NEW YORK -CIT Group Inc. said Tuesday that fourth-quarter net income shrank 59 percent, but the lender to small- and mid-sized businesses reported gains in new business.
CIT said its funded new business volume rose 92 percent from a year ago, to $2.9 billion. CEO John Thain said the company was well-positioned to grow this year.
In the fourth quarter, net income was $33.9 million, or 17 cents per share. That compared with $83.2 million, or 41 cents per share, a year earlier, when its business received a benefit from accounting related to CIT's bankruptcy reorganization in late 2009.
Interest income fell 35 percent, to $492.4 million from $754.3 million. Total other income rose slipped to $637 million from $651.8 million.
The company also said it would revise results for the 2009, 2010 and the first three quarters of 2011 to correct errors that mostly occurred before its Chapter 11 filing.
The errors involved about $68 million in refunds of unresolved credits that are owed to customers, mostly retailers. About $66 million relates to credits from 2009 or earlier, and was recorded as a charge against 2009 income, the company said.
The lender said the errors wouldn't have resulted in significant changes to any of the earlier periods but would have made a big difference if included in the fourth-quarter results. The changes reduced tangible book value by 32 cents per share, the company said.
The shares rose 14 cents to close at $38.14.
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