CIT Group, the US finance company, made a loss
in the third quarter as it paid down debt, but there was strong
growth in its vendor finance division.
CIT,
which emerged from bankruptcy in 2009, reported a net loss
of $16m (€11.2m) for the quarter to September 30 2011 — down
from net income of $116m (€81.8m) a year ago.
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However, pre-tax earnings at the company’s
vendor finance business were $77m (€54.3m), up from $22m (€15.5m)
in the previous quarter.
CIT, which provides $35 billion in finance and
leasing assets, said that growth in vendor finance came from lower
credit costs, increased gains on asset sales, and lower operating
expenses.
CIT said that total financing and leasing
assets was $4.5 billion (€3.17bn), down from $4.7bn (€3.31bn) in
the previous quarter.
New business increased two per cent to $607m
(€428.3m) from the previous quarter.
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By GlobalDataJohn Thain, CIT chairman and chief executive
officer said: “Our franchises remain strong and continue to provide
much needed financing to the small business and middle market
sectors despite the continued uncertainties around the U.S. and
global economies. We advanced our 2011 priorities by growing
business volumes, accessing diverse funding markets, and further
reducing high cost debt.”
