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CIT Q4 net income surges to $207m

CIT Group has reported a net income of $207m, or $1.03 per diluted share, for the fourth quarter of 2012, compared to $36m, or $0.18 during the same period earlier year.

CIT Group chairman and chief executive officer John Thain said the company has increased commercial assets and expanded new business initiatives to support its small business and middle market clients.

Pre-tax income stood at $252m, which included net charges of $83m related to debt redemptions, against a pretax income of $71m, which included $150m of debt redemption charges during the comparable period last year.

For the quarter period ended on 31 December 2012, its total assets were $44bn, with an increase of $300m from 30 September 2012, and down $1.3bn from 31 December 2011.

Net finance revenue was $312m and reflects generally stable yields and improvements in funding cost that resulted from the repayment and/or refinancing of high cost debt and increased proportion of deposit funding.

Other income was $172m, decreased from $206m compared to the prior-year quarter primarily due to lower gains on loan sales, and increased $85m sequentially as the higher counterparty receivable accretion.

At 31 December 2012, its preliminary Tier 1 and total capital ratios were 16.2% and 17%, respectively, down from 16.7% and 17.5%, respectively, at 30 September 2012.

Established in 1908, CIT operates as a bank holding company with more than $33bn in financing and leasing assets and delivers services to its clients across more than 30 industries.