CIT Group has reported a net loss of $447m
(€338.5m) for Q1 2012 as it continues to pay off its
debts.
However, excluding the debt refinancing
charges of $620m, business looks good for the group as it made a
pre-tax profit of $214m for Q1 2012, which was up from $178m in the
same period last year.
This year’s net figures for financial
services group, which emerged from bankruptcy in 2009, contrasted
with those of last year, which saw a net income of $66m and a
comparatively low debt refinancing figure of $46m.
CIT Vendor Finance, the group’s equipment
leasing arm, reported pre-tax losses for the first quarter and
cited “$18m of adjustments that pertain to prior periods” as one of
the reasons. Increased credit provisions and higher operating
expenses were also attributed to losses.
Financing and leasing assets saw a clear
gain, rising $100m during the first quarter to $5.1bn, although it
was down from a year ago. Funded new business volume was $673m,
which although was down from the previous quarter, was a 17% rise
from the same period last year.
Portfolio credit quality according to CIT
“improved significantly” from the previous quarter. Net-charge offs
were $6m, which was a $12m reduction on last year’s Q1 but a $4m
increase from the previous quarter.
CIT chairman and chief executive officer
John A. Thain said: “We made further progress this quarter
positioning CIT for profitability and growth.”
