CIT Group (CIT) has reported 80.84 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $132.80 million, or $0.65 a share in the quarter, compared with $693.10 million, or $3.61 a share for the same period last year. Revenue during the quarter grew 16.91 percent to $802 million from $686 million in the previous year period. Net interest income for the quarter rose 33.86 percent over the prior year period to $210.70 million. Non-interest income for the quarter rose 10.20 percent over the last year period to $637.50 million.
Cit Group has made provision of $46.20 million for loan losses during the quarter, down 7.41 percent from $49.90 million in the same period last year.
Net interest margin contracted 4 basis points to 3.63 percent in the quarter from 3.67 percent in the last year period. Efficiency ratio for the quarter improved to 53.10 percent from 62.20 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"I am pleased with the solid financial results we achieved this quarter in what continues to be a highly-competitive operating environment," said Ellen Alemany, chief executive officer. "We continue to focus on the execution of our strategic initiatives as demonstrated by the agreement to sell our Commercial Air business and the closing of the sale of our Canadian equipment and corporate finance businesses. Our recent actions will simplify our business, improve our overall financial profile and allow us to return significant capital to our shareholders."
Assets, liabilities fallTotal assets stood at $65,965.50 million as on Sep. 30, 2016, down 3.17 percent compared with $68,125.50 million on Sep. 30, 2015. On the other hand, total liabilities stood at $54,728 million as on Sep. 30, 2016, down 4.53 percent from $57,326.30 million on Sep. 30, 2015.
Deposits outpace loan growthNet loans stood at $29,496.50 million as on Sep. 30, 2016, down 8.03 percent compared with $32,071.20 million on Sep. 30, 2015. Deposits stood at $32,854.30 million as on Sep. 30, 2016, up 1.63 percent compared with $32,328.90 million on Sep. 30, 2015. Investments stood at $3,592.40 million as on Sep. 30, 2016, down 0.73 percent or $26.40 million from year-ago. Shareholders equity stood at $11,237.50 million as on Sep. 30, 2016, up 4.06 percent or $438.30 million from year-ago.
Tier-1 leverage ratio stood at 14.20 percent for the quarter, down from 15.10 percent for the previous year quarter. Book value per share was $55.62 for the quarter, up 3.50 percent or $1.88 compared to $53.74 for the same period last year.
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