CIT Q3 pre-tax earnings up 35% on cheaper funding and more assets

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CIT Group's transportation finance division, which covers funding for aircraft, locomotives and railcars, reported a 35% increase in pre-tax third quarter earnings to $129.3 million compared with the prior-year quarter.

The finance group says in an earnings statement today the improved results reflect "asset growth and lower funding costs".

Equipment utilisation "remained strong" with 99% of commercial air equipment on lease or under a commitment at 30 September, says CIT.

All but two of the 18 aircraft scheduled for delivery in the next 12 months have lease commitments.

New business volume of $563 million includes the addition of six aircraft to the operating lease portfolio, and nearly $200 million of loans across the transportation division.

The parent company, CIT Group, reported a loss of $305 million for the quarter.