CIT Group reported Q1/17 net income from continuing operations was $78 million compared to $61 million in Q1/16. Net interest revenue of $292.6 million was up from $287.9 million in the same quarter a year earlier. The provision for credit losses of $49.7 million was down 44.5%, or $39.8 million, from $89.5 million a year earlier.
The following highlights were excerpted from the news release:
- Financing and leasing assets, which comprise the vast majority of earning assets, was $30.7 billion at the end of March 2017, up 1% from the prior quarter, driven by higher factoring receivables and down 1% from the same quarter in 2016, driven by sales in the Commercial Finance division, which offset increases in each of the other divisions.
- New lending and leasing volume of $1.6 billion was down from the prior quarter, reflecting seasonality and market trends and down from the year-ago quarter primarily due to weak middle market lending.
- Factored volume of $6.8 billion was flat with the prior quarter and up 16% compared to the year-ago quarter, driven by increased volume across all industries, especially technology.
- Commercial air and business air financing and leasing assets totaled $10.6 billion at March 31, 2017, of which $10.3 billion related to commercial air. Commercial air and business air financing and leasing assets were down from $10.8 billion at March 31, 2016, while business air assets declined.
“We are off to a solid start for the year,” said Ellen R. Alemany, chairwoman and CEO. “The sale of Commercial Air was completed, $5.8 billion in liability management actions were initiated, progress on our operating expense goal was achieved and our core business trends were stable. We remain committed to maintaining a strong balance sheet while making further progress on our strategic priorities, including building on our strengths in the commercial and consumer banking franchises, and creating value for shareholders.”