Washington Mutual Inc. yesterday reported a net loss for its card services group of $175 million for the second quarter, which ended June 30, a substantial decrease from net income of a $133 million-gain during the same period a year ago. WaMu reported $169 million in credit card charge-offs for the second quarter, a 59.4% increase from $106 million in the second quarter a year earlier. WaMu provisioned $911 million for credit card loan losses, a 74.2% increase from $523 million a year ago. Overall, the bank had a net loss of $3.3 billion for the second quarter, as it increased loan-loss reserves 80.9% to $8.5 billion from $4.7 billion during the first quarter of this year. "We continue to believe that 2008 will be the peak of our provisioning for this cycle, and we are building substantial reserves ahead of charge-offs," said Thomas Casey, WaMu chief financial officer, said during a conference call with analysts. WaMu's second-quarter losses follow a $1.1 billion loss in the first quarter and a $1.9 billion loss in the fourth quarter of 2007 (CardLine, 4/16). The last time the bank's net income was in the black came in the second quarter of 2007 with $186 million.

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