CIT Group Inc. (CIT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $1,154.70 million, or $ 5.71 a share in the quarter, against a net profit of $144.50 million, or $0.72 a share in the last year period.
Revenue during the quarter dropped 21.90 percent to $400.50 million from $512.80 million in the previous year period. Net interest income for the quarter was almost flat at $296.60 million, when compared with the prior year period. Non-interest income for the quarter fell 48.69 percent over the last year period to $140.60 million.
CIT Group Inc. has made provision of $36.70 million for loan losses during the quarter, down 36.28 percent from $57.60 million in the same period last year.
Net interest margin contracted 5 basis points to 3.59 percent in the quarter from 3.64 percent in the last year period. Efficiency ratio for the quarter deteriorated to 119 percent from 61.80 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"The past year was a pivotal time for CIT. We embarked on a new strategic direction for the company, and we continued to make progress on our goals," said chairwoman and chief executive officer Ellen R. Alemany. "Our recent actions to transform the company and address legacy issues significantly affected our financial results but were necessary measures in our journey to simplify and strengthen the company for the future. The steps we have taken will best position CIT to deliver long-term value for our clients, customers and shareholders."
Assets, liabilities fall
Total assets stood at $64,190.70 million as on Dec. 31, 2016, down 4.90 percent compared with $67,401.50 million on Dec. 31, 2015. On the other hand, total liabilities stood at $54,167.10 million as on Dec. 31, 2016, down 4.16 percent from $56,422.90 million on Dec. 31, 2015.
Deposits outpace loan growth
Net loans stood at $29,103.30 million as on Dec. 31, 2016, down 7.05 percent compared with $30,174.90 million on Dec. 31, 2015. Deposits stood at $32,304.30 million as on Dec. 31, 2016, down 1.40 percent compared with $32,761.40 million on Dec. 31, 2015.
Investments stood at $4,491.10 million as on Dec. 31, 2016, up 52.05 percent or $1,537.40 million from year-ago. Shareholders equity stood at $10,023.60 million as on Dec. 31, 2016, down 8.70 percent or $955 million from year-ago.
Tier-1 leverage ratio stood at 13.90 percent for the quarter, up from 13.40 percent for the previous year quarter. Book value per share was $49.60 for the quarter, down 9.17 percent or $5.01 compared to $54.61 for the same period last year.
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