CIT Group reported Q2/17 net income of $157 million compared to $17 million for the same quarter a year ago. Income from continuing operations for the second quarter was $41 million compared to $88 million in the year-ago quarter.

The following highlights were excerpted from the news release:

• CIT completed the sale of its Commercial Air business in April for $10.4 billion and recorded a pre-tax gain of $146 million. The company noted the transaction returned $3.3 billion of common equity and reduced unsecured borrowings by $5.8 billion. It also enabled significant liability management and capital actions.
• Commercial finance average earning assets for the six months ended June 30, 2017 were $10.04 billion, down from $11.70 billion for the same six months in 2016. Revenue for the period was $198.7 million, down from $228.6 million a year earlier. The gross yield for the period was 5.38%, up from 5.29% for the same period in 2016. The net finance margin was 3.96%, up from 3.91% a year earlier.
• Rail financing average earning assets for the six month period ended June 30, 2017 were $7.36 billion, up from $6.95 billion for the same period in 2016. Revenue for the period was $159.4 million, down from $194.2 million in 2016. The gross yield for the period was 11.83% compared to 13.45% a year earlier. The net finance margin of 4.33% was down 125 basis points from 5.58% a year earlier.
• Business Capital average earning assets for the six month period ended June 30, 2017 were $6.23 billion, up from $5.85 billion a year earlier. Net finance revenue for the period was $162.4 million, up from $151.3 million for the same six months in 2016. The gross yield of 8.90% was up from 8.36% a year earlier. The net finance margin of 5.21% was up from 5.17% in 2016.
• The operating lease equipment net balance at the end of Q2/17 was $7,552.6 million, up from $7,073.6 million a year earlier. The “rate” was 6.47% at the most recent period end compared to 8.51% a year earlier.
• Commercial banking funded new business volume for the six month period ended June 30, 2017 of $3,661.7 million was down from $4,016.5 million a year earlier.
• CIT said it reached a definitive agreement to sell NACCO, its European rail leasing business in a transaction which will further the simplification of the company. NACCO is CIT’s last remaining ongoing business outside of North America.

“We made significant progress in advancing our strategic plan in the second quarter as we position CIT to be a leading bank serving the middle market and small businesses nationwide,” said Ellen R. Alemany, chairwoman and CEO. “We successfully closed on the sale of Commercial Air, completed nearly $9.5 billion of capital and liability management actions, reached an agreement to sell our last remaining ongoing overseas business, and received a non-objection on our 2017 capital plan.”