CIT Reports Q1/20 Loss of $628MM, Stable Net Revenue of $496MM
APR 21, 2020 - 6:45 am
CIT reported a Q1/20 loss of $628 million, compared to net income of $119 million in Q1/19. Q1/20 net revenue of $496 million was up 6% from $466 million in Q1/19.
CIT’s results reflected a $469 million provision for credit losses, of which $405 million relates to the forecasted macroeconomic environment.
The financial results and trends in Q1/20 reflect three key events during the quarter:
The global pandemic from the spread of the COVID-19 virus and the ensuing adverse impact on the macroeconomic environment.
The adoption of the Current Expected Credit Losses (CECL) standard, which requires the estimation of credit losses over the full remaining expected life of the portfolio, rather than the incurred loss model.
The acquisition of Mutual of Omaha Bank (MOB) on January 1, 2020, which impacts the comparability of current quarter results to prior periods.
“After several years of transformation, CIT entered 2020 as a stronger company. These unprecedented times have tested and confirmed that we have the resources, expertise and rigor to respond to the challenges related to COVID-19,” said CIT Chairwoman and Chief Executive Officer Ellen R. Alemany. “Our first response to the pandemic was to ensure the continuity of our operations, support for our employees and assistance for our customers and communities. Additionally, we remain focused on ensuring our capital and liquidity positions remain solid and our funding profile strong.”
Alemany continued, “While our first quarter results were affected by the current economic environment, I’m proud of the agility and resilience of the CIT team. We will continue to operate steadily through this dynamic environment and to meet the evolving needs of our customers with the breadth of our experience and dedication.”
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