CIT Group reported net income of $515 million for the third quarter of 2014, compared to net income of $200 million for the year-ago quarter. Income from continuing operations for the third quarter was $515 million compared to $193 million in the year-ago quarter. Net income for the three month period ended September 30, 2014 included a $375 million income tax benefit associated with the partial reversal of the valuation allowance related to the U.S. Federal deferred tax asset.

Net income for the nine month period ended September 30, 2014 was $879 million compared to $546 million for the period ended September 30, 2013. Income from continuing operations for the nine month period ended September 30, 2014 was $826 million compared to $521 million for the period ended September 30, 2013. Net income for the nine month period ended September 30, 2014 also included the $375 million income tax benefit associated with the previously mentioned partial reversal of the tax related valuation allowance.

Highlighted Performance

• Solid Commercial Franchise Performance – Combined North American Commercial Finance and Transportation & International Finance financing and leasing assets grew 17% from a year ago; Pre-tax ROAEA over 2%;
• Partial Reversal of the Tax-Related Valuation Allowance – Net Income benefited by $375 million from reversal of the Valuation Allowance related to the U.S. Federal Deferred Tax Asset;
• Accelerated Portfolio Repositioning – Advanced portfolio exits and other restructuring charges resulted in an after-tax charge of $57 million;
• Completed Direct Capital Acquisition – Added $550 million of assets; Resulted in a discrete tax benefit of $30 million;
• Maintained Strong Capital Ratios – Repurchased $106 million common shares in the quarter; Tier 1 Capital Ratio of 14.3% and Total Capital Ratio of 15.0%.

“Our core businesses achieved solid financial performance this quarter as we made further progress in positioning CIT for future success,” said John Thain, Chairman and Chief Executive Officer. “We advanced our bank strategy through our announced acquisition of OneWest Bank, grew our earning assets, completed the acquisition of Direct Capital and made progress exiting our non-strategic portfolios. As we look towards 2015, we will continue to focus on enhancing shareholder value by growing our franchises, expanding CIT Bank, achieving our profitability targets and returning capital to our shareholders.”

To read the full earning release, click here.