WaMu reports $3.3 billion second-quarter loss

SEATTLE - Washington Mutual says it swung to a loss in the second quarter as it increased to more than $8 billion its reserve to cover sour loans.

For the April-to-June period, the Seattle-based bank says it lost $3.33 billion, or $6.58 per share, which compares with a profit of $830 million, or 92 cents per share in the year-ago period. Results include a previously disclosed, one-time reduction of $3.24 per share related to the company’s capital raising in April.

Thomson Financial says analysts, on average, were expecting a loss of $1.05 per share.

The bank says it increased its loan loss reserves by $3.74 billion to $8.46 billion during the quarter, as it continues to face mounting losses stemming from bad mortgages.

MORE FROM EARNINGS

Earnings Section Front

General Electric cuts earnings outlook Goldman’s earnings plunge 70 percent Lehman to sell stake in key investment division Staples’ profit drops 16 percent Dell’s quarterly profit drops 17 percent Retailer Sears offers a downbeat outlook H.J. Heinz posts higher-than-expected profit Burger King’s quarterly profit up 42 percent Hewlett-Packard’s profit jumps 14 percent Credit card troubles hurt Target’s profit Earnings Section Front   Add Earnings headlines to your news reader: