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April 24, 2013updated 12 Apr 2017 4:02pm

Q1 profit of $5.3m for CIT Vendor

CIT Vendor Finance made $5.3m (€4.1m) in pre-tax profit for the three months to the end of March 2013.

By Peter Johnstone

CIT Vendor Finance made $5.3m (€4.1m) in pre-tax profit for the three months to the end of March 2013.

The figure is down nearly 90% from $46.8m in the last quarter of 2012, which included a $14m one-off gain due to the sale of Dell Europe’s vendor partnership. However it marks an improvement on the $95.3m loss recorded from January to March last year.

The US group’s leasing arm grew its assets to $5.6bn, a rise of 2% from December 2012 and 9% from the same time last year.

It funded $650m of new business over the quarter, down 3% from a year ago. The bank said a decrease in new business volumes from the previous quarter was due to "seasonal trends".

CIT Group reported net income of $163m, compared to a net loss of $427m in the same quarter of 2012, which was attributed to $620m of debt redemption charges last year and only $18m this year.

John Thain, chairman and chief executive of CIT, said: "CIT Bank experienced solid asset growth and deposits now play a larger role in our diversified funding mix, accounting for a third of our total funding. We continue to maintain a strong balance sheet and capital ratios, and remain focused on improving our operating efficiencies and meeting our profitability targets."

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