CIT Group reported Q1/16 net income of $147 million compared to net income of $104 million for the year-ago quarter, which reflects results prior to the acquisition of OneWest Bank. Income from continuing operations for Q1/16 was $152 million compared to $104 million in the year-ago quarter.
“Since I recently became CEO and defined our strategy to become a leading national middle market bank, our team has been very focused on executing on our plan to improve returns as we grow our core businesses and maintain strong risk management practices,” said Ellen Alemany, chief executive officer.
“This year we expect to complete the separation of Commercial Air and other portfolio optimization initiatives, integrate the remaining OneWest Bank systems, build out deposit and commercial treasury services capabilities, execute on initiatives to reduce operating expenses and return excess capital to shareholders.”
The following highlights were excerpted from the news release:
- Average earning assets of $59.2 billion were up $17.4 billion from $41.8 billion in the year-ago quarter reflecting the acquisition of OneWest Bank.
The net finance margin in Q1/16 of 3.74% was up 51 basis points from 3.23% a year ago. - Non-accrual loans of $295 million increased over the prior quarter and the year-ago quarter, primary due to increases in the energy portfolio. CIT noted the provision for credit losses increased over both the prior quarter and the year-ago quarter and included $31 million related to the energy portfolio.
- Transportation no longer includes the China and the UK businesses. Transportation Finance is comprised of three divisions: Aerospace, Rail and Maritime Finance.