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Dienstag,
25.07.2017 12:35
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PR Newswire
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CIT Announces Second Quarter 2017 Results
Eine Tageszeitung (Symbolbild).
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PR Newswire
NEW YORK, July 25, 2017
NEW YORK, July 25, 2017 /PRNewswire/ --
Highlights :
- Second quarter net income of $157 million or $0.85 per diluted common share; income from continuing operations of $41 million or $0.22 per diluted common share
- Second quarter income from continuing operations excluding noteworthy items1 of $126 million or $0.68 per diluted common share
- Completion of Commercial Air sale enabled significant liability management and capital actions
- Returned $3.3 billion of common equity
- Reduced unsecured borrowings by $5.8 billion
- Issued $325 million in preferred stock that qualifies as Tier 1 capital for regulatory purposes
- Received non-objection to 2017 capital plan, including a quarterly cash dividend of up to $0.16 per common share and common stock repurchases of up to $225 million
- Reached a definitive agreement to sell NACCO, our European rail leasing business
- Transaction will further the simplification of the company
- NACCO is CIT's last remaining ongoing business outside of North America
- Remain on track to reduce annual operating expenses by $150 million by 2018
- 83% of Loans and Leases in CIT Bank; Deposits now represent 78% of total funding
- Loans and leases to deposits ratio of 96% at CIT Bank
CIT Group Inc. (NYSE: CIT) today reported second quarter net income of $157 million or $0.85 per diluted common share, compared to $17 million or $0.08 per diluted common share for the year-ago quarter. Income from continuing operations for the second quarter was $41 million or $0.22 per diluted common share, compared to $88 million or $0.43 per diluted common share in the year-ago quarter.
Income from continuing operations excluding noteworthy items for the second quarter was $126 million or $0.68 per diluted common share, compared to $94 million or $0.46 per diluted common share in the year-ago quarter.
"We made significant progress in advancing our strategic plan in the second quarter as we position CIT to be a leading bank serving the middle market and small businesses nationwide," said Chairwoman and Chief Executive Officer Ellen R. Alemany. "We successfully closed on the sale of Commercial Air, completed nearly $9.5 billion of capital and liability management actions, reached an agreement to sell our last remaining ongoing overseas business, and received a non-objection on our 2017 capital plan."
Alemany continued, "As we look ahead, we remain focused on executing our plan to achieve a 10 percent ROTCE by the end of 2018, which includes maximizing the potential of our businesses, achieving our expense goals, reducing funding costs and optimizing the capital structure."
ROTCE2 for continuing operations was 2.84%. ROTCE for continuing operations excluding noteworthy items2 was 8.14%. Tangible book value per common share at June 30, 2017, was $46.34. The preliminary Common Equity Tier 1 capital ratio increased to 14.4%, and the preliminary Total Capital ratio increased to 16.2%, at June 30, 2017. These capital ratios are calculated under the fully phased-in regulatory capital rules.
Financial results for the second quarter in both continuing and discontinued operations were impacted by noteworthy items related to our strategic initiatives.
Noteworthy items (after tax) in the second quarter of 2017 in continuing operations included:
- $100 million ($0.54 per diluted common share) in debt extinguishment costs related to the reduction of $5.8 billion in unsecured debt;
- $9 million ($0.05 per diluted common share) in net interest cost related to the elevated borrowings and cash balances for the period between the closing of the Commercial Air sale and the completion of liability management and capital actions;
- $19 million ($0.11 per diluted common share) benefit from the resolution of legacy tax items;
- $7 million ($0.04 per diluted common share) benefit from a deferred tax asset recognition related to the pending sale of NACCO; and
- $2 million ($0.01 per diluted common share) in restructuring charges.
Noteworthy items (after tax) in the second quarter of 2017 in discontinued operations included:
- $100 million ($0.54 per diluted common share) gain on the sale of Commercial Air;
- $12 million ($0.07 per diluted common share) net benefit related to Financial Freedom due to a net release of the interest curtailment reserve and a reduction in the FDIC indemnification asset, partially offset by an impairment charge related to mortgage servicing rights.
Selected Financial Highlights
| | | | | | | | | | | | |
| | | | | | | | 2Q17 change* from: | ||||
| ($ in millions) | 2Q17 | | 1Q17 | | 2Q16 | | 1Q17 | | 2Q16 | ||
| | | | | | | | | | | | |
| Net interest revenue | $ 269 | | $ 293 | | $ 287 | | $ (24) | -8% | | $ (18) | -6% |
| Non-interest income | 336 | | 330 | | 361 | | 5 | 2% | | (25) | -7% |
| Total revenue | 605 | | 623 | | 648 | | (18) | -3% | | (43) | -7% |
| Noninterest expense | (591) | | (439) | | (425) | | (152) | 35% | | (166) | 39% |
| Income from continuing operations before credit provision | 14 | | 184 | | 223 | | (170) | -93% | | (209) | -94% |
| Provision for credit losses | (4) | | (50) | | (23) | | 45 | -91% | | 19 | -81% |
| Income from continuing operations before benefit (provision) for | 9 | | 134 | | 199 | | (125) | -93% | | (190) | -95% |
| Benefit (provision) for income taxes | 32 | | (56) | | (111) | | 88 | -157% | | 143 | -129% |
| Income from continuing operations | 41 | | 78 | | 88 | | (37) | -47% | | (47) | -53% |
| Income (loss) from discontinued operations, net of taxes | 116 | | 102 | | (71) | | 14 | 14% Werbung Mehr Nachrichten zur CIT Group Aktie kostenlos abonnieren
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