CIT Group’s third-quarter profit improved thanks to a variety of one-time items tied to an ongoing restructuring led by Chairwoman and CEO Ellen Alemany.
Net income at the $49 billion-asset Livingston, N.J., company rose 67% to $220 million, compared to the same period a year ago. Earnings per share, excluding several one-time items, were $1.02, or 23 cents estimate of analysts compiled by FactSet Research Systems.
One of the central goals of Alemany’s
Several one-time items affected CIT’s third-quarter results, including a $140 million deferred tax benefit from restructuring an international legal entity, which contributed $1.03 per share to earnings; and $33 million in charges for debt extinguishment charges, which reduced earnings by 24 cents per share.
Net interest income fell 4% to $277 million on lower purchase accounting accretion and higher negative income associated with the indemnification asset.
Noninterest income dropped 7% to $316 million due to a total of $27 million in aggregate charges, including a $5 million writedown of foreclosed property, $9 million of impairment on reverse mortgage-related assets and a $12 million writedown of reverse mortgage loans.
Noninterest expense rose 7% to $460 million, partly as a result of restructuring costs.
