CIT Group reported Q2/18 net income of $117 million compared to net income of $157 million for the year-ago quarter. Income from continuing operations available to common shareholders for Q2/18 was $138 million compared to income of $41 million in Q2/17.
The company’s revenue for the quarter rose to 10.6% to $524.4 million, up from $474.1 million in the same quarter in 2017.
Funded volume increased to $2.9 billion, up 30% compared to the year-ago quarter. Factoring volume of $6.6 billion was down 10% from the prior quarter due to seasonality but up 16% compared to the year-ago quarter, driven primarily by increased volume in the technology industry.
Business Capital average loans and leases increased 2% compared to the prior quarter and 8% compared to the year-ago quarter, driven by strong growth in funded volume in each of the equipment finance businesses.
“Our second quarter results reflect strong originations, lower operating expenses and continued capital optimization as we make steady progress on our strategic plan,” said CIT Chairwoman and CEO Ellen R. Alemany. “The direct bank delivered steady performance as we continued to build that franchise, adding $1.5 billion of average deposits and about 20,000 new customers. In addition, the Business Capital division posted another quarter of solid growth, which was fueled by the investments we have made in technology and talent in our equipment financing operation.”
Alemany continued, “Capital return remains a key component for us to achieve our ROTCE targets, and we are pleased with our progress in the second quarter. Going forward, we have increased our quarterly dividend by 56% per share and plan to return an additional $750 million of capital.”
