NEW YORK—CIT Group, in the midst of efforts to restore its weak financial situation, reported a net loss of $1.7 billion in the second quarter, compared with the $2.1 billion net loss from the second quarter of 2008.
In spite of the slightly better bottom line, CIT said in a filing with the U.S. Securities and Exchange Commission that this year’s second-quarter loss exceeded its expectations. The company said the second-quarter results were negatively affected by an additional provision for credit losses, asset-impairment charges and the sale of receivables to raise liquidity. “The weak economic environment is directly impacting our credit costs,” the filing said. “The provision for credit losses, non-accrual accounts and charge-offs increased from the prior quarter.”
Interest income for CIT was $614.5 million, down 33 percent from the second quarter of a year ago.