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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CIT Group Inc | NYSE:CIT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 53.50 | 0 | 01:00:00 |
CIT Group Inc. said profit in its latest quarter slid as noninterest income fell and expenses rose.
Still, per-share earnings came in a penny ahead of Wall Street expectations.
The lender, based in Livingston, N.J., reported a profit of $115.3 million, down from $246.9 million a year earlier. On a per-share basis, earnings dropped to 66 cents from $1.29. Revenue declined 4.1% to $406.6 million.
Analysts projected 65 cents in per-share profit on $435 million in revenue, according to Thomson Reuters.
Chief Executive John Thain noted a "continuing competitive environment, particularly for middle-market lending."
CIT, which operates in 12 states plus the District of Columbia, has about 13 international locations and lends to the small business, middle market and transportation sectors. Under Mr. Thain, CIT has pushed to expand its commercial businesses and earlier this month won regulatory approval for its $3.4 billion acquisition of OneWest Bank and its parent company. The bank expects to close the deal Aug. 3.
During the quarter, noninterest income, which for CIT mainly comes from rent charged on operating leases, fell 3%. The bank recorded a $6 million accounting charge related to a swap, and it was up against a tough comparison in the year-before period. Financing and leasing assets in North American commercial finance rose 4% from a year earlier, thanks to last year's purchase of Direct Capital.
Net finance margin, a key measure of lending profitability that is largely tied to interest rates, fell to 4.57% from 4.91% a year earlier but was flat from the first quarter. The metric has been pinched at many lenders facing low interest rates, but some have recently signaled that it is stabilizing. On Tuesday, CIT said lower yields in aerospace, partially offset by higher yields in rail, were behind the year-over-year decline.
Total loans grew 2.2% to $20.3 billion as an 11% rise in domestic lending offset set a sharp decline in international lending.
Operating expenses rose 4.4%. Restructuring costs were minimal during the quarter, CIT said, but compensation costs rose.
Shares in the bank, down about 2.5% this year, were inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
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