Zions Profit Beat Eases Credit Concerns From Alleged Fraud

Zions Bancorp said its profit topped estimates despite a $50 million loss from an alleged fraud, helping reassure investors who’d feared the credit markets might be harboring some deeper pain.

The bank reported $222 million of net income on Monday, just beating forecasts. It also charged off $56 million of bad loans in the third quarter, reflecting losses caused by the alleged fraud which was tied to a commercial real estate investor group in Southern California.