CIT Group struggles with soaring costs

US business lender CIT Group said yesterday a fall in interest income and higher expenses hits its fourth-quarter profit. CIT, which emerged from bankruptcy in December 2009 after a $2.3bn government bailout, said margins had worsened and costs had risen nine per cent despite paying off some of its costly debt pile. Net income stood at $74.8m, down 35 per cent on the previous quarter. CIT restated its profits for the start of 2010 after finding accounting errors.