CIT Group (CIT)
posted a second-quarter loss of $48 million, or 24 cents per share, on costs tied to a prepayment on debt.
The lender to small and midsize businesses earned $182 million, or 91 cents per share, a year earlier. CIT fared better than analysts expected, with the average forecast predicting a loss of 32 cents a share range.
"While our recent efforts to advance our liability restructuring initiatives further reduce our cost of capital and position CIT for long-term success and profitability, they negatively impacted our second quarter results," said CIT Chairman and CEO John Thain.
Second-quarter results were hurt by the company's early retirement of $2.5 billion of second lien debt and $163 million in debt-related costs.
During the quarter, the company's provision for credit losses fell 31% from the previous quarter and 66% over last year as net charge-offs declined.
Thain, the former Merrill Lynch
executive, was brought to CIT Group to help restructure the firm in the wake of a 2009 bankruptcy.
Write to Kerri Panchuk