losses, compared with $69 million last year.
Net interest income fell slightly to $705 million from $712 million a year ago.
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