Washington Mutual Reports Q2 Loss Of $3.33 Billion

July 22, 2008 5:39 p.m. EST

Seattle, WA (AHN) - Washington Mutual reported a huge second quarter loss of $3.33 billion after it made a large contribution to its loan loss reserves during the quarter.

The savings and loan bank lost $3.34 a share excluding one-time charges, compared to a profit of 92 cents a share in the quarter a year ago.

Analysts were looking for $1.05 a share, excluding charges, according to Thomson Financial.

The company said charge-offs for the quarter equaled $2.17 billion. The bank also set aside $3.74 billion for loan losses, moving the total loan loss reserve balance to more than $8 billion.

"In the face of unprecedented housing and mortgage market conditions, we are continuing to execute on a comprehensive plan designed to ensure that we have strong capital and liquidity, an appropriately-sized expense base and a strong, profitable retail franchise," Chief Executive Kerry Killinger said, according to Reuters.

Shares of Washington Mutual finished 6.2 percent higher Tuesday, closing at $5.82 a share.