Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  CIT Group Inc.    CIT

Delayed Quote. Delayed  - 09/28 10:02:03 pm
36.47 USD   +2.79%
09/28 CIT : Provides $35 Million Financing for Mesa Airlines
09/26 CIT : New-Technology Aircraft Create Revenue Opportunities and Reduc..
09/23 CIT : Franchise Finance Expands Mid-Cap Restaurant Sales Team
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

CIT Angling To Steal Share From Big Banks

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/30/2012 | 09:55pm CEST
   By Andrew R. Johnson 
   Of  
 

More than two years after emerging from bankruptcy, CIT Group Inc. (>> CIT Group Inc.) is no longer shy about its aspirations to wrangle more financing deals from competing lenders like Wells Fargo & Co. (WFC) and GE Capital.

"This firm for a period of time was not as aggressively marketing itself for obvious reasons and now is in a position where it can," Neil Wessan, who joined CIT earlier this month as managing director and group head of capital markets, said in a recent interview.

Wessan, a former capital-markets executive at investment bank Gleacher & Co. Inc. (>> Gleacher & Company, Inc.), will oversee CIT's efforts to develop offerings used to raise capital for its clients--primarily small and mid-sized companies.

A chief goal for Wessan will be to help CIT increase share of "lead agent transactions," said Pete Connolly, co-head of CIT's corporate finance group. Wessan reports to Connolly and corporate finance co-head Jim Hudak.

"A lot of financial sponsors will put together five or six lenders to close a transaction as opposed to picking a lead agent and having them syndicate a transaction," Connolly said. "We think that's going to change over time. Neil was brought on board to help us win a greater share of lead agent transactions," or those deals in which CIT acts as the lead arranger.

CIT lends money to businesses for everything from office equipment to mergers and acquisitions. It is also the largest U.S. provider of factoring, a form of short-term financing commonly used by retailers, and leases railcars and airplanes.

A major focus for the company has been backing more of its loans with deposits out of CIT Bank, its bank subsidiary, to lower its financing costs. Bank deposits are a cheaper source of financing than raising debt, the strategy that it primarily relied upon prior to its bankruptcy in 2009.

CIT competes partly against traditional lenders like Wells Fargo and Bank of America Corp. (>> Bank of America Corp), which have larger deposit bases, and therefore typically enjoy much lower funding costs.

"You can never compete away these larger banks" on funding costs, said Don Fandetti, an analyst with Citigroup Inc. But "there's a lot to go around, and they will play in areas where banks ... may not be as active."

CIT's strength lies in its focus on specific industries, such as retail and energy, and it's close attention to small and mid-sized businesses, clients who have gone in and out of fashion with other traditional bank lenders, analysts say.

"This is a firm that understands issues associated with middle-market companies and it's not as if we're normally doing $2 billion deals" and now are going after smaller deals "because there aren't enough $2 billion deals," Wessan said. "This is the natural segment for CIT. As a result we face off much better against competitors."

CIT's commercial loans totaled $15.9 billion in the first quarter, up 4.6% from the fourth quarter, which it attributed partly to growth in corporate finance loans.

"CIT has turned the corner on asset growth and appears to be gaining ground in corporate finance and vendor finance given industry specific expertise," Brad Ball, an analyst with Evercore Partners Inc., wrote in a recent research note.

CIT filed for Chapter 11 bankruptcy in November 2009 as it faced challenges raising funds to make loans and many borrowers drew down their lines of credit. Its filing wiped out $10 billion in debt and a $2.3 billion government bailout.

The company exited bankruptcy the following month and has been led by Wall Street veteran John Thain since February 2010, when the former Merrill Lynch and New York Stock Exchange executive took over as chairman and chief executive officer.

While Thain and other executives have been focused on slashing high-cost debt CIT took on upon exiting bankruptcy, the lender more recently has been trying to raise its competitive profile. In March, the company unveiled a new global advertising campaign that includes print and online media, radio spots and other platforms.

CIT's shares were down 2.8%, at $33.99 in recent trading on a day of broader market declines. Its shares are down 2.6% this year.

-By Andrew R. Johnson, Dow Jones Newswires; 212-416-3214; andrew.r.johnson@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CIT GROUP INC.
09/28 CIT : Provides $35 Million Financing for Mesa Airlines
09/26 CIT GROUP INC : Other Events (form 8-K)
09/26 CIT : New-Technology Aircraft Create Revenue Opportunities and Reduce Operating ..
09/23 CIT : Franchise Finance Expands Mid-Cap Restaurant Sales Team
09/22 CIT : Provides $35 Million Financing for Mesa Airlines
09/21 CIT : Franchise Finance Expands Mid-Cap Restaurant Sales Team
09/15 CIT : Serves as Co-Lead Arranger for $138.5 Million Financing for Continuum Heal..
09/15 CIT : Serves as Lead Arranger and Administrative Agent for $242 Million Financin..
09/13 CIT : Appoints Stuart Alderoty as Executive Vice President, General Counsel and ..
09/12 CIT : TC-CIT Delivers an Airbus A330-200 to Iberia
More news
Sector news : Banks - NEC
12:28a CREDIT SUISSE, BARCLAYS IN MORTGAGE- : Bloomberg
09/28DJWELLS FARGO : California Treasurer to Suspend Some Business With Wells Fargo -- ..
09/28DJWELLS FARGO'S CLAWBACK : Politicians, Pay Experts Dig In
09/28DJWELLS FARGO : CEO's Isn't Out of Danger Despite Pay Clawback -- Update
09/28DJAnalysts See 57 Billion-Cubic Feet Rise in U.S. Natural-Gas Inventories
More sector news : Banks - NEC
News from SeekingAlpha
09/19 An Update On The Takeout Value Portfolio
09/08 CIT GROUP : Near-Term Catalyst To Unlock Substantial Shareholder Value With 25% ..
09/06 Avolon nears deal for CIT's aircraft leasing unit
08/31 Denali Investors 2Q16 Investor Letter
08/20 Tracking John Paulson's Paulson & Company Portfolio - Q2 2016 Update
Advertisement
Financials ($)
Sales 2016 2 540 M
EBIT 2016 1 061 M
Net income 2016 495 M
Debt 2016 -
Yield 2016 1,69%
P/E ratio 2016 15,12
P/E ratio 2017 9,85
Capi. / Sales 2016 2,82x
Capi. / Sales 2017 2,90x
Capitalization 7 167 M
More Financials
Chart CIT GROUP INC.
Duration : Period :
CIT Group Inc. Technical Analysis Chart | CIT | US1255818015 | 4-Traders
Full-screen chart
Technical analysis trends CIT GROUP INC.
Short TermMid-TermLong Term
TrendsNeutralBullishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 39,8 $
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Ellen Rose Alemany Chairman & Chief Executive Officer
Denise M. Menelly Executive VP, Head-Technology & Operations
Carol Hayles Chief Financial Officer & Executive Vice President
Marianne Miller Parrs Independent Director
William M. Freeman Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CIT GROUP INC.-10.63%7 116
JPMORGAN CHASE & CO.0.50%237 596
INDUSTRIAL AND COML BA..-3.71%232 549
WELLS FARGO & CO-17.05%226 444
CHINA CONSTRUCTION BAN..-10.73%186 893
BANK OF AMERICA CORP-9.15%153 990
More Results