CIT Net Jumps 46 Percent in Second Quarter
Posted on July 27, 2010 by
NEW YORK-Net income for CIT Group rose a dramatic 46 percent in the second quarter, to a total of $142.1 million.
The increase occurred in spite of a 5.3 percent drop in interest income, which was $993.5 million in the second quarter. According to a CIT statement, this decline was offset by a 36 percent increase in other income, which totaled $750.3 million and which included rental income on operating leases; and a 2.9 percent drop in total interest expense. These factors also offset a 5.8 percent gain in operating expenses.
Key developments for CIT in the second quarter were strategic asset sales, net portfolio collections and new financings. All of these enabled the company to pay down $3 billion of its debt.
John Thain, who became chairman and chief executive officer of CIT earlier this year, said the company "continued to advance our key corporate initiatives" in the second quarter. These measures included increasing the company's funding flexibility, the repayment of higher-cost debt and the streamlining of its portfolio, Thain said.