CIT Announces First Quarter 2018 Results

NEW YORK, April 24, 2018

Highlights:

• First quarter net income available to common shareholders of $97 million or $0.74 per diluted common share; income from continuing operations available to common shareholders of $104 million or $0.79 per diluted common share
  
  
• Excluding noteworthy items, first quarter income from continuing operations available to common shareholders¹ of $97 million or $0.74 per diluted common share
  
  
• Average loans and leases grew 1.7% compared to the prior quarter. Average loans and leases in core portfolios² grew 2.3%
• Substantial increase in funded volume in 1Q18 compared to the year-ago quarter
  
  
• Received non-objection for amended 2017 capital plan, increasing approved common equity distributions to up to $900 million for 1H18
• $195 million in common share repurchases in 1Q18
• Repurchased 3.7 million common shares at an average price of $53.16 per share in 1Q18
• CET1 ratio of 14.0% at the end of the quarter remains above our target level
  
  
• Strategic dispositions with definitive agreements continue to progress
• Financial Freedom, including our reverse mortgage portfolio, targeted to close in 2Q18
• NACCO, our European Rail business, targeted to close in 2H18

CIT Group Inc. (NYSE: CIT) today reported first quarter net income available to common shareholders of $97 million or $0.74 per diluted common share, compared to net income available to common shareholders of $180 million or $0.88 per diluted common share for the year-ago quarter.  Income from continuing operations available to common shareholders for the first quarter was $104 million or $0.79 per diluted common share, compared to income available to common shareholders of $78 million or $0.38 per diluted common share in the year-ago quarter.

Income from continuing operations available to common shareholders excluding noteworthy items for the first quarter was $97 million or $0.74 per diluted common share, compared to $109 million or $0.54 per diluted common share in the year-ago quarter, as a decline in net finance revenue and an increase in the provision for credit losses were partially offset by lower operating expenses and higher other non-interest income. The increase in income from continuing operations excluding noteworthy items per diluted common share reflects the decline in the average number of diluted common shares outstanding due to significant share repurchases over the past four quarters more than offsetting the decline in income.

"In the first quarter, we posted solid growth in our core businesses and continued to make significant progress on our strategic plan," said CIT Chairwoman and Chief Executive Officer Ellen R. Alemany. "Origination volumes increased significantly year-over-year, and the direct bank franchise continued to grow, adding $1.5 billion in deposits and more than 28,000 new customers. Affecting results was a single commercial exposure, and excluding that, credit performance was generally stable and credit reserves remain strong."

Alemany continued, "We also made strides in optimizing our capital structure through the repurchase of $195 million of common stock, and we remain focused on advancing our strategic plan and achieving our profitability targets."