CIT said on Tuesday it earned 66 cents a share or $131.5 million in the second quarter, thanks to gains in its transportation finance and vendor finance businesses.

Shares of the finance company were up $1.78 at $42.36 in early trading.

The company, which filed the largest prepackaged bankruptcy in U.S. corporate history last year, said it revised its first and second quarter 2010 results higher because of changes to its accounting processes.

In the second quarter, CIT’s net income was revised to $171.4 million, or 85 cents a share, from a previously reported $142.1 million, or 71 cents a share.

Meanwhile, first-quarter net income was revised to $115.4 million, or 58 cents a share, from $97.3 million or 49 cents a share.

“Our balance sheet remains strong and capital ratios rose as we paid down high cost debt, further optimized our portfolio and improved our funding flexibility,” CIT chief executive John Thain said in a press release.

CIT said new business activity within its transportation finance business was bolstered by greater use of its commercial air fleet and its rail fleet. “Our commercial air fleet remains effectively fully utilized and our rail fleet utilization improved to 94%,” the company said in the press release.

Earnings rose in vendor finance because of assets sales and lower credit and operating costs.
CIT’s consumer finance business results were negatively affected by the transfer to “asset-held-for-sale” of its private student loan portfolio and a pool of government guaranteed loans. These asset sales are expected to close in the final three months of the year, the company said.

Meanwhile, CIT Bank, CIT’s Utah-chartered bank, continued to “actively” originate loans.

Committed loan volume rose to $314 million from $180 million in the second quarter. As of Sept. 30, total assets at CIT Bank were $7.4 billion and total deposits were $4.8 billion.

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