CIT Group’s bounce-back accelerates

CIT GROUP, the US commercial lender that last year emerged from bankruptcy, reported a forecast-beating quarterly profit yesterday, and revised upwards its profit for the first half of the year after an accounting review.

The bailed-out US lender said net income for the third quarter was $131.5m (£83m), taking the total income for the nine months to the end of September to £418.3m.

New York-based CIT lost $1.07bn in the run-up to the bankruptcy and financial restructuring in the comparable year-earlier period.

The company said its latest third-quarter results reflect increased business activity as funded volume exceeded $1bn.

“Our balance sheet remains strong and capital ratios rose, as we paid down high-cost debt, further optimised our portfolio and improved our funding flexibility,” said chief executive John Thain, who has sold off many of the firm’s non-core assets and cut jobs since joining in January 2009.
CIT filed one of the largest bankruptcies in US history in November 2009, causing the government to lose $2.3bn of federal cash used to bail out the firm in December 2008.