NEWS: CIT Group returned to a profit in its third quarter, benefiting from a sharp drop in interest expense and increased commercial lending.
DETAILS: The largest lender in the clothing industry said Tuesday that interest expense fell to $278 million from $816 million in the prior-year period. At CIT Bank, commercial loans climbed to $10.9 billion from $6.8 billion a year earlier.
The company's total interest income, or earnings from loans and deposits, declined to $337.4 million from $375.5 million. Noninterest income, which comes from fees and other items, rose to $545.9 million from $532.5 million.
Net charge-offs, or loans written off as uncollectible, increased to $27 million from $18 million.
Non-accrual loans, or loans that are past due and in danger of default, fell to $258 million from $412 million. Total loans climbed to $21.8 billion from $20.4 billion.
NUMBERS: CIT Group Inc. earned $199.6 million, or 99 cents per share, for the period ended Sept. 30. That compares with a loss of $299.2 million, or $1.49 per share, a year ago.
Analysts, on average, expected earnings of 94 cents per share, according to a FactSet poll.
STOCK: The shares rose $1.04, or 2 percent, to $52.01 in premarket trading Tuesday. Year to date, the stock is up 31 percent.