Financial services company CIT reported a
quarterly income for its vendor finance segment of $22m (€15.4m),
an increase of $8m (€5.6m) from the previous quarter and of $24m
($16.8m) compared to same quarter last year.
The upswing reflects lower credit costs and
the earnings from selling Dell Canada in late April this year, said
a CIT press release.
The vendor finance segment is now the fourth
biggest segment of CIT in terms of income contribution, compared to
being the second smallest segment in 2010.
“We made significant progress increasing our new business volume
and strengthening our presence in middle market lending and
leasing,” said John Thain, chairman and chief executive officer of
The company spent $593m (€415m) on funding new
business for the quarter, an 11% increase on the same quarter of
last year, when it spent $533m (€373m).
With Dell Canada being sold, the total
financing and leasing assets declined to $4.7bn (€3.3bn) from
$5.3bn (€3.7bn) in the first quarter of 2011 and went down $2bn
(€1.4bn) from June last year.
CIT also sold its Australia and New Zealand
platforms in the second quarter of last year, which reflects the
decline of total assets in the vendor finance segment.
CIT made an overall net loss of $48.7m (€34.1)
or $0.24 (€0.17) per share, driven by costs related to $163m
(€114m) of debt-related costs.
“While our recent efforts to advance our
liability restructuring initiatives further reduce our cost of
capital and position CIT for long-term success and profitability,
they negatively impacted our second quarter results,” said