CIT Vendor Finance, the equipment leasing division of CIT Group,
detailed pre-tax losses for the second quarter of 2012 of $12.1m
(€9.8m) which was down year-on-year from $28.8m pre-tax profit but
a significant improvement on $113.1m loss recorded in the first
quarter this year.
CIT said in its financial statement the
loss was due to “lower gains on asset sales and lower net FSA
accretion partially offset by improved finance margin and lower
credit losses”. Increased credit provisions and higher operating
expenses were also attributed to losses.
Funded new business volume was $762m, up
approximately 20% year-on-year and 13% sequentially. CIT said
essentially all US funded volume in the current quarter was
originated through CIT Bank.
The division’s financing and leasing assets
of $5.1bn saw “a slight rise from March 31, 2012” yet with a $100m
year-on-year decrease as asset sales exceeded new business
CIT Group has reported a net loss of $71m
for the second
quarter of 2012 as
it perseveres in paying off debt.
The US-based firm has cause for optimism as its
have made a pre-tax
profit of $245m forthe quarter, $67m up from the previous
quarter, when the
debt refinancing charges of $286m are excluded.
John Thain, chairman and chief executive,
said: “We continue to make progress towards our long term targets.
Our results this quarter, while impacted by the repayment of high
cost debt, reflect our efforts to grow our businesses as we meet
the financing needs of our small business and middle market
“CIT Bank reached two significant
milestones – $2 billion of internet deposits and $10 billion of
assets – and will continue to play an important role in our growth
strategy,” he said.