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CIT Reports Q3 2017 Net Income of $220MM

October 24, 2017, 07:16 AM
Filed Under: Corporate Earnings

CIT Group reported third quarter net income of $220 million compared to $131 million for the year-ago quarter.  Income from continuing operations for the third quarter was $223 million compared to $94 million in the year-ago quarter.

Income from continuing operations excluding noteworthy items for the third quarter was $139 million, compared to $109 million  in the year-ago quarter, as lower operating expenses and a decline in the provision for credit losses was partially offset by a decline in net finance revenue.

"In the third quarter, we posted solid results and delivered additional progress on our transformation plan," said Chairwoman and Chief Executive Officer Ellen R. Alemany. "We reduced operating expenses, completed an $800 million debt tender, grew the investment portfolio and improved our deposit mix. In addition, we addressed another legacy issue with the agreement to sell our reverse mortgage servicing business and loan portfolio, which will reduce our risk profile and support our goal to exit non-core businesses."

Alemany continued, "In the commercial banking space, competition for asset growth intensified in certain sectors. We remain focused on a disciplined approach to the business and continuing to invest in talent and infrastructure to drive profitable growth."

Return on Tangible Common Equity (ROTCE)2 for continuing operations was 14.6%. ROTCE for continuing operations excluding noteworthy items2 was 9.2%. Tangible book value per common share at Sept. 30, 2017 was $48.58. The preliminary Common Equity Tier 1 Capital ratio decreased to 14.0%, and the preliminary Total Capital ratio decreased to 15.7%, at Sept. 30, 2017. These capital ratios are calculated under the fully phased-in regulatory capital rules.

Readers may access the full press release here.

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