CIT Group's second-quarter profit slipped as net finance margins fell and the bank incurred higher costs.
Non-interest income fell by almost $22 million in the quarter to $595.2 million and net finance margin, a figure pegged largely to interest rates, fell from 4.91 percent, to 4.57 percent.
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Chairman and CEO John Thain said that the results revealed growth in the transportation sector and "the continuing competitive environment, particularly for middle market lending."
Earnings for the transportation and international finance segment climbed to $157 million from $148 million. Financing and leasing assets increased to $19.3 billion from $18.4 billion on growth in all transportation divisions.
The commercial lender earned $115.3 million, or 66 cents per share, for the period ended June 30. That compares with $246.9 million, or $1.29 per share, a year ago.
The prior-year period included 27 cents per share of income from a discontinued operation.
The average estimate of eight analysts surveyed by Zacks Investment Research was for slightly higher earnings of 68 cents per share.
Revenue fell about 4 percent to $406.6 million.
Thain said in a written statement that the company is on track to close on its buyout of OneWest next week. CIT Group announced a year ago that it was buying regional bank OneWest Bank in a $3.4 billion cash-and-stock deal.
Shares of CIT Group Inc. shed 32 cents to $46.19 in Tuesday morning trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CIT at http://www.zacks.com/ap/CIT
Keywords: CIT Group, Earnings Report