Jan 28 CIT Group Inc reported a 37
percent fall in its quarterly profit as the century-old
small-business lender booked a charge and earned lower interest
The company booked a $45 million settlement charge in the
quarter related to a dispute with former parent Tyco
Interest income fell 5 percent to $338
CIT filed for bankruptcy in 2009 after a debt exchange offer
and bailout talks failed. The bank, which emerged from Chapter
11 bankruptcy protection later that year, named former Merrill
Lynch head John Thain as CEO in February 2010.
The lender's net income fell to $129.9 million, or 65 cents
per share, for the fourth quarter ended Dec. 30 from $206.8
million, or $1.03 per share, a year earlier.
Interest expense on long-term debt fell 27 percent to $238.2
million, while overall interest expense fell 22 percent to
Expenses, excluding interest expense, rose 19 percent to
Shares of CIT, which has a market value about $9.45 billion,
closed at $47.22 on the New York Stock Exchange on Monday.