CIT Group reported Quarter three earnings pre market open on November 3rd. CIT Group posted EPS at $.80 and revenues of 520.9M. CIT Group beat estimates by $.09 and $.54M, yet the street reacted negatively to the beat, dropping CIT Group 2.5% on November 3rd. In the Transportation and North American banking business, CIT Grew to just over a billion dollars excluding the recent acquired assets. In transportation the commercial aircraft utilization rose slightly to 98%, and railcars declined to 97% which is because of the weaknesses in the commodity markets. CIT Group is continuing to participate in a share buyback program, and they provided investors a total of $170 million dollars.
Acquiring OneWest Bank increased CIT’s assets by almost 22 billion, which included 6 billion in cash, 8 billion in loans, and 6 billion in a run off mortgage portfolio. Net financing margin increased by 30 basis points to 3.7%, mostly because of a lower funding cost now. CIT’s transition to a commercial bank looks like it paying off, and with the possible increase in interest rates, CIT Group would only become more profitable, especially with the new acquisition.