Oct 17 (Reuters) -

U.S. regional bank Fifth Third Bancorp ( FITB ) reported a

14% jump in third-quarter profit on Friday on the back of robust

fee income, but booked a $178 million loss related to the

bankruptcy of auto dealer Tricolor.

Broad-based growth across Fifth Third's fee businesses

lifted non-interest income to $781 million in the quarter, up

10% from a year earlier.

Wealth management and asset management fee revenue surged

11%, while mortgage banking fee revenue jumped 16%.

Shares of the bank rose 2.8% in premarket trading. The stock

had fallen 4.5% this year as of last close.

TRICOLOR LOSS

While the broader U.S. economy has remained resilient, fears

about credit quality at some regional banks, including Zions

Bancorporation and Western Alliance,

triggered a fall in U.S. bank stocks on Thursday.

Fifth Third had disclosed last month it gave a $200 million

asset-backed finance loan to auto dealer Tricolor, which filed

for bankruptcy last month and moved to liquidate its business.

Net charge-offs, or debts that are unlikely to be recovered,

totaled $339 million in the quarter, including a $178 million

loss related to the impairment of the loan to Tricolor.

INTEREST INCOME GROWTH

Net interest income - the difference between what banks earn

on loans and pay on deposits - rose 7% to $1.53 billion in the

quarter, thanks to lower deposit costs and fixed-rate asset

repricing.

Earlier this month, Fifth Third struck a $10.9 billion

all-stock deal to buy regional lender Comerica ( CMA ), the

biggest U.S. bank transaction this year that will create the

nation's ninth-largest lender.

Fifth Third's profit jumped to $608 million, or 91 cents per

share, in the three months ended September 30, compared with

$532 million, or 78 cents per share, a year earlier.