In Brief: Household Takes Loss On Beneficial, $502M

Household International said Wednesday that it is reporting a $501.6 million loss, or $1.03 per share, for the quarter ended June 30, because of charges associated with its merger with Beneficial Corp.

The merger, which was accounted for as a pooling of interests, closed June 30. Household had said it would take a $1 billion charge.

Before the merger, Household's earnings per share would have been 61 cents, and Beneficial's would have been 81 cents.

Household's managed portfolio increased 7% from a year earlier. New volume in both Household's and Beneficial's consumer finance business remained strong, Household said, but runoff of loans because of refinancings impeded overall growth.

Delinquencies 60 days or longer were up 47 basis points from a year earlier, while the ratio of reserves to nonperforming loans fell 3 basis points.