CIT Reports Lending, Leasing Assets Up $1B+ in Q3; Net Income of $693MM

November 03, 2015, 07:14 AM

Filed Under: Corporate Earnings

Related: CIT Group, John Thain

CIT Group reported net income of $693 million for the quarter ended September 30, 2015, compared to net income of $515 million for the year-ago quarter. Income from continuing operations was $697 million compared to $515 million in the year-ago quarter. Net income for the current and year-ago quarters included $647 million and $375 million respectively, of income tax benefits associated with the reversals of the valuation allowance related to the U.S. federal deferred tax asset.

Summary Highlights:

Results Impacted by Several Items Related to Strategic Initiatives and Exited Businesses – Includes net after-tax benefit of $544 million ($2.83) per diluted share from discrete items;
Closed OneWest Bank Acquisition – Added over $20 billion of assets; $14 billion of deposits, reducing borrowing costs by approximately 70 basis points; CIT Bank now represents nearly 65% of total portfolio assets;
Grew Lending and Leasing Assets – Financing and leasing assets in North America Banking and Transportation & International Finance grew over $1 billion or 3% from prior quarter, excluding assets acquired;
Continued Capital Return – Returned nearly $170 million of capital to shareholders through dividends and the repurchase of approximately 3 million shares; Tier 1 Common Ratio of 12.4%.

Net income for the nine month period ended September 30, 2015 was $912 million compared to $879 million for the period ended September 30, 2014. Income from continuing operations for the nine month period ended September 30, 2015 was $916 million compared to $825 million for the period ended September 30, 2014. Net income for the nine month periods ended September 30, 2015 and September 30, 2014 also included $647 million and $375 million respectively, of income tax benefits associated with the previously mentioned partial reversals of the tax related valuation allowance.

“We made significant progress in our transition to a U.S. commercial bank model in the third quarter,” said John Thain, Chairman and Chief Executive Officer. “We closed the acquisition of OneWest Bank and remain focused on integrating and leveraging its platform. We sold our business in Mexico, moved certain international businesses into held for sale and are exploring strategic alternatives for our Commercial Air business. I am confident our strategic initiatives will further position CIT for long-term success and increased shareholder value.”

Read the full CIT Earnings Press Release.