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CIT Reports Full Year Net Income of $1,057 Million

February 02, 2016, 08:05 AM
Filed Under: Corporate Earnings
Related: CIT Group, John Thain

CIT Group reported net income of $144 million for the fourth quarter of 2015, compared to net income of $251 million for the year-ago quarter. Income from continuing operations for the fourth quarter was $151 million compared to $252 million in the year-ago quarter. Net income for the year-ago quarter included $44 million from the reversal of the valuation allowance related to certain international deferred tax assets.

Net income for the year ended December 31, 2015 was $1,057 million compared to $1,130 million for the year ended December 31, 2014. Income from continuing operations for the year ended December 31, 2015 was $1,067 million compared to $1,078 million for the year ended December 31, 2014. Net income for the year ended December 31, 2015 included $647 million of income tax benefits associated with the partial reversals of the valuation allowances on certain domestic and international deferred tax assets, while the prior year included $419 million of such benefits.

CIT Selected Highlights

  • Results Include After-Tax Charges of $76 million Related to Strategic Initiatives and Restructuring Charges – Completed sale of Brazil business, streamlined senior management structure and recognized a tax benefit on a previously sold international portfolio;
  • Grew Financing and Leasing Assets – Combined North America Banking and Transportation & International Finance financing and leasing assets grew 27% from a year ago, (5% excluding assets acquired from OneWest Bank);
  • Continued Progress Towards Bank-Centric Model – 65% of total financing and leasing assets in CIT Bank and deposits represent 64% of total funding; reduced weighted average costs of funds by 100 basis points from prior year;
  • Strong Capital Ratios – Common Equity Tier 1 of 12.7% and Total Capital Ratio of 13.3%.

“CIT’s evolution to a commercial bank model progressed throughout 2015 as we completed the acquisition of OneWest Bank, sold our non-strategic businesses in Brazil and Mexico, began the sale process for other international businesses and are exploring strategic alternatives for our Commercial Air Business,” said John A. Thain, Chairman and Chief Executive Officer. “We returned nearly $650 million of capital and increased CIT’s Bank deposits. CIT maintains strong capital and liquidity and is well positioned to build on our achievements under my successor Ellen Alemany and her leadership team.”

During the current quarter, a specific reserve related to Discontinued Operations was increased by $38 million of which the majority was recorded as an adjustment to goodwill. The company is continuing to evaluate this reserve which could result in additional changes to the financial statements.

Read the full CIT Press Release.

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