CIT Group Q1 Earnings Report:

CIT posted an EPS of $0.59 and revenue of 423.8M and both numbers missed estimates of $0.73 and revenue of 456.74M. Most of the lower profits came from its North American finance business, and lower net interest margin. CIT had a net interest margin of 4.34% last quarter, and it dropped to 4% this quarter. These lower margins will aid in the acquisition of OneWest bank expected to close mid of 2015. CIT Group is also extending their stock buyback program by looking to acquire $200M through share repurchase. Although CIT missed estimates, they are still up on net finance revenue from last year. CIT Group’s management does not view this quarter as a setback, because this quarter was in line with internal expectations. With General Electric scaling back their financial arm, CIT Group can take advantage of this opportunity since it fits their business model more than General Electrics. CIT Group also increased assets this quarter from last by increasing the amount of deposits they have.