Fourth-quarter profit tanked at CIT Group in New York, as the costs to dismiss former OneWest Bank executives, and losses tied to the sale of Brazilian businesses weighed on results.
The $67 billion-asset company's net income fell 42% to $144.5 million from a year earlier, CIT said in a news release Tuesday. Earnings per share fell 47% to 72 cents.
Net interest income after the provision for credit losses increased to $166.1 million from $14.3 million. Total loans rose 62% to $31.7 billion. The results were skewed by CIT's
- New York
CIT Group will pay about $60 million in severance to 14 executives who have been dismissed or left the company, as it continues to shuffle its executive lineup following its August acquisition of OneWest Bank.
December 9 -
CIT Group has completed its acquisition of OneWest Bank in Pasadena, Calif.
August 3 -
American International Groups announcement Tuesday that it plans to split off its mortgage insurance business takes the prospect of a broader breakup off the table in the short term, but some observers think the firm may still break itself up eventually.
January 26
Noninterest income, excluding rental income on operating leases, fell 74% to $30.4 million. Gains on sales of leasing equipment fell 68% to $16.9 million. The category also included a $30 million loss on the sale of businesses in Brazil, related to the recognition of $51 million of currency translation adjustment losses.
Noninterest expense rose 44% to $357.8 million. The figure excludes depreciation on operating lease equipment; maintenance and other operating lease expenses; and losses on debt extinguishment.
The expense line rose as CIT in December
Separately, the activist investor Hudson Executive Capital plans to push John Thain, CIT's chairman and chief executive, to sell or spin off parts of CIT, according to the
