CIT Group Q4 and year-end income up

CIT Group has reported net income of $251 million for Q4 2014, up from $130 million the same quarter the previous year, while net income for the year ended December 31, 2014 was $1,130 million, compared to $676 million the previous year.

“We made good progress in 2014 building our commercial franchise,” said John Thain, chairman and CEO. “In addition to growing our assets organically, we made two key acquisitions that will strengthen our commercial franchises and improve returns.”

“In 2015, we will continue to build long-term value by focusing on closing and integrating the acquisition of OneWest Bank, returning additional capital to our shareholders, and meeting the financing needs of our small and middle market customers,” Thain said.

In Q4 financing and leasing assets in North American Commercial Finance and Transportation & International Finance were $35.3 billion, a slight decrease from the previous quarter reflecting a high level of prepayments and asset sales. However they were up $3.9 billion (12%) from a year ago reflecting strong origination volumes and the two acquisitions of Direct Capital and Nacco.

Thain said the current quarter includes elevated benefits from asset sales, including a $30 million gain on the sale of aircraft to the joint venture and an $11 million gain from the sale of the UK corporate lending portfolio, partially offset by $17 million of impairments on assets held for sale on portfolios we are exiting. CIT Group has entered into agreements to sell the Brazil and Mexico businesses, and has also transferred its UK equipment finance portfolio to “held for sale”.