CIT Group Inc. (CIT) reported first-quarter net income of $162.6 million, compared to a net loss of $427.0 million in the first quarter of 2012. The loss in the year-ago quarter was primarily due to $620 million of debt redemption charges, compared to $18 million of debt redemption charges in the current quarter. On a per share basis, net income for the quarter was $0.81 per share, compared to a loss of $2.13 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.
The first quarter results reflected growth in earning assets, lower funding costs, and continued positive portfolio performance. The $590 million improvement in net income from the year-ago quarter was primarily due to a decrease of approximately $600 million in debt redemption charges and lower funding costs, offset by reduced gains on asset sales and lower net FSA interest accretion.
Net interest revenue for the quarter was $63.9 million, compared to negative net interest revenue of $654.3 million in the prior year quarter. Total non-interest income for the quarter was $515.0 million, down from $695.9 million in the year ago quarter.
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