UPDATE 1-CIT Group Q3 beats St, revises Q1, Q2 profit upwards

* Q3 adj EPS $0.68 vs est $0.49: Thomson Reuters I/B/E/S

* Q1, Q2 profits revised up by nearly 20 pct each

Oct 26 (BestGrowthStock) – CIT Group (CIT.N: ), the commercial lender
that last year emerged from bankruptcy, reported a quarterly
profit that handily beat Wall Street expectations, and revised
upwards its profit for the first two quarters.

The revision followed an accounting review which showed
immaterial errors that impacted the results in those quarters,
CIT said in a statement. [ID:nWNAB6868]

Net income for the third quarter was $131.5 million, or 66
cents a share. It lost $1.07 billion, or $2.74 a share prior to
the bankruptcy and a financial restructuring in the comparable
year-earlier period.

Adjusted earnings, which excludes restructuring charge of 2
cents, was 68 cents a share, compared with analysts view of 49
cents a share, according to Thomson Reuters I/B/E/S.

“Our balance sheet remains strong and capital ratios rose,
as we paid down high-cost debt, further optimized our portfolio
and improved our funding flexibility,” CEO John Thain said.

The company said its latest third-quarter results reflect
increased business activity as funded volume exceeded $1

Provision for credit losses increased to $397 million from
$328 million at June 30, 2010.

“Although credit metrics showed signs of stabilizing in the
third quarter, we built reserves for incremental deterioration
beyond the Fresh Start Accounting discount on pre-emergence
loans,” the New York-based company said.

The small- and mid-market commercial lender filed one of
the five largest bankruptcies in U.S. history on Nov. 1, 2009,
and emerged on Dec. 10.

The filing caused the government to lose the $2.3 billion
of federal bailout money it had injected in December 2008.

Shares of the company, which have gained nearly 40 percent
in value since the lender’s emergence from bankruptcy in
December, closed at $40.58 on the New York Stock Exchange on
(Reporting by Sweta Singh in Bangalore; Editing by Jarshad

UPDATE 1-CIT Group Q3 beats St, revises Q1, Q2 profit upwards