CIT Vendor Finance, the leasing division of CIT Group, has reported a significant turnaround in profitability for the third quarter of 2013 compared to last year.
In the three months to 30 September 2013, CIT Vendor Finance reported pre-tax profit of $8.2m (5.9m) which compares to a loss for the same quarter 2012 of $47.6m.
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The first nine months of 2013 show a steady return to profitability for the division after poor figures across the majority of last year.
The division made $18.3m before taxes in the first three quarters compared to a loss of $154.7m in the same period last year.
In addition, finance and leasing assets increased 7% to $5.6bn year-on-year, with an 8% increase in new business over the same period.
CIT wrote off $19m in net bad debt in the third quarter.
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By GlobalDataThe company’s sale of $200m of the Dell Europe portfolio was completed in the third quarter and brought gains to the business of $21m.
A further sale of $300m of the same portfolio completed on 1 October.
CIT Group also saw a return to net profitability for the third quarter of $199m, taking its year-to-date profitability after tax to $545m.
John Thain, chief executive of CIT Group, said: "Our third quarter results reflect our progress in prudently growing assets, expanding CIT Bank, and returning capital to our shareholders,"
