CIT Group reported Q4/15 net income of $144 million for the Q4/15, compared to net income of $251 million for the year-ago quarter. Income from continuing operations for Q4/15 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, or $2.21 per diluted share.
The following highlights were excerpted from the news release:
- 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).
- 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.
- Net finance revenue was $528 million in the current quarter, compared to $482 million in the prior quarter and $373 million in the year-ago quarter. Average earning assets were $59 billion in the current quarter reflecting a full quarter of earnings assets acquired from OneWest Bank.
- Non-accrual loans of $268 million increased from $215 million in the prior quarter, primarily due to an increase in the energy portfolio. The provision for credit losses of $58 million rose from both the prior quarter of $50 million and year-ago quarter of $15 million and reflects an increase in reserves related to the energy and, to a lesser extent, the maritime portfolios.
“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 CEO. “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.”