CIT Group (CIT) Tops Q2 EPS by 14c

CIT Group (NYSE: CIT) reported Q2 EPS of $1.11, $0.14 better than the analyst estimate of $0.97.

Highlights:

• Second quarter net income available to common shareholders of $117 million or $0.94 per diluted common share; income from continuing operations available to common shareholders of $138 million or $1.11 per diluted common share
• Excluding noteworthy items, second quarter income from continuing operations available to common shareholders1 of $125 million or $1.00 per diluted common share
• Average loans and leases were essentially unchanged compared to the prior quarter. Average loans and leases in core portfolios2 grew 1%
  • Funded volume increased to $2.9 billion, up 30% compared to the year-ago quarter
  • Significant prepayments in Commercial Finance and Real Estate Finance divisions
• Completed repurchase of $680 million in common equity in 2Q18, consisting of approximately 12.5 million shares at a weighted average price per share of $54.43
  • CET1 ratio of 13.2% at the end of the quarter remains above our target level
• Announced an additional common equity capital return of up to $750 million
• Increased quarterly per share common stock dividend by 56% to $0.25
• Closed on the sale of Financial Freedom, including our reverse mortgage portfolio

"Our second quarter results reflect strong originations, lower operating expenses and continued capital optimization as we make steady progress on our strategic plan,\" said CIT Chairwoman and Chief Executive Officer Ellen R. Alemany. "The direct bank delivered steady performance as we continued to build that franchise, adding $1.5 billion of average deposits and about 20,000 new customers. In addition, the Business Capital division posted another quarter of solid growth, which was fueled by the investments we have made in technology and talent in our equipment financing operation."

Alemany continued, "Capital return remains a key component for us to achieve our ROTCE targets, and we are pleased with our progress in the second quarter. Going forward, we have increased our quarterly dividend by 56 percent per share and plan to return an additional $750 million of capital."

For earnings history and earnings-related data on CIT Group (CIT) click here.

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